Posse Resources LLC boosted its footprint in the Haynesville Shale with the acquisition of all of the remaining mineral and royalty assets held by the inaugural fund of Live Oak Resources Partners LLC.
Privately held Live Oak focuses on the aggregation and management of royalty and mineral interests and nonoperated working interests in the Haynesville Shale of North Louisiana and East Texas. The remaining assets held by its inaugural fund Live Oak Resource Partners I LP, which closed in July 2016, included North Louisiana royalty acreage.
“While this sale provides for a successful exit in Fund I, Live Oak remains principally active in the Haynesville as the leading acquiror of royalty, mineral and nonoperated working interests in the basin,” said Live Oak President and CFO Andrew Keene, who also helped cofound the firm in early 2016.
According to Keene, the Live Oak team has closed over 600 transactions in the last five years covering more than 18,000 royalty acres.
In a joint release by the Houston-based companies on Aug. 19, Live Oak said it sold the remaining assets of its inaugural fund to Oak Ridge Royalties LP, an entity newly created by Posse Resources.
In his statement, Keene added: “In a challenging A&D market, we believe our Fund I portfolio found the proper suitor; a firm with a long history and substantial existing footprint in the basin, deep technical understanding of the Haynesville, and a long-term view towards the ownership of mineral rights.”
Posse, formerly Peter Paul Petroleum Co., is a family-owned private company founded by B.P. Huddleston in 1967. The company focuses on the acquisition and management of mineral and royalty properties and nonoperated working interests, primarily in Louisiana, Texas and Oklahoma, among other areas within the U.S., according to the company release.
Mitchell Currie, vice president of Posse, said the Live Oak acquisition will complement the company’s existing North Louisiana property base held by its affiliated entity, Louisiana Minerals Ltd.
“We believe this acquisition of mineral and royalty interests with exposure to the Haynesville, Bossier and Cotton Valley formations enhances our diverse portfolio of oil and gas investments,” Currie said in a statement.
The Live Oak transaction included roughly 4,800 net royalty acres (normalized to 1/8 royalty) located in North Louisiana, with production across the Haynesville Shale, Bossier Shale and Cotton Valley formations. Transaction terms weren’t disclosed.
Willkie Farr & Gallagher LLP led by partner Michael De Voe Piazza represented Live Oak in the transaction. Kean Miller LLP and Ewing & Jones, PLLC served as legal counsel to Posse.
Recommended Reading
US Gulf Coast Heavy Crude Oil Prices Firm as Supplies Tighten
2024-04-10 - Pushing up heavy crude prices are falling oil exports from Mexico, the potential for resumption of sanctions on Venezuelan crude, the imminent startup of a Canadian pipeline and continued output cuts by OPEC+.
Paisie: Economics Edge Out Geopolitics
2024-02-01 - Weakening economic outlooks overpower geopolitical risks in oil pricing.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (Feb. 26, 2024)
2024-02-26 - Stratas Advisors forecast that global crude production will be essentially unchanged from 2023, which means that demand growth in 2024 will outpace supply growth.
Kissler: The Challenge for Oil is Falling Demand, Despite Heightened Middle East Conflicts
2024-02-09 - Even though demand is the bigger weight on traders’ minds right now, Red Sea attacks and the U.S.’ “shadow war” with Iran still have the potential to impact the global oil supply, and consequently, prices.