KKR to Acquire Barnett Shale Properties
The transaction, which is expected to close in mid-May 2011, is being made through KKR Natural Resources (KNR), KKR's partnership with Premier Natural Resources ("Premier") to pursue investments in North American oil and gas properties.
The transaction is the third investment made by KNR and, following the acquisition of certain properties from ConocoPhillips in January 2011, the second investment made by KNR in the Barnett Shale.
Located in North Central Texas and producing out of the Barnett Shale formation, the Assets contain 122.4bcfe of total net proved reserves (based on a third party estimate) and comprise 75 gross (58.5 net) wells currently producing at a gross rate of 15.7mmcfe/d (8.3 mmcfe/d net).
KKR has formed its partnership with Premier in February, 2010. Founded in June 2006 by former executives of Vintage Petroleum, Premier currently operates a portfolio of assets located in the Barnett Shale, the Texas Gulf Coast and the Permian Basin and has experience operating assets in most of the major producing basins in the US.
Jonathan Smidt, a member at KKR and a senior member of energy and infrastructure business at KKR, said: â€œWith their significant proved developed producing reserve component in a reservoir we know well through our current operations in the region, the assets are a great fit for our KKR Natural Resources platform.
â€œWe are pleased to add these assets to our oil and gas portfolio and remain excited about the opportunity to grow the KNR platform through the acquisition of additional oil and gas properties in North America.â€
Will the acquisition benefit the firm?
Have your say and discuss with your peers on the InfoGrok community.
Participate by posting your comments now.