Dynamic Offshore Resources LLC, which has been on a buying spree in the Gulf of Mexico (GOM) prior to the launch of an initial public offering (IPO), is paying ExxonMobil Corp. $182.5 million to acquire some offshore wells and properties that are 60% weighted to natural gas. The 13.5 million boe in new reserves would pump up Dynamic’s reserves base by nearly one-third (31%).

The properties to be acquired currently produce 7,000 boe/d and were part of XTO Energy Inc.’s legacy portfolio, which was acquired by ExxonMobil last year.

Dynamic, three years young, was formed by private equity firms The Carlyle Group and Riverstone Holdings, which initially committed $450 million to the endeavor (see Daily GPI, Feb. 6, 2008). At the time the equity partners said Dynamic was formed “to concentrate entirely on the unique challenges and opportunities associated with Gulf of Mexico assets, which are often viewed as out-of-favor or neglected, but still have viable and attractive growth and profit opportunities.” Co-founder Matt McCarroll continues to lead the company as CEO.

Prior to the ExxonMobil transaction, Dynamic held stakes in the GOM in about 200 net producing wells and more than 200 leases in federal and state waters that covered 661,000 gross and 317,000 net acres. Most of the offshore properties are on the Outer Continental Shelf (OCS) in water less than 300 feet deep. It also has a 49% interest in the deepwater Bullwinkle Field and associated platform in Green Canyon Block 65, which is in 1,350 feet of water. Superior Energy Services holds the majority stake in the field.

The ExxonMobil purchase follows one by Dynamic in May, in which it acquired two separate properties on the OCS that combined cost $42.5 million. Dynamic also acquired eight fields in the GOM in July 2010, including full interest in Vermilion Block 272 and a 50% stake in High Island Block 52.

McCarroll said in May Dynamic would continue to pursue “attractive acquisition and consolidation opportunities” because the company’s “commitment to growth on the Shelf is as strong as it was in early 2008…”

The company now is preparing to become a public company. In its filing on Aug. 26 Dynamic stated that it intends to raise up to $400 million in an IPO of its common stock and would list on the New York Stock Exchange under the symbol “DOR.” The underwriting syndicate is composed of Citigroup, Credit Suisse, Deutsche Bank Securities, Tudor Pickering, Holt & Co. and UBS Securities. The timing of the IPO was not disclosed.

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