This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
LRR Energy, L.P. (NYSE: LRE) (“LRR Energy” or “LRE”) announced today that it signed a definitive agreement to acquire oil and natural gas properties in the Mid-Continent region in Oklahoma from its sponsor, Lime Rock Resources, for a purchase price of $21.0 million, subject to customary purchase price adjustments. As part of the transaction, LRE will acquire commodity hedge contracts that LRE estimates to be currently valued at approximately $1.7 million. The purchase price will be adjusted based on the value of the hedge contracts at the closing of the transaction. The effective date of the transaction is October 1, 2012, and closing of the transaction is expected to occur on or about January 3, 2013, and is subject to customary approvals and closing conditions. LRE plans to finance the transaction with borrowings under its existing revolving credit facility. Terms of the transaction were approved on November 29, 2012, by the Board of Directors of the general partner of LRE and by the Board's conflicts committee, which is comprised entirely of independent directors.
Eric Mullins, Chairman and Co-Chief Executive Officer, commented, "We are excited to announce our second acquisition from our sponsor, Lime Rock Resources. The transaction includes liquids-weighted, mature properties with a large inventory of low-risk development opportunities. The transaction is expected to be immediately accretive to distributable cash flow on a per unit basis.”
Charlie Adcock, Co-Chief Executive Officer, noted, “This transaction fits our operational strategy of acquiring long life properties and is a bolt-on to one of our core areas where we have extensive operating expertise and scale.”
The properties are located in Dewey and Custer Counties, Oklahoma.
• Estimated net proved reserves of approximately 1,987 MBoe (based on Netherland, Sewell & Associates reserve report with an effective date of October 1, 2012)
• Approximately 55% of proved reserves are oil and natural gas liquids