Marketed: Delaware Basin Mineral Classified Interests in West Texas

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.

A private seller is offering for sale its mineral classified interests located in the highly active core of the Delaware Basin along the Reeves/Ward County border in West Texas.

The assets, according to Detring Energy Advisors which has been retained to serve as the private seller’s adviser on the transaction, offers an attractive opportunity to acquire roughly 620 acres of mineral and surface rights with structures and infrastructure supporting regional development with freshwater wells and caliche pits plus 16 highly economic undeveloped locations across three horizons of the most productive and economic horizontal targets in North America. Additionally, the offering includes 286 acres of unleased tracts allowing the potential for meaningful lease bonus income and near-term development with direct negotiation with the future operator, Detring added.

Highlights: 

• 618 Net Royalty Acres (~100% Mineral Classified)
  • Mineral classified interest provides royalty interest and a valuable surface position with buildings and income generating infrastructure
    • ~620 acres with surface rights
    • ~$1 million/year in potential income from water wells and caliche sales
  • 286 open net mineral acreage with lease bonus potential and ability to negotiate lease terms with the operator
• High-interest position (average 7.6% royalty interest)
  • Average 7.6% interest in two leased units
    • Includes two PDP wells generating a PV8 of $2 million
  • Average royalty interest of 7.7% in two unleased/open units (at 25% royalty)
  • Assets include >1.3 net wells/locations (~1.2 net undeveloped)
    • 0.68 net wells leased
    • 0.69 net wells unleased/open
• 16 highly economic undeveloped locations
  • The Reeves-Ward border area offers strong well performance and operator economics, ensuring full development of the stacked-pay targets
    • Substantial permit recovery in the Reeves-Ward region over the last 12 months
  • Substantial remaining inventory from 16 additional locations across Wolfcamp A, Wolfcamp B and 3rd Bone Spring targets
    • 3P PV-10: $34 million ($71 million PV0)
    • 3P Net Reserves: 2.2 million boe
  • World-class, repeatable well results generate ~190+ boe/d per thousand ft IP (average)
    • IRRs of 70%+ for all major targets continue to attract capital
• 618 acres of surface rights
  • Surface rights in the heart of regional Delaware Basin development ready to support operations
  • Conveniently located ~8 miles from Pecos, Texas
    • Access to U.S. Highway 285, 1216 (N. Robertson Road), and 424
  • Current income generating infrastructure includes five freshwater wells and two caliche pit with historical sales of ~$1 million/year
  • Additional, potential income-generating activities include:
    • Solar energy generation
    • Rights-of-way
    • Easements
  • Existing structures supporting business functions and residence
    • 3,500 sq ft residence
    • >8,500 sq ft of additional buildings for various business uses

Process Summary:

• Evaluation materials available via the Virtual Data Room on Oct. 13
• Proposals due on Nov. 10

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