The Houston Exploration Co., Houston, (NYSE: THX) plans to sell substantially all of the Louisiana portion of its Gulf of Mexico assets to a private investor for $590 million cash. The proved reserves as of 2005 for these assets were estimated at 186.1 billion cubic feet of natural gas equivalent. The company will retain interests in 18 exploration leases in the Louisiana waters and expects to capture additional value from these blocks through some combination of drilling, farm-outs and sales. Closing is expected May 31. The proceeds of the Louisiana sale will be used to develop existing assets, acquire additional properties in U.S. onshore basins, pay outstanding bank debt and purchase shares of the company's common stock. Wachovia Securities is the financial adviser to Houston Exploration for the sale.
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