Bermuda

Physical natural gas for weekend and Monday delivery worked lower in Friday’s trading as buyers saw little reason to commit to three-day deals.

After more than three months of relative quiet, the 2013 Atlantic hurricane season started to make noise Tuesday with the formation of a pair of tropical storms, though neither is expected to disrupt North American energy interests.

Pogo Producing Co. has agreed to sell its remaining Gulf of Mexico (GOM) shelf properties to Energy XXI (Bermuda) Ltd. (EXXI) for $419.5 million. Pogo said its strategic alternatives process, including the sale or merger of the company and various assets, is ongoing. The properties sold to EXXI include 28 fields currently producing 7,400 boe/d net, and with net proved reserves of 20 MMboe. About 62% of the production and 70% of the reserves are oil. On a reserves basis, 73% of the properties are operated and 74% are proved developed. Offshore leases included in the purchase agreement total nearly 282,000 gross acres (91,600 net acres). The acquisition, which is expected to close by June 1, will boost EXXI’s current production run rate by more than 40% and its proved reserves base by about 50%, said CEO John Schiller. EXXI’s properties are primarily located in the GOM and Gulf Coast onshore. The South Timbalier 21 Field, six miles offshore Lafourche Parish, LA, is its largest single asset. Pogo has been working to sell off assets and possibly sell the company since last December after being pressured by equity fund Third Point LLC, its largest shareholder (see NGI, Dec. 4, 2006).