Lime Rock Resources, acquirers and operators of producing oil and gas properties in the US, has closed on the acquisition of a non-operated overriding royalty interest ("ORRI") from Range Resources Corporation on natural gas properties in the Marcellus Shale.
Image: The acreage position covers approximately 350,000 net surface acres across Washington, Beaver and Allegheny Counties, Pennsylvania. Photo: Courtesy of rawpixel from Pixabay.
The acreage position covers approximately 350,000 net surface acres across Washington, Beaver and Allegheny Counties, Pennsylvania. The royalty applies to existing production and future development from the Marcellus formation as well as future potential development from the Utica and Upper Devonian formations.
Lime Rock Resources invested together with San Jacinto Minerals II, a portfolio company of Lime Rock Partners, which participated for approximately 18% of the transaction. Lime Rock Resources and San Jacinto Minerals II together purchased a 1% ORRI in the assets for $300 million. The transaction represents Lime Rock Resources’ first acquisition in the Appalachian Basin.
Eric Mullins, co-CEO of Lime Rock Resources, said, “We pride ourselves on creativity, flexibility, and reliability, and we are happy to have underwritten and closed this complicated transaction—our third ORRI acquisition—on an accelerated timeline.” Charlie Adcock, co-CEO of Lime Rock Resources, added, “We have great confidence in Range and these specific Marcellus assets, and we look forward to jointly benefiting as Range develops the resource.”
Source: Company Press Release.