The royalty acquisition company Gateway Royalty II LLC, which has secured oil and natural gas interests for about 20,000 Utica Shale acres, has raised $58.5 million in capital through a private offering, the company said March 25.
The nearly $60 million in capital will support Gateway Royalty II’s future debt-free acquisitions of Utica oil and natural gas interests, the company said.
The principals of Gateway Royalty II had previously invested about $35 million through Gateway Royalty LLC, the company added.
Chris Oldham, the president of Gateway Royalty II, commented that the company provides mineral owners with opportunities to sell portions of royalties for cash, creating the possibility for “instant liquidity” for the seller.
Doug Green, Gateway Royalty II’s vice president, said “Over the last 20 months, Gateway has provided options to many families in eastern Ohio. Gateway II's financial strength will allow us to pay mineral owners quickly without seeking outside financing."
Columbus, Ohio-based Vorys, Sater, Seymour and Pease LLP provided Gateway Royalty II’s legal counsel, the company said, noting that Amarillo, Texas-based Sprouse Shrader Smith PLLC also provided legal counsel.
Gateway Royalty II is based in Carrollton, Ohio.
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