KKR will invest up to $400m in Hilcorp Resources, a newly formed partnership to develop the acreage within the Eagle Ford, located in an approximately two hundred mile long area in South Central Texas, southeast of San Antonio. Hilcorp will hold 60% stake in the partnership and KKR will hold the remaining stake.
The partnership combines a capital commitment from both parties. In addition, Hilcorp will contribute its 100,000 net acre Eagle Ford position and will run the day-to-day operations.
The Eagle Ford comprised of a layer of rock found at depths of 7,000ft to 14,000ft, with a thickness of approximately 250ft. The Eagle Ford is deposited with hydrocarbons and is estimated to contain over 80 billion barrels equivalent (BBoe) of original oil in place.
