Venado Oil and Gas, in partnership with global investment firm KKR has acquired certain Eagle Ford oil assets in South Texas from an undisclosed buyer.
Image: Venado and KKR added 22 producing wells in their latest Eagle Ford oil assets acquisition. Photo: courtesy of Stuart Miles/Freedigitalphotos.net.
The Eagle Ford oil assets sold in the transaction include 22 producing wells and an underdeveloped acreage of around 23,000 net acres.
Financial terms of the transaction were not revealed by the parties.
According to Venado and KKR, the acquired oil assets had seen a production of around 4,500 net barrels of oil equivalent per day during the second quarter of 2018. This included 74% oil, 11% natural gas and 15% natural gas liquids (NGLs).
The partners believe that there is considerable future resource development potential in the acreage they purchased, which is located next to their existing operated assets in the Atascosa and Frio counties.
According to Venado CEO Scott Garrick, the acquired Eagle Ford oil assets are a natural addition to the company’s operated assets and will significantly boost its future drilling inventory.
Garrick added: “This acquisition is a continuation of our strategy begun in late 2016 to consolidate proven assets in the Eagle Ford.
“This is a prime example of the Venado and KKR partnership using our extensive experience in the Eagle Ford to capture additional high-quality assets, where we have identified multiple opportunities to enhance long-term value for our stakeholders.”
Following the latest acquisition, the Venado and KKR partnership holds an asset position made up of nearly 136,000 net acres producing close to 43,000 barrels of oil equivalent per day from the Eagle Ford oil window of South Texas.
KKR energy real assets member and head David Rockecharlie said: “This investment marks our third asset acquisition in partnership with the Venado team in less than eighteen months, underlining our commitment to capitalizing on the attractive market opportunity we see in the U.S. oil and gas sector at this point in the cycle.”
The Venado and KKR asset partnership, which was founded in September 2016 to target oil and gas investments in Eagle Ford Shale, is mainly financed by KKR’s Energy Income and Growth Fund I (EIGF).
Earlier this year, Venado and KKR acquired certain operated and non-operated Eagle Ford assets of Cabot Oil & Gas for $765m. Prior to that, in March 2017, the partners acquired the non-operated Eagle Ford oil assets of SM Energy for $800m.