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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.
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$3 Billion Deal, Marathon Oil Buys Ensign Natural Resources
A $3.0 billion cash definitive agreement to purchase the Eagle Ford assets of Ensign Natural Resources has been concluded by Marathon Oil Corporation on November 2.
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.
Kinetik Holdings recently announced a series of transactions in the energy sector. They struck a deal to buy Durango Permian infrastructure for $765 million. At the same time, they're selling their 16% share in the Gulf Coast Express Pipeline to ArcLight Capital Partners for $540 million. The total purchase cost includes $510 million in cash paid immediately and an additional $30 million that will be paid later, depending on whether they decide to expand further.
Recently, the Permian has seen significant acquisitions: Exxon Mobil purchased Pioneer Natural Resources for about $60 billion. Diamondback Energy's $26 billion deal to acquire Endeavor Energy Resources is currently on hold due to requests from the U.S. Federal Trade Commission. Occidental’s acquisition of CrownRock for $12 billion in the Midland.
EOG Resources is pushing boundaries in Ohio's Utica oil play and now drilling on the Sable pad, also located in Noble County. This site features the 3.7-mile lateral currently under construction. The company's first multi-well pads in the area Timberwolf and Xavier have each produced over 200,000 barrels of oil since their inception—Timberwolf in August and Xavier in October. A third site, the four-well White Rhino pad in Noble County, is also showing promising early results, according to Keith Trasko, EOG’s Senior Vice President of Exploration and Production, who noted the wells are performing as expected in their initial weeks.