Calgary-based Freehold Royalties said last week it entered agreements with two private sellers to acquire high-quality mineral title and royalty assets in Delaware and Midland basins for about $112 million. The assets are located primarily in Martin County in Midland Basin “capturing some of the thickest stacked pay reservoir quality in North America.” The acquisition includes about 123,000 gross acres (2,670 net royalty acres) with 76 percent in Midland and 24 percent in Delaware. Freehold’s total Permian land position will increase by 40 percent and represent 57 percent of its U.S. gross land base.
Production is expected to be 600 boed in 2024 to increase Freehold’s Permian production by about 30 percent and its U.S. production by 12 percent. More than 40 percent of the acquired assets are undeveloped to provide “significant future activity potential.”