HOUSTON, Aug. 21 /PRNewswire-FirstCall/ -- Energy Resource Technology,
Inc. (ERT), a wholly owned subsidiary of Helix Energy Solutions (NYSE: HLX)
has acquired a 100% working interest in the Typhoon oil field (Green Canyon
Blocks 236/237), the Boris oil field (Green Canyon Block 282) and the
Little Burn oil field (Green Canyon Block 238) from Chevron U.S.A. Inc.
(NYSE: CVX), BHP Billiton (NYSE: BHP & BBL) and Noble Energy, Inc. (NYSE:
NBL). Prior to the acquisition, the owners of Typhoon were Chevron (50%)
and BHP Billiton (50%); the owners of Boris were BHP Billiton (50%),
Chevron (25%) and Noble Energy (25%); and the owners of Little Burn were
BHP (60%) and Noble Energy (40%). Financial terms of the transaction are
confidential. The agreement is subject to MMS approval of a new development
plan, which is expected in the next 60 days.
Production from the Typhoon and Boris fields has been shut-in since the
Typhoon platform was damaged by Hurricane Rita in September of 2005. Prior
to the storm, the combined flow rate from two Typhoon wells and the two
Boris wells averaged approximately 13,000 barrels of oil per day and 21
million cubic feet gas per day in the last month of production. A new well,
the Typhoon #4, was drilled and flow tested at a rate of 7,700 barrels of
oil per day last September. Additionally, the Little Burn development well
was drilled by BHP Billiton in 2005 and oil and gas pay was logged. Flow
rates from this well are expected to be similar to the Typhoon #4 well. ERT
plans to complete this well and tie back both Little Burn and Typhoon #4 to
the new production facility once in place. ERT will also have farm-in
rights on five near-by blocks where three, moderate to low risk prospects
have been identified in the Typhoon mini basin. Following the acquisition
of the Typhoon field and MMS approval, the company will rename the field
Phoenix.
Owen Kratz, Chairman and Chief Executive Officer of Helix stated, "The
acquisition of the Typhoon, Boris and Little Burn fields fits our business
model extremely well. The four wells that were flowing have a good
production history and the field is well understood. There is immediate
upside in the Typhoon GC 237 #4 well and the Little Burn GC 238 #1 ST-3
well, and we expect to bring production from these fields on line mid-2008.
We plan to re-develop all of the fields using a re-usable, mobile floating
production unit. There is further upside in the form of several exploration
prospects that exhibit the same geophysical attributes as those seen in the
proven productive areas in the existing field. All of these prospects, if
successful, are well within tie-back distance to the floating production
unit and some can be drilled with the Company's Q4000 semi-submersible
drilling unit. It is also planned that the installation of the new subsea
infrastructure will be carried out by multiple vessels from our deepwater
fleet".
Helix Energy Solutions, headquartered in Houston, Texas, is an energy
services company that provides innovative solutions to the oil and gas
industry worldwide for marginal field development, alternative development
plans, field life extension and abandonment, with service lines including
diving services, shelf and deepwater construction, robotics, well
operations, well engineering and subsurface consulting services, platform
ownership and oil and gas production.
FORWARD-LOOKING STATEMENTS
This press release and attached presentation contain forward-looking
statements that involve risks, uncertainties and assumptions that could
cause our results to differ materially from those expressed or implied by
such forward-looking statements. All statements, other than statements of
historical fact, are statements that could be deemed "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995, including, without limitation, any projections of revenue,
gross margin, expenses, earnings or losses from operations, or other
financial items; future production volumes, results of exploration,
exploitation, development, acquisition and operations expenditures, and
prospective reserve levels of property or wells; any statements of the
plans, strategies and objectives of management for future operations; any
statement concerning developments, performance or industry rankings
relating to services; any statements regarding future economic conditions
or performance; any statements of expectation or belief; any statements
regarding the anticipated results (financial or otherwise) of the merger of
Remington Oil and Gas Corporation into a wholly-owned subsidiary of Helix;
and any statements of assumptions underlying any of the foregoing. The
risks, uncertainties and assumptions referred to above include the
performance of contracts by suppliers, customers and partners; employee
management issues; complexities of global political and economic
developments, geologic risks and other risks described from time to time in
our reports filed with the Securities and Exchange Commission ("SEC"),
including the Company's Annual Report on Form 10-K for the year ending
December 31, 2005; and, with respect to the Remington merger, actual
results could differ materially from Helix's expectations depending on
factors such as the combined company's cost of capital, the ability of the
combined company to identify and implement cost savings, synergies and
efficiencies in the time frame needed to achieve these expectations, prior
contractual commitments of the combined companies and their ability to
terminate these commitments or amend, renegotiate or settle the same, the
combined company's actual capital needs, the absence of any material
incident of property damage or other hazard that could affect the need to
effect capital expenditures, any unforeseen merger or acquisition
opportunities that could affect capital needs, the costs incurred in
implementing synergies and the factors that generally affect both Helix's
and Remington's respective businesses. Actual actions that the combined
company may take may differ from time to time as the combined company may
deem necessary or advisable in the best interest of the combined company
and its shareholders to attempt to achieve the successful integration of
the companies, the synergies needed to make the transaction a financial
success and to react to the economy and the combined company's market for
its exploration and production. We assume no obligation and do not intend
to update these forward-looking statements.
As previously announced, Cal Dive has filed with the Securities and
Exchange Commission a Form S-1 for its planned initial public offering
(IPO) of a minority interest in Cal Dive's common stock.
The offering will be made only by means of a prospectus. Once
available, preliminary prospectuses may be obtained from Cal Dive
International, Inc., 400 North Sam Houston Parkway E., Houston, Texas 77060
or by calling (281) 618-0400.
A registration statement relating to the IPO of Cal Dive stock has been
filed with the Securities and Exchange Commission but has not yet become
effective. These securities may not be sold nor may offers to buy be
accepted prior to the time the registration statement becomes effective.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any sale
of Cal Dive common stock in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such state. There can be no assurance of if or when
this offering will be completed.
SOURCE Helix Energy Solutions Group, Inc.
 back to top
Related links:
http://www.HelixESG.com
CONTACT:
Wade Pursell, Chief Financial Officer of
Helix Energy Solutions Group, Inc., +1-281-618-0400, or fax,
+1-281-618-0505
|
