Houston company to acquire Gulf assets

Dec. 31, 2007 at 1:55 PM   |   0 comments

HOUSTON, Dec. 31 (UPI) -- Houston-based Mariner Energy Inc. will acquire StatoilHydro ASA's U.S. Gulf of Mexico shelf operations.

The deal is valued at $243 million, and Mariner has said it will most likely fund the transaction under its credit facility.

The acquisition includes estimated proven oil and gas reserves of 52.4 billion cubic feet, 95 percent of which are developed, and estimated reserves of 24.1 billion cubic feet. Mariner said most of the estimated reserves are associated with proven reserves and should not require much more funding to prove.

The assets include 32 wells, 71 percent of which are operational and 11 drill-ready exploration prospects that will be drilled in 2008.

The purchase price includes an $8 million reimbursement to StatoilHydro for drilling costs associated with the High Island Block 166 No. 5 well, which is being drilled by Rowan Companies in 49 feet of water.

"StatoilHydro wishes to focus its strategy, operations, people and capital in the deepwater acreage where our technology and skills as the world's largest operator of deepwater fields are most advantageous to us," says Oivind Reinersten, senior vice president of StatoilHydro's North American region.

The deal is expected to close by Jan. 31, 2008.

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