HOUSTON, March 4, 2014 (GLOBE NEWSWIRE) -- Memorial Production Partners LP (Nasdaq:MEMP) announced today that it has signed a definitive agreement to acquire certain oil and gas producing properties in East Texas from its sponsor, Memorial Resource Development LLC, for a purchase price of $35 million, subject to customary purchase price adjustments. The transaction will have an effective date of February 1, 2014 and is expected to close on or before April 1, 2014. Terms of the transaction were approved by the Board of Directors of the general partner of MEMP and by the Board's conflicts committee, which is comprised entirely of independent directors.
The acquired properties primarily represent additional working interests in wells currently owned by MEMP and located primarily in Polk and Tyler Counties in the Double A Field of East Texas, as well as the Sunflower, Segno and Sugar Creek Fields. MEMP will operate approximately 86% of the producing wells.
- Expected to be immediately accretive to distributable cash flow
- Estimated net proved reserves of 15.4 Bcfe (100% proved developed producing and 54% gas / 46% liquids)
- November net production of approximately 4.3 MMcfe/d (54% natural gas and 46% liquids)
- Proved reserve to production ratio of 9.8 years
- Properties consist of 80 gross (26.0 net) wells; Pro forma 39.5 net wells
- Assets exhibit a stable long-lived production profile with a projected average annual proved developed producing decline rate of approximately 8.4%
- Approximately 18,769 gross (5,744 net) acres, 100% of which is held by production
- Assets have high operating margins and moderate capital expenditure requirements