Venado and KKR to Develop Eagle Ford
Deals are still happening in the Eagle Ford as analysts report up to 100,000 wells can still be drilled.
Related: Eagle Ford Shale Play Still Holds Great Value
In a joint announcement, Venado Oil and Gas, LLC and global investment firm KKR announced this week that they are joining together to develop assets in the Eagle Ford Shale.
“We are excited to partner with KKR in the Eagle Ford, where we both see the opportunity to build a large scale, long-term business. Both Venado’s management and KKR have been active in the Eagle Ford since the early phase of development, and we share the same vision of the next phase of its evolution. This provides an ideal foundation for a strong partnership.”
Activity in the Eagle Ford has slowed to its lowest point since 2010 with the Texas Railroad Commission (RRC) reporting reporting that they issued 4,830 original drilling permits throughout the state of Texas from January-August. 642 of those permits are for operations in the Eagle Ford Shale. If the trend continues, the Eagle Ford will have fewer permits issued by the end of the year since before 2010.
Despite the decline, the Eagle Ford is still a prized space in the industry with many productive years ahead. Researchers from the UT’s Bureau of Economic Geology say that the 400-mile field has seen just a fraction of its ultimate activity and their new study predicts that another 100,000 wells can still be drilled.
Houston-based KKR manages oil and gas assets in numerous unconventional and conventional resource areas across the United States and has made more than ten investments in the Eagle Ford to date. Venado is a private company focused on the acquisition and exploitation of upstream oil and gas assets and is primarily focused on drilling locations in the Eagle Ford Shale.