Silver Hill Energy Partners enters Bakken with Liberty Resources acquisition

February 01, 2024

(WO) – Silver Hill Energy Partners, LP has signed definitive agreements with Liberty Resources II, LLC to acquire Liberty’s interests in oil and gas properties, rights and related assets in North Dakota.

Acquisition highlights. Silver Hill Energy Partners will acquire Liberty’s producing assets in North Dakota’s Bakken region, where Libery’s net production in December 2023 was approximately 13,000 boed (76% oil, 86% liquids). Silver Hill will also acquire Liberty’s PDP reserves of approximately 16 MMboe.

Additionally, Silver Hill will take ownership of one rig currently running in Mountrail County with 12 additional wells expected to be completed during Q1 2024. The transaction also includes 84,000 net acres in the Williston basin Bakken and Three Forks play in Mountrail, Burke, Williams and Divide Counties, North Dakota (approximately 80% held by production), and over 300 gross operated drilling locations.

Finally, Silver Hill will also acquire Liberty’s integrated midstream system with approximately 33 miles of gas gathering lines, 22 miles of water gathering lines, a 30 MMcfd gas processing plant, five saltwater disposal wells with roughly 60,000 bpd of disposal capacity, 99,000 dedicated acres and ample expansion capacity.

Consistent with Silver Hill’s track record in its current and historical operating areas, it intends to use this initial transaction as a springboard for future growth in the area through additional bolt-on acquisitions and related investments in upstream, midstream, minerals and royalties.

“After years of considering various opportunities for entry points into the Bakken, we are thrilled to be acquiring what we believe is an ideal initial upstream and midstream development platform for us in the play,” said Silver Hill Founder and CEO Kyle D. Miller. “Liberty’s assets represent not only an attractive operating footprint with immediate scale and runway but also a uniquely situated natural gas and water infrastructure system that provides a meaningful uplift to our drilling economics. We have enjoyed working with the Liberty team throughout this transaction and are excited to harness our teams’ combined knowledge and experience as we continue developing and growing this new Bakken position as well as our sizable existing Haynesville business.”

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