Acquisitions and Divestitures

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

Overriding Royalty Interest Assets

On April 22, 2021, we acquired all of the overriding royalty interest assets of SandRidge Mississippian Trust I (the “Trust”). The gross purchase price was $4.9 million (net $3.6 million, given our 26.9% ownership of the Trust).

North Park Basin Sale

On February 5, 2021, the Company sold all of its oil and natural gas properties and related assets of the North Park Basin (“NPB”or “North Park”), in Colorado, for a purchase price of $47 million. The sale closed for net proceeds of $39.7 million in cash, which amounts to the purchase price of $47 million net of effective date to close date adjustments. Consequently, the Company allocated a portion of the full cost pool net book value, using the income approach, to the divested oil and gas properties and recognized a reduction of full cost pool assets of $22.0 million and a reduction of $4.6 million to its non-full cost pool assets. As the sale significantly altered the relationship between capitalized costs and proved reserves, the Company recognized a $19.7 million gain related to the assets sold. The gain represents net proceeds of $39.7 million coupled with the release of revenues in suspense of $0.5 million and the relief of asset retirement obligations of $6.1 million offset by the reduction of $26.6 million in oil and gas properties related to NPB.

For the three-months ended June 30, 2021, NPB did not have an impact on our financials due to the sale of the NPB assets.

For the six-months ended June 30, 2021, NPB represented $3.2 million, or 4.7% of the Company's $67.8 million total consolidated Revenues, NPB represented $0.9 million, or 5.4% of the Company's $17.2 million consolidated Lease operating expense, it represented $0.2 million, or 5.3% of the Company's $4.7 million consolidated Production, ad valorem and other taxes and NPB represented 0.1 MMBoe, or 2.0% of the Company's consolidated total production volumes of 3.4 MMBoe.

For the three-months ended June 30, 2020, NPB represented $4.6 million, or 27.8% of the Company's $16.7 million total consolidated Revenues, NPB represented $2.2 million or 25.6% of the Company's $8.7 million consolidated Lease operating expense, it represented $0.3 million, or 16.7% of the Company's $1.9 million consolidated Production, ad valorem and other taxes and NPB represented 0.2 MMBoe, or 10.3% of the Company's consolidated total production volumes of 2.2 MMBoe.

For the six-months ended June 30, 2020, NPB represented $17.4 million, or 30.5% of the Company's $57.0 million total consolidated Revenues, NPB represented $5.8 million or 23.7% of the Company's $24.3 million consolidated Lease operating expense, it represented $1.1 million, or 21.4% of the Company's $5.1 million consolidated Production, ad valorem and other taxes and NPB represented 0.6 MMBoe, or 11.7% of the Company's consolidated total production volumes of 4.7 MMBoe.