Atlas Resource Partners, L.P. has completed its previously announced acquisition of approximately 47 million barrels of oil equivalent (Mmboe) reserves, including proved developed producing reserves of approximately 25 Mmboe, for $420 million. The acquired position is located in the Rangely field in northwest Colorado, a mature CO2 flood with low-decline oil production. The transaction has an effective date of April 1, 2014.
The acquired assets are expected to provide ARP with a stable, high margin cash flow stream with a low-decline profile (average 3-4% annual decline rate over the past 15 years). The asset position is a tertiary oil recovery project using CO2 flood activity, and the production mix is predominantly oil at 90%, with the remainder coming from NGLs.