W&T Offshore was the successful bidder on an interest in three blocks in the Heidelberg field in the Gulf of Mexico.
The blocks were offered in connection with the Chapter 11 bankruptcy proceedings of Cobalt International Energy and its subsidiaries. Houston-based Cobalt and certain of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in December 2017.
W&T Offshore said on Monday that the successful bid covers all of Cobalt’s interest in the Heidelberg Field, which includes a 9.375% working interest in each of Green Canyon 859, 903, and 904.
The Heidelberg field is operated by Anadarko Petroleum Corporation. Anadarko’s other partners in the field are ExxonMobil, Eni, Marubeni, and Statoil. W&T’s bid was for $31.1 million cash. Closing is expected to occur in April 2018, subject to satisfaction of certain closing conditions, including those in the purchase and sale agreement.
Heidelberg field started production in January 2016. The wells flow to the Heidelberg spar platform, which is in Green Canyon 860 block.
This 80,000-barrels-of-oil-per-day floating production platform is a replica of Anadarko’s Lucius truss spar and is a part of the company’s “design one, build two” approach to development.
February’s gross production from the field was 33,513 barrels of oil per day and 16,705 Mcf per day or 36,300 Boe per day. Cobalt’s production from the field, net to its interest, was 2,749 barrels of oil per day and 1.4 MMcf per day in February 2018 or almost 3,000 barrels of oil equivalent per day from five wells.
Tracy Krohn, W&T Offshore’s Chairman and Chief Executive Officer, stated, “We are pleased that W&T was the successful bidder on this quality asset that meets all of our acquisition criteria. It is being acquired at an attractive valuation and will contribute solid production and reserves, as well as offer upside potential. Finally, this transaction meets an additional objective of being accretive to W&T on a flowing barrel of production.”
The Heidelberg oil field was discovered in January 2009 with the first successful appraisal well drilled in April 2012. According to Anadarko’s estimates, the field has 200-400 million barrels of recoverable resources.
Offshore Energy Today Staff