QR Energy to Buy Oil Assets for $230M

Energy Reuters

Oil and gas producer QR Energy LP <QRE.N> said it will buy oil properties in Ark-La-Tex area and Michigan from an undisclosed private seller for $230 million in cash.

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As much as 93 percent of the net production from the assets - about 1,178 barrels of oil equivalent per day - is liquids, said QR Energy, which produced 5,091 thousand barrels of oil equivalent in 2011.

Ark-La-Tex region is at the intersection of Arkansas, Louisiana, Texas and Oklahoma.

QR Energy said it will finance the deal, which is expected to close in late April, with cash on hand and borrowings under its bank credit facility. The deal is expected to immediately add to distributable cash flow.

Last September, the company bought oil and natural gas properties located in the Permian Basin, Ark-La-Tex and the U.S. mid-continent for $577 million.

Shares of QR Energy closed at $22.36 on Friday on the New York Stock Exchange.

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