Memorial Production Partners sells non-core properties in Permian, Rockies

HOUSTON -- Memorial Production Partners (MEMP) has closed a transaction to sell certain assets in the Permian basin for a cash consideration of approximately $37.4 million.

In addition, the company has also entered into a definitive agreement to sell certain of its non-core Rockies assets in Colorado and Wyoming for a cash consideration of approximately $19.1 million. This transaction is expected to close during the third quarter with an effective date of April 1, 2016.

The Permian basin properties consisted of 285 gross (238 net) producing wells and produced approximately 1.2 Mboed during the first three months of 2016. As of Dec. 31, 2015, these assets contained estimated proved reserves of 3.1 MMBoe, or approximately 1% of the partnership's total estimated proved reserves of 1,268 Bcfe.

The Rockies properties consisted of 606 gross (188 net) producing wells and produced approximately 10.0 MMcfed during the first three months of 2016. As of Dec. 31, 2015, these assets contained estimated proved reserves of 25.5 Bcfe, or approximately 2% of the partnership's total estimated proved reserves.

“Driving down costs, generating positive free cash flow and managing MEMP’s balance sheet is our key focus this year,” said John A. Weinzierl, chairman and CEO of MEMP. “The divestiture of non-core properties in the Permian and Rockies is in line with our expectations and consistent with our strategy for 2016.”