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EPL bulks up shallow-water U.S. Gulf assets with $550 million buy
September 17, 2012 / 10:13 AM / 5 years ago

EPL bulks up shallow-water U.S. Gulf assets with $550 million buy

(Reuters) - EPL Oil & Gas Inc EPL.N said it will buy some shallow water Gulf of Mexico assets from privately held Hilcorp Energy for $550 million, nearly doubling its proved reserves.

The deal is EPL’s third in the last two years to beef up shallow-water assets in the Gulf of Mexico.

The company acquired oil and gas assets in the Mississippi River delta last year along with a related gathering system from Anglo-Suisse Offshore Partners Llc.

It also struck a deal with Stone Energy Corp (SGY.N) to add shallow-water assets in central Gulf of Mexico.

EPL, formerly called Energy Partners Ltd, focuses on drilling offshore Louisiana.

The deal with Hilcorp — expected to close by October 31 — will add 36.3 million barrels of oil equivalent (boe) of proved reserves. The properties being acquired include three legacy Chevron Corp (CVX.N) fields in central Gulf of Mexico.

The assets are producing about 10,000 boe per day, with 50 percent of the output being oil.

EPL shares, which have risen 43 percent so far this year, closed at $20.94 on the New York Stock Exchange on Friday.

Reporting by Swetha Gopinath in Bangalore; Editing by Joyjeet Das

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