Today, affiliates of Venado Oil and Gas, LLC (“Venado”) and KKR
announced that they have closed on an acquisition of operated assets
located in the Eagle Ford oil window of South Texas. The assets acquired
by Venado and KKR include current oil production from 22 producing wells
and significant future resource development potential across
approximately 23,000 net acres immediately adjacent to existing operated
assets held by Venado and KKR in Atascosa and Frio counties. During the
second quarter of 2018, the assets produced approximately 4,500 net
barrels of oil equivalent per day (74% oil, 11% natural gas and 15%
NGLs).
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Venado CEO Scott Garrick stated, “These assets are a natural addition to
our existing operated assets and considerably increase our future
drilling inventory. 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.”
David Rockecharlie, Member and Head of Energy Real Assets for KKR,
commented, “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. We continue to employ our differentiated strategy, which seeks to
generate strong investment returns and free cash flow through superior
technical and operational execution, as well as disciplined financial
and risk management.”
As of the closing date, the Venado and KKR partnership manages an asset
position comprising approximately 136,000 net acres producing
approximately 43,000 barrels of oil equivalent per day from the Eagle
Ford trend of South Texas.
The Venado and KKR asset partnership is principally funded by KKR’s
Energy Income and Growth Fund I (“EIGF”). KKR manages a portfolio of oil
and gas assets in numerous unconventional and conventional resource
areas across the United States and has made thirteen investments in the
Eagle Ford to date.
About Venado Oil and Gas
Venado Oil & Gas is a private company focused on the acquisition and
exploitation of upstream oil and gas assets. Headquartered in Austin,
Texas, its primary objective is to build and operate a portfolio of
producing oil and gas wells and drilling locations in the Eagle Ford
Shale. For additional information about Venado Oil & Gas, please visit www.vogllc.com.
About KKR
KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate and credit, with strategic manager
partnerships that manage hedge funds. KKR aims to generate attractive
investment returns for its fund investors by following a patient and
disciplined investment approach, employing world-class people, and
driving growth and value creation with KKR portfolio companies. KKR
invests its own capital alongside the capital it manages for fund
investors and provides financing solutions and investment opportunities
through its capital markets business. References to KKR’s investments
may include the activities of its sponsored funds. For additional
information about KKR & Co. Inc. (NYSE:KKR), please visit KKR’s website
at www.kkr.com
and on Twitter @KKR_Co.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180703005458/en/
Copyright Business Wire 2018
Source: Business Wire
(July 3, 2018 - 4:15 PM EDT)
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