Posted: Jul 1, 2014 6:30 PM
Updated: Jul 1, 2014 6:31 PM
LAFAYETTE, La. (AP) Stone Energy Corp. of Lafayette is selling some oil and gas properties on the Gulf of Mexico shelf to Talos Energy Offshore LLC of Houston for $200 million cash.
Talos is also taking on about $117 million in estimated future abandonment liabilities, Stone said.
Stone will keep an option for a 50 percent working interest in deep drilling rights. The deal is expected to close in August but effective April 1 of this year.
"The deep joint venture on these assets creates a built in partner and we view this as a win-win transaction for both sides," Talos President and CEO Tim Duncan said in a Monday news release.
Stone Chairman and CEO David Welch said the sale will let Stone focus on deep water in the Gulf, deep gas on the Gulf coast, and projects in Appalachia. It is keeping two shallow-water fields producing about 216,720 gallons of oil and 35,200 of other products a day.
Talos President and CEO Tim Duncan said his company is getting more diversity and tracts that fit well in its regional seismic database. Talos said the fields it is buying produced an average of 399,000 gallons a day during the first quarter of this year, about 167,600 gallons of that oil and liquids.