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 SOGC Inc. (formerly Sinclair Oil & Gas Co.) to divest certain operated and nonoperated working interest and overriding royalty interest (ORRI) assets in the Arkoma Basin.

The assets provide the opportunity to acquire a gas-weighted production stream of 4,500 Mcfe/d diversified across multiple basin-leading operators. Additionally, this package has stable production from wide-ranging well vintages with 98% of wells producing for over 3 years and generated $3.7 million of cash flow during the last 12-month period ending November 2021. Lastly, 11,117 net acres of leasehold provides significant exposure to future development of the Woodford Shale.

Highlights:

  • Significant Gas Weighted Production Base
    • ~4,500 Mcfe/d net production averaged over trailing 12-months November 2021
    • Gas weighted production (Gas 80% / NGL 19% / Oil < 1%)
    • $3.7 million cash flow during trailing 12-months November 2021
    • ~ 300 gross (22 net) PDP wells generated 1.6 net Bcf (trailing 12-months November 2021)
  • Stable Cash Flow with Significant Upside
    • Stable production created by wide-ranging well vintages
      • 98% of wells producing for 3+ years
    • Diversified across multiple basin-leading operators 
    • ~11,117 Net acres of leasehold provides significant exposure to future development including one DUC location
    • Three operated DSUs with at least eight development locations
  • High Margin Production
    • Low lifting cost ($1.32 / Mcfe) leading to high margin production
    • GTP: $0.79 / Mcfe & LOE: $0.53 / Mcfe
    • High margin net cash flow of $2.50 per Mcfe (trailing 12-months November 2021)
Eagle River Energy Advisors Marketed Map - Sinclair Oil Arkoma Basin Operated Nonop ORRI Assets
Key Assets in Oklahoma (Source: Eagle River Energy Advisors)

SOGC Inc. (formerly Sinclair Oil & Gas Co.) is a privately held, vertically integrated oil company involved in all aspects of the oil and gas industry, from exploration to marketing. Founded in 1916 by Harry F. Sinclair, Sinclair Oil & Gas Co. is one of the oldest continuous brands in the oil business, with their dinosaur being one of the most recognized icons in the U.S.

Bids for the acquisition opportunities with SOGC Inc. are due April 28. A virtual data room will be available starting April 7. The transaction effective date is May 1.

For information contact Chris Martina, technical director at Eagle River, at 720-726-6092 or cmartina@eagleriverea.com.

Comments