Helix Energy Solutions Group, Inc. reported that it has contracted with an advisory group to help assist in the evaluation of the divestment of the company’s oil and gas properties. The company did not put a time frame on the possible divestment.
Helix Energy Solutions Group, Inc. has also hired an outside petroleum reservoir consulting and engineering firm to reevaluate the value of its oil and gas reserves as of 6/30/2010, in anticipation of a sale.
Helix Energy Solutions Group, Inc. said that the amount of proved reserves would be down markedly from the level reported at the end of 2009. This downward revision reflects lower well performance at the company’s Bushwood field, and updated assumptions on certain fields the company owns in the Gulf of Mexico.
Helix Energy Solutions Group, Inc. estimates that the company’s proved reserves would be 400 Bcf as of 6/30/2010, and have a PV-10 value of $1.3 billion as calculated under the Securities and Exchange Commission (SEC) valuation methodology. Helix Energy Solutions Group, Inc. stressed that this value is useful only as an accounting measure, and does not reflect what the company would realize in a sale.
Helix Energy Solutions Group, Inc. said that the company would take a non-cash impairment charge of between $160-180 million in connection with the reserve revaluation.
For more information on the company, go to www.helixesg.com