Silver Hill Energy Partners is expanding its footprint in South Texas after completing an acquisition of oil and gas assets from 1776 Energy, strengthening its position in one of the most competitive producing regions in the state.
The Dallas-based energy firm acquired 100% of 1776 Energy’s interest in properties primarily located in Karnes and Gonzales counties, gaining control of about 17,500 net acres and an estimated 550 gross drilling locations across the Eagle Ford and Austin Chalk formations. The assets provide Silver Hill with a substantial inventory of undeveloped drilling opportunities in a mature core area, where available acreage is becoming increasingly scarce.
While the companies did not disclose the purchase price, Silver Hill said the transaction was funded using equity from Silver Hill Energy Partners IV and another affiliated partnership, along with debt secured through a reserve-based credit facility led by Wells Fargo Securities.
Silver Hill plans to use the acquisition as a springboard to rebuild and grow its South Texas operations, with the intention of pursuing additional bolt-on deals across upstream production, midstream infrastructure, and mineral and royalty interests. Company leadership stated that the acquisition marks a strategic return to the region, following their prior exit from Webb County in 2023.
Founded in 2011, Silver Hill has raised approximately $3.2 billion in institutional capital and operates across major U.S. basins, including the Eagle Ford, Bakken, and Haynesville, with a combined operated position of around 186,000 net acres. Houston-based 1776 Energy, founded by William R. Huff, has focused its operations on the Eagle Ford Shale for more than a decade.
Source: Pulse 2.0
Author: Amit Chowdhry
Original story:
https://pulse2.com/silver-hill-energy-partners-expands-in-south-texas-with-acquisition-from-1776-energy/