Memorial Resource Development Corp (NASDAQ:MRD) reported it entered into various deals to lease or acquire certain lands based close to its current operating regions in North Louisiana. Since the start of this year, the company has acquired, added, agreed to acquire, or obtained the option to lease, an additional acreage of 132,758 net acres based in North Louisiana for a total of nearly $373.8 million.
This assumes the lease exercise costs, through a definitive sale and purchase deal to buy a third-party’s land in Jackson and Lincoln Parishes. There is an acreage option deal to lease land in Jackson and Lincoln Parishes, Bienville and Claiborne.
The management speaks
John Weinzierl, the CEO of Memorial Resource Development, said that he is thrilled about company’s acreage additions that further enhance the exposure to one of the leading basins and the fertile natural gas fields in the nation.
These deals are consistent with company’s strategy of expanding its industry-leading role in North Louisiana. Going by the technical expertise, they believe the additional land will offer Memorial Resource additional opportunities to enhance inventory of horizontal, over-pressured, Lower Cotton Valley drilling plans.
As of September 21, 2015, assuming the full exercise of the option deal, the company had 193,915 net acres in and adjacent the Terryville Field, which highlights a 276% jump in net acres since its IPO in June 2014.
Also, Memorial Resource entered into a definitive sale and purchase deal with a third party to purchase approximately 45,121 net acres based in Jackson and Lincoln Parishes, Louisiana. This deal, depending on customary closing conditions, is projected to compete in the fourth quarter of this year. The acquisition assets are based southeast of company’s existing position in Terryville Field, in northern Jackson and southern Lincoln Parishes, Louisiana.
In last trading session, Memorial Resource Development Corp (NASDAQ:MRD) declined 1.89% to close at $18.19.