On we entered into a purchase and sale agreement with ExxonMobil Corporation and certain of their subsidiaries (collectively "ExxonMobil") to acquire their interests in and operatorship of oil and gas producing properties in the eastern region of the Gulf of Mexico offshore Alabama and a related processing facility for million.  On with ExxonMobil, and after taking into account customary closing adjustments and an effective date of cash consideration paid by us was  million, including a previously-funded million deposit.  The transaction is referred to as the "Mobile Bay Acquisition".  The acquisition was funded from cash on hand and borrowings under the Credit Agreement, which was previously undrawn.  We also assumed the related ARO and certain other obligations associated with these assets.  The properties include working interests in Gulf of Mexico offshore producing fields and an onshore treatment facility that are adjacent to existing properties owned and operated by us. 

 

We determined that the assets acquired did meet the definition of a business under GAAP; therefore, the transaction was accounted for as an asset acquisition.  The recorded values were determined using the cash paid to the seller and expenses incurred related to the transaction.  Values for the liabilities assumed for ARO and certain other obligations were determined using the same methodology used to estimate other similar obligations of the Company.  The components of the cash paid to the seller at closing and the amounts recorded on the Condensed Consolidated Balance Sheet for the purchase price allocation and liabilities assumed are presented in the following tables (in thousands):

 

Cash paid to seller at close date:
Cash on hand		$	7,569
Performance deposit previously funded			10,000
Cash funded by the Credit Agreement (increase in long-term debt)			150,000
Total - cash paid to seller		$	167,569

 

		August 30, 2019 (Close Date)
Oil and natural gas properties and other, net - at cost:		$	191,450
Other assets			4,838
Current liabilities			2,819
Asset retirement obligations			21,619
Other liabilities			4,132

 

 

 

On we closed on the purchase from Cobalt International Energy, Inc. of a non-operated working interest in the Heidelberg field located in Green Canyon blocks and   The gross purchase price was million which was adjusted for certain closing items and an effective date of Cash flows generated by the acquired interest between the effective date and the closing date reduced the net purchase price to million.  We determined that the assets acquired did meet the definition of a business; therefore, the transaction was accounted for as an asset acquisition.  

 

 

 On we closed on the divestiture of substantially all of our ownership in an overriding royalty interests in the Permian Basin.  The net proceeds received were million, which was recorded as a reduction to our full-cost pool.