Mesa Royalties II LLC on July 8 closed on the acquisition of a mineral and royalty portfolio in the Haynesville Shale, marking the Houston company’s first acquisition since its launch with new financial backer NGP.
Mesa II announced its launch in May, raising $150 million of aggregate equity commitments from NGP through NGP Natural Resources XII LP and NGP Royalty Partners LP. Previously, the company’s predecessor, backed by Quantum Energy Partners, had assembled a Haynesville Shale-focused royalty portfolio, which it sold for $135 million late last year to Franco-Nevada.
The portfolio acquired by Mesa II on July 8 consists of about 15,000 net royalty acres and is located in the core of the Haynesville in North Louisiana, according to Darin Zanovich, president and CEO of Mesa II.
“The asset has robust existing cash flow that allows us to begin an immediate distribution plan for our investors,“ Zanovich commented in a July 8 release.
Zanovich also added that roughly 50% of the active drilling permits in the basin are currently located on the acquired acreage footprint, “which will allow the position to continue to have a significant cash flow profile for years to come.”
The acquired asset contains 472 existing PDP wells, and the projected asset cash flow for the next 12 months is about $30 million. Currently, nine rigs drilling are operating on the acreage today, according to Zanoivch’s statement.
Terms of the transaction, as well as the seller, were not disclosed.
Recommended Reading
Lake Charles LNG Selects Technip Energies, KBR for Export Terminal
2024-09-20 - Lake Charles LNG has selected KTJV, the joint venture between Technip Energies and KBR, for the engineering, procurement, fabrication and construction of an LNG export terminal project on the Gulf Coast.
Entergy Picks Cresent Midstream to Develop $1B CCS for Gas-fired Power Plant
2024-09-20 - Crescent will work with SAMSUNG E&A and Honeywell on the project.
FERC Chair: DC Court ‘Erred’ by Vacating LNG Permits
2024-09-20 - Throwing out the permit for Williams’ operational REA project in the mid-Atlantic region was a mistake that could cost people “desperately” reliant on it, Chairman Willie Phillips said.
Diamondback to Sell $2.2B in Shares Held by Endeavor Stockholders
2024-09-20 - Diamondback Energy, which closed its $26 billion merger with Endeavor Energy Resources on Sept. 13, said the gross proceeds from the share’s sale will be approximately $2.2 billion.
Optimizing Direct Air Capture Similar to Recovering Spilled Wine
2024-09-20 - Direct air capture technologies are technically and financially challenging, but efforts are underway to change that.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.