Arena Energy adds to Gulf of Mexico Shelf properties

Arena Energy LLC closed a deal to acquire seven blocks and 12 platforms in the Gulf of Mexico from GOM Shelf LLC.        

The acquisition includes net production of about 2,000 boe/d in fields with historically low decline rates and includes a majority interest in two large fields in the shallow water US Gulf of Mexico in Eugene Island 330 and South Marsh 128, the company said in a release Dec. 12. 

The acquired assets “have significant operating synergies with existing Arena assets with optionality to restore and increase production and includes four platforms on lease blocks that Arena was recently awarded in Lease Sale 257,” the company continued. A purchase price was not disclosed.

Earlier this month, Arena Energy noted its award of leases in the US Gulf of Mexico by the Bureau of Ocean Energy Management (BOEM) in Lease Sale 257, adding over 50,000 acres to its existing Gulf of Mexico Shelf acreage.

BOEM conducted the sale in November 2021, but it was subsequently vacated by a federal judge in January 2022. The Inflation Reduction Act of 2022, signed into law by President Biden in August, required reinstatement of the sale and the leases were finally awarded in October 2022.

Arena was the successful bidder on eleven leases in water depths of 30-283 ft in Eugene Island, South Pelto, and West Delta in the Gulf of Mexico off the coast of Louisiana. Arena paid $3.8 million in lease bonuses to the federal government for the leases.

Arena Energy finds offshore oil and gas prospects which are drilled and operated by affiliate company Arena Offshore.