A $1.2 billion private equity fund raised by Silver Hill Energy Partners LP is eyeing plans to advance Lower 48 oil, natural gas and infrastructure, beginning with the Haynesville and Eagle Ford shales, as well as the Austin Chalk. 

The fund has created Silver Hill Energy Partners III, which has made five upstream acquisitions across the Haynesville and in South Texas since August 2021. Silver Hill Energy Partners III’s assets comprise about 250 MMcf/d net dry natural gas production from 75 producing wells and about 150 gross drilling locations. The assets are spread across roughly 30,000 net acres targeting the Haynesville and Eagle Ford shales, as well as the Austin Chalk formation.

The venture is running three operated rigs in the Haynesville and South Texas “while its working interest partners operate a fourth rig in the Haynesville,” management said. “In addition to its upstream activity, Silver Hill III is actively developing meaningful new midstream infrastructure projects in both the Haynesville and South Texas.”

The capital commitments came from institutional investors including endowments, pension funds, medical and family foundations, and family offices.

“Silver Hill is strongly committed to responsible and environmentally-conscious development of energy resources in the United States,” said CEO Kyle Miller. “Through our direct partnership with like-minded institutional partners, we are uniquely positioned to make rapid decisions as attractive oil and gas assets become available for acquisition.”

He added, “We have a tenured, multi-disciplinary team of leaders who have experience building and managing large-scale oil and gas companies; operating and developing oil and gas assets; and sourcing, evaluating and underwriting oil and gas investments…

“Our goal, as always, is to generate compelling risk-adjusted returns and outcomes for all of our stakeholders, including our investing partners, the communities in which we operate and the landowners, employees, and contractors we support.”

In related news, private equity-backed Momentum Midstream LLC said it has sanctioned the planned 1.7 Bcf/d New Generation Gas gathering system in the Haynesville. The project’s capacity is expandable to 2.2 Bcf/d.

The Haynesville and Eagle Ford rig counts stood at 71 and 72, respectively, as of Friday, up from 47 and 37 a year ago, according to Baker Hughes Co.The Energy Information Administration is projecting Haynesville natural gas output to rise by 188 MMcf/d in October versus September, compared to a 119 MMcf/d increase in the Eagle Ford.