Finance News

Beacon Completes Divestment of Non-Operated Properties in Gulf of Mexico

Beacon Offshore Energy LLC (“Beacon”) has completed the divestment of its non-operated interests in certain fields in the deepwater Gulf of Mexico in accordance with a previously executed definitive agreement with GOM 1 Holdings Inc., an affiliate of O.G. Oil & Gas Limited. 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.

BeaconOffshore whitetype 1Commenting on the announcement, Scott Gutterman, Beacon Chairman and Chief Executive Officer, stated: “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.”

Jefferies International Limited served as financial advisor to Beacon and Kirkland & Ellis LLP served as legal advisor to Beacon.

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