Energy XXI Reaches Agreement With BOEM on Supplemental Bonding
HOUSTON, June 22, 2015 (GLOBE NEWSWIRE) -- Energy XXI (Nasdaq:EXXI) today announced that after several constructive meetings and exchanges of information, Energy XXI has reached an agreement with the Bureau of Ocean Energy Management (BOEM) with regard to supplemental bonding requirements for the company and its subsidiaries. Energy XXI has provided $150 million of supplemental bonding, bringing the company's total supplemental bonding to $319 million at an annual premium expense of $4.8 million, with approximately $10 million collateral posted. In addition, the company maintains $226 million in Letters of Credit to third parties on additional assets in the Gulf of Mexico. The BOEM has agreed to withdraw its orders with regard to supplemental bonding upon dismissal of the appeals filed by Energy XXI with the Interior Board of Land Appeals, and postponed until November 15, 2015 the issuance of any further requirements for financial assurance with respect to activities on existing properties of Energy XXI and its subsidiaries.
In addition to the consideration provided under the agreement, during the interim period, Energy XXI and its subsidiaries continue to cooperate with and engage in constructive discussions with the BOEM and its sister agency, the Bureau of Safety and Environmental Enforcement, with regard to decommissioning and financial assurance matters.
About the Company
Energy XXI is an independent oil and natural gas company whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The company's properties are located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. To learn more, visit the Energy XXI website at www.EnergyXXI.com.
CONTACT: ENQUIRIES OF THE COMPANY
Vice President, Investor Relations
Manager, Investor Relations
(June 22, 2015 - 7:01 AM EDT)
U.S. Product Demand Will Remain Below 200 Levels But Crude Production Will Rebound In its recently released Annual Energy Outlook 2017, the EIA outlines U.S. petroleum demand and production prospects through 2040. To deal with the always tricky business of oil and gas forecasting, EIA takes a scenario analysis approach, examining outcomes under six potential scenarios. These include a Reference[Read More…]
Oil & Gas 360® c/o EnerCom, Inc.
800 18th Street
Denver, CO 80202
Advertise on OAG360
OAG360 has multiple advertising opportunities. Reach your investors/buyers by advertising on the website, eMail campaigns, webcasts and videos.