Whittier takes interest in Cut Off field

Ray Tyson

Petroleum News Houston correspondent

Small exploration and production independent Whittier Energy has acquired an operated working interest in the Cut Off field in Lafourche Parish, La., for $1.65 million from an undisclosed private company, the Houston, Texas-based company said May 13.

Whittier said it acquired an average working interest of 73 percent in four producing oil wells, one salt water disposal well and two shut-in wells. Gross production from the field is about 210 barrels of oil and 150,000 cubic feet of gas per day. Net production to Whittier is about 105 barrels of oil and 35,000 cubic feet per day.

Whittier said it paid for the property using $650,000 from working capital and $1 million from its revolving line of credit with Compass Bank. The company has estimated net proved reserves in the field to be in excess of 350,000 barrels of oil equivalent.

“This property is a timely purchase given the current high commodity price environment we are in.’’ said Bryce Rhodes, Whittier’s chief executive officer.

Whittier operates properties in Texas and Louisiana and owns various non-operated working interests in Oklahoma, Texas, Wyoming and California.