The acquired mineral and royalty interests were held by Springbok Energy Partners (SEP I) and Springbok Energy Partners II, (SEP II)
Kimbell acquires Mineral and Royalty acquisition from Springbok. (Credit: Pixabay/Linus Schütz)
Kimbell Royalty Partners has completed the previously announced purchase of the mineral and royalty interests held by Dallas-based Springbok Energy Partners (SEP I) and Springbok Energy Partners II, (SEP II) for a purchase price of approximately $123.1m.
The acquisition cost includes a combination of approximately $95m in cash and approximately 2.2 million common units of Kimbell and approximately 2.5 million common units of Kimbell Royalty Operating.
Kimbell general partner chairman and chief executive officer Robert Ravnaas said: “Our thoughts and prayers go out to those affected by the COVID-19 crisis. We will continue to do what we can to support the recovery of our community from this crisis. We are especially grateful for all of the hard work being performed by first responders and healthcare workers.
“The company entered this crisis in a strong position with significant momentum and we believe that this is an excellent strategic acquisition with highly complementary acreage that we expect will add significant cash flow and the opportunity for growth.”
Kimbell is entitled to cash flow from production attributable to the acquisition
Under the terms of the agreement, Kimbell is entitled to the cash flow from production attributable to the acquisition beginning on and after 1 October 2019.
The acreage acquired through the transaction had more than 90 operators on 2,160 net royalty acres across core areas of the Delaware Basin, DJ Basin, Haynesville, STACK, Eagle Ford and other leading basins, as of 31 March 2020.
In addition, the company estimates that the Springbok assets produced 2,586 Boe/d, comprising 56% natural gas, 34% oil and 10% natural gas liquids, in the first quarter of 2020.
Kimbell is an owner of oil and gas mineral and royalty interests in approximately 13 million gross acres in 28 states.
In December last year, Kimbell completed the purchase of certain oil and natural gas mineral and royalty assets from Buckhorn Resources