2010-08-10-2010-08-10-2010-09-29

Bought Midcontinent properties in Anadarko, Arkoma basins, E TX, gaining 74.5 Bcfe proved.

Houston-based master limited partnership EV Energy Partners LP (Nasdaq: EVEP) has closed the acquisition of certain Midcontinent oil and gas properties and related assets from Houston-based E&P company Petrohawk Energy Corp. (NYSE: HK) for an adjusted price of $119.9 million.

The deal was previously valued at $123 million.

The assets include producing wells in the Anadarko and Arkoma basins and in East Texas, with current daily net production of approximately 15.5 million cubic feet equivalent. Estimated proved reserves as of July 1 were approximately 74.5 billion cubic feet equivalent (86% gas; 14% oil), of which 69% are proved developed producing. Approximately 44% of the proved reserves are operated.

Upside includes more than 70 behind-pipe and proved undeveloped drilling locations, with significant value-added potential in established hydrocarbon basins.

EV Energy Partners chairman and chief executive John Walker says, "We have successfully integrated our two Appalachian Basin acquisitions and continue our aggressive and disciplined acquisition efforts, including the acquisition we are announcing today."

Mark Houser, president and chief operating officer, adds, "This acquisition builds on our existing positions in Oklahoma and East Texas, consistent with our strategy of building core areas. It provides EVEP with additional long-life base production and excellent development drilling opportunities and unproved upside."

At closing, EV Energy Partners' outstanding debt was $334 million.