The following information is provided by Eagle River Energy Advisors LLC. All inquiries on the following listings should be directed to Eagle River. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Eagle River Energy Advisors LLC has been exclusively retained by Salt Creek Oil and Gas LLC to divest certain nonoperated working interest and overriding royalty interest (ORRI) in North Dakota.
The assets provide the opportunity to acquire a significant oil-weighted production stream that generated $1.1 million of trailing 12-month net cash flow from 64 boe/d of net production, Eagle River said. Additionally, this package is diversified by well count, well vintage, commodity and operator with locations spread across the heart of the Williston Basin in North Dakota. Lastly, this asset provides 453 net lease acres and 423.74 net royalty acres across 18 DSUs with a high net revenue interest ratio on working interest wells of about 87%.
Asset Overview:
- Stable Cash Flow from Steady Production Base
- $1.1 million trailing 12-month cash flow ending March
- 105 gross PDP wells generating 64 boe/d net
- 83 gross PDP wells are ORRI only
- Excellent commodity mix with 61% oil
- Steady production profile with 90% of wells having first production between 2008 and 2019
- Diversified Production with Upside
- Spread across the heart of the Williston Basin with leading operators including Oasis Petroleum, ConocoPhillips, Lime Rock Resources, EOG Resources, Whiting Petroleum and Slawson Exploration
- 453 net lease acres and 423.74 net royalty acres across 18 DSUs
- Near-term upside with four DUC and eight permitted locations
- Long-term upside with ~170 identified drilling locations
- High Margin Production
- High net margin realizing 72% of net revenue
- Low lifting cost of $12.79 / boe
- Deducts: $8.83 / boe and LOE: $3.96 / boe
- High net revenue interest ratio on working itnerest wells ~87%
- Low Oil differential of -$1 to WTI with recent months receiving a positive differential
Bids for the opportunity with Salt Creek Oil and Gas are due at 4 p.m. MT on Aug. 9. The transaction effective date is Sept. 1.
A virtual data room will be available starting July 11 For information contact Chris Martina, technical director at Eagle River, at 720-726-6092 or cmartina@eagleriverea.com.
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