EV Energy Partners, L.P. today announced that it has signed an agreement to acquire natural gas properties in the Monroe Field of North Louisiana for $96 million from an institutional partnership managed by EnerVest Management Partners, Ltd. The acquisition, which has been approved by the Board of Directors, is expected to close before mid-April 2007, and is subject to customary closing conditions and purchase price adjustments.
EVEP plans to initially finance the acquisition with borrowings under its existing credit facility.
"The acquisition of these properties will create excellent synergies with our existing Monroe field assets," said John B. Walker, Chairman and CEO. "As with our recently completed acquisitions, these properties fit well with EVEP's asset base and we expect the acquisition to be accretive to distributable cash flow per unit."
As a result of this acquisition, management anticipates that it will recommend to the Board of Directors an increase in the quarterly distribution rate, beginning with the distribution for the second quarter of 2007 (payable during the third quarter of 2007) subject to the closing of the acquisition of substantially all of the Monroe properties.
The properties include:
* Over 2,800 wells located in Union, Morehouse and Ouachita Parishes in Louisiana
* Proved reserves of approximately 65.4 Bcfe (99% proved developed producing)
* 100% natural gas
* Significant third-party transportation and marketing
* Operate 100% of wells
* High net revenue interest of over 95%
* Reserves-to-production ratio of over 22 years
* Current net daily production of approximately 7,600 MCF
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