Mountaineer Keystone Energy LLC, a portfolio company of First Reserve, a private equity firm exclusively focused on energy, has completed the acquisition of the equity interests in PDC Mountaineer LLC (PDCM), a Marcellus joint venture (JV) between PDC Energy Inc. and Lime Rock Partners LLC, with an effective date of Jan. 1, for an aggregate purchase price of $500 million.
The acquisition adds over 131,000 net acres to Mountaineer Keystone's West Virginia Marcellus shale position, approximately 65% of which is held-by-production. Pro forma for the acquisition, the Company will have 181,000 net acres, proved reserves of nearly 650 Bcf and daily production of more than 50 Mmcfe/d.
As part of its transaction, the midstream assets of PDCM are being acquired and will be operated by MK Midstream Holdings LLC, a JV 50% owned by the company. The midstream assets consist of 24 miles of high-pressure gathering lines with capacity to transport in excess of 100 Mmcfe/d.