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Superior Subsidiary to Purchase Producing Properties

Harvey, La.-based Superior Energy Services, last week announced that its subsidiary SPN Resources signed a purchase and sale agreement to purchase South Pass 60 Field from BP America Production Company.

The sale includes 100 percent working interest in nine leases on seven shallow water Gulf of Mexico blocks, nine structures, several pipelines, and 125 producing wells. Current net production is estimated at 4,100 barrels of oil per day and 5,100 mcf per day.

SPN Resources will operate the properties. BP is retaining deep drilling rights. Service work identified for Superior companies involved with operating, maintaining, enhancing, and abandoning the field for SPN Resources has a market value estimated at $121 million over approximately the next six to eight years.

"This transaction is consistent with our strategy of increasing utilization of our product and service lines through the acquisition of mature properties," said Terry Hall, president and CEO of Superior Energy Services. "The acquisition more than doubles our inventory of work for production-related, plugging and abandonment, and decommissioning work."

This transaction is expected to close by mid-July.

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