Alliance Resource Partners (ARLP) has closed the $175.96m transaction to purchase certain partnership interests in AllDale Minerals and AllDale Minerals II (collectively AllDale) to gain oil and gas mineral interests in US resource plays.

With the completion of the acquisition, ARLP has gained ownership of 42,000 net royalty acres in premier oil and gas resource plays.

ARLP signed an agreement last month to acquire the AllDale general partner interests and all of the limited partner interests in AllDale not currently owned by ARLP’s affiliate, Cavalier Minerals JV.

ARLP president and CEO Joseph Craft III said: “Closing of the AllDale transaction provides ARLP with significant ownership of attractive oil and gas mineral interests. This transaction lays the foundation for a new growth platform for ARLP.

“We anticipate a growing royalty stream that will provide long-term future value to ARLP unitholders.”

“The royalty income generated by these mineral interests is expected to be immediately accretive to ARLP’s cash flow in 2019 and we anticipate a growing royalty stream that will provide long-term future value to ARLP unitholders.”

The company gained control over acreage located in the core of the Anadarko, Permian, Williston and Appalachian basins.

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Nearly half of the acreage is concentrated in the SCOOP/STACK (48.5%), while the remaining position is based in Delaware Basin (19.5%), Midland Basin (16.2%), Bakken (9.7%) and Appalachian Basin (6.1%).

The acquired acreage is being developed by oil and gas operators, including Continental Resources, Devon Energy, Anadarko Petroleum, Pioneer Natural Resources and Concho Resources.

ARLP also owns 3,950 net royalty acres through its limited partner interest in AllDale Minerals III, LP.

According to the company, there are 3,821 gross producing wells that deliver production net to its interest of around 2,611 barrels of oil equivalent a day.

A further 495 wells are currently being drilled on the company’s acreage, while another 860 well locations are permitted for drilling.