Oil and gas firm Petroquest says it has acquired a number of shallow water producing assets in the Gulf of Mexico for around £124million.
The deal will see Petroquest taking an interest in seven offshore blocks, 14 production wells and two further wells, due to start production next month, from an unnamed seller.
Petroquest secured a $185million bridge loan from a group of banks, led by JP Morgan, in conjunction with the acquisition, but was looking at permanent finance options.
The new resources – estimated to bring around 1100 extra barrels of oil and 19,000Mcf of natural gas per day – expected to significantly improve the company’s cash flow.
“We are excited about this transformational acquisition in one of our existing core areas as it significantly enhances our current daily oil production and cash flow without substantially altering our longer-life focused reserve profile,” said Petroquest CEO and chairman Charles Goodson.
“Our anticipated cash flow from these acquired assets is expected to be sufficient to fund our enhanced Gulf Coast project inventory and accelerate our onshore drilling programs.”
Recommended for you
