I'm starting a new thread as the last one, suggesting a takeover...

I'm starting a new thread as the last one, suggesting a takeover for Hilcorp, is clearly wrong.

KKR have announced a 40% investment in the Hilcorp's interest in 100000 acres of Eagle Ford. Hilcorp will remain operator and majority owner.

On the available details it puts a value of around $10K per acre which is on par with recent transactions.

IMO this is excellent news for the JVPs - Hilcorp have just cashed up to the tune of $400M. So AUT keeps a quality, cashed up operator.

But surely now will come some speculation on how the money might be spent... How about takeovers?

Article begins:

KKR forms shale partnership with Hilcorp

To develop 100,000 acre position in Eagle Ford shale

June 14 (Reuters) - Kohlberg Kravis Roberts & Co (KKR.AS) on Monday said it will join with privately-held Hilcorp Energy Co to develop that company's property in the Eagle Ford shale in south Texas.

KKR will invest up to $400 million to develop the property, and will own 40 percent of Hilcorp Resources LLC, a company formed to hold the Eagle Ford acreage. Hilcorp will own the remaining 60 percent.

Hilcorp will contribute its 100,000-acre position in the Eagle Ford shale and will run the day-to-day operations.

Acreage in U.S. shale plays, which hold natural gas and oil in underground rock formations, has become increasingly sought after as technology to drill in the formations has improved.

The Eagle Ford shale is believed to be rich in natural gas liquids and condensates, which command higher prices than regular natural gas. (Reporting by Michael Erman; Editing by Derek Caney)

http://www.reuters.com/article/idUSN1419804520100614