Atlas Resource Partners, L.P. has entered into a definitive agreement to acquire oil assets in the Eagle Ford Shale in south Texas for $225 million. The assets consist of 22 producing wells and 19 undeveloped locations containing estimated net reserves of approximately 12 million barrels of oil equivalent (Mmboe).
ARP's Board of Directors has approved the transaction, which is expected to close in the fourth quarter 2014 with an effective date of July 1, 2014. The Company will pay $200 million of the purchase price upon closing, subject to customary purchase price adjustments, with the remainder of the purchase price paid in installments in 2015.
In connection with the acquisition, Atlas Energy, L.P.'s (NYSE: ATLS) E&P development subsidiary will purchase eight wells that have been drilled but not completed and 53 undeveloped drilling locations for approximately $115 million, which is to be paid in the twelve months following closing.