Midstates Petroleum Company, Inc. has entered into a Purchase and Sale Agreement with Panther Energy, LLC, and its partners Red Willow Mid-Continent, LLC and LINN Energy Holdings, LLC (together, “Panther”), to acquire producing properties as well as developed and undeveloped acreage in the Anadarko Basin in Texas and Oklahoma for $620 million in cash. Both Panther Energy, LLC and Red Willow Mid-Continent, LLC are subsidiaries of the Southern Ute Indian Tribe Growth Fund. Primary horizontal drilling targets include the Cleveland, Marmaton, Cottage Grove, and Tonkawa formations. The transaction will be effective April 1, 2013 and closing is expected on or about May 31, 2013, subject to customary closing conditions.

Key highlights of the transaction include:

•Adds approximately 36.4 million barrels of oil equivalent (Mmboe) proved reserves that are 45% oil and 21% natural gas liquids (“NGLs”), of which 34% are proved developed producing •Increases net current daily production by approximately 8,000 Boe per day (67% liquids) •Enhances drilling inventory with over 700 low-risk, repeatable horizontal drilling opportunities •Expands acreage position with approximately 140,000 net acres with multiple objectives; about 102,000 are in Texas and 38,000 are in Oklahoma; 60% of total acreage is held by production •Adds approximately 280 gross producing wells that are over 80% operated with an average 69% working interest and 55% net revenue interest •Provides more than 100 Mmboe in internally estimated resource potential •Immediately accretive in 2013 to cash flow per share, as well as earnings, EBITDA, proved reserves and production per share

Tags: Midstates Petroleum Company