Mariner Energys platform fire will not jeopardize its pending deal with Apache Corp., sources say.
The small, Houston-based oil-and-gas explorer first came into the public eye on Thursday, when one of its shallow-water platforms caught on fire about 100 miles off the coast of Louisiana. The incident sent 13 workers overboard, all of whom have been rescued. As of now, the fire does not appear to have caused an oil spill.
Mariner oversees seven wells in the oil field known as Vermilion 380. Last year, the company reportedly produced about 1.1 billion cubic feet of gas.
The fire is not expected to affect Mariners production levels this year, and the pending deal with Apache Corp. is expected to go on as planned. Apache will acquire Mariner Energy for $2.7 billion.
The deal between Apache and Mariner Energy was struck on April 15th this yearfive days before the infamous Deepwater Horizon oil rig explosion.
According to the Wall Street Journal, the Bureau of Ocean Energy Management, Regulation and Enforcement will perform a formal investigation of the platform explosion.
The Bureaus director Michael R. Bromwich said, "We will use all available resources to ensure that we find out what happened, how it happened, and what enforcement action should be taken if any laws or regulations were violated.
While Mariners shares fell 2.6% on Thursday, they advanced a little Friday in early trading, progressing 2% to $23.39.
