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Lime Rock Resources Starts the Year With a Bang — a Money Bang!03/03/2022
Lime Rock Resources, acquirers and operators of producing oil and gas properties in the United States, announces two acquisitions: the company acquired the Williston Basin properties of Abraxas Petroleum for $87.2 million, as well as properties from a private seller in the Austin Chalk and Eagle Ford in Texas for $271.3 million.
Founder and CEO Eric Mullins said Lime Rock Resources' start to the year with two acquisitions worth $358.5 million signaled a change in the upstream A&D sector.
Since Lime Rock Resources was founded in 2005, it has acquired over 25 oil and gas properties in the U.S. Just over the last four months, Lime Rock Resources team has made over $850 million in total property acquisitions. In October, Lime Rock Resources closed on the acquisition of oil and gas properties in the Permian Basin from Rosehill Resources. The acquisition was described as a “unique opportunity,” and was worth $508.3 million.
Having acquired nearly one billion dollars of venture capital in the last few months demonstrates changing market dynamics, a robust opportunity set, and Lime Rocks' ability to partner with sellers over many months on agreements that work for all parties.
Among the two acquisitions announced recently by Lime Rock were Abraxas Petroleum’s Williston Basin position in North Dakota as well as properties situated in Burleson, Milam, and Robertson in Texas from a third party.
According to Abraxas, the $87.2 million transactions are part of a business restructuring plan that will result in it becoming a pure-play firm focused on the Delaware Basin. About 3,500 acres of land in McKenzie County are involved in this transaction. By acquiring these assets, Lime Rock Resource now controls approximately 19,400 boed of net production in all of North Dakota.
With respect to the Texas properties, which were acquired for $271.3 million from an undisclosed seller, they contain 46,000 contiguous net acres and produce 7,700 boed as of the closing of the deal.
It also seems that the company will be able to integrate the new assets seamlessly into its existing operations in both Texas and North Dakota, as well as intensify its focus on low-risk opportunities and margins, which will significantly boost Lime’s market position going further.
In that regard, if you wish to learn more about upstream deals or various oil and gas properties, contact our Houston sales office to see it for yourself or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
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Devon Energy Corp. believes that the Anadarko Basin is a hidden treasure and aims to use its position in it to fuel a robust cash return model and establish itself as an industry leader in promoting ESG. This E&P company plans to drill 45 new wells in the Midcontinent by 2022, as well as to produce 600,000 boe/d across five operating basins, including the Eagle Ford Shale, Permian, Powder River, and Williston basins. And given that Devon's recent fourth-quarter results were better than Street estimates. It appears that they are doing something right, at least for the moment.
Continental Resources Inc. Invests a Quarter of a Billion Dollars in a Sequestration Project in North Dakota
The investment will happen in the next 2 years. The project intends to capture CO2 from ethanol plants and other sources in Iowa, Nebraska, Minnesota, North Dakota, and South Dakota. Upon aggregation, CO2 will be transported via pipeline to North Dakota, where it will be stored in subsurface geologic formations. The formations will be in the Williston Basin, where Continental Resources has been a dominant producer for more than half a century. At the moment it’s the world's most ambitious carboncapture venture of its kind. The sequestration itself should be underway by spring 2024.
In order to sell its part of the sprawling Eagle Ford Shale acreage, Chesapeake Energy Corp. on January 18 concluded an agreement to trade its Brazos Valley region assets to WildFire Energy I LLC for $1.425 billion.
On January 6, Phillips 66 announced that it plans to acquire more than 43% of DCP Midstream LP for $3.8 billion, expanding the business in the oil & gas business.
On January 5 Northern Oil & Gas (NOG) concluded a deal to acquire working interests in Midland-Petro D.C. Partners LLC (MPDC)'s Mascot Project in the Midland Basin, according to a January 9 press release. Firstly estimated at $330 million in cash, the deal was signed with an additional 3.25% working interest added to the 36.7% agreed upon when the transaction was announced on October 19. NOG paid $29 million more for the additional interests, which now totalled 39.958%. Finally, the deal closed for $320 million in cash and $43 million in debt at signing in October with the finance of Minnetonka, Minn.-based NOG with cash on hand, operating free cash flow, and assistance from its revolving credit facility.