EP Energy Corp. (NYSE: EPE) has entered into a purchase and sale agreement to sell all its assets in the Haynesville and Bossier shale plays to Covey Park Gas LLC for $420 million. The transaction is expected to close in the second quarter of 2016.
The assets, primarily located in Louisiana’s DeSoto and Bossier parishes, consist of approximately 52,933 gross (34,167 net) acres with fourth-quarter 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 200 MMcf/day. Total proved reserves will be approximately 2 TCF.
Latham & Watkins LLP represented Covey Park in the transaction.