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Black Stone Minerals, L.P. Enters Into Agreement to Acquire Diverse Mineral Package for $102 Million; Schedules Earnings Call for First Quarter of 2016

HOUSTON, Apr 21, 2016 (BUSINESS WIRE) -- Black Stone Minerals, L.P. BSM, -1.11% (“Black Stone Minerals” or “the Partnership”) announced today it has entered into an agreement with Freeport-McMoRan Oil & Gas and certain of its affiliates to acquire a diverse oil and gas mineral asset package for $102 million. The Partnership also has scheduled its first quarter of 2016 earnings call.

Management Commentary

Thomas L. Carter, Jr., Black Stone Minerals’ President, Chief Executive Officer, and Chairman commented, “This transaction is a great example of the type of package that Black Stone likes to acquire – a diverse set of mineral and royalty assets with existing production, near-term development opportunities, and meaningful exposure to attractive oil and gas provinces. The majority of this acreage is in Texas, Louisiana, and Arkansas and is complementary to our existing positions in those states. The package includes acreage in both the Midland and Delaware basins that is well positioned for the Wolfcamp and Spraberry intervals, as well as acreage in other resource plays. These assets will benefit from our focus on active minerals management and we’re confident that they will be strong contributors to production and reserve growth in future years.”

Transaction Overview

Black Stone Minerals has signed an agreement with Freeport-McMoRan Oil & Gas and certain of its affiliates to acquire a mineral package for $102 million. Highlights of the transaction include the following:

  • Approximately 1.2 million gross/126 thousand net mineral acres, 16 thousand net NPRI acres, and 11 thousand net ORRI acres in 20 states with significant concentrations in Texas, Louisiana, and Arkansas;
  • Bolsters the Partnership’s presence in the Permian region and includes acreage with approximately 100 active permits in the Midland and Delaware basins;
  • Estimated average daily production of approximately 850 Boe/d for the fourth...