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.
![petrodivest](/sites/default/files/inline-images/petroDivest.jpg)
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.
Recommended Reading
Artificial Lift Meets Artificial Intelligence, with Hit and Miss Results
2024-08-23 - Oxy and Chevron are among companies trying to find the sweet spot between data analytics and machine learning with human intervention to optimize production and predict failures before they happen.
What a Trump Win Would Mean for Oil Prices and Stocks
2024-08-23 - A second Trump administration might move the price needle on oil slightly, but OPEC would retain the upper hand in any outcome.
Trans Mountain Appoints New CEO, President
2024-08-23 - Trans Mountain appointed Mark Maki to CEO, succeeding Dawn Farrell who will now be chairman of the board.
Canada’s Train Strike Goes Off—Then Back On—the Rails
2024-08-23 - After the Canadian government stepped in to end the work stoppage, the Teamsters Union indicated that the strike would go forward.
Energy Transition in Motion (Week of Aug. 23, 2024)
2024-08-23 - Here is a look at some of this week’s renewable energy news, including a promising outlook for global offshore wind capacity.