Tuscaloosa Marine Shale
We have ≈315,000 net acres leased or under contract in Louisiana and Mississippi that we believe are prospective for the Tuscaloosa Marine Shale formation. We recently signed a definitive agreement with credit funds and accounts managed by affiliates of Apollo Global Management, LLC (NYSE: APO), which will invest up to $400 million in our wholly owned subsidiary, HK TMS, LLC. The capital from this financial partnership will allow us to accelerate activity in the play. We produced 173 Boe/d from the TMS in 2Q14.