The properties to be sold consist of approximately 28,000 net acres in west Texas with 2017 net production of approximately 6,300 BOE/d, proved developed reserves of about 14.4 MMBOE and proved developed PV-10 of approximately $106 million.
Annualized field level cash flow on these properties is approximately $32 million. Estimated annual general and administrative expense for these properties is approximately $3 million, which is not included in the field level cash flow estimates provided.
The sale is expected to close in the first quarter of 2018 with an effective date of January 1, 2018.
This transaction is subject to satisfactory completion of title and environmental due diligence, as well as the satisfaction of closing conditions. RBC Richardson Barr and Jefferies LLC acted as co-financial advisors and Kirkland & Ellis LLP as legal counsel during the transaction.
