KKR Natural Resources, Fleur De Lis Energy To Buy Permian Basin Properties

(RTTNews) - U.S. private equity giant Kohlberg Kravis Roberts & Co. L.P. (KKR) has agreed to acquire certain oil and gas properties in Ector and Midland Counties of the Permian Basin from Linn Energy, LLC (LINE) for $350 million. The transaction, which may close in the fourth quarter, is being made through the KKR Natural Resources' or "KNR" partnership with Fleur de Lis Energy or "FDL" that is focused on pursuing investments in producing North American oil and gas properties.

Commenting on the acquisition, FDL CEO Porter Trimble said: "These are high quality assets that fit our acquisition and development strategy perfectly. This field has an extensive geologic column consisting of multiple producing horizons within the Permian Basin. This will allow the FDL team to access over 33 MMBOE of long life reserves."

The assets consist of more than 7,200 contiguous acres producing from multiple hydrocarbon-rich zones, including the Strawn, Wolfcamp and Spraberry formations. FDL expects 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.

In March 2014, KKR announced its partnership with Fleur de Lis Energy. 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 2014 acquisition of Selma Chalk properties from Penn Virginia Corp. (PVA).