Invico Diversified Income Fund ("IDIF") is pleased to announce the successful acquisition of a U.S.-based oil and gas royalty package worth $19 million USD in the Colorado Denver-Julesburg (DJ) Basin in eastern Colorado. The asset was purchased from Copper Trail Partners, LLC, a leading private equity firm focused on acquiring oil and gas mineral rights and leasehold interests across the Rocky Mountain region through IDIF’s U.S.-based subsidiary energy company. The transaction, which is 55% oil-weighted, is a high-quality addition to IDIF’s existing land and royalty position and is expected to add 200 boe/d of royalty production, effective July 2021. The package also includes highly visible upside development locations, which are planned to be executed in 2022 and beyond, that will drive substantial growth in royalty production and cash flow growth.
“Copper Trail’s package presented a unique opportunity for us to execute a scale royalty acquisition with a substantial amount of new drilling activity now underway,” said Jason Brooks, President of Invico Capital Corporation. “This deal is complementary to our current base of working interest assets, many of which are with the same operators. It is also highly accretive to IDIF unit holders, provides a line of sight to new development potential from well-known operators in the industry, and has multiple wells currently underway that will contribute to an expected doubling of production by 2022.”
Over the past 12 months, Invico has executed a highly successful expansion of its non-operated business and has more than quadrupled production through organic growth and acquisitions to over 2,000 boe/d.