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NEW ORLEANS, April 2, 2013 (GLOBE NEWSWIRE) -- EPL Oil & Gas, Inc. (EPL or the Company) (NYSE:EPL) today announced the closing of the transaction to sell certain non-operated assets for $51.5 million in cash and the buyer's assumption of liabilities currently recorded on EPL's balance sheet of $10.8 million, resulting in total consideration of $62.3 million.
Sale of non-operated assets in Bay Marchand (BM) field for total consideration of $62.3 million with EPL retaining its deep rights: $156,000 per flowing barrel, $39/Boe 1P reserves
Post close liquidity, in the form of cash plus undrawn revolver availability, of approximately $290 million
Sale of Non-Operated BM Asset
EPL has closed on its previously announced sale of certain shallow water Gulf of Mexico (GOM) shelf oil and natural gas interests located within the non-operated BM field area to the well-established property operator for $51.5 million in cash and the buyer's assumption of liabilities currently recorded on EPL's balance sheet of $10.8 million, resulting in total consideration of $62.3 million, subject to customary adjustments to reflect the January 1, 2013 economic effective date. Estimated proved reserves as of the January 1, 2013 economic effective date totaled approximately 1.6 million Boe, 90% of which are oil. The total proved divestiture PV-10 value is estimated at $53 million using the estimated proved reserves and strip pricing as of year-end 2012 (see discussion of PV-10 in appendix).
Post-close of the sale, EPL's liquidity, in the form of cash plus undrawn revolver availability, is approximately $290 million.
Gary C. Hanna, EPL's President and CEO, stated, "From time to time, we may decide to divest of certain assets that do not meet our capital expenditure risk, rate of return, operational control or other criteria in an effort to high-grade our overall portfolio of assets. This non-strategic asset sale gives us an immediate increase in liquidity and capital available for future investment deployment towards an acquisition or projects with operational control and higher returns. The sale also preserves our deep rights within the BM area."