Energy XXI Forms Partnership To Sell Noncore GoM Assets

Energy XXI Gulf Coast Inc. (NASDAQ: EGC) said May 10 it agreed to sell its noncore asset portfolio located in the Gulf of Mexico (GoM) as part of a new partnership with Orinoco Natural Resources LLC.

The proposed sale will clear about $320 million of Energy XXI’s P&A obligations and also give the Houston-based E&P much needed capital to develop its remaining assets.

In exchange, Orinoco, a Houston-based natural resources firm owned by billionaires Tom and Ana Clarke, will receive a 35% equity ownership position in Energy XXI.