Gulfsands Petroleum, an oil and gas exploration and production company, has sold three non-core properties from its Gulf of Mexico asset portfolio.
The move is part of the company’s ongoing plans to rationalize its US oil and gas property portfolio.
Gulfsands sold various working interests in the Eugene Island 57/58 (EI 57/58) gas field, the Vermillion 379 (VR 379) oil and gas field and the South Pelto 13 (PL13) oil and gas field.
According to the company, these assets are considered non-core due to either their production being dominated by natural gas (EI 57/58) or their relatively low working interest positions (VR 379 and PL 13).
Completion of the transaction is expected in late January 2011 and the company will receive $4.2m from this sale.
The sale also removes the company’s forward liability provision related to the plugging and abandonment of wells, and decommissioning of facilities on these licenses.
Gulfsands will therefore be returned approximately $5.6m cash deposits that are currently held in escrow as security against these future liabilities.