Covey Park Gas LLC, a subsidiary of Dallas, 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.
About Covey Park Energy
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.
About Denham Capital
Denham Capital is a leading energy and resources-focused global private
equity firm with more than $8.4 billion of invested and committed
capital across eight fund vehicles and offices in Houston, London,
Boston, São Paulo and Perth. The firm makes direct investments in the
energy and resources sectors, including businesses involving oil and
gas, power generation and mining, across the globe and all stages of the
corporate lifecycle. Denham’s investment professionals apply deep
operational and industry experience and work in partnership with
management teams to achieve long-term investment objectives. For more
information about Denham Capital, visit www.denhamcapital.com.
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Copyright Business Wire 2016
Source: Business Wire
(March 23, 2016 - 1:49 PM EDT)
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