Memorial Production Partners Buy Assets Offshore California

Memorial Production Partners LP has signed a definitive agreement to acquire certain oil and gas producing properties offshore Southern California from Rise Energy Partners, LP for a purchase price of $271 million, which includes $3 million of working capital and other customary adjustments.

Thi is expected to close in December 2012.  The properties to be acquired, referred to as the Beta properties, primarily consist of a 51.75% working interest in three Pacific Outer Continental Shelf blocks covering the Beta Field, and are located in federal waters approximately eleven miles offshore the Port of Long Beach, California. MEMP will be the operator of the Beta properties. Associated facilities include three conventional wellhead and production processing platforms, a 17.5-mile pipeline and an onshore tankage and metering facility. Two of the platforms are bridge connected and stand in approximately 260 feet of water, while the third platform stands in approximately 700 feet of water.

The Beta properties were first discovered in 1976 by Royal Dutch Shell PLC and have been in production since January 1981. As of September 30, 2012, the total estimated proved reserves attributable to the Beta properties were approximately 14.3 MMBbls, based on independent third-party reserve engineering, of which approximately 100% were oil and approximately 70% were classified as proved developed reserves, with a standardized measure (PV-10) of $392.8 million. The average net production associated with the Beta properties for the nine months ended September 30, 2012 was 1,574 Bbls/d, implying a reserve-to-production ratio of approximately 24.9 years.

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Press Release, November 20, 2012