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.
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