US oil firm Energy XXI has completed the $2.3billion acquisition of rival EPL Oil & Gas.
The deal re-positions Energy XXI as the biggest independent operator in the Gulf of Mexico.
The transaction included the take over of EPL’s $805million debt, payment of $1.02billion in cash and approximately 23million common shares of Energy XXI stock.
“This transaction begins a new chapter for Energy XXI,” said John Schiller, Energy XXI’s chairman and chief executive.
“With assets that fit together hand-in-glove, along with the additional professionals who have joined our team, we have formed a stronger company focused on delivering value for our shareholders.”
Combined production from the two companies is currently estimated at 62,000 barrels of oil equivalent per day but the American indepentent is looking to up that figure with new developments.
The firm has now begun drilling at its West Delta 73 and West Delta 30 oil prospects, while its West Delta 29 and West Delta 28 wells are expected to go online in July.
“We are excited by West Delta 28 and 29 successes because they represent eastern extensions of our existing West Delta 30 program,” Schiller said.
“Combined with our success at West Delta 30, we have confirmed a large inventory of opportunities that can be accelerated going into the next fiscal year.”
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