Energy XXI has closed on the sale of the East Bay Field for $21 million to a private buyer. In addition, Energy XXI will retain a 5% overriding royalty interest on these assets for a period not to exceed 5 years from the closing date, and Energy XXI will also retain 50 percent of the deep rights associated with the East Bay Field.

The East Bay Field produced approximately 2,050 barrels of oil per day (Bbl/d) net on average for fiscal 2015, with net reserves associated with the East Bay Field estimated at approximately 9.4 million barrels of oil equivalent, 94 percent liquids, as of June 30, 2015. The buyer will assume plugging and abandonment liability.

'The sale of East Bay allows the company to focus on activities in fields with higher profitability, while significantly reducing our plugging and abandonment liability in the Gulf of Mexico,' Chairman, President and Chief Executive Officer John Schiller said. 'We continue to evaluate additional opportunities to sell non-core assets in the Gulf of Mexico.'

Tags: Energy XXI