Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
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.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Evolution Acquires Non-operated Wyoming Natural Gas Interests
Evolution Petroleum just spend a fortune on Jonah’s Field right after acquiring Hamilton Dome Field in Wyoming. The price of the transaction is $29.4 million. The Houston-based company aims to diversify into natural gas assets, providing access to the western markets through the Opal market hub, with the optionality to flow to the east. That transaction took effect on February 1. We anticipate closing on or about April 1.
U.S. Oil and Gas Drilling 2023-2024 Report: Rigs, Onshore, Offshore Activity, Biggest Companies
In January 2024, the United States saw a mix of ups and downs in the number of active drilling rigs across its major oil shale regions and states. Starting with the shale regions, the Permian Basin led with a slight increase, reaching 310 rigs, which is 3 more than in December. The Eagle Ford in East Texas held steady with 54 rigs, unchanged from the previous month. Meanwhile, both the Haynesville and Anadarko regions saw a decrease by 2 rigs each, landing at 42 rigs. The Niobrara faced a larger drop, losing 4 rigs to settle at 27. On a brighter note, the Williston Basin and the Appalachian region saw increases of 2 and 1 rigs, respectively, resulting in counts of 34 and 41 rigs.
In Wyoming during 2023, the oil and gas industry experienced various trends and developments. Wyoming ranked 8th nationally in both crude oil and natural gas production, significantly contributing to the economy through property and severance taxes. The state had a peak of 27,951 producing wells in 2022, including oil and gas wells, with 33 operating gas plants processing nearly 97% of the state's gas production. Notably, 21 of Wyoming's 23 counties produce oil and/or natural gas, with Converse County leading in crude oil production and Sublette County in natural gas production. U.S. Energy Information Administration (EIA) predicted that crude oil production across the United States would increase to 12.8 million b/d in 2024. Throughout 2023, oil production in Wyoming showed an upward trend, with more than 95 million barrels expected to be produced, an increase of about 3 million barrels from 2022. This rise in oil production was partly attributed to the completion of 110 newly drilled oil wells in the first half of the year, mainly in the Powder River Basin. However, natural gas production faced a decline due to the aging of wells and a low number of new gas wells being completed. Only 18 new gas wells were finished in the first half of 2023, with a noted interest in drilling applications, suggesting potential future developments.
XCL Resources is seeking approval from the Federal Trade Commission (FTC) for its proposed acquisition of Altamont Energy LLC, another Utah-based oil producer. This initiative is backed by XCL's parent entity, EnCap Investments LP, a notable private equity firm. Discussions about purchasing Colorado-based Altamont Energy began in the previous summer, as highlighted in FTC documentation.
Tallgrass Energy has started a new open season for the Pony Express Pipeline, and this is the second time they're doing it in 2024. They're looking for companies that want to move their crude oil from the Williston Basin and are offering special rates as an incentive. This 30-day event kicked off on March 11. To get the full details, companies need to sign a confidentiality agreement with Tallgrass.