HOUSTON, May 23, 2019 (GLOBE NEWSWIRE) -- Riviera Resources, Inc. (OTCQX: RVRA) announces it has signed a definitive agreement to sell its interest in properties located in Michigan to an undisclosed buyer for a contract price of $44.5 million, subject to closing adjustments. The Company expects the transaction will close in the second quarter of 2019 and estimates net proceeds of approximately $41 million. This transaction is subject to satisfactory completion due diligence, as well as the satisfaction of closing conditions.
The properties to be sold consist of approximately 1,400 net wells located in Michigan with proved developed reserves of approximately 193 BCFE1 and proved developed PV-10 of approximately $38 million1. The Company will retain all of its properties located in Illinois.
The estimated net proceeds from the sale are expected to be added to cash on the Company’s balance sheet. The Board and management will determine the use of proceeds, which may include share repurchases under the Company’s previously announced share repurchase program, share tenders, dividends, and/or reinvestment in higher return projects at Blue Mountain or in the upstream business.
ABOUT RIVIERA RESOURCES
Riviera Resources, Inc. is an independent oil and natural gas company with a strategic focus on efficiently operating its mature low-decline assets, developing its growth-oriented assets, and returning capital to its stockholders. Riviera’s properties are located in the Hugoton Basin, East Texas, North Louisiana, Michigan/Illinois, the Uinta Basin and Mid-Continent regions. Riviera also owns Blue Mountain Midstream LLC.
