(Source: Datamonitor)
EV Energy Partners, along with certain institutional partnerships managed by EnerVest, has signed an agreement to acquire oil and natural gas properties in the Austin Chalk from an undisclosed seller. EV Energy Partners will acquire a 15.15% interest in these assets for $5.3 million.
The acquisition is expected to close by September 1, 2009, and is subject to customary closing conditions and purchase price adjustments. The acquisition is comprised of 67 wells producing primarily from the Austin Chalk formation in Fayette, Grimes, Lee, Washington and Burleson counties in Central Texas.
John Walker, chairman and CEO of EV Energy Partners, said: "This is the second Austin Chalk add-on acquisition we have announced during the past two months. As we have previously noted, the Austin Chalk is EnerVest's largest and most successful area of operation and this purchase highlights our continuing focus on acquisitions in our core areas.
"We only paid for producing reserves but believe that each of the 67 well bores offers the opportunity to exploit additional Austin Chalk zones. Our recently completed equity offering and reduction in our outstanding debt by 25% during 2009 provides EV Energy Partners with the flexibility to continue to pursue acquisition opportunities at attractive rates of return."
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