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.
Saka Fasken LLC retained Detring Energy Advisors to market for sale its nonoperated properties located in Webb County, Texas, in the core of the dry gas Eagle Ford and Austin Chalk fairway.
The assets offer an opportunity to acquire a 36% working interest across a contiguous, fully HBP, footprint to about 8,000 gross acres with well-established production of 22 MMcf/d (net) generating $80 million in next 12-month operating cash flow, according to Detring. The properties are operated by SilverBow Resources Inc., a publicly listed, pure-play Eagle Ford E&P, with seven near-term development wells and an active horizontal development program.
Asset Highlights:
- High-Margin Gas Production | 22 MMcf/d (100% Gas) | $80 million Next 12-month Operating Cash Flow
- Well-established production underpinned by 127 PDP wells (94 horizontal/33 vertical)
- Primarily generated by Lower Eagle Ford
- Moderate 18% annual decline
- $80 million next 12-month operating cash flow ($37 million PDP)
- Existing cash flow easily funds horizontal development
- PDP PV-10 and net reserves of ~$145 million and ~80 Bcf, respectively
- Low lifting costs of $0.30/Mcf provide world-class cash flow margins of >90%
- Well-established production underpinned by 127 PDP wells (94 horizontal/33 vertical)
- Contiguous, HBP Footprint | 36% Working Interest | 8,000 Gross Acres
- Single unit with 36.0% Working Interest and 28.7% Net Revenue Interest
- Operated by SilverBow Resources, a well-capitalized “pure-play” operator with 100% of its portfolio located in the Eagle Ford
- >50% of 2022E capex allocated to Webb County dry gas
- EOG Resources Inc. actively developing its Webb County “Dorado” play to the southeast
- EOG on-pace for ~50 Webb County horizontal wells spud in 2022 (Austin Chalk/Eagle Ford co-development)
- Large Inventory of Austin Chalk and Upper Eagle Ford Horizontal Locations
- 80 remaining locations within the Austin Chalk and Upper Eagle Ford
- EUR: >18 Bcf (Austin Chalk) / 9 Bcf (Upper Eagle Ford)
- Location Count: 33 Austin Chalk / 47 Upper Eagle Ford
- Lower Eagle Ford fully developed on-lease
- Seven wells planned by SilverBow for 2022E ($66 million PV-10) with 73 remaining PUD locations ($380 million PV-10)
- 2022 Plan includes 6 Austin Chalk wells and 1 Upper Eagle Ford well
- 3P PV-10 and net reserves of ~$590 million ~420 Bcf, respectively
- 80 remaining locations within the Austin Chalk and Upper Eagle Ford
1. Wellbore only assets south of Fasken Lease are operated by Lewis Energy
Process Summary:
- Evaluation materials are available via the Virtual Data Room on July 5
- Bids are due Aug. 10
For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.
Recommended Reading
Trump Tariff Threat Raises Consternation Among Oil Lobbying Groups
2024-11-26 - Late Nov. 25, President-elect Donald Trump said one of his first executive orders would be to enact a 25% tariff on “all products” originating from Canada and Mexico, a move that could escalate refined products prices.
Rystad: 12 MMbbl/d at Risk in Full-blown Middle East War
2024-10-17 - A full-blown war in the Middle East could end up with 12 MMbbl/d of oil at risk—leading to high prices and widespread global consequences, according to Rystad Energy.
Pitts: How Venezuelan Elections Impact Texas and Louisiana
2024-10-24 - The ramifications of another questionable election in Venezuela comes as Chevron’s quest to recoup debts continues. And Washington’s likely next steps will include more of the same: sanctions.
Enbridge Deals with Clean-Up of Wisconsin Pipeline Oil Spill
2024-12-20 - Enbridge estimates 1,650 bbl have leaked from its Line 6 before repair, an incident that has given fodder to opponents of another Enbridge project.
Harris or Trump? Majors’ CEOs Say ‘Nothing's Going to Change’
2024-11-05 - The captains of BP, Shell, Petronas and Eni see the U.S. election as a short-term event, although the results could raise tensions with China and put the fate of the Inflation Reduction Act up in the air.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.