Covey Park Inks Deal for Louisiana Shale Gas Acreage

Private equity-backed Covey Park Energy LLC said on Wednesday it bought shale natural gas acreage in Louisiana for $420 million from EP Energy Corp, the latest in a slow trickle of land deals across the energy space.

 

Covey, which is funded by Denham Capital, bought 52,933 gross acres in the Haynesville and Bossier shales. The land produced about 113 million cubic feet per day in the fourth quarter. Covey said it aims to increase that to 200 million cubic feet per day.

 

After the deal closes in the second quarter, Covey said it will control nearly 200,000 acres across Texas and Louisiana holding roughly 2 trillion cubic feet of natural gas.

 

Half a dozen or so private equity firms and other asset managers have made recent land purchases throughout the United States for oil and natural gas development. Sellers are seeking quick cash infusions to service debt and maintain core operations.


(Reporting by Ernest Scheyder; Editing by David Gregorio)