New Source Energy Partners LP’s (OTC: NSLP) subsidiary, MidCentral Energy Partners LP (MCLP), has sold all of the outstanding membership interests in Erick Flowback Services LLC (EFS) and all of the outstanding membership interests in Rod's Production Services LLC (RPS) to Erick's Holdings LLC.
The transaction closed on Dec. 16. EFS and RPS specialize in providing services to oil and natural gas exploration and production companies that increase the safety and efficiencies in pressure-related processes during the completion phase of a well, with a specific focus on well testing and flowback services. EFS and RPS operate primarily in Oklahoma, Texas, Pennsylvania, and Ohio.
The total purchase price for the transaction was $44.9 million, consisting of cash consideration of $5 million, a promissory note from Erick's Holdings in favor of MCLP in the amount of $8 million, and the assumption and elimination of $31.9 million of certain liabilities of MCLP and its subsidiaries and affiliates.
New Source Energy Partners is engaged in the production of its onshore oil and natural gas properties that extends across conventional resource reservoirs in east-central Oklahoma and in oilfield services related to drilling and completion processes.