Lime Rock Resources Announces $28 Million Acquisition in New Mexico6/6/2006
HOUSTON, June 6, 2006 — Lime Rock Resources, acquirers and operators of lower-risk oil and gas properties in the United States, today announces the closing of the acquisition of certain working interests in the East Artesia/Red Lakes area of southeastern New Mexico. The Lime Rock Resources team acquired the oil and gas producing properties from private sellers for $28 million. The team estimates that the interests in the field, which will continue to be operated by SDX Resources, contain 1.7 million barrels of oil equivalent (BOE) of net proved reserves and 0.8 million BOE of net probable reserves. The estimated reserve-to-production ratio of the interests is over 25 years.
Eric Mullins, Managing Director of Lime Rock Resources, noted, “The interests in New Mexico diversify the Lime Rock Resources property base, and we have added oil-weighted properties in New Mexico to our existing gas-weighted reserves in East Texas acquired in two separate acquisitions. The acquisition of the New Mexico properties is the second acquisition we have closed in a month, and we continue to evaluate property packages throughout the United States.” Charles Adcock, Managing Director of Lime Rock Resources, added, “We will begin working with SDX immediately to develop the fields in the East Artesia/Red Lakes area. We believe that we will bring capital and operating expertise to help SDX effectively drill in the oil-producing fields in the area and maximize the value of the reserves.”
Established in 1998, Lime Rock manages $1.3 billion of private capital for investment in the energy industry through Lime Rock Resources, acquirers and operators of oil and gas properties, and Lime Rock Partners, investors of growth capital in energy companies in North America and Europe. With $450 million under management and an acquisition capacity of $700 million, Lime Rock Resources acquires, operates, and improves lower-risk oil and gas properties in the United States. Based in Houston, the Lime Rock Resources team is acquiring a diverse group of proved oil and gas properties to provide its investors with attractive long-term returns.Back to News