DALLAS, March 3, 2014 (GLOBE NEWSWIRE) -- Mid-Con Energy Partners, LP (Nasdaq:MCEP) ("MCEP" or the "Partnership") through its wholly owned subsidiary, Mid-Con Energy Properties, LLC, announced today it acquired certain oil properties in Oklahoma and Texas from Mid-Con Energy III, LLC for an aggregate purchase price of approximately $41.0 million.
The transaction closed on Friday, February 28, 2014 and is subject to customary post-closing adjustments based on an effective date of January 1, 2014. MCEP funded the acquisition with (i) approximately $7.0 million in borrowings under MCEP's credit facility and (ii) approximately $34.0 million in proceeds from the issuance of 1,500,000 common units representing limited partner interests in MCEP. The value of the common units issued as partial consideration for the acquisition was based on a 2.5% discount to the trailing twenty day volume weighted average price of MCEP's common units. Terms of the transaction were approved on February 28, 2014, by the Board of Directors of the general partner of MCEP and by the Board's conflicts committee, which is composed entirely of independent directors.
The acquisition includes five oil properties, currently being produced under waterflood, located in Cimarron, Love and Texas Counties, Oklahoma and Potter County, Texas.Transaction Highlights
- 2013 average net production of approximately 349 Boe per day (100% oil on a Boe basis)
- Estimated net proved reserves of approximately 1.6 MMBoe (approximately 79% proved developed producing and 100% oil on a Boe basis) (1)
- Average reserve-to-production ratio of approximately 12.6 years
- Expected to be immediately accretive to distributable cash flow
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