TULSA, Dec. 28, 2017 (GLOBE NEWSWIRE) — Mid-Con Energy Partners, LP (NASDAQ:MCEP) (“Mid-Con Energy” or the “Partnership”) today announces the sale of oil and natural gas assets within its Southern Oklahoma core area to Exponent Energy III, LLC (“Buyer”), a Tulsa-based company. The sale closed on December 22nd at a purchase price of $22.0 Million with an effective date of December 22, 2017.
Separately, Mid-Con Energy has hired Sagent Advisors, LLC (“Sagent”) to assist it in exploring various financing and strategic alternatives in the marketplace. Sagent will be reviewing a number of alternatives for the Partnership including, financing alternatives for growth acquisitions, corporate structure alternatives, merger opportunities and long-term financing alternatives. Sagent is a leading global independent investment bank focused on providing financial advice with broad experience in the oil and gas industry.
“We are pleased to announce that the sale of our Southern Oklahoma assets was completed last week,” commented Jeff Olmstead, President and CEO. Mr. Olmstead commented further, “We are excited to announce a partnership with Sagent Advisors to help us with opportunities that exist in the marketplace today. We have seen a number of waterflood opportunities become available, and we are looking for financing options that will allow us to acquire and exploit new assets in a way that is accretive to our existing stakeholders. Sagent’s team has a long history of executing for their clients, and we look forward to working with them on these opportunities.”
The Partnership has not set a definitive schedule for Sagent to complete its review of financing and strategic alternatives and does not intend to provide any further updates until such time as it has entered into a definitive agreement with respect to a transaction, and there is no assurance that the review process will result in the Partnership pursuing a particular transaction or consummating any such transaction.
In addition, due to the closing of the sale of assets, the previously disclosed waiver received by the Partnership from the administrative agent and lenders under its revolving credit facility waiving noncompliance with the leverage calculation ratio thereunder has been extended, and the borrowing base has been temporarily amended to $115.0MM. The partnership had $99.0MM outstanding on the line of credit as of December 28, 2017. As part of the review of its financing alternatives, the Partnership is in active discussions with its lenders on an extension to its revolving credit facility.