Mid-Con Energy Buys

Purchase of 71% operated WI in multiple properties in Texas Cnty, OK and additional WI in the Hugoton Basin.

Mid-Con Energy Partners LP (Nasdaq: MCEP) plans to buy additional working interests in Oklahoma in two separate transactions for a total of about $24.1 million. The sellers in each transaction were not disclosed.

In the first purchase, Mid-Con Energy plans to buy about 71% operated working interest in oil properties currently under waterflood in Texas County, Okla. In addition, the company has purchased an additional working interest in existing Mid-Con Energy waterfloods located within its Hugoton Basin core area.

These acquisitions will be financed with borrowings from Mid-Con Energy's credit facility and are expected to close during the fourth quarter 2012.

Randy Olmstead, Mid-Con chief executive, said "While we remain confident in the organic growth potential from our existing asset base, these transactions demonstrate our ability to acquire long-lived, low decline properties that fit our operational strategy and will be immediately accretive to distributable cash flow on a per unit basis."

The combined acquisitions provide current net production of about 258 barrels of oil equivalent (BOE) per day and have an estimated net proved reserves of about 1.8 million BOE, 64% of which is proved developed producing. The average reserve-to-production ratio of the acquired assets is about 19 years.

Mid-Con Energy, based in Dallas, Texas, is an upstream independent energy company formed in July 2011 that focuses on the Midcontinent. Its areas of operation include southern Oklahoma, northeastern Oklahoma and within the Hugoton Basin in Oklahoma and Colorado.