Growth in the oil and gas business often comes through buying rather than building. Gulf Coast Western, a Dallas exploration and production company, completed two notable transactions in 2016, according to a company review published in October 2020. Both deals added to its position along the Gulf Coast.
The Northcote Energy Agreement
That year, the company purchased a 50 percent working interest connected to Northcote Energy Ltd. The arrangement expanded and accelerated Northcote’s drilling operations. Gulf Coast Western received a 50 percent working interest in the Lutcher Moore well, along with saltwater disposal assets. The deal also included a 50 percent working interest in four wells drilled in the Cockfield and Oligocene Frio formations. For wells drilled in the Wilcox formation, the company took a 25 percent working interest.
A working interest gives its holder a share of a well’s production along with a matching share of the costs of drilling and operating it. Dividing interests this way lets companies spread exploration expenses across partners.
Seismic Data From Orbit Energy Partners
The second transaction ran through a subsidiary. Orbit Gulf Coast Exploration LLC announced in January 2016 that it had purchased all assets of Orbit Energy Partners LLC. The subsidiary had already taken over Orbit Energy Partners’ production activity in October 2015, so the purchase completed a transition that was underway.
The most notable asset was proprietary rights to 100 square miles of 3D seismic data covering Lafayette, Louisiana. Seismic data helps geologists map rock layers underground and choose drilling targets with greater precision.
Hamilton attributes much of the company’s growth to acquisitions like these. Gulf Coast Western reportedly uses stringent criteria when selecting properties, targeting those with high growth potential. Its relationships with Orbit Energy Inc. and Orbit Gulf Coast Exploration LLC are cited as leading causes of its broader operating territory.
Founded in 1970, the firm now operates across Texas, Louisiana, Colorado, Alabama, Oklahoma, and Mississippi. Its 2016 purchases offer a concrete look at how Gulf Coast Western has added production and data assets over time. Visit this page on LinkedIn, for more information.
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