EV Energy Partners and EnerVest, Ltd. have entered into a farm-out agreement with PetroEdge Energy, LLC on approximately 9,500 net acres in Harrison, Marion, Doddridge, Barbour, Upshur and Randolph Counties in North Central West Virginia.
EVEP is contributing approximately 7,760 net acres (81% of the total), with EnerVest contributing the remainder.
PetroEdge will earn a 75% working interest in the contributed acreage related to each well it drills and completes, and will earn a 75% working interest in the total contributed acreage if it spends approximately $33 million on drilling and related expenditures within a four year period.
EVEP and EnerVest will retain their proportionate share of the remaining 25% working interest on the total contributed acreage. In addition, EVEP and EnerVest will each separately retain all net revenue interest in excess of 82% on their respective contributed acreage.
In addition to the acreage subject to this farmout, EVEP will continue to hold approximately 27,000 net acres with Marcellus shale potential, primarily in West Virginia.
EVEP is a Houston-based publicly traded master limited partnership engaged in acquiring, producing and developing oil and gas properties. EVEP was formed in September 2006.
EnerVest, founded in 1992, acquires, develops and operates oil and gas fields on behalf of its institutional investors. EnerVest is also the general partner of the general partner of EVEP.
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