Marketed: Gary Permian Delaware Basin Development, Pecos County, Texas

The following information is provided by PetroDivest Advisors. All inquiries on the following listings should be directed to PetroDivest. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

Gary Permian LLC retained PetroDivest Advisors to market for sale its oil and gas properties, leasehold and related assets in Pecos County, Texas.

The assets comprise about 5,600 net acres in the southern Delaware Basin arranged in development-ready blocks with significant water infrastructure and substantial net cash flow of roughly $4 million next 12-month and net production of 300 boe/d from four producing wells. Additionally, PetroDivest said the package also includes highly economic Wolfcamp results with 120-plus locations ready for imminent development.

Highlights:

• ~5,600 net acres primed for rapid development
  • Blocky, operated units with access to Wolfcamp & Bone Spring locations for further development
    • ~20,000 gross unit acres
    • ~7% HBP
  • Includes one saltwater disposal well and related infrastructure to support future development and operations
• Significant producing value (~300 net boe/d and ~$4 million net PDP cash flow)
  • Four PDP wells with oil-weighted production and substantial value underpinning future drilling
    • Three horizontal and one vertical
    • 100% WI & 75% RI (average, horizontal only)
  • PDP PV-10: ~$13MM
  • PDP Net Reserves: ~770 MBoe (7-year R/P)
• Development-ready Wolfcamp locations
  • Diamondback Energy and Gordy Oil continue to successfully develop Wolfcamp and Bone Spring targets
    • Six wells spud or completed in 2021
  • Nearby Fort Stockton offers ease of access and Gulf-bound takeaway
  • Highly economic Wolfcamp results provides substantial future value and reserves with 126 additional locations
    • 36 operated and 90 nonoperated
    • On-trend results from Diamondback, Gordy Oil and Gary Permian support ~100+ boe/d/Mft IP30s across the position and attractive economics of 70%+ IRR
  • 3P PV-10: ~$80 million
  • 3P Net Reserves: ~22 MMboe (~70% oil)
  • Additional potential in 3rd Bone Spring as prices continue improving
  • Northwest-southeast trending geological characteristics support future development over the position
  • Abundant data in the form of XRD, 3D seismic, well logs (i.e., NMR, triple combo, etc.) and advanced core analysis confirm the reservoir is high-quality and over-pressured across the area

Process Summary:

• Evaluation materials available via the Virtual Data Room on July 20
• Bids due on Aug. 24

Gary Permian anticipates PSA execution by early September and closing by October. 

For information visit petrodivest.com or contact Jerry Edrington, director of PetroDivest, at jerry@petrodivest.com or 713-595-1017.