TULSA, Okla.--(BUSINESS WIRE)--Midstates Petroleum Company, Inc. (NYSE: MPO) (the “Company”) announced today that its wholly-owned subsidiary, Midstates Petroleum Company LLC, has executed a Purchase and Sale Agreement (“PSA”) with Pintail Oil and Gas LLC, a portfolio company of Ridgemont Equity Partners, for the sale of its Dequincy assets located in Beauregard and Calcasieu Parishes, Louisiana for total consideration of $44 million, subject to customary purchase price adjustments. The PSA includes Midstates’ ownership interest in developed and undeveloped acreage totaling approximately 12,700 net mineral acres in the Dequincy area. At year-end 2014, the properties produced approximately 1,300 barrels of oil equivalent per day. The transaction does not include Midstates’ acreage and interests in the Fleetwood area of Louisiana. The net proceeds from the sale will be used to pay down a portion of the outstanding borrowings under the Company’s revolving credit facility and for general corporate purposes. The transaction has an effective date of March 1, 2015 and is expected to close on or before April 30, 2015, subject to customary closing conditions. RBC Richardson Barr acted as advisors to the Company on the transaction.
Mark E. Eck, Midstates’ Executive Vice President and COO commented, “This sale of our Dequincy assets is another step forward in our overall strategic plan to add liquidity and focus on our premier position in the Mid-Continent. We will continue to evaluate all options that maximize value for our stakeholders and best position Midstates to succeed in the future.”
Certain statements in this news release regarding future expectations and plans for future activities may be regarded as “forward looking statements” within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as financial market conditions, changes in commodities prices and costs of drilling and completion, operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas, as well as other risks discussed in detail in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.
About Midstates Petroleum Company, Inc.
Midstates Petroleum Company, Inc. is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore U.S. Midstates’ drilling and completion efforts are currently focused in the Mississippian Lime oil play in Oklahoma and Anadarko Basin in Texas and Oklahoma. The Company’s operations also include the upper Gulf Coast tertiary trend in central Louisiana. Additional information about the Company is available at www.midstatespetroleum.com.