Energy XXI (Bermuda) will sell a number of non-core onshore natural gas assets to a private buyer for $41m.
The assets include about 70 producing wells in 20 fields with recent average net production of eight million cubic feet per day (mmcf/d) of natural gas and 285 barrels per day of oil.
Energy XXI chairman and CEO John Schiller said that the divestiture of these non-core assets is consistent with the company’s oil-focused acquire-and-exploit strategy.
"Proceeds from the sale will help us continue to strengthen our balance sheet and focus our attention on properties we operate and can grow," Schiller said.
The transaction is expected to be closed by 30 June 2011, with an effective date of 1 June 2011.
Energy XXI is engaged in the exploration and production of oil and natural gas and its properties are located in the US Gulf of Mexico waters and the US Gulf Coast (onshore).