Black Elk acquires Gulf of Mexico properties

Black Elk Energy LLC, private Houston independent, completed the acquisition of Gulf of Mexico oil and gas properties from an undisclosed seller for $30 million plus other cash considerations.

By OGJ editors
HOUSTON, Nov. 12
-- Black Elk Energy LLC, private Houston independent, completed the acquisition of Gulf of Mexico oil and gas properties from an undisclosed seller for $30 million plus other cash considerations.

The properties, purchased by its subsidiary, Black Elk Energy Offshore Operations LLC, include more than 35 fields with 350 wells on an estimated 320,000 gross acres in as much as 1,850 ft of water.

Black Elk Energy estimates the fields hold 25 bcf of gas equivalent of proved reserves. Proved, probable, and possible reserves are estimated at 80 bcf of gas equivalent, 43% liquids. Net daily production is 1,400 b/d of oil and 19 MMcfd of gas.

Included in the transaction are interests in three processing plants, four separation facilities, and 13 pipelines.

The properties are in the Mississippi Canyon, South Pass, Main Pass, Grand Isle, South Timbalier, East Cameron, West Delta, South Marsh Island, Vermilion, High Island, Ewing Bank, South Pelto, Eugene Island, and West Cameron areas.

The company said the purchase is consistent with its exploitation strategy and that it will continue to pursue low cost conventional gas acquisitions.

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