EV Energy Partners, L.P. has entered into four agreements with certain EnerVest Institutional Partnerships to acquire oil and natural gas properties, which represent combined estimated net proved reserves of 302 Bcfe, in the Appalachian Basin, San Juan Basin, Michigan and Austin Chalk for a combined cash consideration of $259 million. The acquisitions are expected to close on October 1 and are subject to customary closing conditions and purchase price adjustments. EVEP plans to fund the acquisitions with available cash and borrowings under its revolving credit facility.
One of the acquisitions is the purchase of a 100 percent ownership interest in Belden & Blake Corporation. Belden owns oil and natural gas properties in the Appalachian Basin and Michigan near EVEP's existing properties. Belden's estimated net proved reserves are 120 Bcfe. As a result of the transaction, Belden will become a wholly-owned indirect subsidiary of EVEP and will remain a C-Corp, subject to state and federal taxation. EVEP's valuation of Belden included an assessment of future taxation at Belden as well as its working capital and other net assets. At recent strip prices, EVEP estimates that corporate taxes at Belden will be negligible for the remainder of 2015 and less than $1.0 million annually for 2016 and 2017.