EP Energy Corp. (NYSE: EPE) said in regulatory filings that it modified its drilling joint venture (JV) to focus on the Eagle Ford instead of the Permian Basin.
The JV, formed in January 2017 with a subsidiary of Apollo Global Management LLC, was originally intended to drill up to 150 Wolfcamp wells.
As part of the previous agreement, Apollo would foot 60% of drilling, completion and equipping bills with $450 million in capital. In exchange, its subsidiary Wolfcamp Drillco Operating LP would earn working interest in the wells, which will be drilled in two 75-well tranches in Reagan and Crockett counties, Texas.
However, on April 27, EP Energy and Apollo amended the JV agreement to direct the development area for the second tranche from the Permian to the Eagle Ford, according to regulatory filings with U.S. Securities and Exchange Commission.
The new second tranche development will be developed pursuant to two phases with the initial phase consisting of 34 Eagle Ford wells. Apollo's share of drilling, completion and equipping costs associated with the second tranche development will not exceed $225 million.
EP Energy expects that the second tranche phase one will be completed in 2019, following which the company will then propose a second phase of the second tranche development.
Recommended Reading
Water Management Called ‘Massive Headwind’ for Permian Operators
2024-11-21 - Amanda Brock, CEO of Aris Water Solutions, says multiple answers will be needed to solve the growing amounts of produced water generated by fracking.
Suriname's Staatsolie Says Exxon has Withdrawn from Offshore Block
2024-11-20 - Suriname's state-run oil company Staatsolie said on Nov. 20 that U.S. oil giant Exxon Mobil has withdrawn from its offshore block 52, and block operator Petronas Suriname E&P will take over its 50% stake.
E&P Highlights: Nov. 18, 2024
2024-11-18 - Here’s a roundup of the latest E&P headlines, including new discoveries in the North Sea and governmental appointments.
Norway's Massive Johan Sverdrup Oilfield Shut by Power Outage
2024-11-18 - Norway's Equinor has halted output from its Johan Sverdrup oilfield, western Europe's largest, due to an onshore power outage, the company said on Nov. 18.