The acquisition takes Petsec’s GoM leasehold position to 50 leases, which will in turn significantly increase its inventory of high quality drillable prospects, the company said.

Under the new JV with a group of privately owned, Texas-based companies, Petsec has acquired a 50% interest in 28 lease blocks, a 25% interest in five additional lease blocks, and the right to participate in future US Minerals Management Service lease sales for up to a 35% working interest.

Terms of the deal were $9.8 million cash reimbursement to the sellers, plus retention of a 20% after payout back-in on the initial 33 leases.

Petsec told the Australian Stock Exchange today it also expects to assume operatorship on a “significant number” of the leases.

More than 36 prospects have been mapped to date, with an estimated net unrisked potential of 157 billion cubic feet (Bcf) of gas and 29 million barrels of oil, according to Petsec.

Within this potential is an estimated 43Bcf equivalent of gas net, discovered by prior drilling.

Petsec said it expected the leases, which were all acquired at OCS lease sales in 2005 and 2006, would be tested over the next two to three years.

First drilling on the new blocks is due to start before the beginning of November, involving a two to five-well program in the Mobile Bay Area.