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.
MECO IV LLC retained PetroDivest Advisors to market for sale its oil and gas producing properties, leasehold, and overriding royalty interest (ORRI) in Pecos County, Texas.
The assets include legacy, vertical, operated production from Delaware Mountain Group reservoirs in addition to cost-free royalty interest in adjacent horizontal wells targeting Lower Avalon, Wolfcamp and Bone Spring reservoirs generating a resilient, high-margin cash flow stream from a diversified product mix on steady decline with further potential through behind-pipe and horizontal development.
Highlights:
- Reliable, high-margin, diversified cash flow
- Stable net PDP cash flow ($3.2 million next 12-month) from operated and ORRI sources
- Diversified product mix (63% gas)
- Benefits from recent improvements to both oil and gas pricing
- High margins supplemented by cost-free royalty interest cash flow
- ~$7/boe aggregate lifting costs
- 76% net cash flow margin per boe
- Working Interest Package
- 133 net boe/d on 6% annual decline
- 3,352 net acres (100% HBP) with access to Delaware Mountain Group targets
- 49 wells (47 operated / two nonop)
- 72% average working interest and 58% average royalty interest (PDP)
- Net PDP PV-10: $7.3 million
- Net PDP Next 12-month Cash Flow: $1.5 million
- Coyanosa Field features a nine-well saltwater disposal system receiving third party volumes and generating an income of ~$230,000/year, offsetting field OPEX
- Well-organized identification of behind-pipe potential opportunities with supporting well files
- ORRI Package
- 6.1% average royalty interest
- Eight recent, high-interest, horizontal wells operated by Exxon, providing reliable future cash flow and performance from a premier operator
- Net Production: 119 boe/d
- Net PDP Next 12-month Cash Flow: $1.7 million
- Net PDP PV-10: $6 million
- Potential for further horizontal development through infill or additional target horizons
Process Summary:
- The assets are being offered in two distinct packages:
- Working Interest: leasehold and 49 wells, primarily operated
- ORRI: Royalty interest in eight Kriti C3-6-7 Unit wells
- Proposals must be submitted by package
- Evaluation materials available via the Virtual Data Room on Nov. 3
- Proposals due on Dec. 1
For information visit petrodivest.com or contact Jerry Edrington, director of PetroDivest, at jerry@petrodivest.com or 713-595-1017.
Recommended Reading
Occidental Temporarily Reduces Warrants Price to Raise $1.6B
2025-03-03 - Occidental Petroleum’s offer to warrant-holders at a reduced exercise price of $21.30 would raise $1.6 billion, the company said.
Dividends Declared Week of Feb. 24
2025-03-02 - As 2024 year-end earnings wrap up, here is a compilation of dividends declared from select upstream and midstream companies.
Q&A: Patterson’s OFS Perspective on the Shale Boom, Pandemic and Current Upswing
2025-02-27 - Former Basic Energy Services CEO Roe Patterson details his perspective on the shale boom and the lessons learned to get back to the current upswing in the industry.
2025 Pinnacle Award: Christine Ehlig-Economides is a Pioneer in the Field and Classroom
2025-02-27 - University of Houston petroleum engineering professor Christine Ehlig-Economides has left an indelible mark on the industry and blazed a trail for women.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.