The acquisition includes interests in approximately 380 gross producing wells and 22 000 net acres situated in the core of the Yeso formation in Eddy & Lea Counties, New Mexico, as well as associated water and midstream assets. During 1Q19, the assets produced approximately 9200 net boe/d (85% liquids). The acquisition is expected to close in 2Q19, subject to customary closing conditions.
Jay Graham, Spur CEO, said: “Given their long-term approach and commitment to investing in scaled, cash flowing E&P assets with growth potential, KKR is the ideal partner for Spur as we look to build a large scale business in the oil and gas sector that creates value through exceptional technical and operational execution. We look forward to working together as we make our first investment in this high-quality asset with a strong existing production base and attractive development potential.”
Dash Lane, Managing Director on KKR’s Energy Real Assets team, commented: “This acquisition is the first step in what we expect to be a multi-billion dollar investment partnership with Spur, which we believe is well-positioned to create significant value in today’s oil and gas market. We have known the Spur team for many years, have seen firsthand their commercial and operational expertise, and are thrilled to be partnering with Jay and his team.”
The Spur and KKR partnership will be funded by funds affiliated with KKR’s Energy Real Assets strategy.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/17052019/spur-energy-partners-form-partnership-with-kkr-to-acquire-assets-across-us/