NGP-backed Elk Range Royalties had entered the Appalachian Basin with its first acquisition of mineral and royalty interests in a trio of states.
The transaction with an undisclosed private seller includes approximately 8,000 net royalty acres in Pennsylvania, Ohio and West Virginia, Elk Range announced March 27.
Elk Range acquired 194 producing gross locations and approximately 0.67 net wells operated by some of the Appalachia basin’s top producers, including EQT Corp., Antero Resources, CNX Resources, Southwestern Energy and Range Resources.
Dallas-based Elk Range funded the acquisition using equity commitments from private equity firm NGP Energy Capital Management LLP. Financial terms of the deal were not disclosed.
Elk Range, founded in early 2020, said its first acquisition in Appalachia continues the company’s strategy of expanding into “high-quality, low-breakeven basins.” And Appalachia has some of the lowest drilling costs of any of the shale gas basins in the U.S.
“We have substantial dry powder and are poised to continue acquiring in the Appalachian basin,” Elk Range CEO Charlie Shufeldt in a release. “We look forward to growing our presence there.”
Elk Range owns a portfolio of around 40,000 net royalty acres and interests in more than 5,000 horizontal wells in plays across the U.S., including the Permian, Uinta, Anadarko, Eagle Ford, Haynesville, Denver-Julesburg (D-J) and Appalachian plays.
Last year, Elk Range acquired more Eagle Ford mineral and royalty interests located across DeWitt, Gonzales and Karnes counties, Texas.
Elk Range also expanded its footprint in the Permian’s Midland and Delaware basins through M&A last year.
The company operates under the Elk Range Royalties, 89 Energy II Minerals and Land Run Minerals platforms.
Gibson, Dunn & Crutcher LLP and Sherrard, German & Kelly PC served as legal counsel for Elk Range on the latest transaction.
RELATED: Elk Range Closes Acquisition of Tower Rock’s Permian Royalty Interests
Recommended Reading
Going with the Flow: Universities, Operators Team on Flow Assurance Research
2024-03-05 - From Icy Waterfloods to Gas Lift Slugs, operators and researchers at Texas Tech University and the Colorado School of Mines are finding ways to optimize flow assurance, reduce costs and improve wells.
Defeating the ‘Four Horsemen’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production—and keep the cash flowing.
Betting on the Future: Chevron Technology Ventures’ Investment Strategy
2024-04-09 - After a quarter century, Chevron Technology Ventures seeks both incremental and breakthrough technologies with its early-stage investment program.
Lift-off: How AI is Boosting Field and Employee Productivity
2024-04-12 - From data extraction to well optimization, the oil and gas industry embraces AI.
2023-2025 Subsea Tieback Round-Up
2024-02-06 - Here's a look at subsea tieback projects across the globe. The first in a two-part series, this report highlights some of the subsea tiebacks scheduled to be online by 2025.