Key Developments For Energy XXI (Bermuda) Limited
Energy XXI (Bermuda) Limited (EXXI.O) (Consolidated Issue listed on NASDAQ Capital Market)
Energy XXI Executes Conditional Purchase/Sale Agreement To Acquire Certain Gulf of Mexico Shelf Oil And Natural Gas Interests From MitEnergy Upstream LLC, A Subsidiary Of Mitsui & Co., Ltd.
Energy XXI announced it has executed a conditional purchase/sale agreement to acquire certain Gulf of Mexico shelf oil and natural gas interests from MitEnergy Upstream LLC, a subsidiary of Mitsui & Co., Ltd., for a headline cash consideration of $283 million. The properties include 30 fields currently producing 8,000 net barrels of oil equivalent (BOE) per day, about 77% of which is oil and 80% of which is already operated by Energy XXI. Upon restoration of volumes pending repair of third party pipelines damaged by hurricanes in 2008, net production is expected to reach 10,000 BOE per day. Offshore leases included in the purchase total nearly 33,000 net acres. Concurrent with the signing of the agreement, Energy XXI has purchased puts and put spreads that provide downside price protection averaging $73.46 per barrel on 6,500 barrels per day of oil production for 18 months, from January 2010 through June 2011. The transaction is likely to be funded through a combination of new equity, cash on hand and bank debt. Energy XXI has placed a 5% cash deposit into escrow under the terms of the agreement. The purchase is subject to customary closing conditions and adjustments, such as downward adjustments to the purchase price to reflect revenues generated between the effective date of July 1, 2009 and the closing, which is expected within 90 days.
Plains Exploration & Production Company and Energy XXI to Assign 10% of Collective Working Interests in Davy Jones to Moncrief
McMoRan Exploration Co. announced that it has entered into an agreement with W.A. Tex Moncrief, Jr. (Moncrief) to participate in McMoRan's ultra-deep drilling program and has finalized cost sharing arrangements for the Davy Jones ultra-deep prospect. Moncrief has agreed to fund drilling on a promoted basis to explore and develop ultra-deep prospects. McMoRan and two of its partners, Plains Exploration & Production Company and Energy XXI, will assign 10% of their collective working interests in Davy Jones to Moncrief. Moncrief may also participate for 10% of the collective interests of these parties in future ultra-deep wells.
Energy XXI (Bermuda) Limited Receives Borrowing Base Redetermination; Announces Update On Dividend Distributions
Energy XXI (Bermuda) Limited announced completion of its customary semi-annual redetermination of the borrowing base under its revolving credit facility, which has been set at $240 million. On a pro forma basis, after completing all the commitments included as part of this redetermination, the Company expects to be fully drawn under the revolver and have $61 million of cash on hand. The Company also has agreed to discontinue making any dividend distributions until the next borrowing base redetermination is finalized in late 2009. The previous quarter's dividend rate was $0.005 per share.
Energy XXI Announces Cash Dividend
Energy XXI announced that its Board of Directors has declared a regular quarterly cash dividend on the Company's common stock. A dividend of $.005 per share was declared on the Company's outstanding unrestricted and restricted common stock, payable March 13, 2009, to stockholders of record at the close of business on Feb. 20, 2009.
Energy XXI Initiates Cash Dividend
Energy XXI announced that its board of directors has initiated and declared the first regular quarterly cash dividend on the Company's common stock. A dividend of $0.005 per share was declared on the company's outstanding unrestricted and restricted common stock, payable October 20, 2008, to stockholders of record at the close of business on September 19, 2008.
