EPL Acquires Remaining Interest in Its Core South Timbalier Field
NEW ORLEANS, May 15, 2012 (GLOBE NEWSWIRE) -- Energy Partners, Ltd. (EPL or
the Company) (NYSE:EPL) today announced it has acquired additional oil and
natural gas interests in the EPL operated South Timbalier 41 field from W&T
Offshore, Inc. for $32.4 million. Prior to the acquisition, EPL owned a 60%
working interest in the properties. The Company has become the sole working
interest owner of the field post acquisition. EPL estimates current net
production capability of the acquired interest at 960 net barrels of oil
equivalent (boe) per day, about 52% of which is oil. EPL estimates the proved
reserves of the acquired interest as of the April 1, 2012 economic effective
date totaled approximately 1.0 million boe, consisting of 51% oil and 84%
proved developed reserves. The Company also estimates the asset retirement
obligation assumed in the acquisition was approximately $2 million.
EPL funded the acquisition with cash on hand, and currently estimates its cash
position post acquisition at approximately $60 million and total liquidity
including its undrawn borrowing base under its senior secured credit facility
at $260 million. The transaction is subject to customary adjustments to
reflect the April 1, 2012 economic effective date.
Description of the Company
Founded in 1998, EPL is an independent oil and natural gas exploration and
production company based in New Orleans, Louisiana, and Houston, Texas.The
Company's operations are concentrated in the U.S. Gulf of Mexico shelf,
focusing on the state and federal waters offshore Louisiana.For more
information, please visit www.eplweb.com.
This press release may contain forward-looking information and statements
regarding EPL.Any statements included in this press release that address
activities, events or developments that EPL "expects," "believes," "plans,"
"projects," "estimates" or "anticipates" will or may occur in the future are
forward-looking statements.We believe these judgments are reasonable, but
actual results may differ materially due to a variety of important
factors.Among other items, such factors might include: changes in general
economic conditions; uncertainties in reserve and production estimates;
unanticipated recovery or production problems; hurricane and other
weather-related interference with business operations; the effects of delays
in completion of, or shut-ins of, gas gathering systems, pipelines and
processing facilities; changes in legislative and regulatory requirements
concerning safety and the environment as they relate to operations; oil and
natural gas prices and competition; the impact of derivative positions;
production expenses and expense estimates; cash flow and cash flow estimates;
future financial performance; planned and unplanned capital expenditures;
drilling and operating risks; our ability to replace oil and gas reserves;
risks and liabilities associated with properties acquired in acquisitions;
volatility in the financial and credit markets or in oil and natural gas
prices; and other matters that are discussed in EPL's filings with the
Securities and Exchange Commission. (http://www.sec.gov/).
T.J. Thom, Chief Financial Officer
Energy Partners Ltd. Logo
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