Ocean Energy Reels in Another, Acquires Ensight
Houston-based Ocean Energy Inc. continued on its acquisition trail last Monday, reporting it has entered into a definitive purchase and sale agreement with EnSight Resources L.L.C. to acquire all of EnSight's oil and gas assets, located primarily in East Texas and North Louisiana. The companies said they expect the approximate $121 million transaction to close on or before April 20 with an effective date of Jan.1, 2001.
Ocean estimates total proved reserves of approximately 104 Bcfe, of which 88% is gas reserves, with current production of approximately 23 MMcfe/d. "These assets are ideally situated in and around existing Ocean-operated properties and complement our strong position in East Texas and North Louisiana," said John D. Schiller, Ocean Energy executive vice president - operations. "We have identified a significant number of opportunities that will enhance our project inventory and create operational synergies that will benefit our cost structure in this area."
March proved to be a pretty lively month for Ocean Energy, which recently closed its purchase of Texoil Inc. for approximately $130 million (see NGI, March 26). Texoil's exploration and production operations, much like Ensight's, are focused primarily in Texas and Louisiana.
Upon completing the Texoil deal, Ocean Energy held a webcast outlining its latest forecast for 2001. The company said that the Texoil transaction is expected to greatly impact 2001 operations. The company is looking for a banner year regarding oil and gas production.
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