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Spur Energy, KKR Partner and Buy Permian Assets

rigzone 2019-05-15 20:38:43

Spur Energy Partners LLC and global investment firm KKR have partnered to acquire oil and gas production and development assets in the Lower 48.

First on the agenda is acquiring the Permian Northwest Shelf assets of Percussion Petroleum LLC.

Spur and KKR signed a definitive agreement for the Permian assets – which include interests in 380 gross producing wells and 22,000 net acres in the Yeso formation in New Mexico, as well as associated water and midstream assets.

The assets produced 9,200 barrels of oil equivalent per day in the first quarter of 2019.

“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…,” Jay Graham, Spur CEO and former WildHorse Resource Development CEO, said in a release.

Dash Lane, managing director on KKR’s Energy Real Assets team, called the acquisition “the first step” in what’s expected to be “a multibillion-dollar investment partnership with Spur.”

The acquisition is expected to close in the second quarter of 2019.

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