DALLAS, TEXAS — March 15, 2019 — Peregrine Energy Partners has agreed to acquire producing overriding royalty interests across more than 600 producing natural gas wells in the Appalachian and Black Warrior Basins. The interests were carved out of the working interest of Summit Natural Resources, marking Peregrine's first operator-partnership royalty carve-out.

“This is a different kind of transaction for us,” said C.J. Tibbs, Peregrine Managing Director. “We typically work directly with mineral owners. In this case, we partnered with the operator to free up future revenue today — Summit was able to redeploy capital into more active areas of their business, while we acquired long-life royalty cashflows under wells they continue to operate.”

The carved-out package includes wells across Pennsylvania, West Virginia, and Alabama. The Black Warrior Basin of west-central Alabama is a mature coalbed-methane producing region, while the Appalachian wells span the conventional and unconventional gas fairways of central Appalachia.

“Royalty carve-outs are a tool E&P companies can use to generate debt-free capital without giving up operational control,” added Josh Prier, Managing Director of Peregrine. “Many operators we've worked with prefer to control their growth through the drill bit. Peregrine adds value by freeing up future revenue today, which allows them to invest more capital in the ground and move their 3P reserves to 1P that much quicker.”

Peregrine is currently looking for additional opportunities to work with operators in much the same fashion, regardless of location.

About Peregrine Energy Partners — Peregrine Energy Partners is a private purchaser of oil and natural gas royalties with more than 50 years of combined experience. Since 2004, the company's founders have worked alongside hundreds of mineral owners in 30 states across millions of acres. With corporate headquarters in Dallas and an acquisition office in Denver, Peregrine provides value and optionality to royalty owners and E&P firms looking to maximize the value of their minerals.

For more information or to obtain a valuation, contact CJ Tibbs at (214) 329-1452 or cj@peregrinelp.com, or Josh Prier at (303) 256-6275 or josh@peregrinelp.com.