Appleby acted as Bermuda counsel to Energy XXI (Bermuda) Limited (“Energy XXI”) (Nasdaq:EXXI) (AIM:EXXI) in its USD2.2bn merger with EPL Oil & Gas, Inc. (“EPL”) (NYSE:EPL), a union that creates the only publically traded, pure-play oil and gas exploration company in the shallow water section of the U.S. Gulf of Mexico. The new enterprise has an enterprise value of USD6bn.
The merger involved two U.S. subsidiaries of Energy XXI—Energy XXI Gulf Coast, Inc. (“Gulf Coast”), an indirect wholly owned subsidiary of Energy XXI, and Clyde Merger Sub, Inc., a wholly owned subsidiary of Gulf Coast (Merger Sub). Under the agreement, Clyde Merger Sub Inc. merged with and into EPL, with the result that EPL is now an indirect wholly owned subsidiary of Energy XXI.
Appleby advised on Bermuda law throughout the merger as the transaction was partly in shares of Energy XXI, a Bermuda company listed in New York and London. The Appleby team was led by Corporate & Commercial Partner, James Bodi, based in the firm’s Bermuda office. Vinson & Elkins were U.S. counsel to Energy XXI.
“Appleby advised Energy XXI on its establishment in June 2005, as well as its subsequent public offering,” said Mr. Bodi. “We have been happy to assist in this latest transaction, and congratulate them on the successful acquisition.”
Energy XXI is an independent oil and natural gas exploration and production company whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The company’s properties are located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore.
Founded in 1998, EPL was an independent oil and natural gas exploration and production company headquartered in Houston, Texas with an office in New Orleans, Louisiana. The Company’s operations prior to the merger were concentrated in the U.S. Gulf of Mexico shelf, focusing on the state and federal waters offshore Louisiana.
