Atlas Resource To Buy Arkoma Assets; Announces 6.5 Mln Units Offering

(RTTNews) - Atlas Resource Partners L.P. (ARP) on Monday said it has agreed to acquire natural gas producing properties in the Arkoma basin from its parent company, Atlas Energy Group LLC (ATLS), for $35.5 million.

The Partneship said the purchase price of the deal is subject to customary closing conditions and adjustments, and the deal is expected to close in the second quarter 2015.

The Arkoma assets consist of about 41 billion cubic feet ("Bcf") of mature, low-decline natural gas reserves, which currently produces about 11 million cubic feet per day from over 550 active wells.

Atlas Energy Group said it expects to use the proceeds from the sale of the Arkoma assets to pay a portion of its existing term loan.

Separately, Atlas Resource Partners said it has commenced an underwritten public offering of 6.5 million common units representing limited partner interests.

Wells Fargo Securities, Citigroup, Deutsche Bank Securities, J.P. Morgan and Morgan Stanley are acting as joint book-running managers for this offering.

The underwriters have been granted a 30-day option to purchase up to an additional 975,000 units.

Atlas Resource Partners said it plans to use a portion of the net proceeds from this offering to fund its acquisition of the Arkoma assets, and for general partnership purposes as well.