Lime Rock Resources Announces Second East Texas Acquisition5/16/2006
HOUSTON, May 16, 2006 — Lime Rock Resources, acquirers and operators of lower-risk oil and gas properties in the United States, today announces that it has closed a second acquisition in East Texas. It has acquired certain working interests in the Black Bayou and Doyle Creek Fields from a private seller for $20.8 million.
Lime Rock Resources estimates that the net acquired interests in the Black Bayou and Doyle Creek fields represent 8.7 billion cubic feet of natural gas equivalent (BCFE) of net proved reserves and 16.5 BCFE of net lower-risk probable and possible reserves. The fields, which will continue to be operated by Southwestern Energy Company, are 25 miles to the southeast of Lime Rock Resources’ existing operations in the Reklaw Field in Cherokee County, Texas. The estimated reserve-to-production for the fields is over 17 years.
Eric Mullins, Managing Director of Lime Rock Resources, noted, “The acquisition of interests in the Black Bayou and Doyle Creek Fields allows Lime Rock Resources to establish a critical mass of operations and expertise in East Texas. We continue to actively analyze and negotiate for property packages there and elsewhere, and we expect Lime Rock Resources to build on our position in East Texas and acquire properties in different oil and gas basins in the United States.”
Charles Adcock, Managing Director of Lime Rock Resources, added, “We are eager to begin working with our new partners at Southwestern in the development of the fields. The Lime Rock Resources team will bring our operating skills and capital to help the highly-skilled team at Southwestern develop the reserves to their full potential.”
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 worldwide. 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. For more information, please visit www.limerockresources.com.Back to News