The acquisition, Elk Range’s third in the Eagle Ford, brings the company’s total Eagle Ford net royalty acres to more than 2,700. (Source: Shutterstock.com)
NGP-backed Elk Range Royalties has acquired certain Eagle Ford Basin mineral and royalty interests from an undisclosed private seller, the company said on April 25. Financial details of the acquisition weren’t disclosed.
The acquired assets include roughly 1,700 net royalty acres (NRA) across DeWitt, Gonzales and Karnes counties, Texas. Elk Range funded the acquisition through its equity commitment from NGP Royalty Partners II L.P.
The acquisition marks the third Eagle Ford Basin deal the company has closed this year and is the largest single purchase the Elk Range team has made in the basin to date.
The acquired assets include 385 producing gross locations and approximately 2.1 net wells operated by top operators such as EOG Resources, Devon Energy and Marathon Oil.
The deal brings Elk Range’s total ownership in this basin to more than 2,700 NRA across DeWitt, Gonzales and Karnes, as well as Webb and Zavala counties, Texas.
“We're thrilled to have secured this acquisition and proud of the Elk Range team's hard work in making it happen,” Elk Range CEO Charlie Shufeldt said. “Our position in the Eagle Ford Basin continues to grow, and we're excited about the opportunities that lie ahead for Elk Range in this basin.”
Foley & Lardner LLP served as legal counsel for Elk Range on the transaction.
In February, Elk Range closed its acquisition of Permian Basin mineral and royalty interests from Tower Rock Oil and Gas and affiliates. Elk Range’s newly acquired acquisition included more than 2,300 net royalty acres and 2,600 gross producing horizontal wells, as well as 6,000 gross undeveloped locations across the Delaware and Midland basins.
Cash flow in the past twelve months was approximately $3.7 million, and the operators of the area are Pioneer Natural Resources, Endeavor Energy Resources and Permian Resources.
Elk Range is led by Shufeldt, Clinton Koerth, vice president of business development, Jeff Stewart, vice president of engineering and Ashleigh Bell, director of financing and accounting.
Elk Range manages a portfolio consisting of approximately 42,000 NRAs with an interest in over 8,400 horizontal wells across the Permian, Uinta, Anadarko, Eagle Ford, Haynesville and DJ Basins under the Elk Range Royalties, Luxe Minerals, 89 Energy II Minerals and Land Run Minerals platforms.
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