Daily GPI / NGI All News Access

Ocean Energy Divests $42 M of Onshore Assets

Ocean Energy Divests $42 M of Onshore Assets

Ocean Energy announced Tuesday it has signed purchase and sales agreements with various companies to divest certain U.S. onshore assets in an effort to reduce its debt before merging with Seagull Energy Corp. The sales total $42 million and are located primarily in the Midcontinent, Permian Basin and Rocky Mountain regions.

"We made an agreement with Seagull that we would reduce our debt by at least $100 million and aim for $200 million," said Susan Smith, an Ocean Energy spokeswoman. "This sale is the first step in this process." In February, Ocean Energy announced planned asset sales worth $200 million in 1999, in order to improve its operating margins. The company said it intends to divest interests in all Canadian oil and gas properties and related assets as well as certain non-core oil and gas properties and related assets located in the Rocky Mountain, Midcontinent, Permian Basin, Gulf Coast and Gulf of Mexico regions. The properties comprise net proved reserves 164 Bcf. Including the effects of a $200 million fourth quarter writedown, Ocean Energy reported a net loss of $229.5 million, or $2.27 per share on revenues of $124.2 million for the fourth quarter of 1998. By comparison, net income for the fourth quarter of 1997 was $21.7 million, or $0.22 per share on revenues of $167.8 million.

Ocean Energy expects most of the sales to close by the end of March with the remainder closing before May.

©Copyright 1999 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.

Comments powered by Disqus