R&B Falcon Corporation Concludes Sales of Gulf of Mexico Properties to Enterprise Oil

Strategic Insights -

R&B Falcon Corporation has announced that its subsidiaries, Reading & Bates Development Co. and R&B Falcon Subsea Development Inc., have concluded sales to Enterprise Oil of their Gulf of Mexico E&P properties. The deals, which have an effective date of July 1, 2000, involve the sale of various interests in the Boomvang field development, 19 other Gulf of Mexico deepwater exploration blocks, and the Gyrfalcon field. The total cash consideration for the sales is a significant US Dollars 127.25 million. This transaction marks a major milestone for R&B Falcon Corporation, allowing the company to partially unlock the value of its Gulf of Mexico properties and strengthen its balance sheet.

Key Takeaways:

  • R&B Falcon Corporation has sold its 50% working interest in the Boomvang field development to Enterprise Oil for an undisclosed amount.
  • The company has also sold its 100% working interest in the Gyrfalcon field to Enterprise Oil for an effective date of July 1, 2000.
  • The sales include 19 other Gulf of Mexico deepwater exploration blocks, with subject to final closing and, where applicable, certain consents and preferential rights.
  • The total cash consideration for the sales is US Dollars 127.25 million.
  • The proceeds from the sales will be utilized to strengthen R&B Falcon Corporation's balance sheet.
  • The company's Chairman and Chief Executive Officer, Paul B. Loyd, Jr., stated that the transaction is a significant milestone for R&B Falcon shareholders, and that the company's exploration efforts have been very successful over the past year and one-half.
  • R&B Falcon Corporation operates the world's largest fleet of marine-based drilling rigs, servicing the international oil and gas industry.

Statistics:

  • The total cash consideration for the sales is US Dollars 127.25 million.
  • The seas include 19 other Gulf of Mexico deepwater exploration blocks.
  • 50% working interest in the Boomvang field development has been sold.
  • 100% working interest in the Gyrfalcon field has been sold.
  • R&B Falcon Corporation operates a fleet of 139 drilling units, including the industry's largest fleets of barge and jack-up rigs.
  • The company provides turnkey and integrated services and operates mobile production units, internationally based land rigs, and an offshore towing business.

Sources:

  • Pr Newswire, London, July 17, 2000
  • R and B Falcon Corporation (NYSE: FLC) press release, July 17, 2000