Elk Range Royalties acquires 250,000 net royalty acres in DJ Basin, US

Elk Range Royalties has acquired mineral and royalty presumption of astir 250,000 nett royalty acres successful the Denver-Julesburg (DJ) Basin, US, from Occidental affiliates.

This transaction, worthy $905m, is portion of Elk Range's strategy to get royalty assets successful cardinal basins.

The recently acquired assets are being developed by operators specified arsenic Chevron and Civitas, which unneurotic relationship for much than fractional of the wells spud past year, stated Elk Range Royalties.

The DJ Basin is simply a ample geological portion successful north-eastern Colorado and south-eastern Wyoming, stretching into parts of Nebraska, South Dakota and Kansas.

This woody features a operation of existent production, near-term enactment via drilled but uncompleted wells and semipermanent maturation imaginable from undeveloped reserves, stated Elk Range.

Elk Range Royalties CEO Charlie Shufeldt said: "This woody marks a milestone accomplishment for our squad demonstrating our quality to underwrite and adjacent connected ample assets. We stay committed to expanding our portfolio with high-quality royalty assets successful proven basins.

“The DJ Basin presents immoderate of the champion relation economics successful the US, and this acquisition positions america to capitalise connected some near-term currency travel and semipermanent improvement potential."

Through this transaction, Elk Range maintains its acquisition momentum, having invested much than $1.2bn successful superior since its motorboat successful 2020. The institution besides stated that it continues to absorption connected further minerals and royalty acquisition opportunities.

Legal counsel for Elk Range was provided by Gibson, Dunn & Crutcher, Kirkland & Ellis, and Holland & Knight.

JPMorgan Bank served arsenic pb arranger connected the caller recognition facilities, and Texas Capital was pb arranger connected the upsize of the Elk Range Royalties II recognition facility.

Wells Fargo and CIBC Capital Markets acted arsenic fiscal advisors, portion White & Case provided ineligible counsel to Occidental.

Last month, NGP and the Elk Range squad acceptable up Elk Range Royalties III.

In January, Elk Range Royalties announced it had acquired Newton Financial, Concord Oil Company and Mission Oil Company, which unneurotic held ample mineral and royalty interests successful the Permian and Eagle Ford basins.

The woody covered astir 13,500 nett royalty acres successful apical lipid and gas-producing areas of Texas.

The acquisition included astir 4,500 nett royalty acres successful the prolific Permian Basin, 3,000 acres successful the Eagle Ford and different assets crossed Texas.

This woody includes astir 13,500 nett royalty acres successful Texas, with 4,500 successful the Permian Basin and 3,000 successful the Eagle Ford.