Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Energy XXI Joins Apache to Explore Gulf of Mexico

March 19 (Bloomberg) -- Energy XXI Bermuda Ltd., the energy producer that specializes in the U.S. Gulf of Mexico, agreed with Apache Corp. to explore for oil and natural gas off the coast of Louisiana.

Energy XXI will have a 25 percent working interest in parts of 135 offshore exploration blocks and 21 non-producing leases, Stewart Lawrence, a spokesman for the Hamilton, Bermuda-based company said in an interview today. The company didn’t pay anything upfront. Lawrence estimated that Energy XXI’s cost will come to $25 million for seismic testing and $10 million to $15 million apiece for three wells.

Energy XXI has leases in the area, which is in shallow water southeast of New Orleans, according to a presentation on the company’s website.

As part of the agreement, the companies will conduct seismic tests across 633,000 acres (256,000 hectares) in the Gulf, including Energy XXI’s existing leases, Lawrence said.

“This joint venture exemplifies our interest in exploring salt structures where new seismic data, remapping and remodeling could uncover significant hidden hydrocarbons,” Energy XXI Chairman and Chief Executive Officer John Schiller said in a statement.

Apache, based in Houston, plans to sell $2 billion worth of assets, and may sell some of its property in the deepwater Gulf of Mexico.

John Roper, a spokesman for Apache, didn’t immediately respond to a voice message seeking comment.

To contact the reporters on this story: Tina Davis in New York at tinadavis@bloomberg.net; Mike Lee in Dallas at mlee326@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.