Marketed: Stout Energy Operated Sale Package, Winkler and Andrews Counties, Texas

The following information is provided by Permian Energy Partners LLC (PEP). All inquiries on the following listings should be directed to PEP. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

Permian Energy Partners (PEP) is the exclusive agent for Stout Energy Inc. to assist with the sale of an operated sale package in Winkler and Andrews counties in West Texas.

The package includes Yates, Seven Rivers, Queen, Colby and San Andres production with an average monthly net income of $735,924. Over 99% of the leases are within an eight-mile radius of Kermit, Texas. 

Stout Energy—Property Overview:

• Overview
  • $735,924 Average Monthly Net Income (February-April) 
  • 41 of 43 leases are 100% Working Interest; 23 leases have 80% to 87.5% Net Revenue Interest 
  • Low operating costs—Exceptional revenue to expense ratio: 8:1 
  • Winkler leases within 8-mile radius of Kermit (2-pumpers); One lease in Andrews County, Texas 
  • Conventional, vertical, legacy production with depths above 4,000 ft 
  • Low decline, long-lived reserves 
• Production Three-month Average (March-May)
  • Total gross production averages: 385 bbl/d of oil, 48 Mcf/d of gas, 14,301 bbl/d of water of which: 
    • Seven Fields’ leases combine for: 243 bbl/d of oil, 4,563 bbl/d of water (5% oil cut) 
    • One Field/lease is shallow Reef production for: 142 bbl/d of oil, 48 Mcf/d of gas, and 9,737 bbl/d of water (1.5% oil cut) 
• Property Well Count
  • Eight Fields containing 43 Leases, totaling 133 wells of which:
    • 70 are Active Producers (11 Reef Producers),
    • 13 are Active Injectors (Three Reef Injectors), 
    • Seven are being plugged,
    • 42 are SI/TA’d (Five are Saltwater Disposals; 11 Reef Producers) 
• Quick Projects
  • Increase drawdown on high-capacity Reef wells (Ida Hendrick #11) 
  • Re-entry to deeper Queen under cast iron bridge plugs (John B. Walton “B” #1, 4W, 13 & “C” #2, 10, 16)
  • Re-establish sweet Yates gas sales by installing a meter into the existing meter run (John B. Walton “B” #1, 4W, 13 & “C” #2, 10, 16) 

Offers are due at 5 p.m. CST on Sept. 1. The transaction is expected to have an effective date of Oct. 1.

A data room is available. For information contact David Fowler at David@permianenergypartners.com or Tony Martinez at Tony@permianenergypartners.com.