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Memorial Production Partners LP, a Houston oil and gas limited partnership, has announced that it signed an agreement to purchase oil and gas producing properties in Southern California, according to NASDAQ.
The contract has been signed with Rise Energy Partners, LP and $271 million will be spent on the purchase. The effective date for this agreement was set as September 1, 2012 and it is expected to be closed this December.
The Board of Directors and the Board's conflict committee have all approved the transaction. The properties being acquired are located in offshore waters about 11 miles from the Port of Long Beach, California.
Memorial Production Partners will be the operator of the property, which includes three wellhead and production processing platforms. A pipeline almost 18 miles in length is going to be used at the location, with two platforms standing 260 feet below the water's surface.
"We are very excited to announce Memorial's largest acquisition to date and fifth transaction in our first twelve months of operation. We believe these properties are ideal for an MLP because they are located in a mature, legacy basin characterized by long life oil reserves, stable production with a low decline rate and low risk development drilling opportunities. This acquisition also diversifies our commodity mix by adding a significant amount of oil production and reserves," John Weinzierl, chairman, president and chief executive officer of the general partner of Memorial Production Partners, said in a statement.
Some of the benefits of this acquisition include a distributable cash flow and a diverse distribution of resources within the acquired properties. In addition, the purchases will help the company diversify its asset mix.
Other energy companies in Texas looking to develop acquisitions or mergers should contact knowledgeable Houston attorneys from a local energy law firm with experience offering consultation for asset purchases.
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