Lime Rock Resources Successfully Exits Strategic Gulf of Mexico Investment

Houston, Texas — May 7, 2025 — Lime Rock Resources (“Lime Rock”), a Houston-based energy private equity firm, focused on acquiring, operating, and improving producing oil and gas properties in the United States, announced the successful exit of its strategic investment in a portfolio of non-operated Gulf of Mexico assets. The investment, originally made in October 2020, was structured as a 1% overriding royalty interest (ORRI) and yielded strong risk-adjusted returns for Lime Rock and its investors.

The acquisition represented an opportunity to partner with a proven operator in a historically prolific region. Lime Rock’s ORRI structure provided exposure to a PDP-heavy, liquids-rich production base in the Gulf of Mexico, comprising more than 200 wellbores, while eliminating direct exposure to lease operating expenses or capital expenditures. The structure also removed dependency on terminal value outcomes and potential sales process risk.

“We viewed this opportunity as a chance to invest alongside a basin specialist in a region that offered mature, long-lived assets and development upside—all without the typical capital risk associated with upstream investments,” said Eric Mullins, Co-Founder of Lime Rock Resources. “It checked all the boxes: a reputable partner, cash flow from day one, and a conservative return profile.”

At the time of acquisition, proved developed producing (PDP) reserves accounted for 50% of total proved reserves, with 90% of total reserves being proved and 74% liquids-weighted, making the asset base particularly attractive from both a technical and commercial standpoint.

The ORRI investment was structured with a reversionary feature which allowed Lime Rock to receive a royalty payment across the specified assets until a pre-determined ROI and IRR threshold was achieved. This milestone was achieved in December 2024, approximately four years ahead of underwriting projections.

“This was a high-conviction investment, and we’re pleased with the performance of the asset” said Eric Mullins, Lime Rock Resources Co-Founder.

About Lime Rock Resources
Founded in 2005, Lime Rock Resources is an energy-focused private equity firm that acquires, improves and operates producing oil and gas properties throughout the United States. Based in Houston, Lime Rock Resources applies a disciplined, long-term approach to asset ownership and optimization. Lime Rock Resources has built a strong track record of delivering returns to its investors by leveraging its technical and operational expertise. The firm is part of Lime Rock Management; a private equity investment platform focused on the energy sector. Since inception, Lime Rock Management has raised over $10.0 billion in private equity funds and affiliated co-investment vehicles. For more information, please visit www.limerockresources.com.