Under the terms of the transaction, McMoRan will issue 51 million shares of McMoRan common stock and $75m in cash to acquire all of PXP’s interests and exploration rights in the shallow waters of the shelf of the GOM.
McMoRan currently owns working interests in substantially all of the properties being acquired, which include PXP’s 27.7% interest in the ultra-deep discovery at Davy Jones, its 35% interest in Blackbeard West and all of PXP’s interests in deep gas and ultra-deep exploration prospects on the shelf of the GOM.
The transaction will consolidate McMoRan’s ownership in core focus areas and expand its participation in future production from its deep gas and ultra-deep exploration and development programs, the company said.
