Northstar Offshore Ventures buys oil and gas assets in Gulf of Mexico
Energy acquisition news : Northstar Offshore Ventures has purchased certain oil and gas assets located in the outer continental shelf of the Gulf of Mexico from PetroQuest Energy.
Based in Texas, Northstar Offshore Ventures is a 100% owned subsidiary of Orinoco Natural Resources, a Virginia-based natural resources company.
The assets acquired by Northstar Offshore Ventures consist of seven fields which had produced about 26.1 MMcfe/d during the fourth quarter of 2017.
David Dean – President and CEO of Northstar Offshore Ventures, said: “We are excited about the cashflow and development opportunities that exist in these properties and it is part of the plan to expand the business through acquisitions.”
Business deal done. Photo courtesy of adamr at FreeDigitalPhotos.net.
While PetroQuest Energy did not get any proceeds from the sale, it had agreed to pay $3.75 million to meet future abandonment costs.
However, PetroQuest Energy would eliminate about $35.4 million of undiscounted abandonment liability from its long-term obligations owing to the transaction with Northstar Offshore Ventures.
Charles T. Goodson – Chairman, CEO and President of PetroQuest Energy, said: “After completing the sale of our Gulf of Mexico properties, we have eliminated a considerable long-term abandonment liability and have substantially reduced our exposure to future regulatory, environmental, surety and weather risks inherent in offshore operations.
“In addition, the sale will increase our net liquidity by $6.5 million and allow us to focus our attention on developing our onshore assets in East Texas and in the Louisiana Austin Chalk trend.
“While our production and reserve profiles will experience near-term reductions after this divestiture, we believe that this transaction will ultimately drive value creation.”
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