In addition to the EOR potential, the acquisition adds a little immediate conventional production in cash flow, adding about 2,200 barrels a day or about the same production that we saw earlier this year. The field has several conventional projects, development projects that we can do with attractive rates of return. And that should allow us to minimize the conventional production decline. We are fortunate in the timing of this acquisition as we anticipate receiving like-kind exchange treatment, which will save us about $30 million in current taxes, creating an additional value for our shareholders. We expect the transition to close in early June, and currently estimate first tertiary production around 2017. The timing reflects the need to unitize the field, construct an 18-mile extension of our CO2 pipeline from Hastings and manage and properly allocate our CO2 supply and transportation. We'll be able to give you more details on this once we have a little more time to study it, create an EOR model and development plan. But bottom line, we're enthused we're able to pick up another significant Gulf Coast oilfield and add to our extensive inventory of the EOR projects.
Briefly on the first quarter. We reported a first quarter adjusted net income of $161 million, $0.41 per diluted share and adjusted cash flow of $352 million. Both of these are slightly less than our last quarter's record-setting levels but still very strong, up 55% and 30% respectively from the year ago. Of course, as Jack mentioned, these are non-GAAP measures. And see our press release and other documents for the reconciling items.