Marketed: Arkoma Drilling Williston Basin Nonop Working Interest

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 Williston Basin opportunity through a sealed-bid offering closing March 17. The 113 well package comprises nonoperated working interest in North Dakota’s Dunn, McKenzie, Mountrail and Williams counties.

Highlights:

• Excellent Nonoperated Opportunity:
  • Unique opportunity to acquire high quality, unconventional, nonoperated working interests in the core areas of the prolific Williston Basin
  • 109 attractive, stable producing wells across the basin
  • Nonoperated position with average working interest of ~12.8% and net revenue of ~10.3%
  • Established production profile leading to long term cash flow predictability
  • ~47% Middle Bakken and ~53% Three Forks 2021 production weighted average
• Strong, Consistent Cash Flow and Production
  • Last 12-month average net production of ~3,127 boe/d (~56% oil)
  • Strong cash flow of ~$31.9 million/year (last 12-month)
• Exposure to Leading Basin Operators
  • Diversified ownership with 11 experienced operators in the Williston Basin
    • Enerplus, XTO Energy, Continental Resources, Devon Energy, Slawson Exploration, et al.
  • 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
• Upside Opportunity
  • Significant stranded oil and gas in place within the Middle Bakken and Three Forks
    • Exxon Bullberry Pad (four DUCs) scheduled for completion year-end 2022
    • 30 PUD locations targeting both the Middle Bakken and the Three Forks
  • Full area exit for Arkoma Drilling II (all acreage, all rights, all depths)
  • 30 active rigs in the basin within close proximity to Arkoma Drilling's potential future development locations

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.