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
(Source: PetroDivest Advisors)

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
  • ~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%
  • 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%

Bids are due April 10. For complete due diligence, please visit petrodivest.com, or email Jerry Edrington, managing director, at jerry@petrodivest.com. 

Comments