EV Energy Partners has closed the acquisition of Eagle Ford oil and natural gas properties in Karnes County, Texas, for $58.7m.
Furthermore, the partnership announced the divestment of part of its Barnett Shale natural gas properties for $52.1m.
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Proceeds from the Barnett Shale sale closed last December and were deposited into a 1031 ‘like-kind' exchange account.
EV Energy Partners president and CEO Michael Mercer said: "We are pleased to complete this tax efficient sale and subsequent acquisition of properties.
"We believe that this position in the Eagle Ford Shale affords many attractive, self-funding, near term drilling opportunities and will increase our crude production by approximately 25% in 2017."
The purchase was funded with $52.1m of proceeds from the 1031 ‘like-kind' exchange account and $6.6m of borrowings under the revolving credit facility.
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By GlobalDataUnder the Eagle Ford purchase, EVEP secured a 5.8% working interest in 9,151 gross acres (529 net acres) in Karnes County, Texas, from a third party.
Some EnerVest Institutional Partnerships (EnerVest) own 87% working interest in the properties and EnerVest acts as operator of these properties.
The acquisition includes Eagle Ford and Austin Chalk reserves and drilling opportunities.
The estimated proved reserves are approximately 6.4 million barrels of oil equivalent (mmboe) and probable reserves are 1.3mmboe. About 22% are proved developed and 61% crude.
Current net daily production is approximately 1mmboe (73% crude).
The company stated that there are significantly higher margins and a higher cash flow from acquired Eagle Ford Shale properties compared to the divested Barnett Shale properties.
The partnership's Barnett Shale divesture represented estimated proved reserves of 94.6bcf of dry gas and approximately 13.0mmcfpd of natural gas production.
Based on the year end of 2015 SEC proved reserves, the divested properties represent 16% of EVEP's existing Barnett position.
