Calgary-based Freehold Royalties said last week it purchased mineral title and royalty interests in the core of the Midland Basin in west Texas from a private seller for $152 million. The acquisition includes 244,000 gross drilling acres to expand Freehold’s Midland Basin footprint by 35 percent. The company said production is 1,250 to 1,350 boed of premium-priced, light, oil-weighted production (800 b/d of oil). Ninety-five percent of production is operated by ExxonMobil and Diamondback Energy.
David Spyker, president and CEO, said Dec. 9 the deal “further builds on two core Midland Basin acquisitions we closed earlier this year… This fits precisely with our strategy of positioning our royalty portfolio in areas with best-in-class oil weighted reservoirs that have significant development runway under high-quality operators.”
Freehold said 25 percent of the land has had no horizontal drilling. Sixteen rigs are currently active.