A subsidiary of a Dallas-based oil and gas company is paying $420 million for EP Energy’s assets located in the Haynesville and Bossier shale formations in northwest Louisiana.
The assets being acquired by Covey Park Gas LLC are primarily in DeSoto and Bossier parishes and consist of 34,167 net acres, with average fourth-quarter production of 113 million cubic feet of natural gas per day, the company said.
The transaction is expected to close in the second quarter, subject to customary closing conditions.
Covey is a subsidiary of independent oil and gas exploration and production company Covey Park Energy LLC.
Covey Park was formed in June 2013 with equity from Denham Capital, an energy and resources-focused global private equity firm with more than $8.4 billion of invested and committed capital.
Covey Park will own about 137,000 net acres of leases in Texas and Louisiana. Daily net production will increase to about 200 million cubic feet of natural gas per day. Total proved reserves will be about 2 trillion cubic feet, the company said.
Covey Park Energy is primarily focused on the acquisition and exploitation of long-life reserves in the Ark-La-Tex and Mid-Continent regions.