Dynamic Offshore Resources LLC, a Houston-based oil and gas company created to acquire and develop producing properties in the Gulf of Mexico, and its affiliate, Moreno Group Holdings, LLC, have together closed the previously declared transaction to purchase a combined 75 percent interest in SPN Resources LLC for $165 million. SPN Resources was the oil and gas subsidiary of Superior Energy Services, Inc., which will retain an effective 25% interest in SPN Resources.

The transaction is the initial significant asset acquisition by Dynamic Offshore Resources, which earlier this year announced a $500 million capital commitment from energy private equity firm Riverstone Holdings LLC and management. The acquired properties include approximately 180 producing wells with current net daily production of approximately 11,000 barrels-of-oil equivalent per day. The transaction includes interests in 31 offshore blocks covering approximately 100,000 net acres. More than 90 percent of the proved reserve value and current production volumes from the properties come from six operated fields. Current proved reserves exceed 13.5 million barrels-of-oil equivalent and these volumes are more than 95 percent developed.

“Our purchase of the controlling interest in SPN Resources provides the platform to implement our strategy of investing heavily in the Gulf of Mexico shelf.” said Matt McCarroll, chief executive and co-founder of Dynamic Offshore Resources. “The deal, when combined with the $500 million equity commitment from Riverstone Holdings and management, immediately establishes Dynamic Offshore Resources as a significant operator on the Gulf of Mexico shelf.”

N. John Lancaster, managing director of Riverstone Holdings, said, "With significant capital available to exploit these properties to their fullest, Dynamic Offshore Resources is well positioned to build on this asset base with development drilling and additional acquisitions in the future. The partnership with Superior Energy and Moreno Group brings unique expertise to this venture that will benefit all parties involved going forward.”

Tags: Dynamic Offshore Resources LLC, SPN Resources LLC