Benton Oil & Gas Co. to Sell Stake in Fields
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Benton Oil & Gas Co., an Oxnard energy concern, said it tentatively agreed to sell 50% of its interest in two natural gas fields in the Gulf Coast of Louisiana to a unit of Tenneco Inc. for a total of $7.3 million.
The deal calls for Benton to receive $5.7 million upon closing of the transaction to cover a portion of its costs to date.
In addition, Tenneco Ventures would pay Benton $1 million over six months and $600,000 over two years for future seismic, geological and geophysical work on the fields.
The fields, the Belle Isle and Rabbit Island, have each produced more than 1 trillion cubic feet of natural gas, Benton said.
It expects to begin drilling its first well later this year at Belle Isle. Seismic testing is continuing at Rabbit Island, it said.
The agreement, which is expected to close in one month, also gives Tenneco the option to participate in up to 50% of Benton’s future Gulf Coast seismic and development projects for five years.
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