EV Energy Partners LP (EVEP) and partnerships managed by EnerVest Ltd. agreed to pay Range Resources $330 million to acquire some tight gas sands property and producing wells in the Ohio portion of the Appalachian Basin, the companies said Monday.

The properties to be acquired include 3,306 active wells (3,018 operated), which are 75% proved developed producing (58.7 Bcfe). The transaction also includes about 1,600 miles of pipeline and gathering system infrastructure. More than 90% of the property, 70% weighted to gas, is held by production.

Under terms of the transaction, EVEP would acquire a 46.15% interest in the properties for $151.8 million; partnerships managed by EnerVest will acquire the remaining stakes.

“This acquisition is our second in the Appalachian Basin within the past six months,” said EVEP CEO John B. Walker. “It provides EVEP with additional long-life base production and development drilling opportunities in an area where we have a sizeable asset position and substantial experience. In addition, it provides us with a significant opportunity for future production growth through drilling in the Knox group formation, a play where EnerVest has had drilling success over the past six years.”

Based on recent strip prices, the 465,000 gross acres (193,000 net to EVEP) to be acquired include estimated net proved reserves of 78.8 Bcfe as of year-end 2009. Estimated probable and possible reserves — mostly in the Knox group formation — are 19.7 Bcfe.

Current production net to EVEP’s interest is about 11.3 MMcfe/d. Estimated gas production net to EVEP is 7,300-7,900 Mcf/d. The reserves-to-production ratio is estimated at 20 years; 15 years for proved developed producing. Around 388 drilling locations, mostly in the Clinton and Medina formations, have been identified as proved undeveloped.

The acquisition is expected to close by the end of March. EVEP said it plans to hedge “a substantial portion of the acquired production volumes” by the time the transaction closes.

Range CEO John Pinkerton said the sale would “help streamline our business and provide additional flexibility in implementing our 2010 capital spending program. Importantly, we are well positioned to deliver another year of double-digit production and reserve growth on a per share basis, while maintaining our strong financial position.”

©Copyright 2010Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.