EXXI - Energy XXI
The company's core properties are offshore and onshore the Louisiana Gulf Coast. Offshore properties are primarily comprised of large legacy oil fields where activity focuses on exploitation, while onshore properties are primarily natural gas focused, with a large exploration component. Proved reserves and production are weighted toward oil at about 55 percent.
Energy XXI was formed to acquire and exploit producing oil and gas reserves. Initial funding in October 2005 was through a $300 million private placement equity offering in the U.S. and U.K. and a listing on the London Stock Exchange Alternative Investment Market (AIM).
In February 2006, Energy XXI agreed to acquire Marlin Energy for $407 million. The transaction was completed 42 days later, thereby upholding management's commitment to its IPO shareholders to effect a transaction within four to six months.
In July 2006, Energy XXI acquired Louisiana Gulf Coast producing properties from Castex for $312 million. Also, the companies formed exploration and development joint ventures encompassing large portions of south Louisiana, including the Lake Salvador Project, which covers 1,680 square miles with approximately 1,250 square miles of 3-D seismic data.
In June 2007, Energy XXI acquired Gulf of Mexico shelf properties from Pogo Producing Company for $417 million. These properties will be a key focus of the company’s capital program in fiscal 2008, which began July 1, 2007.
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