Dallas, TX, January 17, 2016 --(PR.com
)-- Dallas-based Gulf Coast Western, LLC announced today its subsidiary, Orbit Gulf Coast Exploration, LLC, has acquired substantially all of the assets of Lafayette, Louisiana-based Orbit Energy Partners, LLC. The acquisition includes 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 October 1, 2015. Terms of the deal, which closed in December, were not disclosed. Gulf Coast Western explores, develops and acquires domestic oil and gas reserves primarily in the Gulf Coast region with operations in six states.
Gulf Coast Western plans to partner with Orbit Gulf Coast Exploration and Orbit Energy, Inc. 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. This 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. Gulf Coast Western plans to maximize production potential with 18 additional PUD-designated offset wells. Development plans also include two workover wells.
“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,” said Gulf Coast Western CEO Matthew H. Fleeger. “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.
“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. 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 well-respected operators currently operating the acquired producing wells including Zachry Exploration, LLOX, Union Gas, Endeavor NG and Neumin Production.
Orbit Energy Partners’ team, formed in 2005 by Energy Trust Partners and Orbit Energy, Inc., has significant experience in assembling large 3D projects in southern Louisiana and participating in drilling prospects they develop with select industry partners and has played an important role in the development of the Southwestern Louisiana area for over 10 years. Orbit Energy, Inc., which will remain a minority member in Orbit Gulf Coast Exploration, played an instrumental role in Orbit Energy Partners’ success and has experienced a success rate in excess of 70% in the area over its 16 year existence.
Gulf Coast Western maintains a strategy focused on acquiring interests in prospects and properties that have excellent geological and geophysical attributes in well-developed structures, which provide significant return potential with quantified downside risk for our participating partners.
About Gulf Coast Western
Gulf Coast Western, a Dallas-based company founded in 1970, is focused on the exploration, development, and acquisition of domestic oil and gas reserves in the Gulf Coast region, and has activities in Texas, Louisiana, Mississippi, Oklahoma, Colorado and Alabama. Gulf Coast Western serves as the Managing Venturer of Oil & Gas General Partnerships otherwise known as Joint Ventures. For more information, visit www.gulfcoastwestern.com.