Petsec described the Mobile Bay region as its recent “star performer”, yielding six successive gas discoveries on leases acquired by the company in August last year.

Under the latest deal, the Sydney-based mid-cap has signed an agreement to acquire the Mobile Bay 952 production platform and associated facilities from Callon Petroleum.

In addition, the company will acquire the Mobile Bay 955 lease and pipelines and one producing well, as well as the Mobile Bay 953 well and pipelines and two producing wells.

In return, Petsec will assume 100% of the abandonment liability for the platform, caisson and wells on the leases, estimated to cost about $US4.9 million ($A5.9 million).

Existing reserves of 3.5 billion cubic feet of gas equivalent, currently in production, will also be acquired as part of the transaction.

The platform will become the host facility for production from Petsec’s recent discoveries, totalling 18Bcfe, in the region.

Production from the new gas fields is now expected to start in the September quarter.

The second acquisition involves Petsec signing a letter of intent with a group of independent companies, under which it would acquire a 20% interest in a three-well drilling program, onshore Louisiana.

Located in Terrebonee Parish, the campaign is targeting 58.3Bcf of gross gas reserves and 1.75 million barrels of oil, or 8.8Bcfe net to Petsec.

The three wells are expected to cost $US5.3 million in addition to $8.3 million for exploration and development.

Successful wells are expected to come online within three months. Drilling is expected to start in mid-to-late June.