Mid-Con Energy Boosts Stake In Cushing Field

Bought additional interests in Cushing Field and various working interests in select Southern Oklahoma waterflood units.

A subsidiary of Mid-Con Energy Partners LP (Nasdaq: MCEP) has bought additional interests in existing Mid-Con Energy waterfloods for about $28.055 million.

The transaction includes a 60% working interest in Mid-Con Energy's Cushing Field and various working interests in select Southern Oklahoma waterflood units. The acquisition closed on Friday, May 10, with borrowings under the partnership's credit facility and is subject to customary post-closing adjustments based on an effective date of Feb. 1.

Mid-Con Energy Partner chief executive Randy Olmstead said the acquisition was a bolt-on opportuntity to the company’s existing property base.

“This transaction delivers multiple benefits to the partnership -- allowing us to increase our ownership in properties we thoroughly understand, improve our operational control in the Cushing Field, and utilize our debt capacity to enhance distributable cash flow," he said.

The average net production from the field is about 215 barrels of oil equivalent (BOE) per day. The estimated net proved reserves is about 1.33 million BOE, 78% of which are proved, developed producing.

About 98% of the proved reserves are oil. The average reserve to production ratio is about 17 years. As of closing, Mid-Con Energy owns a 97% working interest in the Cushing field.

In addition, Mid-Con Energy acquired nominal working interests in Battle Springs Unit, Highlands Unit and Southeast Hewitt Unit, all waterflood units in southern Oklahoma.

Mid-Con Energy is an independent oil and gas company based in Dallas and formed in July 2011. Its focus is on the Midcontinent, in particular southern Oklahoma, northeastern Oklahoma and parts of Oklahoma and Colorado within the Hugoton Basin.