Following the completion of the acquisition, Kimbell is expected to hold more than 13 million gross acres, 145,917 net royalty acres
Kimbell Royalty Partners has agreed to acquire the mineral and royalty interests held by Springbok Energy Partners and Springbok Energy Partners II for nearly $175 million.
The Springbok assets produced 2,533 barrels of oil equivalent per day (Boe/d) as of 1 October 2019, according to estimates from Kimbell.
The production includes 823 barrels per day of oil (Bbl/d), 279Bbl/d of natural gas liquids (NGLs) and 8,584Mcf/d of natural gas.
Kimbell said that 29% of the rig activity in the assets to be acquired is in the Delaware Basin.
Acquisition expected to strengthen Kimbell’s position in the Permian Basin
By adding mineral interests in the Delaware Basin, the acquisition is expected to further strengthen Kimbell’s position in the Permian Basin.
It is also anticipated to boost its Eagle Ford Shale, Bakken Shale, Haynesville, STACK and DJ Basin positions.
Subject to customary closing conditions, the acquisition is expected to be completed in the second quarter of 2020. Nearly 54% of the acquisition cost will be paid in cash, while the remaining portion will be in stock.
The acquisition will have an effective date of 1 October 2019.
Following the completion of the acquisition, Kimbell is expected to hold more than 13 million gross acres, 145,917 net royalty acres and a total of 93 active rigs on its properties.
The company’s rig count is expected to account for nearly 12% of the total active land rigs drilling in the continental US.
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
Springbok Investment Management president and chief executive officer Ryan Watts said: “We are incredibly proud of the entire Springbok team for successfully building an exceptional diversified portfolio consisting of high-growth, low-risk mineral and royalty assets and view the transaction as a great outcome for each of the Springbok entities and their respective investors, including an affiliate of NGP Energy Capital Management, L.L.C. (NGP).
“We have a long-standing relationship with the Kimbell team and are excited to partner with them as they continue to execute their proven strategy. With its industry leading low PDP decline and diversified footprint, Kimbell is the natural acquiror of this acreage and the perfect partner for us.
“We believe strongly in the continued future success of Kimbell as a leading consolidator in the highly fragmented national minerals market.”