HOUSTON–(BUSINESS WIRE)–Live Oak Resource Partners, LLC (“Live Oak”) and Posse Resources, LLC (“Posse”) announced the closing of the sale of Live Oaks’ mineral and royalty assets held by Live Oak Resource Partners I, LP (“Fund I”) to Posse, through Posse’s newly created entity, Oak Ridge Royalties, LP.
The transaction includes all of Live Oak Fund I’s remaining north Louisiana mineral & royalty assets, consisting of ~4,800 net royalty acres (normalized to 1/8 royalty), with production across the Haynesville Shale, Bossier Shale, and Cotton Valley formations.
“The successful closing on the sale of Fund I’s remaining assets during a challenging time for the industry highlights the quality of the portfolio assembled and managed by the Live Oak team. Fund I was a demonstrable success in validating the scalability and efficiency of Live Oak’s aggregation business model. We are sincerely appreciative for the support of our Fund I partners and are thrilled to deliver this successful result,” said Andrew Keene, Live Oak’s President and Chief Financial Officer.
Discussing the transaction, Mitchell Currie, Vice President of Posse said, “We believe this acquisition of mineral and royalty interests with exposure to the Haynesville, Bossier and Cotton Valley formations enhances our diverse portfolio of oil & gas investments. This transaction complements our existing north Louisiana property base held by our affiliated entity, Louisiana Minerals, Ltd.”
Commenting further, Mr. Keene said, “We appreciate the professionalism and diligence of Posse and wish them great success with this asset. In a challenging A&D market, we believe our Fund I portfolio found the proper suitor; a firm with a long history and substantial existing footprint in the basin, deep technical understanding of the Haynesville, and a long-term view towards the ownership of mineral rights.”
“While this sale provides for a successful exit in Fund I, Live Oak remains principally active in the Haynesville as the leading acquiror of royalty, mineral and non-operated working interests in the basin. In the last five years, the Live Oak team has closed over 600 transactions covering more than 18,000 royalty acres,” said Mr. Keene.
“We enjoyed working alongside the Live Oak team and appreciated their commitment to closing a successful transaction. Posse remains focused on growing its diversified mineral and non-operated oil and gas portfolio through both opportunistic acquisitions and participation in drilling proposals,” said Mr. Currie.
Willkie, Farr, & Gallagher LLP served as legal counsel to Live Oak. Kean Miller, LLP and Ewing & Jones, PLLC served as legal counsel to Posse.
About Live Oak Resource Partners
Live Oak Resource Partners is a privately held firm based in Houston, Texas, focused on the aggregation and management of royalty and mineral interests and non-operated working interests in the Haynesville Shale of north Louisiana and east Texas. For more information visit www.liveoakrp.com.
About Posse Resources
Posse Resources (formerly Peter Paul Petroleum Co.), founded by B.P. Huddleston in 1967, is a family-owned private company based in Houston, Texas. Posse focuses on the acquisition and management of mineral and royalty properties and non-operated working interests, primarily in Louisiana, Texas and Oklahoma, among other areas within the U.S. For more information on Posse Resources and its affiliated entities, visit www.PosseResources.com.
Live Oak Resource Partners
Katy Franz (832) 982-0787
Mitchell Currie (713) 209-1111