HOUSTON, July 28, 2020 (GLOBE NEWSWIRE) -- Riviera Resources, Inc. (OTCQX: RVRA) announces it has signed a definitive agreement to sell its interest in properties located in North Louisiana to an undisclosed buyer for a contract price of $26.5 million, subject to closing adjustments. The Company expects the transaction will close in the third quarter of 2020.

The properties to be sold consist of approximately 100 wells located in North Louisiana with average second quarter net production of approximately 16 Mmcfe/d. This transaction is subject to satisfactory completion of due diligence, as well as the satisfaction of closing conditions. RBC Richardson Barr acted as financial advisor and Kirkland & Ellis LLP as legal counsel during the transaction.

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 consistent with past history may include a significant return of capital to shareholders.

After closing the transaction, the Company will continue to own upstream assets primarily located in the Mid-Continent region. Additionally, the Company owns Blue Mountain Midstream LLC, a midstream company centered in the core of the Merge play in the Anadarko Basin.