EP Energy will sell US gas assets for $1.3bn

US-based company EP Energy has signed three separate purchase and sale agreements to sell natural gas properties in the country for an estimated $1.3bn.

The company signed an agreement with Atlas Resource Partners relating to coal bed methane (CBM) properties in the Raton, Black Warrior and Arkoma basins.

EP also signed an agreement with WildHorse Resources to sell its East Texas and North Louisiana Arklatex conventional gas assets. It signed a deal with a third firm for conventional gas assets that are located in South Texas.

EP Energy held approximately 909 billion cubic feet equivalent of proved reserves at the end of 2012. Through the first quarter of 2013, its average daily production was around 215 million cubic feet equivalent per day.

EP Energy president and CEO Brent Smolik said that the series of transactions allow the firm to focus on high margin oil plays, and retain its highest return gas asset in the Haynesville Shale.

"We are very pleased with the outcome of the asset sales process and the agreements we have entered into with high quality buyers," he said.

"Going forward, our portfolio consists of more than 20 years of drilling inventory in some of the highest return plays in North America, including the Eagle Ford Shale, the Wolfcamp Shale, the Uinta Basin and the Haynesville Shale areas."

The transaction, which is subject to customary adjustments, is expected to be completed in the third quarter of this year.

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Image: EP Energy’s average daily production is approximately 215 million cubic feet equivalent per day. Photo: courtesy of Alan Murray-Rust.