Texas-based exploration and production company Beacon Offshore Energy has completed the divestment of its non-operated interests in deepwater fields in the Gulf of Mexico.
The move is in accordance with a previously executed definitive agreement with GOM 1 Holdings, an affiliate of O.G. Oil & Gas.
The divestment includes Beacon’s 18.7% interest in the Buckskin producing field, 17% interest in the Leon development, 16.15% interest in the Castile development, 0.5% interest in the Salamanca FPS/lateral infrastructure, and 32.83% interest in the Sicily discovery.
“The transaction demonstrates the value Beacon has created for its shareholders through the efficient development of high margin fields in the deepwater Gulf of Mexico and the timely monetization of these assets. We are proud to have been able to participate alongside of our partners in the development of the divested properties since our initial acquisition of the Buckskin asset in 2017.
“With the completion of the divestment, we will be able to allocate 100% of our focus and resources to our deep inventory of operated properties.
“Driven by our existing sanctioned operated developments, including Shenandoah and Winterfell, we expect to deliver material production and cash flow growth commencing in the second quarter 2024 and continuing through 2025,” said Scott Gutterman, Beacon Chairman and Chief Executive Officer.
As previously reported, Beacon Offshore Energy announced in January 2024 that several of its subsidiaries have taken final investment decision (FID) to develop the Winterfell discovery in the Gulf of Mexico, with the first oil expected in the second quart of 2024.
As the Winterfell operator, Beacon holds a 35.41% working interest in the project principally located in Green Canyon blocks 943, 944, 987, and 988 with a water depth of approximately 5,200 feet.
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