0.6210 3.5000
52 weeks
52 weeks

Mkt Cap 188.04M

Shares Out 256.67M

new Chat
Send me real-time posts from this site at my email

EP Energy Announces Permian Drilling Joint Venture and Acceleration of Wolfcamp Program Development

HOUSTON, Jan. 26, 2017 /PRNewswire/ -- EP Energy Corporation (NYSE: EPE) today announced it has, through a subsidiary, entered into a drilling joint venture with private capital investor, Wolfcamp Drillco Operating L.P. (Investor), to fund future oil and natural gas development in its Wolfcamp program.

Drilling Joint Venture highlights

  • Up to a 150 well program in two 75 well tranches
  • Investor funds approximately $450MM for 60 percent of drilling, completion and equipping costs over the life of the program
  • Investor earns 50 percent working interest in each farmout well in the completed Wolfcamp interval
  • Significantly enhances program economics with well-level IRRs of more than 80 percent
  • Further illuminates Wolfcamp acreage value of approximately $20,000 per acre
  • EP Energy operates all wells in the program

"We are pleased to announce our Permian drilling joint venture, which will enable us to accelerate the development of our largest strategic asset in a balance sheet friendly manner," said Brent Smolik, chairman, president, and chief executive officer of EP Energy Corporation. "During the past year, we significantly increased the value of our Wolfcamp asset with improved well performance, a lower cost structure and reduced royalty rates. This new capital commitment further improves and illuminates the acreage value of our Wolfcamp program."

The Investor is participating in the development of an up to 150 well program in two separate 75 well tranches in areas of the company's acreage, including Reagan and Crockett Counties.

The Investor will fund 60 percent of the drilling, completion and...