Tulsa’s Alliance Resources is primarily a coal-mining company with major operations in the eastern United States. But it clearly has expanded its efforts to become more deeply involved in oil and gas production and exploration and now owns producing wells in the Anadarko, Permian and Williston basins.
While admitting in a recent report that it is “wholly dependent on third-party operators to explore, develop, produce and operate the properites associated with our mineral interests,” Alliance cited a list of recent acquisitions in the Permian Basin.
Alliance contracted with a third party and committed up to $35 million for acquisitions in the Midland and Delaware basins, and in return gave the third party a participation share. As a result, the company acquired $13.2 million in interests. This month, Alliance renewed the agreement and committed up to another $25 million for more interests. In other words, the Tulsa company is on the hunt for more oil and gas interests.
Alliance made one of its first major acquisitions in February of last year, buying 2,682 oil and gas net royalty acres from JC Resources, a firm owned by Alliance Chairman and CEO Joseph Craft. The deal totaled $72.3 million.
Alliance later bought 2,372 oil and gas net royalty acres in the Anadarko Basin along with acreage in the Williston and Delaware Basins from Skyland and Haymaker for $14.5 million.
But that’s not all. Alliance is also getting into an electric-vehicle related manufacturing company. Last fall, the company bought $25 million in Series D Preferred Stock in Ascend, a U.S. manufacturer and recycler of sustainable, closed-loop engineered battery materials for EVs.
Ascend is currently constructing North America’s first commercial scale manufacturing facility located near Hopkinsville, Kentucky, that when complete, will produce enough cathode materials for 750,000 electric vehicles per year.