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

BC Operating Inc. retained Detring Energy Advisors to market for sale its oil and gas nonoperated working interests located in the Permian Basin in New Mexico’s Lea and Eddy counties and Reeves and Ward counties, Texas.

The assets comprise roughly 2,000 net acres spanning the core of the Delaware Basin with exposure to 50 or more drilling units with substantial near-term cash flow from 69 horizontal PDP locations. Additionally, the offering also includes seven DUCs and 25 recently permitted wells driving near-term growth and multi-decade inventory of highly-economic development locations across four or more benches, according to Detring.

Highlights:

  • 2,017 Net Acres (~76% HBP)
    • 53 drilling units covering an ~50,000 gross acre footprint
      • Average ~4.3% Working Interest | ~79% Net Revenue Interest (8/8ths)
    • Minimal near-term acreage expirations
      • <200 net acres at risk of expiration prior to year-end 2022
    • Majority of acreage located in units that accommodate 10,000+ ft lateral development
  • ~560 boe/d Net Production With Line-of-Site Growth
    • 69 horizontal PDP locations
      • PDP next 12-month cash flow: ~$6 million
      • PDP PV-10: ~$20 million
    • Seven DUC anticipated online second-half 2021 and 25 recent permits driving continued growth through 2022
      • DUC/Permit PV-10: ~$5 million
      • Forecast 2021 exit rate of ~620 boe/d (~10% growth relative to current)
  • World-Class Stacked-Pay Under Active Pad Development
    • 750+ high-returning development locations across multiple de-risked Bone Spring and Wolfcamp targets
      • 3P PV-10: $60 million+
      • 3P Net Reserves: ~13 MMboe
    • Sustainably high activity levels by well-capitalized operators underscore predictable long-term growth
      • Exposure to premier operators including Occidental Petroleum Corp., Colgate Energy, Mewbourne Oil Co. and Cimarex Energy Co.
Detring Energy Advisors Marketed Map - BC Operating Core Delaware Basin Nonoperated Asset
(Source: Detring Energy Advisors)

Process Summary:

  • Evaluation materials available via the Virtual Data Room June 30
  • Proposals due on July 28

The seller anticipates executing a purchase and sale agreement by mid-August and closing by September, Detring said.

For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.

Comments