Memorial Resource Development Corp. (NYSE: MRD) said Oct. 22 it has completed its $284 million acquisition of about 45,000 net acres in Louisiana's lower Cotton Valley play.
The acreage is located in Jackson and Lincoln parishes in Louisiana. The sellers included Rockcliff Energy LLC and QLS Joint Venture LLC.
Total proved reserves attributable to the acquired acreage are estimated to be 1.9 billion cubic feet equivalent (Bcfe). Total possible reserves are estimated to be 4.8 Tcfe (100% natural gas) with a PV-10 value of about $1.8 billion.
The possible reserve and PV-10 value estimates are attributable to 364 gross horizontal locations, which compare to MRD’s management estimate of 588 gross horizontal locations. Estimates have been prepared by Netherland, Sewell & Associates Inc.
MRD has ongoing “grass roots” leasing efforts in Louisiana. Since January, the company has increased its acreage by 276% since its IPO in 2014 to 193,915 net acres from 61,000 net acres.
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