Boaz Energy II, a Texas-based oil operator, has finalised the sale of all its rights in oil assets underlying the PermRock Royalty Trust to T2S Permian Acquisition II LLC. The deal, initially initiated by an agreement signed on 10 January, was formally closed on 31 March. The sale also includes Boaz Energy’s transfer of nearly 4.9 million Trust units, representing beneficial interests, to Ustx LLC, a wholly owned subsidiary of the buyer.
Complete transfer of assets and beneficial rights
The transaction covers the entirety of rights, titles and interests held by Boaz Energy II and its affiliate Boaz Energy II Royalty in the oil properties of the PermRock Royalty Trust. These properties will remain subject to the Net Profits Interest Conveyance dated 4 May 2018, which defines the Trust’s beneficiary entitlements. The Trust, listed on the New York Stock Exchange, will continue to be managed by Argent Trust Company, which succeeded Simmons Bank as trustee.
Operator transition and continued fiduciary management
Boaz Energy has expressed its intention to support the operational transition to the new buyer to ensure a smooth handover of the oil asset management. No changes are planned for the Trust’s administration, according to Argent Trust Company, which has confirmed it will continue its duties as usual. The divestiture marks a strategic repositioning for Boaz Energy while ensuring ongoing distributions to unit holders.
