Atlas Resource Partners To Acquire Natural Gas Production In West Virginia

(RTTNews) - Atlas Resource Partners, L.P. (ARP) announced it has entered into a definitive agreement to acquire approximately 70 Bcfe of natural gas proved reserves in West Virginia and Virginia from GeoMet, Inc. (GMET.PK) and certain of its subsidiaries for $107 million, with an effective date of January 1, 2014.

The company expects the acquisition to be immediately accretive to its distributable cash flow per unit. The transaction is subject to, among other items, approval from GeoMet's stockholders.

The acquired assets consists: approximately 70 Bcfe of proved reserves in West Virginia and Virginia; 100% natural gas and proved developed current net production of approximately 22 million cubic feet equivalents per day from over 400 active wells; current expected decline rate of approximately 10-12% current production costs: lease operating costs of approximately $1.20/mcf; production and ad valorem taxes of approximately 10%; transportation and gathering of approximately $0.40/mcf.