The following information is provided by Indigo Energy Advisors. All inquiries on the following listings should be directed to Indigo Energy Advisors. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
BP Exploration & Production Inc. retained Indigo Energy Advisors for an offshore overriding royalty interest acquisition opportunity in the Gulf of Mexico and Louisiana.
The Lot #120281 opportunity includes 100% HBP royalty interest and had an average net production of approximately 1,100 boe/d in first-quarter 2024.
Opportunity Highlights
- Unique Overriding Royalty Interest
- Opportunity to acquire multiple lease level overrides within the Gulf of Mexico
- 100% HBP royalty interest
- Net production of ~1,100 boepd Q1 2024 average
- Successful workover within the Kodiak Field is online but production data is not reflected in the previously mentioned net production
- Meaningful Investment Platform
- Rare opportunity for Gulf of Mexico exposure with no working interest obligations
- Exposure to leading offshore operators such as Talos, Kosmos, Occidental, and Murphy
- Lease level overrides provide exposure to future development and exploration across premier properties within the Gulf of Mexico
- Kodiak-3 workover successfully completed in July 2024 and performing above operator's expectations
- 2 new-drill opportunities forecasted within Lucius in 2025
- 1 remaining prospect within South Santa Cruz modeled in 2026
- Premium Oily Asset
- Favorable geographic location to Gulf Coast market supports basis differentials above WTI
- Production weighted average royalty ownership of ~2.33%
- Low Decline Conventional Asset
- Shallow PDP NTM production decline of ~7.1%
- Robust producing asset NTM cash flow of ~ $23,100,000
- Additional forecasted upside NTM cash flow of ~ $6,800,000
- Long life nature of asset ensures steady returns
Bids are due at 4:00 p.m. CST on Nov. 12. For complete due diligence information, please visit indigo.energynet.com or email Cody Felton, managing director, at Cody.Felton@energynet.com.
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