The same team that developed a Delaware Basin position into an $855 million cash machine called Silverback Exploration LLC has returned—with half a billion dollar equity commitment but no word on where the E&P will focus.
The new company, called Silverback Exploration II LLC, said July 10 that it has secured an initial equity commitment of $500 million from EnCap Investments LP, which backed its predecessor.
Silverback’s team—again headed by CEO Stephen Lipari, CCO David Frye and Jon Conaway as chief exploration officer—was created to seek “organic development projects and strategic acquisitions in conventional and unconventional resource plays across the U.S.”
Lipari attended Hart Energy’s recent DUG East conference in Pittsburgh and in late May spoke about Permian M&A at a meeting of the Society of Petroleum Engineers in Houston. The company’s Texas permit for operating company Silverback Operating LLC expires in September.
The company’s governing parties include a who’s who of EnCap managing partners including E. Murphy Markham IV, David B. Miller, Mark A. Welsh IV and James S. Crain.
Silverback II retains offices in San Antonio. It was formed on May 24 in the state of Delaware and registered to operate in Texas on June 5.
EnCap has a long history of re-backing management teams after a successful exit, Miller said.
In January, Silverback struck Permian gold when it sold 35,000 net acres and 3,500 barrels of oil equivalent per day (boe/d) of production in Reeves County, Texas. The buyer, Centennial Resource Development Inc. (NASDAQ: CDEV), is headed by Mark Papa and is focused on tapping Silverback’s large inventory of horizontal drilling locations and undeveloped resources of at least 600 MMboe.
RELATED: Centennial Moves North With $350 Million Delaware Basin Deal
Lipari said Silverback II’s team has a high level of expertise in horizontal drilling and “a comprehensive understanding of operational efficiencies that are already shaping the focus of our new company.”
“We are thrilled to partner with EnCap for a second time. EnCap’s financial strength coupled with the proven track record of the Silverback team is a compelling combination that provides us with the ability to source deals, develop assets and create value,” he said.
Lipari previously served at Newfield Exploration’s Co. (NYSE: NFX) as director of new ventures and strategic planning and general manager of the Gulf Coast division. He also served as president and CEO of Aspect Abundant Shale and is a founding member of EOG Resources Inc.’s (NYSE: EOG) Barnett Shale division.
Silverback II was advised by the Fort Worth office of Kelly Hart & Hallman. EnCap was advised by Thompson & Knight LLP.
Darren Barbee can be reached at dbarbee@hartenergy.com.
Recommended Reading
TotalEnergies Starts Production at Akpo West Offshore Nigeria
2024-02-07 - Subsea tieback expected to add 14,000 bbl/d of condensate by mid-year, and up to 4 MMcm/d of gas by 2028.
E&P Highlights: Feb. 5, 2024
2024-02-05 - Here’s a roundup of the latest E&P headlines, including an update on Enauta’s Atlanta Phase 1 project.
CNOOC’s Suizhong 36-1/Luda 5-2 Starts Production Offshore China
2024-02-05 - CNOOC plans 118 development wells in the shallow water project in the Bohai Sea — the largest secondary development and adjustment project offshore China.
US Drillers Cut Oil, Gas Rigs for First Time in Three Weeks
2024-02-02 - Baker Hughes said U.S. oil rigs held steady at 499 this week, while gas rigs fell by two to 117.
Equinor Receives Significant Discovery License from C-NLOPB
2024-02-02 - C-NLOPB estimates recoverable reserves from Equinor’s Cambriol discovery at 340 MMbbl.