Silver Hill Energy Partners Expands in South Texas with Acquisition from 1776 Energy

DALLAS--(BUSINESS WIRE)--Silver Hill Energy Partners, LP announced today that it has closed the acquisition of 100 percent of 1776 Energy’s interest in oil and gas properties, rights, and related assets primarily in Karnes and Gonzales Counties, Texas. The acquisition includes approximately 17,500 net acres and 550 gross locations in the Eagle Ford and Austin Chalk formations.

“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.”

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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 in its current and historical operating areas, 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.

“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.”

Advisors

Willkie Farr & Gallagher LLP served as legal counsel for Silver Hill. Evercore served as financial advisor and Haynes and Boone, LLP served as legal counsel for 1776.

About Silver Hill Energy Partners

Silver Hill Energy Partners is a Dallas-based private energy company founded by Kyle D. Miller in 2011. Since inception, the firm has raised approximately $3.2 billion of institutional equity capital across five partnerships focused on the direct acquisition and development of operated oil, natural gas, and related infrastructure assets in premier basins across the onshore U.S. Silver Hill currently has significant operated assets in the Bakken, Haynesville, and Eagle Ford comprising roughly 186,000 net acres, 1,350 gross drilling locations, 380 mmcf/d of natural gas production, 10,500 bbl/d of oil production, and three meaningful midstream businesses.

For more information, please visit silverhillenergy.com.

About 1776 Energy

1776 Energy is a privately owned oil and gas operating company founded by William R. Huff. The company is based in Houston and drills for oil and gas in the Eagle Ford Shale play of South Texas.