GulfTerra Energy Partners said its Phoenix Gas Pipeline has received initial gas flows from the Red Hawk Field in the Garden Banks area of the deepwater Gulf of Mexico. Phoenix is a 78- mile, 18-inch diameter pipeline originating in 5,300 feet of water at the Red Hawk cell spar in Garden Banks Block 876. The pipeline interconnects with the ANR Pipeline system at Vermilion Block 397 and is capable of transporting up to 450 MMcf/d of gas. Red Hawk is operated by Kerr-McGee Oil and Gas Corp. and owned by Kerr-McGee and Devon Energy. The Red Hawk cell spar has an initial capacity of 120 MMcf/d and can be expanded to a production capacity of 300 MMcf/d (see Daily GPI, July 20).

Houston-based Newfield Exploration Co. has acquired all of the outstanding stock of Denbury Offshore Inc., the subsidiary of Denbury Resources Inc. that holds all of its Gulf of Mexico assets. The transaction adds approximately 50 MMcfe/d of net production, of which 97% is natural gas. The acquisition was financed through cash on hand and the company’s revolving credit facility. After purchase price adjustments, total consideration is expected to be approximately $187 million, inclusive of the purchase of approximately $5 million in working capital. Newfield CEO David A. Trice called the assets an “excellent fit with our offshore operations/” He noted that the acquired properties include operatorship and high working interests in several mature fields.

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