PetroPoint Energy Partners Completes Acquisition of South Texas Oil & Gas Properties
PetroPoint Energy Partners, LP, announced that it has completed the purchase of conventional oil and gas producing properties in the Lobo and Olmos trends of South Texas from Rosetta Resources Operating LP, for a total purchase price of approximately $95 million, less customary post-closing adjustments.
PetroPoint Energy took over operations and closed on over 70% of the properties on March 23, 2012 and on an additional approximately 20% of the properties on June 29, 2012. With this final closing, PetroPoint Energy has completed the acquisition of the remaining properties and now holds an average working interest of approximately 90% in over 450 producing vertical wells on over 70,000 acres. These assets are on concentrated acreage positions held by production in Webb and Zapata Counties in South Texas.
George Laflin, PetroPoint Energy's President and Chief Executive Officer, stated, "Since taking over operation of the majority of these assets in March, we have been very pleased with our ability, with minimal investment, to improve the operating performance of numerous wells. Our plan is to maintain stable production volumes by continuing to perform lower cost operations such as workovers, recompletions, and minor repairs, as well as pursue the low risk development drilling opportunities we have identified on the acreage.
"We are actively evaluating additional acquisition opportunities of oil and gas properties that fit our strategy, which is to build an asset base that provides stable cash flow from long life, low decline rate properties that have a suitable inventory of recompletion and low risk development opportunities. We are excited by the substantial deal flow we are currently seeing in the market and believe we will be able to continue to build our company with quality assets," concluded Laflin.
About PetroPoint Energy Partners
PetroPoint Energy Partners was formed in 2012 to acquire and exploit mature conventional onshore oil and gas assets in North America with a lower risk profile and steady cash flow. The Company's key management includes George Laflin, President; Bryan Simmons, Vice President Engineering and Operations; Steve Hochstein, Vice President Geosciences and Denise DuBard, Chief Financial Officer. For more information visit our website at www.peplp.com.