Houston-based Spur Energy Partners LLC, formed earlier this year, has partnered up with sponsor KKR to buy some Permian Basin assets and acquire other properties across the Lower 48.
The partners said they already have an agreement to acquire Permian assets in the Northwest Shelf from Percussion Petroleum LLC. The acquisition, set to be completed by the end of June, includes properties across 22,000 net acres in the core of New Mexico’s Yeso formation in Eddy and Lea counties. The purchase includes associated water and midstream assets.
The Percussion properties in the first three months of the year produced 9,200 boe/d net from stakes in 380 producing wells.
Spur is led by CEO Jay Graham, co-founder and former CEO of WildHorse Resource Development Corp., an exploration and production (E&P) company purchased last year by Chesapeake Energy Corp. Graham’s management team includes key personnel from WildHorse.
“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,” Graham said.
KKR’s Dash Lane, managing director of the Energy Real Assets team, said the 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 would be funded by funds affiliated with KKR’s Energy Real Assets strategy, which has invested about $4 billion across 12 transactions since 2015. The KKR unit manages a portfolio of oil and gas assets in unconventional and conventional resource areas across the United States.