KKR acquires shale acreage

Kohlberg Kravis Roberts & Co. L.P. has purchased Barnett Shale and Arkoma Basin properties from WPX Energy for US$ 306 million. The transaction is being made through KKR Natural Resources (KNR), KKR's partnership with Premier Natural Resources to pursue investments in North American oil and gas properties, and is KNR's third acquisition in the Barnett Shale.

The shale assets in question are 27,000 net acres in North Central Texas and Eastern Oklahoma & 66,000 net acres in the Arkoma Basin. The Barnett shale properties have a current net production of approximately 67 million ft³/d.

KNR has acquired over US$ 900 million of assets since inception, including over US$ 600mm of assets to date in 2012, and now operates over 150 million ft³/d of net production. With US$ 1 billion of capital currently available for investment, KNR has the capacity to purchase over US$ 2 billion of additional properties and will seek to acquire high-quality, producing assets both within and outside its core operating areas over the next few years.

Jonathan Smidt, a Member of KKR and Head of KKR Natural Resources, said, "We see attractive opportunities to invest behind the development of domestic energy resources and remain excited about the opportunity to grow our natural resources platform by continuing to acquire non-core oil and gas properties from high quality operators and allowing them to reinvest the proceeds in their attractive growth opportunities.”

Read the article online at: https://www.worldpipelines.com/business-news/02042012/kkr-acquires-acreage-in-barnet-hale-and-arkoma-basin/