Atlas Resource Partners, L.P. (NYSE: ARP) announced today that it has
entered into a definitive agreement to acquire approximately 70 Bcfe of
natural gas proved reserves in West Virginia and Virginia from GeoMet,
Inc. (OTCQB: GMET) and certain of its subsidiaries (collectively,
“GeoMet”) for $107 million, with an effective date of January 1, 2014.
The acquisition is expected to be immediately accretive to ARP’s
distributable cash flow per unit. The purchase price is subject to
customary adjustments to implement the effective date. The transaction
is subject to, among other items, approval from GeoMet’s stockholders.
Edward E. Cohen, Chief Executive Officer of ARP, stated, “We are very
pleased to enter into this transaction and to add more low declining
production to our portfolio. These assets are situated in one of our
core operating areas, the Appalachian Basin, where we currently manage
substantial natural gas and oil production. We have had a good start to
this year and we expect to pursue further opportunities to increase
distributable cash flow and enhance our assets.”
ARP expects to benefit from the mature, low-decline production from the
acquired assets, which will complement the company’s existing oil and
gas base. Additional details on the acquired assets are as follows:
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Approximately 70 Bcfe of proved reserves in West Virginia and
Virginia; 100% natural gas and proved developed
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Current net production of approximately 22 million cubic feet
equivalents per day (“Mmcfe/d”) from over 400 active wells; current
expected decline rate of approximately 10-12%
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Current production costs: lease operating costs of approximately
$1.20/mcf; production and ad valorem taxes of approximately 10%;
transportation and gathering of approximately $0.40/mcf
Wells Fargo acted as financial advisor, and Paul Hastings LLP acted as
legal advisor on the transaction.
Atlas Resource Partners, L.P. (NYSE: ARP) is an exploration &
production master limited partnership which owns an interest in over
13,000 producing natural gas and oil wells, located primarily in
Appalachia, the Barnett Shale (TX), the Raton Basin (NM) and
Black Warrior Basin (AL). ARP is also the largest sponsor of natural gas
and oil investment partnerships in the U.S. For more information, please
visit our website at www.atlasresourcepartners.com,
or contact Investor Relations at InvestorRelations@atlasenergy.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking statements that
involve a number of assumptions, risks and uncertainties that could
cause actual results to differ materially from those contained in the
forward-looking statements. ARP cautions readers that any
forward-looking information is not a guarantee of future performance.
Such forward-looking statements include, but are not limited to,
statements about future financial and operating results, resource
potential, ARP’s plans, objectives, expectations and intentions and
other statements that are not historical facts. Risks, assumptions and
uncertainties that could cause actual results to materially differ from
the forward-looking statements include, but are not limited to, those
associated with general economic and business conditions; ARP’s ability
to close the proposed acquisition, on the terms described or at all;
ARP’s ability to obtain required consents in order to permit the
transfer of the assets included in the proposed acquisition; ARP’s
ability to obtain the required financing for the proposed acquisition,
on desirable terms or at all; ARP’s ability to realize the anticipated
benefits of the proposed transaction; changes in commodity prices;
changes in the costs and results of drilling operations; uncertainties
about estimates of reserves and resource potential; inability to obtain
capital needed for operations; ARP’s level of indebtedness; changes in
government environmental policies and other environmental risks; the
availability of drilling equipment and the timing of production; tax
consequences of business transactions; and other risks, assumptions and
uncertainties detailed from time to time in ARP’s reports filed with the
U.S. Securities and Exchange Commission, including quarterly reports on
Form 10-Q, reports on Form 8-K and annual reports on Form 10-K.
Forward-looking statements speak only as of the date hereof, and ARP
assumes no obligation to update such statements, except as may be
required by applicable law.
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