Deals in Louisiana Helped Fuel Company’s Expansion

Acquisitions have played a central role in the growth of Gulf Coast Western over the years, with two deals in particular standing out for how they extended the Dallas-based firm’s reach into new drilling territory.

A Stake in Northcote Energy

In 2016, Gulf Coast Western purchased fifty percent of the working interest in Northcote Energy Ltd, a move that sped up Northcote’s drilling program. The deal gave Gulf Coast Western a fifty percent working interest in the Lutcher Moore well along with related saltwater disposal assets. It also included a fifty percent working interest in four wells drilled across the Cockfield and Oligocene Frio formations, plus a twenty five percent working interest in every well drilled at the Wilcox formation.

That level of detail in the purchase agreement reflected how carefully Gulf Coast Western structures its deals, targeting specific formations and assets rather than acquiring companies outright without regard for what lies underground.

Orbit Energy Partners Changes Hands

The same year, the company’s subsidiary, Orbit Gulf Coast Exploration LLC, announced it had purchased all of the assets belonging to Orbit Energy Partners LLC. That purchase brought with it proprietary rights to one hundred square miles of three dimensional seismic data covering Lafayette, Louisiana, information that has since informed exploration decisions in the area.

Orbit Gulf Coast Exploration had already taken over production activity from Orbit Energy Partners in October of 2015, meaning the asset purchase formalized an arrangement that had effectively been underway for months. The seismic data acquired through the deal gave Gulf Coast Western a clearer picture of subsurface formations without having to commission new surveys from scratch.

Together, the Northcote and Orbit transactions illustrate how Gulf Coast Western has grown less by chasing every available deal and more by pursuing specific assets that fit its existing operations in Texas, Louisiana, and neighboring states. That pattern of selective acquisition has continued to shape how the company adds reserves and production capacity to its portfolio each year. See related link for more information.

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