The company will acquire approximately 21,900 gross leasehold acres (21,500 net acres) and the reserves are over 91% oil and natural gas liquids.
At 1 January 2011, estimates of proved reserves to be acquired were about 27 million barrel equivalents (164bcfe), and estimates of proved and probable reserves were about 53 million barrel equivalents (318bcfe).
Capital expenditures associated with planned development activities for these assets for the rest of 2011 are currently estimated at $35m to $40m.
The closing of the transaction is anticipated in the second quarter of this year and will be funded from cash on hand and borrowings under the company’s revolving bank credit facility.
