Silver Hill Acquires Eagle Ford Assets in South Texas Expansion

Silver Hill Energy Partners acquires Eagle Ford and Austin Chalk assets in South Texas, adding 17,500 net acres and expanding its operating footprint.

(P&GJ) — Silver Hill Energy Partners has closed the acquisition of oil and gas assets in South Texas from 1776 Energy, expanding its footprint in the Eagle Ford and Austin Chalk plays.

The deal includes roughly 17,500 net acres and about 550 gross drilling locations across Karnes and Gonzales counties, according to the company. Silver Hill acquired 100% of 1776 Energy’s interest in the properties, along with associated rights and assets.

Silver Hill funded the transaction with equity from Silver Hill Energy Partners IV and another Silver Hill-sponsored partnership, along with debt from a reserve-based credit facility arranged and led by Wells Fargo Securities.

“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 said the company plans to use the acquisition as a platform for additional growth in the region, including potential bolt-on investments across upstream, midstream, minerals and royalty assets.

“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,” Miller added. “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.”