Orion Acquires Interests in Oklahoma, Colorado and Arkansas

Nevada-based Orion Diversified Holding Co Inc. said May 1 it closed acquisitions of non-op and royalty interests in Colorado, Oklahoma and Arkansas. Financial details of the acquisitions were undisclosed.

Orion, which holds 53,000 mineral acres in the Bakken, Permian and Piceance basins, Eagle Ford Shale and Oklahoma’s SCOOP/STACK, said the company acquired:

• 1% non-op working interest and 0.38% override royalty interest in 116 wells producing 1.57 MMcf/d and 5 bbl/d on 9,353 HBP acres in Colorado;
• 10.17% royalty interests across 10,220 acres located in Garfield, Mesa, Moffat, Rio Blanco and Routt counties, Colorado;
• 6.07% non-op working interest and a 0.12% override royalty interest in 23 wells producing about 2.06 MMcf/d and 67 bbl/d in Grady County, Oklahoma; and
• 1.03% non-op working interest in 118 wells producing 4.22 MMcf/d and 1 bbl/d located in Franklin and Logan counties, Arkansas.

"We were recently notified that Citizen Energy has drilled 2-2-mile horizontal wells on our Kingfisher County [Oklahoma] royalty acreage,” said Orion CEO Tom Lull. “We are being pooled into a 640-acre horizontal drilling and spacing unit on our Kingfisher County Oklahoma acreage.”

Orion’s recent acquisition in northwest Colorado puts the company in “prolific oilfields with a 10.17% royalty across more than 10,000 acres,” he said. “We are cash flow positive on all of these recent acquisitions and have already generated significant income from these properties.”

The company is working toward re-entering its Eagle Ford Shale property after analyzing data for “massive gas shows.”

“We recently sold oil on Orion's Eagle Ford property as well,” Lull said. “We are not slowing down, and I will continue to build value for our shareholders.”