Covey Park Gas LLC, a subsidiary of Covey Park Energy LLC, has announced it has entered into a Purchase and Sale Agreement with subsidiaries of EP Energy Corp. to purchase all of EP Energy’s assets located in the Haynesville and Bossier shales. The total consideration to be paid is US$420 000 000, subject to customary adjustments for this type of transaction. The transaction is expected to close in the 2Q16, 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 4Q15 average production of 113 million ft3/d.
Pro forma for the acquisition, Covey Park will own approximately 196 000 gross (137 000 net) acres of leasehold in Texas and Louisiana.
Edited from press release by Angharad Lock
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/23032016/covey-park-acquires-haynesville-and-bossier-assets-2854/