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.

Costa Energy LLC retained Detring Energy Advisors to market for sale its oil and gas leasehold, producing properties and related assets in Caldwell County, Texas.

The assets offer an attractive opportunity, according to Detring, to acquire a 100% oil production base generating roughly 860 gross (630 net) bbl/d of oil from 51 active horizontal wells on a consistent, low decline producing from the Upper Edwards formation. Also included is a significant, stable net cash flow providing reliable, long-term returns on initial investment and 12 infill development opportunities identified to unlock additional production, reserves and cash flow.

Asset Highlights:

  • Low-Decline Oil Production (~860 gross / 630 net bbl/d of oil)
    • Substantial production base (~100% oil) on low aggregate decline (~10%) provides confidence in future cash flow from 51 active producing wells
      • ~$13 million next 12-month operating cash flow (PDP)
      • 97% average working interest 72% average net revenue interest (PDP)
    • Long-life PDP asset with net reserves of ~2 million boe (100% oil)
      • PDP R/P: ~9 years
      • Remaining reserves supported by active water drive from the Edwards formation
    • Minimal concentration risk with distributed PDP PV10 of $43 million
  • ~7,700 Net Acres (100% HBP)
    • The Salt Flat Field is located along the prolific Mexia-Luling fault system near the crest of the San Marcos Arch in south-central Texas
    • The field was discovered in 1929 by Sun Oil, developed and delineated originally by several independents through an initial series of vertical wells
    • Contiguous acreage footprint provides convenient operations
      • 17 active water injection wells support low lifting costs (~$22/BO)
    • Ongoing electrical upgrades reduce lifting costs across the position
      • ~$3/BO reduction to lifting costs
      • ~$4 million PV-10 uplift to PDP value due to ongoing improvements
  • Highly Economic Undeveloped Inventory Drives Future Growth
    • 12 PUD locations targeting the Upper Edwards in portions of the position designed to increase sweep efficiency
    • The majority of the locations use existing surface pads, requiring minimal topside capital to develop
      • Low D&C cost of ~$1.1 million/well
      • Single-well IRR: >40%
      • PUD PV-10: $12 million
      • Grand Total NPV-10: $55 million
Detring Energy Advisors Marketed Map - Costa Energy Salt Flat Field Legacy Oil Opportunity
(Source: Detring Energy Advisors)

 Process Summary:

  • Evaluation materials available via the Virtual Data Room on Wednesday, March 16
  • Bids are due Wednesday, April 20

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

Comments