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High Peak Royalties adds to portfolio with acquisition of income-producing oil and gas royalties in Jackson County, Texas

The company has paid a deposit of US$175,000 (around A$250,000) for the package of overriding royalty interests on three leases covering over 300 acres.

High Peak Royalties Ltd -
HPR’s team progressed negotiations to successfully acquire the asset at the final discounted price

High Peak Royalties Ltd (ASX:HPR) has bought a package of overriding royalty interests (ORRI) in Jackson County, Texas from TXO Production Corp.

The company has paid a deposit of US$175,000 (around A$250,000) for the three leases covering over 300 acres.

New strategy

The acquisition is the first tangible result of a recent business development strategy focused on acquiring income-producing royalties with significant upside potential at attractive price multiples.

HPR updated the strategy earlier this year following pricing volatility of oil and gas prices that signalled an opportunity for royalty acquisitions.

The acquisition follows a desktop evaluation and due diligence of many marketed assets. The asset was first marketed in May at a much higher asking price.

Portfolio

The acquisition expands the company’s producing royalty portfolio and also confirms High Peak’s capability to identify, evaluate and complete the acquisition of producing royalties.

The team which will represent HPR in Texas will include Howard McLaughlin, a former HPR director resident in Dallas and familiar with the local geology.

Two of the HPR Directors have experience operating in Texas.

Further opportunities

High Peak continues to monitor the global royalty market for further opportunities.

It is looking to partner with capable operators to secure royalties over high value-producing assets and leverage its capital and structuring expertise.

Quick facts: High Peak Royalties Ltd

Price: 0.057 AUD

ASX:HPR
Market: ASX
Market Cap: $10.77 m
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