Marketed: Lime Rock Resources Norge Marchand Sand Unit

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.

Lime Rock Resources retained Detring Energy Advisors to market for sale its operated, contiguous, 100% HBP Norge Marchand Sand Unit located in western Grady County, Oklahoma.

The assets comprise substantial liquids-weighted production generating roughly $11 million of next 12-month PDP cash flow, with multiple economic development projects including highly-economic Marchand and Medrano horizontal locations, vertical refracs, returns to production and waterflood optimization, according to Detring.

Highlights: 

• Substantial Liquids-Rich Production
  • Current net production: 900 boe/d (60% oil / 80% liquids)
    • PDP PV-10: $42 million
    • PDP Net Reserves: 3.1 MMboe
    • Well Count: 46 producers (40 verticals / 6 horizontals)
  • Sizeable base of low-decline, predictable cash flow
    • PDP Next 12-month Cash Flow: $11 million
    • 15% Next 12-month Decline (11% 2024E)
    • Low lifting costs of $13/boe
• Operated and HBP Waterflood
  • Large, operated, and contiguous footprint of ~12,000 gross acres
    • 100% HBP across multiple formations provides complete operational control with the opportunity for value-add projects
    • Assets offer attractive optionality with exposure to the liquids-rich Marchand and gas-rich Medrano
    • Efficient operations allowed by concise footprint (~8x4 miles)
  • Attractive royalty burden at ~86% net revenue interest 8/8th (average 78% working interest / 67% net revenue interest)
• Large Inventory of Economic Development Opportunities
  • 10 high-impact undeveloped locations identified for Marchand and Medrano horizontal development with 100%+ IRR
  • Significant pipeline of 40 low-risk return-to-production and refrac projects
  • Substantial 3P PV-10 ($96 million) and net reserves (10.9 MMboe)

Process Summary:

• Evaluation materials available via the Virtual Data Room on Nov. 8
• Proposals due on Dec. 15

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