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.

A private seller is offering for sale its oil and gas mineral and royalty interests located throughout the active core of the prolific Midland Basin in the Permian.

According to Detring Energy Advisors, which has been retained to handle the sale, the assets offer an attractive opportunity to acquire exposure to highly active operators resuming significant horizontal activity with 2022E cash flow of roughly $7 million including imminent uplift from about 130 recent DUCs/permits. The offering also includes thousands of additional undeveloped locations throughout six horizons of the most productive and economic horizontal targets in North America.

Highlights:

  • Robust Cash Flow With Imminent Growth
    • Substantial operator activity results in rapid growth underwritten by recent DUCs (50) and permits (81)
      • 2022E Cash Flow: $7 million
    • 900 producing wells (585 horizontal) provide stable cash flow base and well-distributed PDP value
      • Net Production: 164 boe/d (~70% liquids)
      • PDP PV8: $10 million
  • 2,980 Net Royalty Acres (~100% Minerals)
    • Extensive core mineral footprint offers statistical exposure to one of the most active and prolific basins in the U.S.
      • 105,000 gross acres
    • Significant acreage positions under active, well-capitalized operators
      • ConocoPhillips Co./Concho Resources, Pioneer Natural Resources Co., Endeavor Energy Resources
  • ~4,800 Highly Economic Undeveloped Locations
    • Asset continually under development with 30+ years remaining of highly-economic inventory
      • 3P PV-10: $90MM ($330MM PV0)
      • 3P Net Reserves: 8.6 MMboe
    • Six actively developed horizontal targets (Wolfcamp & Spraberry) with future potential in additional reservoirs
    • World-class, repeatable well results generate 160+ Boed/Mft IP (average)
      • IRRs of 50-100%+ for all major targets continue to attract capital
Detring Marketed Map - Midland Basin Mineral and Royalty Position
(Source: Detring Energy Advisors LLC)

Process Summary:

  • Evaluation materials available via the Virtual Data Room June 16
  • Proposals due on July 14 

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

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