Riviera Resources Divests North Louisiana Assets
OTCQX-listed Riviera Resources Inc. has signed a definitive agreement to sell its interest in certain properties located in North Louisiana for a contract price of US$26.5 million, subject to closing adjustments. The buyer of the properties has not been named.
The properties sold include approximately 100 wells with average daily production of approximately 16 million cubic feet equivalent per day (MMcfe/d) during Q2-2020. The estimated net proceeds from the sale are expected to be added to cash on the company’s balance sheet.
Houston-based Riviera was spun off from LINN Energy Inc. in August 2018. Post-closing, Riviera will continue to own upstream assets primarily located in the Mid-Continent region. In addition, the company also owns Blue Mountain Midstream LLC, a midstream company that focuses on the Merge play in the Anadarko basin.
The divestiture is subject to customary closing conditions, including the completion of due diligence, and is expected to close in Q3-2020.
RBC Richardson Barr acted as financial advisor to Riviera.