Friday, April 8, 2011

Maritech Resources sells majority of assets to Tana for $222 million or $24/barrel of proved reserves!!

Maritech Resources Inc, a wholly-owned subsidiary of TETRA Technologies Inc, entered into a Purchase and Sale Agreement with Tana Exploration Company LLC, a wholly-owned subsidiary of TRT Holdings Inc. Under the Agreement, Maritech has agreed to sell all of its interest in 21 federal offshore oil and gas leases in the Gulf of Mexico, one Louisiana offshore oil and gas lease and six leases in Louisiana state waters, which collectively represent approximately 79% of Maritech’s total proved reserves as of December 31, 2010.



The assets to be sold include producing and non-producing wells and related reserves, production, contracts, platforms, equipment, gathering systems, production facilities, and other related properties. The sale has an effective date of January 1, 2011. The purchase price for the Assets is $222.25 million.



Maritech sells Proved Reserves @ ~$24/barrel!!
  • The Q1-2011 average metrics for Gulf of Mexico (Shallow) are ~$41,000/Daily BOE and ~19/Proved BOE
  • The current transaction metrics settle at ~$24/barrel- pretty high than the average metrics! The high metrics could be justified by the following facts-
  • Approximately  89% of the proved reserves are developed, which means the low or no development costs and therefore the high metrics!
  • The reserve life index (R/P) is low at 4.3 years which again has the similar impact as the previous point; and returns the capital invested at a faster pace
  • And lastly, may be the rising high oil price!!  

The table below shows the list of GoM transactions with metrics:



Following is the map representing 2010 GoM deals-

Note: "Global E&P Transactions 2010 Review" is available for free! If interested in getting a copy, do write to anitha.bharathi@derrickpetroleum.com

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