Memorial Resource Drops Down East Texas Assets To MLP Memorial Production Partners

Bought East Texas assets primarily in Carthage & Joaquin fields in Panola & Shelby cos. featuring 18 gross producing wells, gaining 4.2 MMcfe/d, 28.1 Bcfe proved.

Memorial Production Partners LP, Houston, (Nasdaq: MEMP) has acquired certain oil and gas properties in East Texas from its sponsor, Houston-based Memorial Resource Development LLC, for $27 million.

The properties are primarily in Carthage and Joaquin fields of Panola and Shelby counties and feature 18 gross (17 net) producing wells, of which 56% will be operated by Memorial Production Partners.

Net production is 4.2 million cubic feet of gas equivalent per day (81% gas). Net proved reserves are approximately 28.1 billion cubic feet equivalent (45% proved developed).

The acquisition was financed with borrowings from Memorial Production’s existing credit facility and is effective as of April 1.

The transaction included the novation of 2012 through 2014 commodity derivative positions to Memorial Production Partners.

John A. Weinzierl, chairman and chief executive of the general partner of Memorial Production Partners, says, “The acquisition of these East Texas assets is our third accretive transaction to date with our sponsor, Memorial Resource Development LLC and is consistent with our stated strategy to acquire assets from our sponsor that meet our acquisition criteria of mature, long-life producing properties. These assets are near one of our core areas and offer low-risk exploitation opportunities that will supplement our production profile.”