Energy XXI (Bermuda) Ltd. (EXXI, EXXI.L) said that it has completed the acquisition of certain Gulf of Mexico shelf oil and natural gas interests from MitEnergy Upstream LLC, a unit of Mitsui & Co. Ltd. (MITSY).
The company noted that the transaction essentially doubled its interests in the same group of properties Energy XXI purchased from Pogo Producing Company in June 2007.
The properties include 22 core fields currently producing about 8,000 net barrels of oil equivalent per day, about 77% of which is oil.
Upon restoration of volumes pending repair of third party pipelines damaged by hurricanes in 2008, net production from the acquired interests is expected to reach 10,000 BOE per day, taking total company production to an expected 30,000 BOE per day.
The company funded the transaction through common and preferred equity offerings that closed last week, raising $268.7 million after deducting underwriting discounts and commissions.
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