KKR Natural Resources has signed a definitive agreement to acquire certain oil and gas properties in Ector and Midland counties, Texas, of the Permian Basin from LINN Energy LLC for $350 million. The transaction, which is expected to close in the fourth quarter, is being made through the KKR's partnership with Fleur de Lis Energy (FDL), which is focused on pursuing investments in producing North American oil and gas properties.
The assets comprise over 7,200 contiguous acres producing from multiple hydrocarbon-rich zones, including the Strawn, Wolfcamp, and Spraberry formations. FDL estimates fourth-quarter production of over 5,200 boe/d, the majority of which is oil, and contain an attractive inventory of near-term development opportunities.
KKR announced its partnership with Fleur de Lis Energy in March. FDL currently manages a portfolio of natural gas producing assets in Southern Mississippi. This is KKR’s second investment behind operating partner FDL, following the July acquisition of Selma Chalk properties from Penn Virginia Corp. (NYSE: PVA).