EV Energy To Acquire Appalachian Basin Oil, Gas Properties

Published: 08-Feb-2010

EV Energy Partners (EVEP), along with certain institutional partnerships managed by EnerVest, has signed an agreement to acquire oil and natural gas properties in the Appalachian basin from Range Resources. EVEP will acquire a 46.15% interest in these assets for $151.8m.

The acquisition is expected to close by the end of March 2010 and is subject to customary closing conditions and purchase price adjustments.

The acquisition is comprised of wells primarily producing from the Clinton and Medina formations, with substantially all of the proved reserves and production in Ohio. In addition, there is an upside potential for drilling in the Knox group formation, where EnerVest has drilling experience.

John Walker, chairman and CEO of EVEP, said: "This acquisition is our second in the Appalachian basin within the past six months. 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."

In conjunction with the acquisition, EVEP intends to enter into arrangements to hedge a substantial portion of the acquired production volumes at or prior to closing.

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