Energy XXI completes acquisition of EPL Oil & Gas

Energy XXI has completed the acquisition of EPL Oil & Gas for approximately US$ 2.3 billion, making Energy XXI the largest publicly traded independent operator on the Gulf of Mexico shelf.

The transaction included the assumption of approximately US$ 805 million of EPL debt, net of cash, payment of approximately US$ 1.02 billion in cash, and approximately 23 million common shares of Energy XXI stock. After closing the transaction, Energy XXI has approximately 93 million shares outstanding (approximately 102 million shares fully diluted).

"This transaction begins a new chapter for Energy XXI," Chairman and Chief Executive Officer John Schiller said. "With assets that fit together hand-in-glove, along with the additional professionals who have joined our team, we have formed a stronger company focused on delivering value for our shareholders."

Production Update

Oil and gas production for the combined companies currently approximates 62000 bpd of oil, 73% oil. Energy XXI expects production in the fiscal fourth quarter ended 30^th June, 2014 to average 45 000 - 46 000 bpd of oil, 68% being oil, which includes one month of EPL's volumes.

"We are focused on merging the two portfolios and high-grading our drilling inventory. Our capital expenditures will focus on low-risk development drilling in the fields where we have enjoyed the most success," Schiller said. "Combined, we currently are operating nine rigs, and continue to de-risk our drilling schedule, staying focused on execution by establishing repeatable and predictable programs that will allow oil growth in our core properties."

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/06062014/energy_xxi_completes_acquisition_of_epl_oil__gas/