Marketed: Tapstone Energy Granite Wash Upstream, Midstream Assets

The following information is provided by Meagher Energy Advisors. All inquiries on the following listings should be directed to Meagher. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

Tapstone Energy LLC retained Meagher Energy Advisors for the sale of Granite Wash upstream and midstream assets in Wheeler County, Texas.

Highlights:

• Shallow decline, horizontal Granite Wash producing properties and wholly-owned midstream assets supplement operating margins and cash flows.
• April estimated EBITDA of $2.65 million with a profit margin of 82% including midstream, and a 12-Month forecast total PDP net cashflow of $30.4 million. 
• 32,000 boe in 1P reserves representing a 15.8-year R/P ratio, shallow annual decline rate of 13% for the oil phase and 10% for the gas phase.  Limited near-term P&A.
• Trailing Six-Month average net production of 5,532 boe/d consisting of 50% liquids and 50% gas from 194 operated PDP wells.
• Wholly-owned Wheeler Midstream compression and gathering systems contribute over $700,000 in stable fee-based cashflows per month.
• ~9,000 contiguous, de-risked HBP net acres in the core of the Granite Wash. 100% HBP with high working interest and limited royalty burden.
• Ample de-risked development opportunities and high rate-of-return non-producing, behind-pipe opportunities with reserves totaling 19,400 boe.

Bids are due April 19. The transaction is expected to have an April 1 effective date. A virtual data room is available.

For information visit meagheradvisors.com or contact Nick Asher, vice president of business development, at nasher@meagheradvisors.com.