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Chevron Corp. retained EnergyNet Indigo for the sale of its Eunice/Hobbs asset in the Permian’s Central Basin Platform. The offering includes operated, nonoperated and overriding royalty interest (ORRI) in over 300 producing wells targeting multiple benches in New Mexico’s Lea County.

Highlights: 

  • Operations in the Eunice/Hobbs Field: 
    • Average Working Interest 92.20% / Average Net Revenue Interest 78.82% 
    • 330 Producing Wells | 17 Inactive Wells | 207 Shut-In Wells | 10 TA'd 
    • Producing from the Blinebry, Drinkard, Grayburg, and San Andres Formations 
  • Nonoperated Working Interest in the Eunice/Hobbs Field: 
    • Average Working Interest 11.52% / Average Net Revenue Interest 10.13% 
    • 587 Producing Wells | 180 Injecting Wells | 106 Inactive Wells 
    • Select Operators include Apache Corp. and ConocoPhillips Co.
  • Royalty Interest in the Eunice/Hobbs Field: 
    • Average Royalty Interest 3.84% 
    • 108 Producing Wells | 29 Injecting Wells | 5 Inactive Wells | 1 Shut-In Well | 1 TA'd 
    • Select Operators include BXP Operating LLC and Providence Energy Service Inc. 
  • Six-Month Average 8/8ths Production: 5,538 bbl/d of Oil and 23.690 MMcf/d of Gas 
  • Six-Month Average Net Income: $1,100,959/Month 
  • 93,495.29 Gross (73,016.62 Net) Acres 

Upside: 

  • PDP Workover Optimization: 
    • Opportunity for Economic Enhancement through Maintenance and Improved Operation Efficiencies 
    • Operating Expense Reduction through Routine Workovers, Water Handling, and Maintenance 
    • Additional ~600 boe/d in Incremental Production by Returning Certain SI Wells to Production and Reduction ff Downtime 
  • Horizontal Potential on Contiguous COP Land Position: 
    • 160 Additional Horizontal Locations for Development 
    • Extended Lateral Development Well Positioned within the Southeast Eunice and Northwest Hobbs Areas 
    • Primary Development Positions Contain Additional Inventory for Infills and Step-Outs within the Grayburg-San Andres and Wichita Albany 
  • EOR Potential 
    • Southwest Eunice is an Existing EOR Producing Nonop and Royalty Asset 
    • Future CO₂ Flood Project being Considered within the Central Drinkard Unit
EnergyNet Indigo Marketed Map - Chevron Permian Central Basin Platform Eunice Hobbs Asset

Bids are due May 20. The transaction is expected to have a June 1 effective date.

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

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