Harbour Energy PLC will acquire LLOG Exploration Co. LLC from LLOG Holdings LLC. The acquisition gives the company an entry into the US Gulf of Mexico.
Key assets include LLOG-operated Who Dat in Mississippi Canyon, and Buckskin and Leon-Castile (recently brought online) in Keathley Canyon. Altogether there are more than 80 leases, predominantly in Mississippi Canyon and Keathley Canyon, and Harbour expects to secure 11 deepwater leases from a recent Gulf of America federal lease sale.
Production from these assets is expected to double by 2028, underpinned by the prolific Lower Tertiary Wilcox play. Current 2P reserves are 271 MMboe, and the fields are expected to produce for 22 years.
The acquisition will help Harbour produce around 500,000 bo/d by 2030 and provide an opportunity to drill eight wells over the next 2 years, according to Bracewell LLP.
Under terms of a membership interest purchase agreement (MIPA), Harbour will acquire LLOG for $3.2 billion. Funding will consist of $2.7 billion in cash from a $1 billion loan, Harbour’s existing sources of liquidity, and 174,855,744 new Harbour voting ordinary shares issued to LLOG Holdings LLC.
Upon completion, LLOG Holdings LLC will own 11% of Harbour’s listed voting ordinary shares with Harbour’s current shareholders owning 89%. Completion of the acquisition is expected to occur late first-quarter 2026.
