NEW ORLEANS, Sept. 18 (UPI) -- EPL Oil & Gas Inc., a company focused on offshore Louisiana, announced it spent $550 million to acquire shallow water oil and gas assets in the Gulf of Mexico.
The company announced it acquired oil and natural gas interests from holding company Hilcorp Energy Co. EPL said the assets are producing roughly 10,000 barrels of oil equivalent per day and roughly half of that is oil.
EPL Chief Executive Officer Gary Hanna said the acquisition marks EPL's fourth in the region since 2011. He described the latest purchase as the company's "most transformational."
"This transaction nearly doubles our proved reserves to approximately 74 million boe," he said in a statement.
Proven reserves in the assets in the central Gulf of Mexico are estimated at 36.3 million boe, of which about 54 percent is oil. Hanna said the central gulf was the most prolific oil-bearing part of the region.
The deal should close by the end of October.
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