LRR Energy Announces Closing of Acquisition of Oil and Gas Properties in Oklahoma from Lime Rock Resources
LRR Energy (NYSE: LRE) announced today that it closed its previously announced acquisition of oil and natural gas properties in the Mid-Continent region in Oklahoma from its sponsor, Lime Rock Resources, for a purchase price of $21.0 million subject to customary purchase price adjustments. In addition, as part of the transaction, LRE acquired in the money commodity hedge contracts valued at approximately $1.8 million.
LRE funded the acquisition with borrowings under its revolving credit facility. LRE has $200 million of outstanding borrowings under its revolving credit facility and $50 million of outstanding borrowings under its term loan as of January 3, 2013. LRE has an additional $50 million available under its credit facility which management believes provides ample financial flexibility to execute our capital program and distribution strategy.
As part of the transaction, LRE acquired the following crude oil and natural gas hedges:
Index 2013 2014 2015 Natural gas positions Price swaps (MMBTUs) NYMEX-HH 248,950 200,916 173,676 Weighted average price $ 5.23 $ 5.58 $ 5.96 Oil positions Price swaps (BBLs) NYMEX-WTI 39,794 28,176 22,128 Weighted average price $ 101.30 $ 100.01 $ 98.90
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.