Source: Hart Energy
Covey Park Energy LLC purchased another 90,000 net acres in the Haynesville/Bossier shale area of East Texas, doubling its acreage in the play since May.
With financial backing from Denham Capital, Covey said Nov. 2 that it acquired assets primarily in Panola, Nacogdoches and San Augustine counties, Texas, as well as in DeSoto, Bossier and Sabine parishes, La.
Covey will also gain average net production of 35 million cubic feet per day (MMcf/d).
The price and seller were not disclosed. EOG Resources (NYSE: EOG) and ExxonMobil Corp. (NYSE: XOM) both have holdings in the counties and parishes where Covey Park made acquisitions.
The transaction follows Covey’s $420 million deal with EP Energy Corp. (NYSE: EPE) in May to buy 34,167 net acres producing 113 MMcf/d. At that price, Covey spent about $6,000 per acre based on production valued at $2,500 per Mcfe/d.
Using the EP Energy deal as a benchmark, the company may have paid in the neighborhood of $600 million for the acquisition.
Covey Park’s daily net production in fourth-quarter 2016 is estimated to be about 325 MMcf/d.
Covey is now one of the largest owners in the Haynesville/Bossier, with 218,000 net acres of leasehold in Texas and Louisiana. The company’s total proved reserves exceed 2.5 Tcf.
Darren Barbee can be reached at dbarbee@hartenergy.com.
RELATED: Premium Blend: Covey Park Remains Acquisition-Focused
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