Dallas-based Silver Hill Power Companions, LP is buying the North Dakota oil and fuel belongings of Liberty Sources II, LLC, in addition to a 100% curiosity in Liberty Midstream Options, LLC, a midstream oil and fuel firm with fuel gathering, fuel processing and produced water logistics belongings in North Dakota.
The acquisition, anticipated to shut on March 14, will present PDP reserves of roughly 16 million barrels of oil equal, Silver Hill mentioned in a latest information launch. The monetary particulars weren’t disclosed.
The belongings had December 2023 web manufacturing of roughly 13,000 barrels of oil equal per day, consisting of 76 p.c oil and 86 p.c liquids. The acquisition covers over 300 gross operated drilling areas and 84,000 web acres within the Williston Basin Bakken and Three Forks play in Mountrail, Burke, Williams and Divide Counties, in line with the discharge.
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Silver Hill famous that there’s one rig presently operating in Mountrail County with 12 extra wells anticipated to be accomplished within the first quarter.
The acquisition additionally consists of an built-in midstream system with roughly 33 miles of fuel gathering strains, 22 miles of water gathering strains, a fuel processing plant with a capability of 30 million cubic ft per day (MMcfpd), 5 saltwater disposal wells with roughly 60,000 barrels per day of disposal capability, 99,000 devoted acres, and ample growth capability, the discharge mentioned.
“After years of contemplating varied alternatives for entry factors into the Bakken, we’re thrilled to be buying what we imagine is a perfect preliminary upstream and midstream improvement platform for us within the play”, Silver Hill Founder and CEO Kyle Miller mentioned. “Liberty’s belongings signify not solely a lovely working footprint with fast scale and runway but in addition a uniquely located pure fuel and water infrastructure system that gives a significant uplift to our drilling economics. We have now loved working with the Liberty workforce all through this transaction and are excited to harness our groups’ mixed information and expertise as we proceed creating and rising this new Bakken place in addition to our sizable current Haynesville enterprise”.
Silver Hill mentioned it plans to fund the acquisition with a mix of fairness from Silver Hill Power Companions III, LP (SHEP III) and one other Silver Hill-sponsored partnership in addition to senior financial institution debt from every partnership’s credit score services.
The partnership mentioned it intends to make use of the transaction “as a springboard for future development within the space by extra bolt-on acquisitions and associated investments in upstream, midstream, minerals and royalties”.
SHEP III is Silver Hill’s third partnership and first institutional personal fairness fund with $1.02 billion of capital commitments from a various group of institutional companions. SHEP III describes itself as being centered on the direct acquisition and improvement of operated oil, pure fuel and associated infrastructure belongings in premier basins throughout the onshore USA.
Following a profitable sale of its South Texas upstream belongings in April 2023, SHEP III’s present upstream portfolio resides totally within the Haynesville and consists of roughly 300 MMcfpd web of dry pure fuel manufacturing from 151 producing wells and over 300 gross drilling areas throughout roughly 52,000 web acres.
Liberty Sources II is a Denver-based upstream operator centered on the acquisition and improvement of oil and fuel belongings. The corporate is led by members of the workforce of Liberty Sources LLC, a Riverstone International Power and Energy Fund IV E&P firm working within the Bakken Shale of North Dakota.
To contact the creator, electronic mail rocky.teodoro@rigzone.com
