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.
