Exxon Mobil Sells $1 Billion of Gulf of Mexico Assets

Exxon Mobil Corp. (XOM) sold nine U.S. Gulf of Mexico oil and natural gas stakes to Energy XXI in a deal worth $1.01 billion.

The assets produce about 20,000 net barrels of oil a day, The Wall Street Journal said. They contain net proved and probable reserves of 66 million barrels of oil equivalent (BOE), of which 61% is actually oil.

"The ExxonMobil properties are an extraordinary fit with our existing, oil-focused core assets, which generate some of the highest margins in the industry," Energy XXI CEO John Schiller said.

Sponsored Links
Energy XXI is already operator of 94% of the assets being acquired.

The deal will make Energy XXI the third-largest oil producer on the Gulf of Mexico shelf, with interests in seven of the shelf's top 11 oil fields.

Production would rise to about 46,000 BOE a day. That's a gain of more than 77% from its per day average in the quarter ended Sept. 30.

The deal should be completed by Dec. 20.

Read Full Story

Markets

DJIA 25,444.34 64.89 0.26%
NASDAQ 7,449.03 -36.11 -0.48%
NIKKEI 225 22,455.52 -76.56 -0.34%
HANG SENG 25,925.45 364.05 1.42%
DAX 11,553.83 -35.38 -0.31%
USD (per EUR) 1.15 0.00 0.01%
JPY (per USD) 112.58 0.10 0.09%
GBP (per USD) 1.31 0.00 -0.01%
USD (per CHF) 1.00 0.00 0.03%