High Peak Royalties Ltd (ASX:HPR) has bought a package of overriding royalty interests (ORRI) in Jackson County, Texas from TXO Production Corp.
The company has paid a deposit of US$175,000 (around A$250,000) for the three leases covering over 300 acres.
The acquisition is the first tangible result of a recent business development strategy focused on acquiring income-producing royalties with significant upside potential at attractive price multiples.
HPR updated the strategy earlier this year following pricing volatility of oil and gas prices that signalled an opportunity for royalty acquisitions.
The acquisition follows a desktop evaluation and due diligence of many marketed assets. The asset was first marketed in May at a much higher asking price.
The acquisition expands the companys producing royalty portfolio and also confirms High Peaks capability to identify, evaluate and complete the acquisition of producing royalties.
The team which will represent HPR in Texas will include Howard McLaughlin, a former HPR diRead More – Source