The assets to be acquired are located primarily in Eddy County in the Permian Basin region in New Mexico and DeWitt County in the onshore Gulf Coast region in Texas.
LRE will fund the deal with borrowings under its existing credit facility.
LRR Energy chairman and co-chief executive officer Eric Mullins said, "We are excited to announce our first transaction, which consists predominately of oily, mature properties that are an ideal fit for our MLP strategy."
The properties have confirmed estimated net proved reserves of about 1,728 million barrel of oil equivalent (Boe), with nearly 83% of proved reserves being oil and natural gas liquids.
Proved producing reserves were estimated to be 92%, where 82% of proved reserves are operated.
Current production from the 31 producing wells in this area is 765 Boe per day.
LRE expects to hedge 85% of future estimated production from total proved producing reserves of the acquired properties in 2016.
The deal is expected to close on June 1, 2012 and will be accretive to LRR’s distributable cash flow per unit
LRR Energy is a partnership formed in April 2011 by affiliates of Lime Rock Resources to operate, acquire, exploit and develop producing oil and natural gas properties in North America.
LRR Energy’s properties span across the Permian Basin region in West Texas and southeast New Mexico, the Mid-Continent region in Oklahoma and East Texas and the Gulf Coast region in Texas.
