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

Arkoma Drilling II LP retained EnergyNet Indigo for the sale of a Delaware Basin opportunity in the Permian through a sealed-bid offering closing March 17. The 34 well package is comprised of nonoperated working interests in New Mexico Eddy and Lea counties and Loving, Reeves and Ward counties, Texas.

Highlights:

  • Excellent Nonoperated Opportunity:
    • Unique opportunity to acquire high quality, unconventional, nonoperated working interests in the core areas of the prolific Delaware Basin
      • Eddy and Lea counties in New Mexico and Loving, Reeves and Ward counties in Texas
      • ~78% New Mexico and ~22% Texas 2021 production weighted average
    • 34 attractive, stable producing wells across the basin
    • Nonoperated position with average Working Interest of ~14.2% and Net Revenue Interest of ~10.8%
    • Established production profile leading to long term cash flow predictability
  • Strong, Consistent Cash Flow and Production
    • Last 12-month average net production of ~1,244 boe/d (~68% oil)
    • Strong cash flow of ~$14.3 million/year (last 12-month)
  • Exposure to Leading Basin Operators
    • Diversified ownership with seven experienced operators in the Delaware Basin
      • ConocoPhillips, Mewbourne Oil, Occidental Petroleum, Matador Resources, BP, Coterra Energy and Manti Tarka Permian
    • Continued reinvestment through asset purchases and swaps by top operators in Arkoma Drilling’s position
    • Attractive infrastructure development assisting with continual reduction in operating costs
  • Robust Upside Opportunity
    • Significant, delineated upside opportunity in the Core of the Delaware Basin in Texas
      • 82 upside locations targeting the Wolfcamp A XY, Wolfcamp A Lower, Wolfcamp B, Wolfcamp C and Bone Spring 3
    • Full area exit for Arkoma Drilling II (all acreage, all rights, all depths) 49 active rigs in Loving, Reeves and Ward counties with eight rigs directly offset to Arkoma Drilling’s potential future development locations
EnergyNet Marketed Map - Arkoma Drilling Delaware Basin Nonoperated Working Interest
(Source: EnergyNet)

Bids are due at 4 p.m. CDT on March 17. The transaction is expected to close in March with an effective date of Feb. 1.

A virtual data room is available. For complete due diligence information visit indigo.energynet.com or email Zachary Muroff, vice president of business development, at Zachary.Muroff@energynet.com, or Denna Arias, vice president of corporate development, at Denna.Arias@energynet.com.

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