New Source Completes Eight East Acquisition

Closed Eight East acquisition of additional oil and gas properties.

New Source Energy Partners LP (NYSE: NSLP) has acquired additional oil and natural gas properties from New Source Energy Corp. for US $7 million in cash.

The transaction closed on May 31. This acquisition qualifies as maintenance capital spending for the partnership.

The transaction adds nine gross (2.7 net) wells, completed in 2013, and eight gross (2.4 net) proved undeveloped drilling locations to the partnership's inventory, along with proved reserves of 1.1 million barrels of oil equivalent, which as of Dec. 31, 2012 were all proved undeveloped; 3% oil and 59% NGLs. The transaction was unanimously approved by the board of directors of the partnership's general partner, on the approval and recommendation of its conflicts committee.

In addition, in the time that New Source has been public the company has grown proved reserves from 14.1 million barrels of oil equivalent to 19.2 million barrels of oil equivalent, and are on track to deliver on its US $2.30 per year annualized distribution, which represents 10% growth, said Kristian Kos, New Source’s president and CEO, in the release.

New Source Energy Partners LP is an independent energy company engaged in the acquisition and development of oil and natural gas properties in the US. The company is based in Oklahoma City.