Jones Walker LLP announced this week that the firm is counseling LLOG Bluewater Holdings, L.L.C. and LLOG Exploration Offshore, L.L.C. in the $1.4 Billion sale of certain of their assets to Murphy Exploration & Production Company – USA (“Murphy”).

The Jones Walker team representing LLOG Bluewater Holdings, L.L.C. and LLOG Exploration Offshore, L.L.C. in this transaction includes partners, Christopher M. Capitelli, F. Rivers Lelong, Jr., and Rudolph R. Ramelli, and associate, Leslie LaCoste.

Murphy Oil entered into a definitive agreement to acquire deep water Gulf of Mexico assets from LLOG Exploration Offshore, L.L.C. and LLOG Bluewater Holdings, L.L.C. The acquisition will be funded by a combination of cash on hand and availability under the Murphy’s $1.6 billion revolving credit facility.

The assets currently produce approximately 38,000 barrels of oil equivalent per day net (Boepd) and are expected to add approximately 66 million barrels of oil equivalent net (Mmboe) to Murphy’s Proven (1P) reserves and 122 Mmboe Proven and Probable (2P) reserves. The transaction will have an effective date of January 1, 2019 and is expected to close in the second quarter, subject to normal closing adjustments. Murphy will pay a cash consideration of $1.375 billion. Additional contingent consideration payments are based on the following: up to $200 million in the event that revenue from certain properties exceeds certain contractual thresholds between 2019 and 2022; and $50 million following first oil from certain development projects.

Scotia Capital (USA) Inc. and Baker Botts L.L.P. are serving as advisors to Murphy on the transaction. Barclays is serving as exclusive financial advisor. Gieger, Laborde, & Laperouse, LLC also acted as legal advisor to LLOG.