Stone Energy Corp. (NYSE: SGY) said April 27 it had agreed to purchase the Ram Powell Unit in the U.S. Gulf of Mexico from Shell Offshore Inc., ExxonMobil Corp. (NYSE: XOM) and Anadarko US Offshore LLC.
The acquisition includes 100% working interest in the Ram Powell Unit, which is located in 3,200 ft of water in the Viosca Knoll Area, Block 956, and is capable of processing 60,000 barrels per day (bbl/d) of oil and 200 million cubic feet per day of gas. The terms of the transaction weren't disclosed.
The assets comprise six lease blocks and the Ram Powell tension leg platform. Production for the Ram Powell Field averaged roughly 6,100 bbl/d during 2017.
The transaction is subject to customary closing conditions and is expected to close in early May, with an effective date of Oct. 1, 2017. Additionally, under the terms of the merger agreement between Stone and Talos Energy LLC announced in November 2017, this acquisition is subject to Talos's written consent, which Stone said Talos has provided.
Interim CEO and President James M. Trimble stated, "We are very excited to announce that we have reached an agreement to purchase the Ram Powell Field. The additional scale and diversification this acquisition provides support the strategies associated with the previously announced combination with Talos Energy. These assets will add meaningful reserves, production volumes, and cash flow to the combined company. I appreciate the efforts of the entire Stone team that contributed to this success."
[Editor's note: This transaction closed May 1.]
Recommended Reading
E&P Highlights: Jan. 12, 2024
2024-01-15 - Here’s a roundup of the latest E&P headlines, including an SLB-Nabors collaboration and new contract awards.
Ministry Offers 62 Licenses Offshore Norway in APA 2023
2024-01-16 - Sixteen of the new awards from the Norwegian Offshore Directorate add acreage to existing production licenses.
Gibson, SOGDC to Develop Oil, Gas Facilities at Industrial Park in Malaysia
2024-02-14 - Sabah Oil & Gas Development Corp. says its collaboration with Gibson Shipbrokers will unlock energy availability for domestic and international markets.
E&P Highlights: Feb. 16, 2024
2024-02-19 - From the mobile offshore production unit arriving at the Nong Yao Field offshore Thailand to approval for the Castorone vessel to resume operations, below is a compilation of the latest headlines in the E&P space.
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.