DALLAS, TX – Covey Park Gas LLC, a subsidiary of Texas-based independent oil and gas exploration and production company Covey Park Energy LLC (“Covey Park”), announced it has entered into a Purchase and Sale Agreement with subsidiaries of EP Energy Corporation (“EP Energy”) to purchase all of EP Energy’s assets located in the Haynesville and Bossier shales.
The total consideration to be paid is $420,000,000, subject to customary adjustments for this type of transaction. The transaction is expected to close in the second quarter of 2016, subject to certain customary closing conditions.
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.
Pro forma for the acquisition, 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 headquartered in Dallas, Texas. The company is primarily 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. For more information about the company, visit www.coveypark.com.