Marketed: Alamo Resources Nonoperated Gulf of Mexico Assets

The following information is provided by PetroDivest Advisors. All inquiries on the following listings should be directed to PetroDivest. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

Alamo-Palace MP 59 LLC retained PetroDivest Advisors to market for sale its Gulf of Mexico Shelf assets located in Block 59 of the Main Pass protraction area.

The assets offer an opportunity to acquire a roughly 60% nonoperated working interest in a prolific legacy field operated by a well-capitalized, active operator plus an oil-weighted, low-decline production base generating substantial cash flow. Additionally, PetroDivest said the assets include highly-attractive new drill, recompletion and production-optimization opportunities and high-integrity, recently upgraded facilities with minimal abandonment liability.

Highlights:

• ~60% working interest in Main Pass Block 59
  • Assets operated by Cantium LLC, a well-capitalized private operator (interests acquired from Chevron in 2017)
  • Cantium remains active technically and perationally, having proposed plans for a ~$12 million gross capital program (2022)
  • Alamo maintains a controlling vote on Block 59 leases
• Oil-rich production of ~250 boe/d generating ~3.3 million next 12-month cash flow (PDP)
  • 99% of total revenues from oil
  • 14 active producing wells and two platforms
  • PDP PV10 and reserves of ~$14 million and ~700,000 boe, respectively
  • ~$4 million net P&A obligation associated with current wells and facilities
• Immediately actionable, low-risk upside opportunities
  • MP 59 contains productive hydrocarbons in 10+ reservoirs ranging in age from Lower Pliocene to Upper Miocene at depths from 4,900 ft-6,500 ft
  • Meaningful proven opportunities certified by 3rd party engineers
    • 12 undeveloped opportunities
    • Opportunity to test deeper horizons (with low-risk “bail-out” reservoir)
  • Total 1P PV10 and reserves of ~$66 million and ~3.6 MMboe, respectively
  • Modest facilities upgrades will support future development and yield incremental production from existing wellbores
    • Additional pipeline capacity from MP59A to MP41B platforms will reduce WH back-pressure
    • Recently completed facilities upgrades include multiphase pump refurb. (30%-40% production uplift) and wellhead deck remediation/safety upgrades

Process Summary:

• Evaluation materials available via the Virtual Data Room on Sept. 1
• Proposals due on Oct. 6

Alamo anticipates PSA execution by mid-October and closing by late November. 

For information visit petrodivest.com or contact Jerry Edrington, director of PetroDivest, at jerry@petrodivest.com or 713-595-1017.