Mid-Con Energy Partners LP (NASDAQ:MCEP), through its wholly-owned subsidiary, Mid-Con Energy Properties LLC, has entered into a definitive agreement to sell oil and natural gas assets within its Hugoton area to an undisclosed and unaffiliated buyer for $18 million. Proceeds from the sale will be used to reduce borrowings outstanding under the partnership’s revolving credit facility.
The partnership will divest the entirety of its Hugoton area, which as of December 31, 2015 was comprised of 70 producing wells, 45 injection wells, five water supply wells, and 86 inactive wells. Total proved reserves at year end were 3.2 million barrels of oil equivalent and average net production during December 2015 was 682 boe/d.
The effective date of the divestiture is May 1, 2016 and closing is expected to occur on or before July 29, 2016.