Source: Hart Energy
EV Energy Partners LP (NASDAQ: EVEP) said Feb. 1 it closed a $59 million acquisition in the Eagle Ford that is expected to increase 2017 crude production by about 25%.
As part of the deal, EV Energy acquired a 5.8% working interest in 9,151 gross (529 net) acres in Karnes County, Texas, from an undisclosed third-party. EnerVest Ltd., controlling member of EV Energy's general partner, is the operator of the acquired properties.
EV Energy said the $52.1 million sale of its Barnett Shale properties will help offset the Karnes purchase. The company used the proceeds and $6.6 million borrowings under its revolver to fund its Eagle Ford acquisition.
“We believe that this position in the Eagle Ford Shale affords many attractive, self-funding, near-term drilling opportunities and will increase our crude production by approximately 25 percent in 2017,” Michael Mercer, EV Energy’s president and CEO, said in a statement.
The Eagle Ford assets include:
- Eagle Ford and Austin Chalk reserves and drilling opportunities;
- Estimated proved reserves of about 6.4 million barrels of oil equivalent (MMboe) and probable reserves of 1.3 MMboe, net to the company (based on recent strip prices);
- 22% proved developed and 61% crude;
- Current net daily production of about 1,000 boe/d (73% crude); and
- More than 200 economic, scalable and repeatable proved and probable horizontal drilling opportunities.
EV Energy said the Eagle Ford acquisition closed Jan. 31. Certain EnerVest institutional partnerships (EnerVest) own an 87% working interest in the acquired Eagle Ford properties.
In May, EnerVest said it purchased assets across several Eagle Ford counties for $1.3 billion, including acreage in Karnes for $118 million.
The Barnett sale closed Dec. 1. The properties represented 16% of EV Energy’s existing Barnett position, based on year-end 2015 proved reserves.
The divestment included estimated proved reserves of 94.6 billion cubic feet (Bcf) of dry gas and about 13 MMcf/d of natural gas production, the company said.
Emily Patsy can be reached at epatsy@hartenergy.com.
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