EV Energy Partners, L.P, along with certain institutional partnerships managed by EnerVest, Ltd., has signed an agreement to sell certain deep rights in the Eagle Ford formation in Burleson, Brazos and Grimes Counties to an undisclosed buyer for net proceeds to EVEP of $30 million ($218 million for all EnerVest-affiliated entities combined). EVEP and EnerVest institutional partnerships will retain all non-Eagle Ford formation rights, including the Austin Chalk formation and corresponding production. The transaction is expected to close by October 15th and is subject to customary closing conditions and purchase price adjustments.
Mark Houser, President and CEO said, "With the development of the East Texas Eagle Ford under our Austin Chalk acreage and the rapid build-up of drilling rigs and capital requirements, we decided to capitalize on the opportunity and have entered into an agreement to sell our Eagle Ford formation rights in three of the counties where there has been significant activity to date. We plan to redeploy the proceeds in acquiring longer-life, high PDP content reserves. Our remaining position in Lee, Fayette and Washington Counties will be retained until more drilling activity has occurred to assess the potential in these counties."