Constellation Energy Partners has acquired non-operating interest in producing wells located in the Woodford Shale in Oklahoma from an affiliate of its sponsor, Constellation Energy, for a purchase price of $53.4 million, subject to post-closing purchase price adjustments.

The acquisition was fully funded with debt from the company’s revolving credit facility. The company also announced revisions to its reserve based lending facility and borrowing base. The company’s new borrowing base is $240 million, with the capacity to expand to $265 million upon consideration of the Woodford Shale asset.

Stephen Brunner, CEO of Constellation Energy Partners, said: This transaction is another demonstration of our commitment to our acquisition growth strategy and distribution stability. The Woodford Shale provides us with a foothold in an up-and-coming geographic area and access to low-risk production with limited exposure to increased capital commitments, operating expenses and resource demands. By purchasing 100% proved developed producing wells we have further solidified our expected cash flows.