Australian firm Entek Energy is pulling out of its offshore interests in the US Gulf of Mexico, selling them all to Peregrine Oil and Gas of Houston, Texas for almost $3m.
Entek said its reason for the sale is the difficult market conditions in the oil industry.
Its Gulf portfolio comprises stakes in four blocks. Two of them are gas blocks due to be plugged and abandoned (P&A), a task which Peregrine will now undertake. Peregrine had been the operator of those sites and the cost of P&A is estimated at $1m.
Peregrine will also take over the VR 341/342 oil blocks of which Entek held the bulk of the royalty interest.
As well as the $1m in P&A costs covered, Peregrine is paying a further $1.86m for the assets.
