Saga Resource Partners LLC is selling its assets in Alabama’s Black Warrior and Cahaba basins in an exit of the region.
The company has a footprint of about 80,000 net acres in the coalbed methane (CBM) basins, with operational control across most of the position, according to TenOaks Energy Advisors LLC, which is the exclusive adviser for the sale.
Highlights:
- More than 80,000 net acres (100% HBP);
- 65%-100% working interest and 50%-87.5% net revenue interest (varies by field);
- Recent net production of 18.5 million cubic feet per day;
- Properties also include meaningful overriding royalty interest position, TenOaks said;
- All production is CBM gas from 2,000 ft to 4,000 ft;
- Numerous proven drilling locations with operating infrastructure;
- More than 350 quantified drilling locations (90% proved) comprised primarily of vertical infills targeting stacked coal seams;
- Defined production profile with a forecasted first-year proved developed producing (PDP) decline of 7.5%; and
- Forecasted 2017 PDP cash flow of $1 million per month.
An online data room is available and technical presentations are available. Offers are due Jan. 12. The sale is expected to close in March, with a Jan. 1 effective date.
For information visit tenoaksenergyadvisors.com or contact B.J. Brandenberger, TenOaks partner, at 214-420-2323.
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