Selling off the Gulf

Woodside Energy, the wholly owned subsidiary of Woodside Petroleum, has expanded its offshore interests in the Gulf of Mexico by acquiring Houston, TX-based Gryphon Exploration for $282.7 million.

After taking into account Gryphon’s net debt, the total acquisition cost was $296.9 million.

Gryphon has interests in 118 leases in the Gulf, 95 of which are operated by the company. The majority of the leases are on the continental shelf.

The acquisition gives Woodside immediate production from 15 fields, 11 of which are operated by Gryphon. These fields are producing 30 million cubic feet of gas equivalent (MMcfge) a day. A further six fields under development could double production by the end of this year.

Gryphon’s Proved Reserves as of 30 June 2005 is estimated to be 72.5 billion cubic feet of gas equivalent (Bcfge). Proved plus probable reserves are estimated to be 114 Bcfge. The reserves are made up of at least 85% gas.

Woodside’s Chief Executive Officer, Don Voelte, said the acquisition built on the company’s existing Gulf of Mexico interests, giving it a diverse portfolio across the shelf and deep water.

Gryphon was formed in 2000 by Warburg Pincus, Cheniere Energy and company management.