The following information is provided by Energy Advisors Group (EAG). All inquiries on the following listings should be directed to EAG. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Energy Advisors Group (EAG) retained by Welba Peak to market its unique, expansive and de-risked Niobrara development opportunity chasing 200 million boe in a horizontal volatile oil play across three benches in Colorado’s Moffatt and Routt counties. Welba estimates it will take $188 million in original capital to develop an immediate 18 wells and applicable infrastructure. The project anticipates individual wells to come on (30-day IP, after cleanup) just under 1,000 boe/d and recover 535,000 barrels of oil and 3.6 Bcf of gas (1.135 million boe/well, 47% oil) per 10,000-ft lateral.
Overview:
- Significant Northwest Colorado Sand Wash Basin Project
- 220-well Development Opportunity. 18-Initial Wells. 29,000-Net Acres
- Prolific Niobrara Resource Play
- Liquids-Rich Tow Creek, Wolf Mountain and Rangely Formations (10,200 – 10,900 ft)
- Overpressure and Thermally Fractured Rock Offer Great Potential
- Project De-risked By Pilot, Reservoir Modeling, Geological Studies and 2D Seismic
- Pilot Horizontal Seven-Month Production: 93,000 barrels of oil and 300 MMcf of gas – on choke
- Pilot Well Peak Rate of 820 bbl/d of oil and 2.9 MMcf/d of gas from 8,000-ft effective lateral
- Single Well Drill and Complete Costs: $9.8 million for 10,000-ft lateral
- Project Offers An Estimated IRR >100% at $60/bbl & $3.30/Mcf
- Seeking Partners and Capital To Initiate 2+ Rig Program To Develop Project.
Key Investment Highlights:
- $11 million in upfront infrastructure costs (gas pipeline and saltwater disposal well) to kick off the project
- $59 million D&C first tranche of wells (six wells on two pads)
- $118 million D&C on next tranche of wells (12) to fill up capacity on planned gas pipeline
- Ability to loop gas pipeline as needed when moving to full development
Bids are due in early April and the virtual data room is available at EnergyAdvisors.com/deals. For more information email Steve Henrich, EAG director of business development and execution, at shenrich@energyadvisors.com, or Alan Yoelin, EAG director and petroleum engineer, at ayoelin@energyadvisors.com.
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