Target Information

Esperanza Capital Partners (ECP) and Andros Capital Partners LLC have successfully executed a definitive purchase agreement to acquire Exxon Mobil Corporation’s assets in the Ursa and Princess Fields, collectively known as Ursa. Located approximately 130 miles southeast of New Orleans, Louisiana, the Ursa Field spans several Mississippi Canyon Federal OCS Blocks (765, 766, 808, 809, 810, 852, 853, and 854). The acquisition includes an estimated current production of approximately 8,500 Barrels of Oil Equivalent per day (Boe/d), of which 82% is oil, along with the associated infrastructure such as the Ursa Tension Leg Platform (Ursa TLP) host facility.

The Ursa Field is operated by Shell Offshore Inc., a subsidiary of Shell plc, which is recognized as a leading operator in the Deepwater Gulf of Mexico (Deepwater GOM). ECP’s participation will account for 15.96% of the non-operated working interest, joining established partners such as BP Exploration & Production Inc. (22.69%) and ConocoPhillips (15.96%).

Industry Overview in the Gulf of Mexico

The Deepwater Gulf of Mexico stands as a pivotal region in the global oil and gas sector, characterized by its expansive reserves and advanced production technologies. The area is known for its deepwater oil fields, which require significant investment and expertise to develop. Current technological advancements allow for enhanced extraction methods, ensuring that companies can efficiently access these hydrocarbon resources.

In recent years, the Gulf has seen a resurgence in exploration and production activities, driven by higher oil prices. The region is also under scrutiny for its environmental management practices, as companies strive for sustainable operations while complying with regulatory frameworks. This creates an ongoing challenge and opportunity for investments aimed at balancing profitability with environmental stewardship.

Further, the collaboration between companies enhances operational efficiencies and the sharing of technological innovations, which is essential for maximizing the potential of the region's resources. The strategic joint ventures formed in this sector are vital for attracting investments that can keep pace with market competition and meet burgeoning energy demands.

Additionally, the geopolitical landscape influences the oil industry significantly. With tightening global supplies, the Gulf of Mexico continues to attract foreign investments for its potential to supplement production levels and diversify energy sources amid global energy transitions.

Rationale Behind the Deal

This acquisition represents a significant strategic move for ECP as it continues to expand its presence in the Gulf of Mexico. By securing the Ursa assets, ECP not only enhances its portfolio with a productive and established oil field but also consolidates partnerships that share a long-term vision for growth within the region. According to ECP Managing Partner David Dunwoody, this transaction aligns perfectly with their stated goal of executing transformative ventures that leverage the expertise of seasoned professionals in the Gulf.

Such acquisitions provide ECP with the opportunity to actively participate in the development of the region's energy resources, thus reinforcing their commitment to delivering constructive exit strategies for current incumbents in the sector. The partnership with Andros further broadens their resource base, allowing them to capitalize on substantial operational synergies that can be achieved in the Deepwater GOM.

Information About the Investor

Esperanza Capital Partners, established in 2021, is an investment firm focused primarily on the energy sector. Co-founded by industry veterans David M. Dunwoody, Jr. and William H. Goodwin, alongside Cockrell Interests, the firm is headquartered in Houston, Texas. ECP strategically targets high-quality energy and infrastructure assets, particularly in the U.S. Gulf of Mexico, and has quickly established itself as a significant player in the market.

Andros Capital Partners, founded in 2020, is another prominent player in the investment landscape. With accumulated equity commitments exceeding $1 billion, Andros is notable for its flexible and opportunistic investment strategies. The firm leverages a wealth of experience in building, operating, and monetizing energy assets, which aligns well with the strategic objectives of ECP. Both firms demonstrate a commitment to partnership and growth within the energy sector, enhancing their ability to capitalize on high-quality investment opportunities.

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This investment appears to be a promising opportunity for ECP and Andros given the established productivity of the Ursa field and the advantageous location within the rapidly evolving Deepwater GOM sector. The combination of current production levels, coupled with the operational experience of Shell Offshore, positions ECP favorably for future developments and returns.

Furthermore, the strategic partnership between ECP and Andros capitalizes on their complementary strengths, allowing them to implement effective management and operational strategies to maximize the value of their investment. This collaborative approach signifies a strong commitment to navigating the complexities of the energy landscape, paving the way for potential revenue growth.

Moreover, the acquisition exemplifies a calculated risk in a sector poised for growth amid global energy concerns and market fluctuations. By focusing on high-quality assets like Ursa, ECP and Andros stand to benefit from the synergy between technological innovation and resource development, which is critical for success in the energy market.

Ultimately, this deal not only strengthens ECP’s position in the Gulf but also demonstrates confidence in the ongoing viability of offshore oil production. If executed effectively, this investment could yield substantial returns and establish ECP and Andros as leaders in the region's energy future.

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