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Cal Dive Acquires Murphy's Shelf Properties for $200M

Energy Resource Technology Inc. (ERT), a subsidiary of Houston-based Cal Dive International Inc., said Monday it has acquired "essentially all" of Murphy Oil Corp.'s Gulf of Mexico Shelf properties for $200 million.

The properties, acquired from subsidiary Murphy Exploration & Production Co., include eight operated and 11 nonoperated fields, with most of the value in the operated fields, Cal Dive said in a statement. Current net production is 20 MMcfe/d, and ERT estimates proved reserves to be approximately 75 Bcfe.

"We have been patient in our approach to mature property acquisitions and feel that the Murphy properties fit well with our ERT mature property strategy," said CEO Owen Kratz.

ERT expects to significantly improve production rates with capital investments to exploit proved undeveloped and behind-pipe reserves, with most of the investment over the next two years, Cal Dive said. The package has "synergies with existing ERT properties allowing ERT the opportunity to combine many of the operations thereby reducing future operating expenses," it added.

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