The following information is provided by Detring Energy Advisors. All inquiries on the following listings should be directed to Detring Energy Advisors. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Elk River Resources, LLC (Elk River) has retained Detring Energy Advisors to market for sale its oil and gas leasehold in a single operated, HBP, stand-up 640-acre unit (100% WI & 75% NRI) in Reeves County, Texas. The asset offers an attractive opportunity to acquire (i) 420 Boed of net production from 5 horizontal Wolfcamp A wells; (ii) $4.3MM in NTM PDP cash flow, underpinning future development capital with low lifting costs; and (iii) 4 additional two-mile horizontal development locations in proven Bone Spring targets with multiple nearby analogs showcasing redevelopment above existing Wolfcamp A producers with strong results.
Asset Highlights:
- $4.3MM Operating Cash Flow (NTM PDP Only)
- Oil-rich production generated from 5 Wolfcamp A horizontal wells
- PDP PV10: $18MM
- Low-cost, high-margin production
- LTM lifting cost of $14/Boe
- Operated, HBP position with developmental control
- 640 gross/net acres
- 100% WI / 75% NRI
- Oil-rich production generated from 5 Wolfcamp A horizontal wells
- Four Undeveloped Locations Across Proven Bone Spring Targets
- De-risked position offset by active rigs and recent completions
- Chevron and Patriot demonstrated nearby return development in the Bone Spring over existing Wolfcamp wells
- Robust type curves generate IRR’s >60% and EURs >120 MBoe/Mft
- 3P Net Reserves: ~6 MMBoe
- 3P PV10: ~$55MM
- De-risked position offset by active rigs and recent completions
Bids for this lot are due on Aug. 9. For complete due diligence information on this property, please contact Melinda Faust at mel@detring.com.
Recommended Reading
Seatrium Awarded Contract for FPSO Bound for Guyana’s Stabroek
2024-05-17 - The topsides fabrication and integration contract will be for the FPSO Jaguar, bound for the Whiptail Field in the Stabroek block offshore Guyana for Exxon Mobil.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks: Baker Hughes
2024-05-17 - The oil and gas rig count rose by one to 604 in the week to May 17.
BPX Looks to Ramp US Production Over 60% by 2030
2024-05-16 - BPX Energy is looking to boost its U.S. production over 60% by 2030 as it considers bringing online a fourth processing facility in the Permian by mid-year 2025, Clark Edwards, the company’s vice president of development, said during SUPER DUG in Fort Worth.
Empire Petroleum’s Williston Drilling Program Identifies New Zones
2024-05-16 - Empire Petroleum provided updates on its Williston Basin development drilling program in its first quarter 2024 earnings results.