San Antonio, Texas-based oil and natural gas exploration company Silverback Exploration II has received an equity commitment of $500m from Encap Investments.
The company was formed by the same team that formed Silverback Exploration, LLC (Silverback I) and it was also backed up by Encap.
Silverback I is claimed to have developed a significant position in Delaware Basin, including about 35,000 acres, production of 3500 barrels per day of crude oil equivalent and about 600 horizontal drilling locations.
In last December, Silverback I sold its leasehold interests and related assets to Centennial Resource Development and its affiliates for $855m. The divested assets had approximately 3,500 Boed of net production.
Silverback II was established to pursue organic development projects and acquisitions in conventional and unconventional resources across the US.
Silverback CEO Stephen Lipari said: “Our team has a high level of expertise in horizontal drilling and a comprehensive understanding of operational efficiencies that are already shaping the focus of our new company.
“We are thrilled to partner with EnCap for a second time. EnCap’s financial strength coupled with the proven track record of the Silverback team is a compelling combination that provides us with the ability to source deals, develop assets and create value.”
EnCap managing partner David Miller said “Consistent with EnCap's long history of rebacking management teams on the heels of a successful exit, we are very pleased to have the opportunity to partner once again with Silverback."
Silverback II was advised by the Fort Worth office of Kelly Hart & Hallman, while Thompson & Knight. was the advisor to EnCap.