Energy services master limited partnership Rio Vista Energy Partners LP on Thursday said it had issued letters of intent to acquire certain East-Central Oklahoma interests from four private companies.
Houston-based Rio Vista said the purchases include assets and/or stock including certain leasehold interests of oil and gas producing properties and associated pipeline gathering systems.
Rio Vista says it will fund the acquisitions with $9.4 million in cash, assuming debt of about $16.5 million, and issuing to the sellers, which were not named, about $1.5 million of Rio Vista common units.
"We believe the acquisition of these assets provides us with compelling near-term production opportunities in historically proven areas of coal bed methane production," said Ian Bothwell, acting chief executive officer of Rio Vista. "These fields in Oklahoma have produced large amounts of natural gas. With numerous additional attractive drilling locations we have identified, combined with the shallow drilling required, we believe that we can expand production with minimal capital risks. In addition, these acquisitions, if completed, will increase and further diversify our production capabilities as we seek to grow our oil and gas assets."
Earlier this week, Rio Vista announced that it had entered into a letter of intent to acquire substantially all of the assets of privately held independent oil and gas exploration firm Northport Production Co. for $18 million plus assumed debt of about $2 million.
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