Houston-based upstream operator Lime Rock Resources purchased land in the Texas Delaware Basin for $508.3 million.
Private equity-funded Lime Rock is acquiring the oil and gas properties from a private seller. The land is primarily in Loving County, Texas, which is about 50 miles west of Odessa and the deal is expected to close in September
“The high volatility in the energy business over the last 18 months has created some unique opportunities in the oil and gas property market," said Eric Mullins, chairman and CEO of Lime Rock Resources. "This acquisition is one of those opportunities, which fits quite well the Lime Rock Resources acquisition strategy.”
The new Delaware Basin purchase was producing 15,163 barrels of oil equivalent per day on April 1, the company said.
“We look forward to taking over operations in a few months to optimize existing production and pursue other value-creating initiatives," said Vice-Chairman Charlie Adcock.
Lime Rock holds land in the Williston Basin in North Dakota and Montana, the Barnett Shale and Permian Basin in Texas, as well as property in Arkansas and Oklahoma. Most of its current holdings are oil weighted.
