Hicks Muse acquires Texan oil business

Dallas-based buyout house Hicks, Muse, Tate & Furst has bought Kerns Oil & Gas as it seeks further inroads into the energy sector.

Dallas-based private equity firm Hicks, Muse, Tate & Furst has acquired Kerns Oil & Gas. Terms of the deal were not disclosed, according to a statement.

Kerns, based in San Antonio, Texas, is a natural gas production company that currently operates 215 active natural gas wells. The company, which has been renamed BlackBrush Energy, also owns a 50 percent joint venture interest in the 36-mile Palafox pipeline gathering system.

Hicks Muse is partnering with local management team Flatrock Production Company in the acquisition. Flatrock will take over BlackBrush's production and pipeline operations.

Hicks Muse plans to continue drilling and developing BlackBrush's reserves, including 77 new undeveloped wells. The firm has invested in the energy sector before, including in Triton Energy and Trident NGL.

Hicks Muse currently manages approximately $11 billion and has offices in London, New York and Buenos Aires. Its most recent acquisition was a February privatisation of Persona, Canada's sixth-largest cable operator, for C$406 million. It led fellow private equity firms TD Capital and CIBC Capital Partners in the deal.