The following information is provided by PetroDivest Advisors. All inquiries on the following listings should be directed to PetroDivest Advisors. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Rock Oil Holdings has retained PetroDivest Advisors for the sale of a mineral and royalty opportunity in Howard County, Midland Basin. The package includes 2,200 net royalty acres.
Opportunity highlights:
- $2.4MM Next-Twelve-Months Cash Flow | Primed For Pad Development & Growth
- 180 producing wells delivering stable base of existing cash flow
- PDP PV10: $7.9MM
- PDP NTM Cash Flow: $1.7MM
- Majority operated by SM Energy
- SM operates 70% of Rock Oil’s net production and 90% of its NRA
- Other operators include Vital, Sinclair (SOGC), Callon and Occidental
- 180 producing wells delivering stable base of existing cash flow
- ~2,200 Net Royalty Acres | Well-Positioned High-Interest Units
- High-interest units (up to ~7% RI)
- Highest interest acreage in prime drilling fairway well-positioned for imminent development
- SM Energy is focused on Howard County with the majority of its remaining North Midland Basin inventory (~50%+) under Rock Oil’s footprint
- Rock Oil positioned under SM’s key remaining scalable inventory
- SM Energy well performance in the county outperformed peers by 30%
- High-interest units (up to ~7% RI)
- 330 Undeveloped Locations | ~35% Horizontally Developed
- Imminent potential development set to substantially accelerate royalty value
- 3P PV10: $47MM ($100MM+ PV0)
- 3P Net Reserves: 2.2 MMBoe
- Proven primary horizontal targets across the Middle Spraberry, Jo Mill, Lower Spraberry Shale, and Wolfcamp A, B and D
- Position surrounded by recent permits and multi-bench pad development
- Estimated Operator avg. IRR of 70%
- Imminent potential development set to substantially accelerate royalty value
Bids are due April 10. For complete due diligence, please visit petrodivest.com, or email Jerry Edrington, managing director, at jerry@petrodivest.com.
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