Midstates Petroleum Co. Inc.’s (NYSE: MPO) wholly owned subsidiary, Midstates Petroleum Co. 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 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, and is expected to close on or before April 30. RBC Richardson Barr acted as advisors to the company on the transaction.