May 5, 2014 / 10:56 AM / 3 years ago

UPDATE 1-Memorial Production to buy oil assets in Wyoming for $935 mln

* Assets have estimated net production of 5,900 barrels/day

* Raises 2014 adj. EBIDTA forecast to $355-$375 mln vs $303-$311 mln (Adds details)

May 5 (Reuters) - Memorial Production Partners LP said it would buy oil producing properties in Wyoming for about $935 million.

The properties, located in two fields in the Bairoil Complex in Sweetwater and Carbon Counties of Wyoming, have an estimated current net production of about 5,900 barrels per day, Memorial Production said on Monday.

The deal covers about 6,800 gross acres with 140 producing wells and 166 injection wells.

The company did not name the seller.

U.S. oil and gas explorers are focusing on acquiring oil assets to offset the impact of weak natural gas prices.

“These assets complement our existing portfolio due to their very shallow decline rate, low operating cost structure and low maintenance capital requirements,” Memorial Production Chief Executive John Weinzierl said in a statement.

The company said it expected to produce 74-76 billion cubic feet equivalent in 2014.

Memorial Production also raised its adjusted earnings before interest, taxes, depreciation, and amortization (EBIDTA) forecast for 2014 to $355 million-$375 million from $303 million-$311 million.

The company said it would fund the purchase through its $2 billion multi-year revolving credit facility. The deal is expected to close in the third quarter of this year.

Citigroup Global Markets was Memorial Production’s financial adviser for the deal. (Reporting by Sneha Banerjee in Bangalore; Editing by Kirti Pandey)

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