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Coincideds with Borrowing Base increase of $20 Million to $190 Million
Mid-Con Energy Partners, LP (Nasdaq:MCEP) has said that it has closed its previously announced acquisition in Liberty County, Texas for approximately $19.4 million, subject to customary post-closing adjustments.
In conjunction with the closing of the acquisition, MCEP also announces that it has received lender commitments to increase its borrowing base to $190 million, up 12% from the $170 million in previously established commitments under MCEP’s existing $250 million senior secured revolving credit facility. This increase became effective August 29, 2014, with Royal Bank of Canada acting as the Administrative Agent.
Participant lenders include BOKF NA, Comerica Bank, Wells Fargo Bank N.A., and Bank of Nova Scotia. Mid-Con Energy’s next regularly scheduled bi-annual redetermination will occur on or about April 30, 2015.
LIBERTY SOUTH ACQUISITION HIGHLIGHTS:
– Mid-Con Energy acquired ~90% working interest and assumed operatorship
– Waterflood unit is comprised of seven producing wells, two injection wells, and one water supply well
– Reserves 100% PDP comprised of 99% oil, reserve-to-production ratio of roughly 11.7 years
– Estimated net proved oil reserves of 658 Mboe acquired at ~$29.48 per barrel
– Average net production of 154 Bbl/d during the first two months of 2Q14 acquired at ~$128k per flowing barrel
– Production sold into the Gulf Coast market at a LTM differential to LLS of -$4.31/bbl or -4.1%
– Underlying decline rate projected to average less than 8% per annum over the next 3 years
– LOE costs forecast to average $14/bbl over the next 3 years
– Production tax rate approximates 4.6%
– Projected to be immediately accretive to Distributable Cash Flow per unit
Mid-Con Energy is a publicly held Delaware limited partnership formed in December 2011 to own, operate, acquire, exploit and develop producing oil and natural gas properties in North America, with a focus on Enhanced Oil Recovery. Mid-Con Energy’s core areas of operation are located in Southern Oklahoma, Northeastern Oklahoma, the Gulf Coast and the Hugoton.
