Resource Royalty LLC and its affiliated portfolio company, Meramec Rich Royalties LLC, added 15 new wells to their portfolio during the third quarter of 2019, according to the company.
Stack is an acronym for Sooner Trend (oil field), Anadarko (basin), Canadian and Kingfisher (counties), where multiple pay zones with recoverable oil and gas reserves were discovered in 2014. Resource Royalty’s recent offerings have focused on acquiring mineral and royalty interests in this region of Oklahoma.
Resource Royalty purchases the deeded real estate beneath the surface of the wells, i.e. the mineral interests, while oil companies drill the wells and pay a percentage of the gross revenue to the mineral interest owners.
Twelve of the 15 wells are located in Blaine County, Oklahoma and are operated by Marathon Oil and Continental Resources, while the remaining three are located in Dewey County and operated by Tapstone Resources.
“The mineral acquisitions we made several years ago are beginning to pay off,” said Bob Howard, president of Resource Royalty.
The company noted that during the past 12 months, approximately 1,060 wells have been permitted in the region despite a drop in West Texas intermediate (WTI) and natural gas prices, adding that operators continue to report impressive well results with more than 1,200 barrels of oil equivalent per day. WTI is a grade of crude oil used as a benchmark in oil pricing.
Meramec Rich Royalties LLC is Resource Royalty’s seventh portfolio company to target the Stack and owns 36,000 gross mineral acres with more than 67 producing wells.