USA: EVEP Announces Barnett Shale Acquisition

EV Energy Partners (EVEP) announced that it, along with certain institutional partnerships managed by EnerVest, Ltd., has signed an agreement to acquire natural gas properties in the Barnett Shale from Carrizo Oil and Gas.

EVEP has agreed to acquire a 31 percent interest in these assets for $67.6 million ($218 million for all EnerVest-affiliated entities combined). The acquisition, which has been approved by the Board of Directors, is expected to close by October 31, 2013, and is subject to customary closing conditions and purchase price adjustments. EVEP plans to finance the acquisition with proceeds from its previously-announced Utica Shale acreage sale and borrowings under its existing credit facility.

The acquisition is comprised of 82 wells producing primarily from the Barnett Shale formation in Tarrant County, Texas. The assets include over 17,000 gross acres (9,500 net acres) which are 100 percent held by production.

Mark Houser, President and CEO, said, “These ‘bolt-on’ assets are very complementary to our strong operating position within the Barnett Shale. Our team has a demonstrated exploitation track record in the Barnett and will leverage their expertise in these new high-quality gas properties. The Barnett reservoir within these new leases has estimated gas in place of 150-200 BCF per 640 acre section and the existing wells drilled have estimated ultimate recoveries averaging over 5 BCF per well. We believe these properties will provide very attractive future development opportunities, even at current gas prices.”

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LNG World News Staff, September 6, 2013; Image: Carrizo Oil and Gas