Marketed: NP Resources Williston Basin Acquisition Opportunity

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.

NP Resources (NPR) is offering for sale its oil and gas leasehold and related interest located within the Williston Basin in North Dakota’s Billings, Golden Valley and McKenzie counties. The assets offer an attractive opportunity to acquire resilient, high-margin cash flow uplifted by low lifting costs and an oil-weighted production base generating, according to Detring Energy Advisors, which NPR retained as its exclusive adviser related to the transaction

Additionally, Detring noted the offering includes several high-returning behind-pipe opportunities with no direct exposure to the Dakota Access Pipeline plus a substantial inventory of horizontal development locations providing over a decade of running room across 400+ Three Forks locations funded through cash flow.  

The asset, Detring said, is unlevered, and NPR will entertain offers consisting of cash, stock, or a combination thereof.

Highlights:

• ~100,000 Net Acre Position (~85% HBP) 
  • Large, operated and contiguous position provides developmental control with rights across multiple productive horizons
  • Opportunities to increase DSU working interest’s with new well permitting and AFE proposals, leasing programs, and working interest owner considerations
  • Two field offices, three active saltwater disposal wells, and two additional saltwater disposal permits
• High Margin, Stable Production (~1,200 boe/d | 10% Annual Decline)
  • Oil-weighted production with low lifting costs (~$14/boe) with low base annual decline  
  • ~$14 million next 12-month cash flow (PDP)
  • ~$60 million PV-10 and 4.9 million boe net reserves from 68 horizontal and 12 vertical producing wells (PDP)
• 400+ Three Forks/Pronghorn Locations For Development
  • Engineered completion methods generate attractive economics (45%+ IRR) while utilizing more efficient completions (1,000+ boe/d IP24; 940,000 boe EUR)
  • Net PV-10 and reserves of ~$460 million and ~150 million boe, respectively (3P)
  • Development program lives within cash flow, requiring no additional investment
  • 58 locations ready for near-term development including permits or pending permits
• NPR has completed a robust geologic study of the region, identifying high graded areas of the position, as well as conventional opportunities across the area
  • Operators such as Continental Resources Inc. and Whiting Petroleum Corp. have successfully developed the Pronghorn member of the Three Forks just southeast of the position in an area of similar rock quality, de-risking future development

Process Summary:

• Evaluation materials available via the Virtual Data Room on May 12
• Proposals due June 9

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