Gulf Coast Western in January said its subsidiary, Orbit Gulf Coast Exploration, has acquired substantially all of the assets of Lafayette, La.-based Orbit Energy Partners.
The acquisition included proprietary rights and access to hundreds of square miles of 3D seismic data in Southwestern Louisiana, working interests in 13 producing wells and 140 defined drilling locations with approximately 30 million barrels of oil equivalent of total reserve potential. Orbit Gulf Coast Exploration took over production effective Oct. 1, 2015. Terms of the deal were not disclosed.
“We are very pleased with the opportunity that this acquisition provides for our company and our partners and we look forward to identifying further development opportunities as a result of this acquisition,” Gulf Coast Western CEO Matthew H. Fleeger said in a statement. “The empirical well data from producing wells in this trend, combined with Orbit’s large library of 3D seismic and well data which we gained access to through this transaction, give us a tremendous competitive advantage in further developing the proven potential in this AMI.”
Gulf Coast Western said it will partner with Orbit Gulf Coast Exploration and Orbit Energy to further develop hundreds of prospects in an area of mutual interest (AMI) covering approximately 1,000 square miles in Acadia, Allen, Beauregard, Calcasieu, Cameron, Evangeline and St. Landry Parishes. The AMI includes 13 wells in production as well as one well which has been production tested and is currently being placed into production. These are expected to produce in excess of 800 barrels of oil equivalent per day. The company also said it will maximize production potential with 18 additional PUD-designated offset wells. Development plans also include two workover wells.
“The transaction also included the contribution of certain proprietary 3D seismic data for our 42-square-mile Bonanza Project in Evangeline and St. Landry Parishes, which is on strike with this trend and adjacent to the Orbit development area,” Fleeger said. “We have already initiated work with Orbit to analyze the data to help improve our development of this strategic acreage which will further strengthen our assets under development in the area. Orbit’s in-house land, geology and prospect generation department have a proven track record of successfully acquiring and analyzing 3D data to improve expected success rates and profitability on these development areas.”
As part of the transaction, Gulf Coast Western secured an agreement from Louisiana-based Warhorse Oil and Gas to be the operator of many of the development wells, in addition to many other operators currently operating the acquired producing wells, including Zachry Exploration, LLOX, Union Gas, Endeavor NG and Neumin Production.