Lime Rock Resources Announces $80.3 Million Acquisition of Reklaw Field2/2/2006
HOUSTON, February 2, 2006 — Lime Rock Resources today announces the $80.3 million acquisition of oil and gas properties from a private seller. The properties are all located in the Reklaw Field in Cherokee County in East Texas. Lime Rock Resources will take over operations in the field immediately. The acquisition is Lime Rock Resources’ first transaction, and the Lime Rock Resources team continues to analyze additional properties to meet its strategy of acquiring, operating, and improving oil and gas properties to provide its investors with long-term returns.
Lime Rock Resources estimates that the Reklaw Field properties contain 35.1 billion cubic feet of natural gas equivalent (BCFE) of proved reserves and 6.8 BCFE of unrisked probable reserves. Approximately 97% of the reserves are natural gas reserves. Lime Rock Resources estimates that the current reserve life of the properties is over 16 years.
Eric Mullins, Managing Director of Lime Rock Resources, noted, “Our first acquisition, the properties in the Reklaw Field, fits terrifically with our strategy. The field’s long-lived reserves consist mainly of proved developing producing reserves, and they offer a number of very attractive low-risk drilling opportunities and recompletion candidates.”
Charles Adcock, Managing Director of Lime Rock Resources, added, “We will embark on an immediate hundred-day plan as we assume operations of the Reklaw Field. We plan to invest a portion of our cash flow in the field over the next two to three years. With operations now established in East Texas, we will continue to analyze additional acquisitions in the area and other basins throughout the United States.”
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