Energy XXI forms shallow-water Gulf of Mexico joint venture with ExxonMobil
HOUSTON -- Energy XXI has acquired shallow-water Gulf of Mexico interests from ExxonMobil. The agreement covers 5,000 gross acres on Vermilion Block 164, currently producing approximately 1,100 boed net. The asset has produced approximately 44 million boe since its discovery in 1957.
Energy XXI and ExxonMobil also have entered into a joint venture agreement to explore for oil and gas on nine contiguous blocks adjacent to Vermilion Block 164 in shallow waters on the Gulf of Mexico shelf. Energy XXI will operate the joint venture, and drilling of the initial prospect, called Pendragon, is expected to commence by the end of the year. The company's total capital commitment is estimated at $75 million, assuming successful completions of two earning wells. Energy XXI plans to adjust its drilling schedule, postponing two large natural gas exploration prospects, Golden Bear and Wombat, to drill the two oil-focused joint venture wells.