Peregrine Energy Partners agreed to acquire producing royalties in Colorado’s Piceance Basin as the Denver-based company begins to see A&D activity pick back up.

In an April 8 release, Peregrine said it finalized the royalty acquisition comprised of over 100 natural gas wells under Caerus Oil & Gas LLC across Garfield and Mesa counties. The transaction with an undisclosed private seller follows two acquisitions Peregrine made last month in the Appalachian and Permian basins.

Peregrine, which focuses exclusively on producing oil and gas royalties, has been having more conversations with colleagues from the industry as deal activity begins to recover from the past year, according to Managing Partner C.J. Tibbs. 

“With pricing coming back to above pre-pandemic levels,” Tibbs continued in a statement, “there are folks in the royalty space now interested in potentially divesting pieces of their portfolios to return some liquidity to their investors and or simplify a bit of their back-office accounting challenges associated with the fractionalized interests.”

Peregrine described the seller in the Piceance transaction as a “colleague in the oil and gas royalty space.”

According to the company, the seller had reviewed options around their portfolio and underwent strategic planning for the future with interest in high-grading their portfolio and fast-forwarding cash flow from a passive income stream to redeploy the income towards more core areas of their business.

Due to its reputation for transparency throughout the process and ability to close quickly, Peregrine said the seller approached the company. Following quick evaluation and prompt closing, the seller was able to receive capital within a matter of weeks, the company added.

The terms of the Piceance transaction weren’t disclosed.

The operator of the acquired assets, Caerus Oil & Gas, is a private producer active in the Piceance and Uinta basins. Caerus, also based in Denver, has core assets including over 6,800 producing wells and a substantial undeveloped acreage position with over 8,000 future drilling locations.

Peregrine has transacted on over $250 million in properties since its formation in 2004, according to the company website.

In early March, the company acquired additional producing and non-producing oil and gas royalties in West Virginia’s Marshall County. The deal featured production from multiple oil and gas wells acquired by EQT Corp. last October from Chevron.

That transaction was quickly followed by another acquisition of producing royalties in Andrews County, Texas, which Peregrine said featured production from multiple wells under two Permian Basin producers, Perdure Petroleum and Legacy Reserves Inc.

Peregrine didn’t disclose the terms and sellers from either transaction.

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