Houston, Texas – 04 October 2010 – Black Elk Energy Offshore Operations, LLC, ("Black Elk") an independent oil and gas company, announced today it closed a major transaction with JX Nippon Oil & Gas Exploration Corporation (NOEX) to acquire 27 properties in the Gulf of Mexico. The NOEX transaction represents the fifth acquisition by Black Elk since 2008. The NOEX purchase includes 19 fields, with an estimated 15 million barrel equivalent (87 bcfe) of proven reserves, and probable upside in excess of 51 million barrel equivalents (304 bcfe). The acquisition gives Black Elk an aggregate interest in more than 650 wells on 111 platforms located across 406 thousand gross acres offshore and significantly enhances its position in the Gulf of Mexico. The NOEX acquired assets increase Black Elk's net production from approximately 6,000 to 12,200 barrel oil equivalents per day or 73.2 million cubic feet gas equivalent per day (57% liquids).
"This acquisition is a meaningful milestone for Black Elk as we close out year three of our offshore operations", says John Hoffman, President and CEO of Black Elk Energy. "We see an exciting future for our company as we continue to build a large, stable and diverse asset base to apply our experienced exploitation skills". Future development of ultra deep shelf opportunities hold substantial resource potential and the acreage position opportunistically positions Black Elk to monetize these opportunities.
About Black Elk Energy
Black Elk Energy, LLC is an independent oil and gas company headquartered in Houston, Texas. Founded by seasoned industry executives, the company is dedicated to creating exceptional returns in oil and gas through acquisition and exploitation. Black Elk Energy has a distinctly different structure & culture with a commodity bias toward North American clean burning natural gas. Black Elk Energy leverages technological advances made in our industry while attentively learning from the successes and growth of those industry leaders from the past.