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.
Ridge Runner Resources LLC retained Detring Energy Advisors to market for sale its oil and gas leasehold and related interests located in the Northern Delaware Basin of the Permian in New Mexico’s Eddy County.
The assets offer an attractive opportunity, Detring said, to acquire a joint venture nonoperated partnership with Matador Resources, a premier Delaware-focused operator with an oil-weighted production base bearing a PDP PV-10 of $6.3 million plus line-of-sight to near-term development bearing capex carry for the next 35 drilled wells and (iv) a substantial inventory of over 200 highly economic locations targeting the prolific Wolfcamp and Bone Spring formations.
Highlights:
- Drilling Partnership with Matador Resources | ~$28 million Remaining Carry
- Ridge Runner receives 100% Working Interest carry on the next 35 wells totaling $27.7 million in remaining capex through February 2024
- Carry structure provides zero capex over next ~2 years while generating ~$33 million in forecast free cash flow by the end of 2023
- Drilling carry applies to any on-acreage horizontal well drilled by Matador Resources, Devon Energy or Mewbourne Oil
- Specific carry dollars spent and drilling footage hurdles are set annually to ensure ongoing development
- Concentrated Nonoperated Position Spanning 11,500 Gross (800 Net) Acres
- 100% HBP
- Average Working Interest 7% (75.9% Net Revenue Interest)
- 17 DSUs in-place
- Diversified exposure with active, well-capitalized operators in Matador Resources, Mewbourne Oil and Devon Energy ~$16.21/boe operating cash margin
- Active development from 5 DUCs spud in fourth-quarter 2021 provides an additional $19 million in PV-10 and supports ~1 million boe in net reserves
- Highly Economic Inventory Targeting the Prolific Wolfcamp and Bone Spring Formations
- 3P Reserves and PV-10 at 20 million boe and $174 million, respectively
- Significant running room with 200+ gross horizontal locations offering attractive returns
- Average Wolfcamp EUR: ~2.2 million boe
- Average Bone Spring EUR: ~1.7 million boe
- All type curves generate >200% IRR at current strip pricing
- Over 3,000 ft of stacked developmental potential in the Bone Spring 1st, 2nd and 3rd benches along with the Wolfcamp XY/A & B
Process Summary:
- Evaluation materials available via the Virtual Data Room on March 9
- Proposals due on April 6
For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.
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