Houston’s Beacon Offshore Energy has completed of the divestment of non-operated interests in certain deepwater Gulf of Mexico (GoM) fields.
The company said the interests were purchased by GOM 1 Holdings Inc., an affiliate of O.G. Oil & Gas Ltd. Financial details of the transaction weren’t disclosed.
Beacon divested an 18.7% interest in the Buckskin producing field; 17% interest in the Leon development; 16.15% interest in the Castile development; 0.5% interest in the Salamanca FPS/lateral infrastructure; and 32.83% interest in the Sicily discovery, according to a March 29 press release.
Scott Gutterman, Beacon chairman and CEO said the transaction demonstrated the value the company created for its shareholders through the “efficient development of high margin fields in the deepwater Gulf of Mexico and the timely monetization of these assets.”
The company has been part of the developments since 2017.
Gutterman said Beacon will now allocate 100% of “our focus and resources to our deep inventory of operated properties. Driven by our existing sanctioned operated developments, including Shenandoah and Winterfell, we expect to deliver material production and cash flow growth commencing in the second quarter 2024 and continuing through 2025.”
Jefferies International Ltd. served as financial adviser to Beacon and Kirkland & Ellis LLP served as legal adviser.
Recommended Reading
Barnett & Beyond: Marathon, Oxy, Peers Testing Deeper Permian Zones
2024-04-29 - Marathon Oil, Occidental, Continental Resources and others are reaching under the Permian’s popular benches for new drilling locations. Analysts think there are areas of the basin where the Permian’s deeper zones can compete for capital.
Crescent Energy: Bigger Uinta Frac Now Making 60% More Boe
2024-05-10 - Crescent Energy also reported companywide growth in D&C speeds, while well costs have declined 10%.
ShearFRAC, Drill2Frac, Corva Collaborating on Fracs
2024-03-05 - Collaboration aims to standardize decision-making for frac operations.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
E&P Highlights: April 29, 2024
2024-04-29 - Here’s a roundup of the latest E&P headlines, including a new contract award and drilling technology.