Energy XXI unit to acquire interests in gulf

Energy XXI (Bermuda) Ltd. has executed a conditional purchase agreement to acquire certain Gulf of Mexico shelf oil and natural gas interests from MitEnergy Upstream LLC, a subsidiary of Mitsui & Co. Ltd., for $283 million.

By OGJ editors
HOUSTON, Nov. 25
-- Energy XXI (Bermuda) Ltd. has executed a conditional purchase agreement to acquire certain Gulf of Mexico shelf oil and natural gas interests from MitEnergy Upstream LLC, a subsidiary of Mitsui & Co. Ltd., for $283 million.

The transaction involves mirror-image nonoperated interests in the same group of properties Energy XXI purchased from Pogo Producing Co. in June 2007. The properties include 30 fields currently producing 8,000 net boe/d, about 77% of which is oil and 80% of which is already operated by Energy XXI.

Upon restoration of volumes pending repair of third party pipelines damaged by hurricanes in 2008, net production is expected to reach 10,000 boe/d. Offshore leases included in the purchase total nearly 33,000 net acres.

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