Marketed: Diversified Permian Basin Platform with Conventional, Unconventional Projects

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.

MECO IV LLC retained Detring Energy Advisors to market for sale Permian Basin oil and gas leasehold, minerals, surface and infrastructure assets in Winkler and Ward counties, Texas, and New Mexico’s Lea County.

The assets comprise of a concentrated, operated Central Basin Platform position with substantial production, valuable infrastructure and a multitude of economic development opportunities plus an operated “War-Wink” horizontal development program with 11 remaining highly economic locations and a nonoperated Lea County footprint in the Delaware Basin with exposure to imminent development from well-capitalized operators, according to Detring.

Highlights:

• Diversified Permian platform that provides meaningful exposure to both conventional and unconventional projects
• Rare opportunity, according to Detring, to acquire meaningful exposure to multiple asset classes across the Permian Basin, the most active basin in the Lower 48
  • Single entry to conventional (Central Basin Platform) and unconventional (Delaware Basin) projects underpinned by significant production and cash flow
• 12,923 net acres (87% Central Basin Platform | 10% War-Wink Development Area | 3% Nonoperated Lea County)
• Substantial net cash flow ($27 million next 12-month) from operated, non-operated, royalty, surface, and income-generating infrastructure assets with $104 million PDP PV-10
• Subsurface analysis supports significant low-risk upside potential across each asset class

Asset Details:

• Central Basin Platform
  • Mostly operated with ~11,300 net acres
  • Reliable PDP vertical assets on steady 12% annual decline with liquids-rich production (~1,400 boe/d) generated from 161 PDP wells
  • Prolific developed and undeveloped potential
    • 20+ identified frac stimulations on historically acidized wells
    • 20-acre infill development based on an offsetting analog field
    • Waterflood potential in the Clear Fork and San Andres
  • Hendricks Saltwater Disposal Facility with 12 miles of gathering lines across the position
  • Includes Emperor Compressor Station, 14 miles of gathering lines, and an 8 MMcf/d capacity facility
• War-Wink Development Area
  • Mostly operated with ~1,300 net acres
  • Meaningful value from eight PDP wells with $8.5 million PDP PV-10
  • 11 operated undeveloped locations with highly economic well performance generate 120 boe/d/Mft (>100% IRR)
• Nonoperated Lea County (Red Bull Area)
  • Substantial production from 67 active wells (16% working interest and 12% net revenue interest) providing predictable cash flow ($8 million next 12-month) to support scheduled horizontal development with net $33 million PDP PV-10
  • ~340 net acres overlaying the best unconventional rock in the country
  • 12 approved AFEs in the Dominator Unit scheduled for spud November 2021 and online June-July 2022

Process Summary:

• A strong preference will be given to cash offers for the entirety of the properties; however, offers for sub-portions of the assets will also be considered
• Evaluation materials available via the Virtual Data Room on Nov. 10
• Proposals due on Dec. 15

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