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Wells in the acreage Sitio acquired averaged 2,609 barrels of production per day, 41% of it crude oil, the company said.
DENVER — A Denver-based company is acquiring $150 million worth of mineral rights and royalties in the core of the Denver-Julesburg Basin where Colorado’s biggest oil producers are most active.
Sitio Royalties Corp. (NYSE: STR) on Thursday revealed it reached an agreement in January to buy oil and gas rights from an undisclosed third party that had expertly assembled a mineral rights and royalty portfolio “concentrated in the best parts of the DJ Basin,” said Chris Conoscenti, founder and CEO, announcing the transaction on a conference call.
The transaction is expected to close this spring.
The deal expands Sitio’s presence in northeast Colorado oilfields by 52%, and it now owns rights covering just over 38,000 acres in the most prolific parts of the basin known as the Greater Wattenberg Field.
Sitio Royalties will gain royalty payments from oil, natural gas and liquids production by wells operated mostly by Chevron Corp., Occidental Petroleum and Civitas Resources — the three biggest players in Colorado oil production.
“We do see increased action from those operators,” said Dax McDavid, Sitio’s executive vice president of corporate development. “We see increased activity, and they’re continuing to put capital into that basin.”
> Read the full article at the Denver Business Journal.
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