Mid-Con Energy Partners LP (NASDAQ: MCEP) announced Nov. 17 it has closed its acquisition in the Eastern Shelf of the Permian Basin for $120 million. The seller wasn't disclosed.
Dallas-based Mid-Con Energy said its subsidiary acquired several properties on the Eastern Shelf covering about 18,000 net acres in Coke, Coleman, Fisher, Haskell, Jones, Kent, Nolan, Runnels, Stonewall, Taylor and Tom Green counties, Texas.
Mid-Con Energy will operate the Eastern Shelf properties and will hold an approximate 96% average working interest across the acquired properties.
The Eastern Shelf is comprised of mature producing assets that are in the early stages of redevelopment that offer primary production with waterflood potential.
The deal adds roughly 30% of reserves to the company’s 19.1 MMboe. Its average second quarter production was 2,725 boe/d.
Concurrent with closing of the acquisition, MCEP also announces an increase in its borrowing base to $240 million, up 26% from the $190 million in previously established commitments. This increase became effective on Nov. 17, with Royal Bank of Canada acting as the administrative agent. Participant lenders include Bank of Nova Scotia, BOKF NA, Comerica Bank, Wells Fargo Bank NA, Frost Bank and Union Bank.
Mid-Con Energy's next regularly scheduled bi-annual redetermination will occur on or about April 30, 2015.
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