Natural Resource Partners L.P. Announces Agreement to Purchase Bakken Oil and Gas Assets
HOUSTON, June 17, 2013 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP)announced today that that it has entered into a definitive agreement to purchase non-operated working interests in producing oil and gas properties located in the Bakken/Three Forks play, located in the Williston Basin of North Dakota and Montana from Abraxas Petroleum Corporation for approximately $35.3 million in cash. The acquisition will have an effective date of March 1, 2013 and is subject to customary closing conditions and purchase price adjustments.
The acquisition consists of approximately 13,500 net acres that are held by production with an estimated average working interest of 11% in the Bakken/Three Forks play. The acquisition includes approximately 120 producing wells in addition to interests in 22 wells that are in various stages of development. NRP anticipates funding $8.1 million in additional capital expenditures associated with these new wells in 2013, a portion of which will be paid at closing. NRP expects the acquisition to close in the third quarter of 2013 and to be immediately accretive to NRP's unitholders.
"This acquisition marks NRP's strategic entry into the Bakken play and into owning non-operated working interests in oil and gas assets," said Nick Carter, President and Chief Operating Officer. "This adds further diversity to NRP's revenue going forward."
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX, with its operations headquarters in Huntington, WV. NRP is principally engaged in the business of owning and managing mineral reserve properties. NRP primarily owns coal, aggregate and oil and gas reserves across the United States that generate royalty income for the partnership.
This press release may include "forward-looking statements" as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include the accretive nature of the acquisition and the closing date of the transaction. These statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership. These risks include, but are not limited to, decreases in demand for coal; changes in operating conditions and costs; production cuts by our lessees; commodity prices; unanticipated geologic problems; changes in the legislative or regulatory environment and other factors detailed in Natural Resource Partners' Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or email@example.com.
SOURCE Natural Resource Partners L.P.