Marketed: Luff Exploration Williston Basin Waterflood Assets

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

Luff Exploration Co. retained Meagher Energy Advisors for the sale of Williston Basin Waterflood assets in North Dakota’s Bowman County and South Dakota’s Harding County.

Highlights:

• Operated, shallow-decline, high-margin waterfloods with water supply and disposal system providing additional cash flow.
• Gross and net daily oil production of 1,490 bbl/d of oil and 1,040 bbl/d of oil respectively (~80% from 15 unitized waterfloods).  Water production approximately 8,000 bbl/d of water from EOR units.
• July estimated EBITDA of $2.15 million with a 75% profit margin. NTM PDP operating net cash flow of $23 million. Wholly owned midstream contributes $80,000-$90,000/month.
• 4.604 million bbl net oil PDP reserves representing a 12.1-year R/P ratio. 1P reserves of 5.646 million bbl for a 14.9-year R/P ratio. Near-term declines less than 5.5% for operated waterfloods.
• 40,000 net acres, including nearly 30,000 net acres in 15 unitized secondary recovery units.  Minimal federal acreage in a favorable regulatory environment.
• Two ESP installation candidates, five infill drilling and two horizontal re-entries adding incremental 1.042 million bbl net reserves. Tertiary recovery potential with CO₂ miscible flooding utilized in nearby fields.

Bids are due June 23. The transaction has an effective date of July 1. A purchase and sale agreement is expected to be executed by July 8 with closing by Aug. 29.

For information visit meagheradvisors.com or contact Nick Asher, vice president of business development, at nasher@meagheradvisors.com.