Houston, TX (1888PressRelease)
November 04, 2009 - Black Elk Energy, LLC, an independent oil and gas company, announced today a major transaction in which its subsidiary Black Elk Energy Offshore Operations, LLC acquired multiple properties in the Gulf of Mexico. The purchase includes over 35 fields and 350 wells in water depths ranging up to 1850 feet. The acquisition encompasses an estimated 320,000 gross acres in the Gulf of Mexico. Black Elk Energy estimates that the fields hold 25 Bcfe of proven reserves with 3P potential of 80 Bcfe, 43% of which are liquids.
Current net acquired daily production for the acquisition is 1,400 barrels of oil and 19.0 million cubic feet of gas. The purchase marks the largest acquisition to date for Black Elk Energy and is consistent with the company’s exploitation strategy. The purchase price is not disclosed. Also included in the transaction are interests in three processing plants, four separation facilities, and thirteen export pipeline segments.
“The acquisition of these properties dramatically adds to our reserves and production”, says John Hoffman, President and CEO of Black Elk Energy. “The purchase will extend our reach in the Gulf while diversifying our portfolio. Indications are strong that natural gas will become the dominant clean fuel for the United States in the future, leading to greater demand and favorable producer prices. Black Elk Energy is strategically positioned to become a leader among small independents who will help meet that expected demand. Consistent with our strategy, we will continue to pursue low cost conventional natural gas acquisitions. Our exploitation expertise has proven to be effective in increasing reserve recovery of this important energy source. The small independents of America play an important role in meeting U.S. energy needs and we are proud to be part of the solution”.
About Black Elk Energy
Black Elk Energy, LLC is an independent oil and gas company headquartered in Houston, Texas. Founded by seasoned industry executives, the company is dedicated to creating exceptional returns in oil and gas through acquisition and exploitation. Black Elk Energy has a distinctly different structure with a focus on North American clean burning natural gas.
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