Marketed: Hoya Energy East Texas Operated Dry Gas Assets

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.

Hoya Energy retained PetroDivest Advisors to market for sale an East Texas operated dry gas opportunity that includes certain of its oil and gas leasehold, producing properties and related assets in Limestone County, Texas.

The assets offer an attractive opportunity, PetroDivest said, to acquire consistent, low-decline production of about 2,500 Mcf/d, roughly 100% dry gas, with meaningful net cash flow of $5 million, enabled by low lifting costs and a proven chemical, workover and return-to-production (RTP) program set to enhance and maintain production.

Highlights:

• 100% Gas Producing Asset (2.5 MMcf/d Net Production)
  • Producing primarily from the Bossier formation, along with Cotton Valley, Pettit and Travis Peak reservoirs, Hoya’s assets offer substantial dry gas production and lasting reserves
  • Low-decline (8% next 12-month) dry gas production generates reliable PDP cash flow of $5 million over the next 12 months (12-year PDP R/P)
    • PDP PV-10: $16 million
    • PDP Net Reserves: 11 Bcf (100% gas)
  • Well Count: 98 total (81 producers)
  • Low lifting costs of $0.64/Mcf deliver a high-margin cash flow stream
• Successful Chemical, Workover and & RTP Program
  • Ongoing operational and workover improvements proven to reduce field decline and enhance overall asset value and recovery
    • Recent operating improvements have uplifted production by ~40% over the last six-month period since Hoya took over field operations
    • Aggregate decline of ~2% year-over-year since 2019 with asset maintenance
  • Recent slickline and swab workovers demonstrate significant production improvement potential field-wide
    • Workover wells have seen an average increase of ~50 Mcfd/well
  • Seven identified workover candidates offering immediate production uplift
    • The legacy field, productive since the early 80’s, offers a multitude of further field enhancement projects
  • Targeting <5% annual decline through all workover programs
• Consolidated 2,500 Net Acre Operated Position
  • Contiguous position in a singular field with 100% working interest and 100% HBP offers convenient operations
    • Four units comprise the asset with net revenue interests ranging from 75%-82%
  • Operations currently outsourced to Tanos through October 2022
    • Buyer able to assume operations earlier if preferred (30-day notice)

Process Summary:

• Evaluation materials available via the Virtual Data Room on May 18
• Bids are due on June 22

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