DALLAS, TEXAS, UNITED_STATES, December 10, 2018 /EINPresswire.com/ — Peregrine Energy Partners has agreed to acquire producing and non-producing oil and gas royalties in Madison County, Mississippi from an undisclosed seller.
This acquisition features production from the nation’s largest CO2 field East of the Mississippi River known as the Jackson Dome. The Jackson Dome, located near Jackson, Mississippi, was discovered during the 1970s by operators looking for traditional oil and gas reserves. It now serves as the primary CO2 source on the Gulf Coast for tertiary recovery operations in oil fields across Texas, Louisiana, and Mississippi.
According to Peregrine’s Managing Director CJ Tibbs, “Royalty interests in an area like the Jackson Dome are extremely rare to come across, largely in part to the prolific reserves this field is known to hold.”
Operated by Denbury Resources out of Dallas, TX, the Jackson Dome field is one of the most important assets in the operator’s portfolio. “The CO2 produced from Jackson Dome,” Mr. Tibbs remarked, “is an asset of great importance to Denbury as it is THE critical component in their enhanced recovery methods all over the Gulf Coast.”
“With Denbury Resources continuing to expand their pipelines and processing capabilities throughout the area,” Mr. Tibbs added, “we expect this to be an asset that provides solid cashflow for years to come.”
Over the past 12 months, Peregrine has been very active working with mineral owners nationwide looking for divestment options for part or all of their producing royalties.
This acquisition will go to help feed a growing demand from 1031 investors who are looking to diversify their exchange into more than traditional real estate. “Most real estate investors are just now learning that they have options when it comes to replacement property for their 1031 exchange,” said Wolf Hanschen, Co-Founder of Peregrine. “Oil and gas royalties have been used for decades by investors existing brick and mortar real estate.”
Peregrine Energy Partners are private purchasers of oil and natural gas royalties with over 50 years of combined experience. Over the past 15 years, the company’s founders have enjoyed working with hundreds of mineral owners in 30 states across millions of acres.
With its corporate headquarters in Dallas and an acquisition office in Denver, Peregrine is dedicated to providing value and optionality to royalty owners to maximize the value of their minerals while delivering institutional quality royalty properties to clients looking for long-term monthly income from a non-correlated asset class.