Milton Financials: Energy XXI agrees to buy 9 Exxon Mobil shallow water oil and gas fields.

Oil and gas exploration firm Energy XXI will increase its reserves and production by over 70% with the latest addition of Exxon’s shallow water fields in the Gulf of Mexico.
Nov. 22, 2010 - PRLog -- Milton Financials has been informed that the oil and gas exploration company Energy XXI has agreed to acquire nine of Exxon Mobil’s shallow water oil and gas fields in the Gulf of Mexico. The fields are situated on the Gulf’s continental shelf, an area considerably cheaper and safer to drill than in the deepwater where BP’s mid-year oil spill occurred.

The new deal will make Energy XXI the third-largest oil producer on the shelf according to the company.

In a recent statement available to Milton Financials the company indicated that the fields hold estimated reserves of 66 million barrels of oil and gas, 61% of which is oil. At present the wells are producing around 20,000 barrels of oil equivalent a day, 53% of which is oil.

According to the statement the acquisition will increase Energy XXI’s proved and probable reserves by 72% and its production would increase by over 77%.

Milton Financials research indicates that the assets represent less than 15% of oil giant Exxon Mobil’s total output from the Gulf of Mexico.

Exxon Mobil has also recently announced it is considering the sale of 100 gas stations in Scotland and there have also been unconfirmed reports that the oil major is considering the sale of $2 billion worth of North Sea assets.

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