1776 Energy has entered into a definitive agreement to sell its Eagle Ford Shale assets to Silver Hill Energy. The transaction includes operated and non-operated leasehold, producing wells, and related infrastructure in South Texas. Financial terms of the agreement were not disclosed.

“We’re thrilled to re-establish a presence in South Texas following our successful exit from Webb County in 2023,” said Silver Hill Founder and CEO Kyle D. Miller. “Blank space in the core of the Eagle Ford is essentially non-existent and this acquisition uniquely provides us with a very substantial inventory of low-risk, high-rate-of-return undrilled locations.”

Miller added, “The 1776 team has been a wonderful steward of the assets under the leadership of William R. Huff over the past 15 years, and we are excited to pick up where they left off. We view this as an outstanding opportunity to expand our South Texas operating footprint, and our team looks forward to applying its technical expertise and operational discipline as we develop and grow the asset alongside our sizeable Haynesville and Bakken businesses.”

Silver Hill funded the acquisition with equity from Silver Hill Energy Partners IV, LP and another Silver Hill-sponsored partnership, as well as debt from a reserve-based credit facility arranged and led by Wells Fargo Securities, LLC. Consistent with Silver Hill’s track record, it intends to use this transaction as a springboard for future growth in the area through additional bolt-on acquisitions and related investments in upstream, midstream, minerals, and royalties.

The divestiture is consistent with 1776 Energy’s strategy to optimize its asset portfolio and concentrate capital on core opportunities with the highest long-term value potential.

KeyFacts Energy: Acquisitions & Mergers news