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Petroleum

Enterprise Oil Acquires R&B Falcon Corp's US Gulf of Mexico E&P Interests

Strategic Insights

— 2 min read

Enterprise Oil's acquisition of R&B Falcon Corp's interests in the US Gulf of Mexico enhances its portfolio and is a strategic step towards elevating the Gulf of Mexico to a core business area. The total cash consideration for the deal is $127.25 million, and Enterprise will acquire a 100% interest in and operatorship of the Gyrfalcon field, as well as interests in 19 other deepwater exploration blocks. This acquisition follows an agreement to farm-in to a 25% interest in 12 exploration blocks operated by Texaco, and increases exploration acreage with the award of nine new leases in the Atwater Valley and Mississippi Canyon.

Key Takeaways:

  • Enterprise Oil has acquired all of R&B Falcon Corp's E&P interests in the US Gulf of Mexico for $127.25 million.
  • The acquisition includes a 100% interest in and operatorship of the Gyrfalcon field and interests in 19 other deepwater Gulf of Mexico exploration blocks.
  • The Boomvang field, which is operated by Kerr-McGee Corp., is expected to begin producing in the first half of 2002 with a daily production capacity of 30,000 barrels of oil and 200 million standard cubic feet of gas.
  • The field has estimated reserves of 70-100 million barrels of oil equivalent.
  • Pierre Jungels, Chief Executive of Enterprise Oil, comments that the R&B deal will add value through current and near-term production, and increase exploration acreage.
  • The company has also increased its exploration acreage with the award of nine new leases in the Atwater Valley and Mississippi Canyon during the OCS Gulf of Mexico Lease Sale 175 in March 2000.
  • Enterprise Oil's activities are currently focused in three core areas: the UK and Ireland, Norway and Denmark, and Italy.
  • The company has previously acquired interests in 12 exploration blocks operated by Texaco in the Green Canyon and Walker Ridge areas.

Statistics:

  • Total cash consideration for the deal: $127.25 million
  • Estimated reserves for the Boomvang field: 70-100 million barrels of oil equivalent
  • Daily production capacity of the Boomvang field: 30,000 barrels of oil and 200 million standard cubic feet of gas
  • Number of new leases awarded in the Atwater Valley and Mississippi Canyon: 9
  • Exploration acreage increased with the award of leases in the Atwater Valley and Mississippi Canyon
  • Number of exploration blocks acquired from Texaco: 12
  • Exploration acreage acquired from Texaco: 25%

Sources:

  • PR Newswire, "Enterprise Oil Acquires R&B Falcon Corp's US Gulf of Mexico E&P Interests" (July 17, 2000)
  • Enterprise Oil press release, "Acquisition of R&B Falcon Corp's US Gulf of Mexico E&P Interests" (July 17, 2000)

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