Venado Oil, KKR acquire more Eagle Ford shale assets

By Patrick C. Miller | July 09, 2018

Affiliates of Venado Oil and Gas and KKR—a global investment firm—have closed a deal to acquire assets in the Eagle Ford shale of south Texas.

Headquartered in Austin, Venado Oil will operate 22 wells that last quarter produced 4,500 net barrels of oil equivalent per day. The company says the 23,000 net acres in the acquisition are adjacent to its current operated assets and offer significant future resource development potential in Atascosa and Frio counties.

“These assets are a natural addition to our existing operated assets and considerably increase our future drilling inventory,” said Scott Garrick, Venado CEO. “This acquisition is a continuation of our strategy begun in late 2016 to consolidate proven assets in the Eagle Ford.”

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.

“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,” Garrick said.

The Venado and KKR asset partnership is principally funded by KKR’s Energy Income and Growth Fund. 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.

“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,” said David Rockecharlie, head of KKR energy assets.

The Venado and KKR asset partnership is principally funded by KKR’s Energy Income and Growth Fund I. 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.