Acquired 30% WI in Danny Noonan discoveries in GOM Garden Banks blocks 463, 506, 507.
An undisclosed private company has acquired a 30% working interest in the Danny Noonan discoveries in Garden Banks blocks 463, 506 and 507 deepwater Gulf of Mexico and other outer continental shelf properties from offshore energy services company Helix Energy Solutions, Houston, (NYSE: HLX) via subsidiary Energy Resource Technology GOM Inc., for approximately $165 million in cash. The purchase price includes Helix's share of past capital expenditures on these fields. The purchase could involve additional cash payments of up to $20 million based on field production milestones. The assets also include interest in East Cameron blocks 371 and 381. Of the 30% interest , 20% closed and funded in March and the remaining 10% closed in April. Helix president and chief executive Owen Kratz says, "Our intention during 2008 is to unlock a portion of the value in our oil and gas portfolio through the monetization of certain reserves. These salesâ€¦will allow us to recover previously invested capital, reduce future capital expenditure requirements related to these developments, and reduce the profit deferral in our services division associated with the development work."