HOUSTON, Oct. 2 /PRNewswire-FirstCall/ -- On September 30, 2007 Energy
Resource Technology GOM, Inc. (ERT), a wholly owned subsidiary of Helix
Energy Solutions (NYSE: HLX) sold a 30% working interest in the Phoenix
oilfield (Green Canyon Blocks 236/237), the Boris oilfield (Green Canyon
Block 282) and the Little Burn oilfield (Green Canyon Block 238) to Sojitz
GOM Deepwater, Inc., a wholly owned subsidiary of Sojitz Corporation for a
cash payment of $40 million and the proportionate recovery of all past and
future capital expenditures related to the re-development of the field,
excluding the conversion of the Helix Producer I, which Helix plans to use
as a redeployable floating production unit (FPU). Sojitz will also pay
their proportionate share of the operating costs including fees payable for
the use of the FPU. Approximately half of the $40 million gain will be
recorded immediately with the other half to be recorded as certain future
events occur.
Martin, Ferron, President and Chief Executive Officer of Helix stated,
"This transaction clearly demonstrates the ability of our two stranded
business model to enhance the economics of marginal fields, as the cash
consideration received is directly linked to the creative and cost
effective re-development plan we have devised for this oilfield and the oil
and gas reserve potential we have identified on the lease(s). We are very
pleased to welcome Sojitz as a partner and look forward to working with
them in the future. Their working interest participation will help to
reduce the risk, capital expenditures and service division profit deferral
on this project. This sale will also allow us to accelerate the pursuit of
other exciting oil and gas projects in our extensive exploration and
development portfolio."
Helix Energy Solutions, headquartered in Houston, Texas, is an
international offshore energy company that provides development solutions
and other key life of field services to the open energy market as well as
to our own oil and gas business unit. That business unit is a prospect
generation, exploration, development and production company. Employing our
own key services and methodologies, we seek to lower finding and
development costs, relative to industry norms.
This press release contains 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, any statements regarding future economic
conditions or performance; any statements of expectation or belief; 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, 2006 as amended. We
assume no obligation and do not intend to update these forward-looking
statements.
SOURCE Helix Energy Solutions
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Related links:
http://www.HelixESG.com
CONTACT:
Wade Pursell, Chief Financial Officer of
Helix Energy Solutions, +1-281-618-0400, Fax, +1-281-618-0505
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