Through a subsidiary, EP Energy Corp. entered a drilling joint venture (JV) with private capital investor Wolfcamp Drillco Operating LP to fund future oil and natural gas development in its Wolfcamp program, a Jan. 26 press release said.

There will be a 150-well program in two 75-tranches in areas of EP Energy’s acreage that include Reagan and Crockett counties, Texas. Wolfcamp Drillco will fund about $450 million for 60% of drilling completion and equipping costs.

Wolfcamp Drillco will earn 50% working interest in each farm-out well in the completed Wolfcamp interval.

There are well-level internal rates of return of more than 80%, and Wolfcamp acreage value is about $20,000 per acre.

EP Energy will operate all wells in the program, the press release said.

Brent Smolik, chairman, president, and CEO, said EP Energy would be able to speed the development of its largest strategic asset within its balance sheet.

The press release said that the first wells under the JV will begin producing in January.

EP Energy’s disinterested board approved the transaction, the press release said.

Wolfcamp Drillco Operating LP is managed by affiliates of Apollo Global Management LLC.