Texas-based exploration and production player Beacon Offshore Energy has wrapped up the sale of its non-operated interests in multiple fields in the deepwater Gulf of Mexico region.
The divestment enables GOM 1 Holdings Inc., an affiliate of O.G. Oil & Gas Limited, to get its hands on Beacon’s 18.7% interest in the Buckskin producing field, 17% interest in the Leon development, 16.15% interest in the Castile development, 0.5% interest in the Salamanca FPS / lateral infrastructure , and 32.83% interest in the Sicily discovery.
Commenting on the completion of the sale, Scott Gutterman , Beacon Chairman and Chief Executive Officer, stated: “The transaction demonstrates the value Beacon has created for its shareholders through the efficient development of high margin fields in the deepwater Gulf of Mexico and the timely monetization of these assets. We are proud to have been able to participate alongside of our partners in the development of the divested properties since our initial acquisition of the Buckskin asset in 2017.
“With the completion of the divestment, we will be able to allocate 100% of our focus and resources to our deep inventory of operated properties. Driven by our existing sanctioned operated developments, including Shenandoah and Winterfell, we expect to deliver material production and cash flow growth commencing in the second quarter 2024 and continuing through 2025.”
According to the company, Jefferies International Limited served as financial advisor and Kirkland & Ellis LLP served as legal advisor for this divestment process. Beacon is actively focused on developing its resource position and holds interests in 87 deepwater leases, covering nearly 500,000 gross acres.
The sale of its interest in these assets comes shortly after the company confirmed a final investment decision (FID) for the development of the Winterfell discovery, which is operated by BOE Exploration & Production LLC, in the U.S. Gulf of Mexico. This project will be tied to the Heidelberg spar platforms operated by Occidental (Oxy), former Anadarko Petroleum Corporation.
The first oil from the project is anticipated to be achieved early in the second quarter of 2024 from three initial wells, which are projected to deliver a gross production of around 22,000 boepd.