By March 25, 2016 Read More →

EP Energy sells Texas, LA shale production for $420 million to Covey Park Energy

Daily production will increase to 200mmcf/day, total proved reserves will be 2 TCF

Covey Park Energy LLC says it is buying all of EP Energy’s assets located in the Haynesville and Bossier shales, located in East Texas and Western Louisiana.

Covey ParkCovey Park Gas LLC, a subsidiary of the Dallas-based independent oil and gas exploration and production company, has entered into the agreement with subsidiaries of EP Energy Corporation.

Covey Park said in a press release that the sale price of $420 million is subject to “customary adjustments for this type of transaction,” which is expected to close in Q2 2016.

The assets, primarily located in Louisiana’s DeSoto and Bossier Parishes, consist of approximately 52,933 gross (34,167 net) acres with Q4 2015 average production of 113 mmcf/d.

The Haynesville/Bossier Shale is a geological formation with large amounts of natural gas located in East Texas and Western Louisiana. The productive interval of the shale is greater than 10,000 feet below the land surface.

Covey Park will own approximately 196,000 gross (137,000 net) acres of leasehold in Texas and Louisiana.

Daily net production will increase to approximately 200mmcf/day. Total proved reserves will be approximately 2 TCF.

Covey Park Energy is an independent oil and gas exploration and production company focused on the acquisition and exploitation of long-life reserves in the Ark-La-Tex and Mid-Continent regions. Covey Park was formed in June 2013 with an equity commitment from Denham Capital.

Posted in: Energy Financial

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