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BRITISH ACADIAN LTD., INC.  

 

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History

British Acadian Energy L.L.C. is an independent oil and gas exploration and production company that was incorporated in 1987 with the objective of acquiring oil and gas reserves primarily in the outer continental shelf (OCS) area of the U.S. Gulf of Mexico.  The Company's main focus is the acquisition of proven reserves with a particular emphasis on associated development drilling potential.  British Acadian is a Texas Corporation, wholly owned and operated in the United States with offices mainly in Lafayette, Louisiana.  The principals of British Acadian have a combined 60 years experience in the acquisition, management, development and disposition of producing oil and gas properties. 

British Acadian has always been selective in its acquisitions, investing in properties with overlooked undeveloped reserve potential in order to generate a better than average rate of return for its partners. Consequently, over the last fifteen years, it has negotiated and closed the sale of only about fifteen properties and/or assets with a total acquisition cost of nearly $200 million. Some of the acquisitions have included development and/or exploration drilling activity, and most have returned the purchase price within three years. Figure 5 shows net reserves associated with these acquisitions at the time of purchase together with the cost of the reserves on a barrel of oil equivalent (boe) basis. 

 

Figure 1. Some Reserves Purchased by British Acadian to date.

Reserve Category

Oil (mb)

Gas (bcf)

$/boe(1)

Proved Developed Producing Reserves.

6,855

110.9

6.08

Proved Non-Producing Reserves.

2,941

55.1

 

Total Proved Developed Reserves.

9,796

166.0

3.87

Proved Undeveloped & Possible.

6,246

95.0

 

Total Proved Reserves.

16,042

261.0

2.79

(1)     For explanation see footnotes to Figure 2.

A list of some of the acquisitions made by British Acadian is shown in Figure 6. This Figure also shows the total proved developed reserves (i.e. proved developed producing and proved developed non-producing reserves) by category by acquisition according to reserve reports at the time of purchase. It also shows the production that has occurred from the fields to date, and the purchase price in U.S. dollars ($).

Figure 2. Some Acquisitions Made to Date by British Acadian.

Block

Year

Acq’rd

Cost

$’mill

NWI%

(1)

Net TP Res (2)

Oil(mb)     Gas(bcf)

$/boe

(4)

Production(3)

Oil(mb)   Gas(bcf)

$/boe

(4)

MP 41*

1987

10.5

60.0

1,091

16.2

3.87

1,475

21.7

2.88

ST 173*

1988

12.5

80.1

 

29.3

4.27

426

47.5

2.99

EI 9

1989

3.50

80.0

140

43.0

6.14

173

64.0

4.31

SMI 116

1990

16.0

80

736

26.3

4.75

930

30.6

4.01

WC 368*

1990

4.5

7.6

34

5.4

7.99

57

17.4

5.65

SS 201/202*

1990

2.5

4.1

264

0.4

8.22

317

2.4

4.49

MI 637

1991

0.01

6.7

15

0.2

0.29

21

1.5

0.06

MP 35*

1991

10.5

85.5

3,629

14.0

2.09

5,389

18.3

1.74

SS 222/225*

1992

6.0

18.5

1,030

13.8

2.49

1,945

14.7

2.48

WC365/368*

1993

17.0

73.1

228

35.9

4.45

507

53.2

3.52

SP 83*

1994

3.0

10.0

2.3

2.2

13.50

3.8

3.6

8.29

EI 255*

2003

4.7

40

2,533

6.3

3.10

4,340

28.3

0.85

El Gordo*

2004

8.0

53

94

11.7

9.00

450

15.4

 

EI 255* (NW)

2005

0

25

12.15

6.3

3.10

4,340

28.3

0

Totals/Ave

 

98.7

43.0

9,796

 

 

 

 

2.74

 *      Field still producing

(NW)  New Well   

(1)   Net working interest

(2)   Proved Developed Producing and Non-producing Reserves at the time of purchase

(3)   Production from each field to date.

(4)    boe = barrel of oil equivalent.  Although 1 bo has the calorific value of 6.29 mcf gas, for the purposes of this conversion a value of 10 mcf = 1 bo has been used, which is the average price ratio between WTI crude oil and Henry Hub gas for the period 1987 to 2002.

 

The data presented in Figures 1 and 2 can be summarized as follows:

  • The average price paid for the proved developed producing reserves was $6.08 per boe, i.e. $6.00 per barrel of oil and $0.60 per mcf gas.
       

  • The price paid for total proved developed reserves at the time of acquisition was $4.07 per boe.  
     

  • Actual oil production from the fields since acquisition has exceeded total proved developed reserves estimated at the time of acquisition by 49 percent.     
     

  • Actual gas production from the fields since acquisition has exceeded total proved developed reserves estimated at the time of acquisition by 37 percent.    
     

  • The overall price paid to date based on actual production is $2.74 per boe.


 

 

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