Atlas Resource Partners, L.P. Acquires Northern Oklahoma Assets from Equal Energy; Significantly Exp
Atlas Resource Partners, L.P. Acquires Northern Oklahoma Assets from Equal Energy; Significantly Expands Position in the Mississippi Lime
- Atlas Resources Partners, L.P. (ARP) acquires remaining 8,500 acres in the Mississippi Lime joint venture with Equal Energy
- ARP increases Mississippi Lime position to approximately 19,800 net acres
- ARP acquires approximately 8 Mmcfe/d of net production in the transaction; first half 2012 annualized cash flow of approximately $3 million
- Acquisition includes substantial infrastructure which will result in savings of several million dollars annually in operating costs
PHILADELPHIA--(BUSINESS WIRE)-- Atlas Resource Partners, L.P. ("Atlas") (NYS: ARP) has entered into and simultaneously closed an agreement with Equal Energy, Ltd. ("Equal") (NYSE: EQU; TSX: EQU) to acquire the following for approximately $40 million: the remaining 50% interest in Equal's approximately 8,500 net undeveloped acres in the core of the oil & liquids rich Mississippi Lime play in northwestern Oklahoma, approximately 8 Mmcfe/d of net production in the Mississippi Lime region and substantial salt water disposal infrastructure. This transaction increases Atlas' position in the Mississippi Lime to approximately 19,800 net acres. The transaction is subject to post-closing adjustments and Atlas will finance this transaction with available borrowings under its revolving credit facility.
Matthew A. Jones, President and Chief Operating Officer of ARP, stated, "This acquisition nearly doubles our inventory of highly desirable Mississippi Lime locations in the core of the play, and provides ARP with full operating control which will allow us to bring forward development and resulting cash flow. In addition, the acquired production and expected operating cost savings will immediately increase cash flow to ARP."
The acreage position Atlas has acquired in the Mississippi Lime is located in Alfalfa, Garfield and Grant Counties, Oklahoma and is almost entirely held by existing production. The acquired production overlays and primarily holds the Mississippi Lime acreage in Atlas' future development plans. As a result of the transaction, the existing joint venture agreement between Atlas and Equal in the Mississippi Lime position will be terminated. Atlas will be able to increase its drilling activity in the play at its discretion going forward, and Atlas intends to activate a second rig in the Mississippi Lime by the end of 2012. All infrastructure associated with the assets, namely the salt water disposal system, will be operated by Atlas.
Atlas Resource Partners, L.P.
Atlas Energy, L.P.
Cautionary Note Regarding Forward-Looking Statements
This document contains forward-looking statements that involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements.ARP cautions readers that any forward-looking information is not a guarantee of future performance.Such forward-looking statements include, but are not limited to, statements about future financial and operating results, resource potential, ARP's plans, objectives, expectations and intentions and other statements that are not historical facts. Risks, assumptions and uncertainties that could cause actual results to materially differ from the forward-looking statements include, but are not limited to, those associated with general economic and business conditions; changes in commodity prices; changes in the costs and results of drilling operations; uncertainties about estimates of reserves and resource potential; inability to obtain capital needed for operations; ARP's level of indebtedness; changes in government environmental policies and other environmental risks; the availability of drilling equipment and the timing of production; tax consequences of business transactions; and other risks, assumptions and uncertainties detailed from time to time in ARP's reports filed with the U.S. Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Forward-looking statements speak only as of the date hereof, and ARP assumes no obligation to update such statements, except as may be required by applicable law.
Atlas Resource Partners, L.P.
Vice President - Investor Relations
KEYWORDS: United States North America Mississippi Pennsylvania
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