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EV Energy Partners to Acquire West Virginia Properties
Houston-based EV Energy Partners LP (EVEP) said Monday it has entered into an agreement with an institutional partnership managed by EnerVest, Ltd. to acquire natural gas properties in West Virginia for $59.5 million.
“The acquisition of these properties will create excellent synergies with our existing West Virginia assets,” said EVEP CEO John B. Walker. “As with our recently completed acquisitions, these properties fit well with EVEP’s asset base and we expect the acquisition to be accretive to distributable cash flow per unit.”
The properties include 543 wells located primarily in Barbour, Harrison and Lewis counties, WV, with estimated proved reserves as of Oct. 1, 2007 of approximately 28 Bcfe. Ninety-nine percent of the proved reserves are proved developed producing and 99.5% are natural gas. EVEP said it will operate 94% of the property value and hold a “high working interest” averaging over 80%. The current net daily production is approximately 4,300 Mcfe.
During 2008, the company expects the properties to produce between 3,900 to 4,100 Mcfe/d with lease operating expenses between $1.20 and $1.30/Mcfe.
The acquisition, which has been approved by the board of directors, is expected to close around the end of 2007. EVEP said it plans to initially finance the acquisition with borrowings under its credit facility. The company is a master limited partnership engaged in acquiring, producing and developing oil and gas properties.
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