Covey Park said it has entered into a purchase and sale agreement with subsidaries of EP Energy Corporation to purchase all of its assets in the Haynesville and Bossier shales.
The company said the total consideration to be paid is $420,000,000.
The transaction is expected to close in the second quarter of 2016.
The assets, which are located in Louisiana’s DeSoto and Bossier Parishes, consist of 52,33 gross acres with an average production in the last quarter of 2015 of 113mmcf/d.
Covey Park will own 196,000 acres of leasehold in Texas and Louisiana following the deal.