EV Energy Parts With 35 Square Miles Of Utica Land For $284 Million

Purchased 22,535 net acres in Guernsey, Harrison and Noble counties in the southern Utica's wet-gas window.

EV Energy Partners LP (Nasdaq: EVEP) announced Aug. 9 that it and other institutional partners managed by EnerVest Ltd. have signed an agreement to sell acreage in Ohio's Utica Shale for $284.3 million.

The buyer was not disclosed. The sale includes 22,535 net acres in Guernsey, Harrison and Noble counties in the southern Utica’s wet-gas window. EVEP is selling 4,345 of the acres, which will net it about $56 million.

EVEP will retain its overriding royalty interests in the land.

“This is a good first step in our revised Utica acreage sale process,” said John B. Walker, EVEP chairman. “The value of this sale averages $12,900 per acre. We look forward to announcing additional deals as they occur.”

The land’s value is 72% higher than models by Baird Energy Partners, which estimated a sale price of $7,500 per acre. However, the sale measures just 4% of EVEP’s 103,800 net core Utica position and is only a small down payment on the partnership’s $350 million midstream investment.

Jefferies LLC is advising EVEP as the company continues to market its Utica holdings. The sale is expected to close by the end of the third quarter and is subject to customary closing conditions and purchase price adjustments.