Memorial Production Partners LP (NYSE: MEMP) said July 1 that it closed a $915 million acquisition of oil-producing properties in Wyoming.
The acquisition should benefit cash flow and net asset value “immediately,” the company said, noting that the properties’ production profile is “stable” and “long-lived” with an annual proved developed producing decline rate of about 5%.
Memorial Production Partners said that the estimated proved reserves would be about 84 million barrels, 59% of which is proved undeveloped.
The capex requirements for the properties are “minimal,” the company said.
Additionally, the company’s $2 billion multiyear revolving credit facility was amended, Memorial Production Partners said. The acquisition was funded through facility borrowings, the company noted.
The facility’s borrowing base was increased to $1.44 billion from $870 million, the company said, noting that the number of lenders increased to 28 from 23.
Houston-based Memorial Production Partners LP acquires, produces and develops domestic oil and natural gas properties.
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