US-based Atlas Resource Partners (ARP) will acquire DTE Gas Resources, a subsidiary of DTE Energy Company, for $255m.
Under the deal, ARP will gain rights to about 35 million barrels of oil equivalent of proved reserves, and a significant resource potential in the Fort Worth basin in Texas.
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Estimated proved reserves comprises 261 gross producing wells in the Barnett Shale and Marble Falls on about 88,000 net acres located in Jack, Erath, Palo Pinto and Clay Counties.
The acquired assets hold 24% oil, 33% NGLs and 43% natural gas, and has the average production capacity of about 3,800 barrels of oil equivalent per day.
On completion of the transaction, ARP will also gain rights to 700 identified undeveloped vertical drilling locations in the Marble Falls play.
The company has already invested a total of $625m to buy estimated proved reserves of over 700 billion cubic feet equivalent, at the time of acquisition.
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By GlobalDataFollowing this transaction, the company’s net reserves are expected to increase to about 900 billion cubic feet equivalent.
Atlas Resource Partners CEO Edward E Cohen said,"We remain committed to significantly increasing distributions to our unitholders through these and future developments."
Atlas Resource Partners COO Matthew Jones said that the company is looking forward to add valuable oil, liquids and natural gas production from acquired assets and are positive about the potential of Marble Falls play.
"We believe that this acquisition will further diversify our cash flow by increasing our contribution from oil and NGL production to approximately 20 percent, based on third quarter 2012 production," said Jones.
"In addition, we expect to gain significant efficiencies in this region as our established Fort Worth team will operate and develop these assets."
This is ARP’s third acquisition in Fort Worth basin in 2012.
Image:Texas Barnett Shale gas drilling rignear Alvarado. Photo:Courtesy of David R. Tribble
