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.
KONA Oil & Gas Properties retained Detring Energy Advisors to market for sale its nonoperated oil and gas interests concentrated in top resource plays throughout the Lower 48.
The assets generate $71 million in operating cash flow from about 800 producing wells plus 120 DUCs and permits. Additionally, the assets include ongoing development in key regions, including the Delaware Basin, SCOOP/STACK and Williston Basin, driving continued near-term production and cash flow growth with substantial remaining undeveloped inventory offering highly economic development under top operators, according to Detring.
Asset Highlights:
- 2,100 boe/d of net production and $43 million in next 12-month operating cash flow (PDP-only)
- Substantial PDP assets with exposure to all major Lower-48 basins and plays
- PDP Net Reserves: 5.2 MMboe (45% oil)
- PDP PV-10: $123 million
- 820 PDP wells (368 horizontal)
- Average 2.8% working interest and 2.2% net revenue interest (horizontal only)
- Existing production and cash flow provides ample funding for ongoing development of near-term wells
- Substantial PDP assets with exposure to all major Lower-48 basins and plays
- Rapidly Developing Asset Offers Imminent Cash Flow Uplift
- The assets have experienced tremendous growth over the past 18 months, which is forecast to continue as 120 near-term wells are TIL over the next 6-12 months
- Net production set to increase by ~75% from ~2,100 boe/d to ~3,700 boe/d
- Delaware Basin alone has averaged eight spuds/month on-lease since January 2021
- 80 DUCs and 40 permits contribute $29 million in next 12-month operating cash flow
- DUC/Permit PV-10: $60 million
- Top Delaware operators, including Devon Energy Corp., Coterra Energy Inc., Tap Rock Resources and more, are engaged in robust drilling programs driving near-term value
- The assets have experienced tremendous growth over the past 18 months, which is forecast to continue as 120 near-term wells are TIL over the next 6-12 months
- Significant Remaining Potential Identified In Over 40 Units
- Interest in 43 units across the Permian, Williston, and Midcon regions with >250 identified locations
- Highly-economic remaining potential through key regions and targets provides surety of development
- 100%+ average IRR
- ~$120million in additional undeveloped NPV-10
![Hart Energy August 2022 - Detring Energy Advisors Marketed Map - KONA Oil and Gas Nonoperated Multibasin Opportunity](/sites/default/files/inline-images/Hart%20Energy%20August%202022%20-%20Detring%20Energy%20Advisors%20Marketed%20Map%20-%20KONA%20Oil%20and%20Gas%20Nonoperated%20Multibasin%20Opportunity.jpg)
Process Summary:
- Evaluation materials are available via the Virtual Data Room on July 27
- Bids are due on Aug. 31
For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.
Recommended Reading
Delek Logistics Offering Senior Notes to Pay Off Debt
2024-08-15 - Delek Logistics Partners and its subsidiary plan to use the net proceeds from the senior notes offering to pay off a portion of the outstanding borrowings from its credit facility.
Upstream, Midstream Dividends Declared in the Week of July 8, 2024
2024-07-11 - Here is a selection of upstream and midstream dividends declared in the week of July 8.
Family Offices: Familiar and New Names Coming to Oil, Gas Table
2024-06-06 - Haynes and Boone semi-annual surveys of oil and gas lenders and producers reveal measured optimism capital formation—and a broader audience of family offices than seen in prior decades is tuning in.
Producers Trim 2024 Hedges Amid Bullish Oil Prices, M&A
2024-06-14 - Meanwhile, gas-weighted players are benefitting from solid hedge books planned ahead of price uncertainty.
Crestwood’s Wannarka Joins EnergyNet as CFO, COO
2024-06-18 - Wannarka brings public-equity finance, investment banking and investor relations experience to the upstream A&D brokerage.