McMoRan Exploration to buy Plains Exploration's assets for $818 million
21 Sep 2010
Independent oil and natural gas company McMoRan Exploration announced yesterday that it is buying the shallow water shelf assets of Plains Exploration & Production Co (P&P) for about $818 million in a stock and cash deal.
To fund the acquisition, McMoRan said that it plans to privately issue $900 million in convertible securities.
New Orleans-based McMoRan currently owns working interests in substantially all of the properties being acquired. The sale includes production equivalent to 45 million cubic feet of natural gas a day and proved reserves equivalent to about 60 billion cubic feet of the heating and power-plant fuel.
McMoRan is an independent public company engaged in the exploration, development and production of oil and natural gas in the shallow waters of the Gulf of Mexico Shelf and onshore in the Gulf Coast area.
Thbe New Orleans explorer will issue 51 million shares of its stock and pay $75 million in cash for all interests and exploration rights valuing the deal at $818 million.
The transaction will increase McMoRan's scale of operations on the Gulf of Mexico shelf, consolidate its ownership in core focus areas, expand its participation in future production from its deep gas and ultra-deep exploration and development programmes and increase current reserves and production.
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