Black Elk Energy Offshore Operations, LLC, an independent oil and gas company headquartered in Houston, Texas announced yesterday the completion of sale of four non-core properties to a third party.
The sale consisted of one non-operated and three operated fields in the Eugene Island, Ship Shoal and South Timbalier areas with net production of approximately 950 barrels of equivalent per day (“boepd”) (90% oil).
“We are pleased to announce this divestment”, says John Hoffman, President and Chief Executive Officer of Black Elk Energy. “This sale will reduce our plugging and abandonment obligations by $30 million plus and release approximately $30 million of cash from the $243 million we have set aside to meet long term plugging and abandonment obligations. Transforming our portfolio is an important aspect of the company strategy as we continue growing.”
Hoffman also stated, “Currently, Black Elk Energy is producing approximately 13,000 net boepd with a capacity of about 16,000 net boepd. We are very excited about our initial two 2013 drill prospects, and we have achieved early success. The first two wells are expected to be online and producing by early May, adding approximately 1,000 net boepd to our production.”
“Black Elk Energy has a number of exciting, low risk drilling prospects that will keep rigs busy in 2013, 2014 and 2015. The result of this program to drill and develop our proved undeveloped reserves is expected to robustly increase our cash flow and create additional shareholder value.”