Atlas Resource Partners LP (NYSE: ARP) completed a $420 million acquisition of reserves in Colorado’s Rangely Field, the company said June 30.
It acquired about 47 million barrels of oil equivalent (boe) of reserves in the mature CO2 field that has low-decline oil production, the company said. Of the total number of acquired reserves, about 25 MMboe are proved developed producing, the company noted.
The transaction’s effective date was April 1, Atlas Resource said.
A “stable, high-margin cash flow” is expected from the acquired assets, the company said, noting that the assets are in a tertiary oil recovery project. The project's production is 90% oil with a remainder of NGL.
The company has a nonoperating net working interest of about 25%, while Chevron Corp. (NYSE: CVX) is the operator, Atlas Resource said.
Deutsche Bank Securities Inc. was Atlas Resource’s financial advisor, while Jones Day was its legal advisor, the company said.
Pittsburgh-based Atlas Resource Partners LP is an upstream MLP with interests in domestic natural gas and oil. It is a subsidiary of Atlas Energy LP (NYSE: ATLS).
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