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.
Earthstone Energy Inc. retained Detring Energy Advisors to market for sale its oil and gas leasehold, producing properties and related assets concentrated in the eastern Midland Basin across Glasscock, Irion, Reagan, Sterling and Tom Green counties in West Texas.
The assets offer comprises a large, operated, contiguous and fully HBP Permian footprint producing 940 boe/d (roughly 70% liquids) and $13 million of operating cash flow plus a consistent workover program offering continued low-cost production maintenance and 29 identified, near-term horizontal locations targeting the Wolfcamp A.
Asset Highlights:
- 940 boe/d Net Production and $13 million PDP next 12-month Operating Cash Flow
- Liquids-weighted production (~70% liquids) from 630 active wells, including four horizontals, across two fields: Hunt and Sugg Ranch
- 38,350 net acres (100% HBP)
- Average 98% Working Interest and 74% Net Revenue Interest
- Production primarily sourced from Canyon and Wolfcamp reservoirs
- Current PDP wells offer predictable cash flow base and decades of cash flow generation, with low-risk inventory identified adding significant reserves
- PDP PV-10 and net reserves of $45 million and 3.2 million boe, respectively
- Liquids-weighted production (~70% liquids) from 630 active wells, including four horizontals, across two fields: Hunt and Sugg Ranch
- Consistent Workover Program Maintaining Production
- Net production maintained at ~900-1,000 boe/d since acquisition (April 2021) due to an active workover/RTP program
- 7 boe/d average uplift per historical, low-cost workover ($30,000/well)
- 70+ near-term workovers add material value to existing production base
- PDNP PV-10: $6 million
- Further opportunities exist to continue reactivating wells and recompleting productive zones
- Net production maintained at ~900-1,000 boe/d since acquisition (April 2021) due to an active workover/RTP program
- Horizontal Wolfcamp Development Potential
- 29 initial horizontal locations identified targeting the Wolfcamp A
- Targeting based on “lessons learned” from existing on-lease development
- Highly-economic proximal results provide long-term development within operating cash flow
- Average IRR >100%
- ~$100 million in undeveloped PV-10
- 29 initial horizontal locations identified targeting the Wolfcamp A
Process Summary:
- Evaluation materials are available via the Virtual Data Room on Aug. 17
- Bids are due on Sept. 21
For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.
Recommended Reading
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
Post Oak-backed Quantent Closes Haynesville Deal in North Louisiana
2024-09-09 - Quantent Energy Partners’ initial Haynesville Shale acquisition comes as Post Oak Energy Capital closes an equity commitment for the E&P.
Analyst: Is Jerry Jones Making a Run to Take Comstock Private?
2024-09-20 - After buying more than 13.4 million Comstock shares in August, analysts wonder if Dallas Cowboys owner Jerry Jones might split the tackles and run downhill toward a go-private buyout of the Haynesville Shale gas producer.
Aethon, Murphy Refinance Debt as Fed Slashes Interest Rates
2024-09-20 - The E&Ps expect to issue new notes toward redeeming a combined $1.6 billion of existing debt, while the debt-pricing guide—the Fed funds rate—was cut on Sept. 18 from 5.5% to 5%.
Dividends Declared Sept.16 through Sept. 26
2024-09-27 - Here is a compilation of dividends declared from select upstream, midstream and service and supply companies.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.