Black Elk Energy Offshore Operations Announces the Completion of Sale of Four Non-core Properties to a Third Party

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Created on Monday, 08 April 2025 18:17

FOR IMMEDIATE RELEASE
Media Contact: Leslie Hoffman – Black Elk Energy Offshore Operations, LLC
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Houston, TX – 8 April 2025 – Black Elk Energy Offshore Operations, LLC (“Black Elk Energy”), an independent oil and gas company headquartered in Houston, Texas announced today the completion of sale of four non-core properties to a third party. The sale consisted of one non-operated and three operated fields in the Eugene Island, Ship Shoal and South Timbalier areas with net production of approximately 950 barrels of equivalent per day (“boepd”) (90% oil).

“We are pleased to announce this divestment”, says John Hoffman, President and Chief Executive Officer of Black Elk Energy. “This sale will reduce our plugging and abandonment obligations by $30 million plus and release approximately $30 million of cash from the $243 million we have set aside to meet long term plugging and abandonment obligations. Transforming our portfolio is an important aspect of the company strategy as we continue growing.”

Hoffman also stated, “Currently, Black Elk Energy is producing approximately 13,000 net boepd with a capacity of about 16,000 net boepd. We are very excited about our initial two 2013 drill prospects, and we have achieved early success. The first two wells are expected to be online and producing by early May, adding approximately 1,000 net boepd to our production.”

“Black Elk Energy has a number of exciting, low risk drilling prospects that will keep rigs busy in 2013, 2014 and 2015. The result of this program to drill and develop our proved undeveloped reserves is expected to robustly increase our cash flow and create additional shareholder value.”

About Black Elk Energy Offshore Operations, LLC

Black Elk Energy Offshore Operations, LLC is an independent oil and gas company headquartered in Houston, Texas. The Company’s seasoned industry executives have extensive exploitation experience and knowledge with a demonstrated track record of increasing reserves and production while lowering costs. Our team of professionals is dedicated to performing to the highest industry standards, operating within regulatory requirements, and maintaining its stance as a good corporate citizen.

Safe Harbor Statement

This press release may contain certain “forward-looking statements” relating to the business of Black Elk Energy Offshore Operations, LLC (“Black Elk Energy”) and its subsidiary companies. All statements, other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, and involve known and unknown risks and uncertainties. Although Black Elk Energy believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Black Elk Energy’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Black Elk Energy’s periodic reports that are filed with the Securities and Exchange Commission and available on its website at www.sec.gov. All forward-looking statements attributable to Black Elk Energy or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, Black Elk Energy does not assume a duty to update these forward-looking statements.