NEW ORLEANS (AP) — EPL Oil & Gas Inc. is buying some shallow water Gulf of Mexico assets from Hilcorp Energy GOM Holdings LLC for $550 million.

The properties in the deal include three fields that Hilcorp had acquired from Chevron Corp. on the Central Gulf of Mexico shelf in the vicinity of EPL’s existing core field areas.

The properties are currently producing about 10,000 barrels of oil equivalent per day, about 50 percent of which are oil.

EPL President and CEO Gary Hanna said in a statement on Monday that the buyout nearly doubles the New Orleans company’s proved reserves to about 74 million barrels of oil equivalent per day.

EPL, an independent oil and natural gas exploration and production company based in New Orleans and Houston, plans to fund the transaction with available cash and committed financing from the Bank of Montreal.

The acquisition in Ship Shoal Block 208, South Pass 78 and South Marsh Island 239 is expected to close by Oct. 31.

EPL shares closed at $20.94 on Friday after rising to a 52-week high of $20.98 during the session. They traded as low as $9.99 in last October.

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