Esperanza Capital and Andros Capital secure strategic ExxonMobil assets in Gulf of Mexico

Esperanza Capital Partners (ECP) and Andros Capital Partners LLC (Andros) have announced a definitive agreement to acquire assets in the Ursa and Princess Fields (Ursa) from Exxon Mobil Corporation (ExxonMobil), alongside the establishment of a strategic joint venture. This venture is aimed at the acquisition and development of upstream and infrastructure assets within the Deepwater Gulf of Mexico (Deepwater GOM), marking a significant move in the energy sector.

Located about 130 miles southeast of New Orleans, Louisiana, the Ursa assets encompass several Mississippi Canyon Federal OCS Blocks. The acquisition includes current production of approximately 8,500 barrels of oil equivalent per day (Boe/d), 82% of which is oil, net to ExxonMobil’s interest. It also includes associated infrastructure like the Ursa Tension Leg Platform (Ursa TLP) host facility, with Shell Offshore Inc., a subsidiary of Shell plc and a leading operator in the Deepwater GOM, managing the operations. Upon closing, ECP, holding a 15.96% interest, will join forces with other non-operated working interest partners such as BP Exploration & Production Inc (22.69%) and ConocoPhillips (15.96%).

ECP Managing Partner David Dunwoody highlighted the transaction’s alignment with the firm’s foundational strategy, emphasizing the team’s expertise in the Gulf of Mexico and the significance of joining the Ursa partnership. The acquisition, ECP’s third in the GOM through its partnership with Cockrell Interests since 2021, underscores the firm’s dedication to the basin and its strategy of providing exit solutions to incumbents in the region.

Esperanza Capital Partners and Andros Capital Partners Join Forces in Strategic Acquisition of ExxonMobil’s Ursa and Princess Fields

William Goodwin, another Managing Partner at ECP, expressed gratitude towards Cockrell, Andros, and the broader investor base for their support, as well as appreciation for the trust placed in ECP by ExxonMobil and the Ursa partnership.

Phillip A. Gayle, Jr., Founder and Managing Partner of Andros, expressed excitement about partnering with the ECP team to acquire this significant asset, highlighting the transaction’s demonstration of Andros’ investment flexibility and commitment to partnering with entrepreneurs to acquire high-quality assets at scale.

Legal counsel for the transaction was provided by Gibson, Dunn & Crutcher LLP to ECP and Vinson & Elkins LLP to Andros, facilitating a smooth acquisition process.

This strategic acquisition by Esperanza Capital Partners and Andros Capital Partners represents a pivotal moment in the Deepwater Gulf of Mexico’s energy landscape. By securing ExxonMobil’s assets in the Ursa and Princess Fields, the joint venture not only underscores the value of the Deepwater GOM but also highlights the strategic approach of leveraging industry expertise and partnerships to foster growth and development in the sector. The collaboration between ECP, Andros, and other partners like Cockrell Interests signifies a robust model for successful energy sector investments, focusing on high-quality asset acquisition and strategic development.