Torch Energy Advisors to Acquire Unocal's California Oil and Gas Properties

Strategic Insights -

Torch Energy Advisors Inc. has agreed in principle to purchase Unocal Corp.'s crude oil and natural gas holdings in California for more than $500 million in cash. The acquisition, subject to final agreement and approvals, will add significant assets under management for Torch, making it a major event in the company's history. The properties in question include 69 oil and gas fields, with Unocal's net daily production from the upstream assets totaling approximately 29,000 barrels of oil and 67 million cubic feet of gas for the first half of 1995.

Key Takeaways:

  • Torch Energy Advisors Inc. will pay more than $500 million in cash for Unocal's California oil and gas properties.
  • The acquisition is contingent upon Torch's price per barrel received for future oil production, with additional payments potentially made starting in 1998.
  • Torch was one of five companies that submitted proposals for the properties in late May, with Unocal electing to negotiate with Torch after extensive review.
  • The properties to be acquired include 69 oil and gas fields, with 11 producing platforms off the California coast in state and federal waters.
  • Torch Energy Advisors Inc. manages over $1.5 billion in oil and gas assets on behalf of its clients.
  • The final agreement will be subject to approval by the Unocal and Torch boards of directors and certain consents, approvals, and waiting periods.
  • The acquisition marks a significant event in Torch's history, adding substantial assets under management.

Statistics:

  • $500 million: The amount Torch Energy Advisors Inc. will pay in cash for Unocal's California oil and gas properties.
  • 29,000 barrels of oil: Unocal's net daily production from the upstream assets in the proposed sale for the first half of 1995.
  • 67 million cubic feet of gas: Unocal's net daily production of gas from the upstream assets in the proposed sale for the first half of 1995.
  • 69: The number of oil and gas fields to be acquired by Torch Energy Advisors Inc.
  • 11: The number of producing platforms off the California coast in state and federal waters to be acquired by Torch Energy Advisors Inc.
  • $1.5 billion: The amount of oil and gas assets managed by Torch Energy Advisors Inc. on behalf of its clients.
  • 1994: The year Torch Energy Advisors Inc. purchased Unocal's interest in the Point Pedernales unit offshore California and several onshore fields in Santa Barbara County.

Sources:

  • "Torch Energy Advisors Incorporated To Purchase Unocal's Oil and Gas Properties in California," PR Newswire, Aug. 29, 1995.