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

Apache Corp. retained Detring Energy Advisors for the sale of oil and gas producing properties, leasehold and related assets located in the Eastern Shelf of the Permian Basin as part of a full exit from the Eastern Shelf for the company. The sale includes assets in Borden, Cottle, Crosby, Fisher, Garza, Kent and Scurry counties, Texas.

According to Detring, the assets offer an attractive opportunity to acquire substantial low-decline, oil-weighted production generating about $11 million of annual cash flow. Additionally, the high working interest, operated, waterflood asset positions with meaningful upside potential including waterflood optimization and expansion opportunities, operational efficiency improvements and infill development drilling.

Highlights:

  • Substantial Production Base of about 1,410 barrels of oil equivalent per day (boe/d), roughly 89% oil
    • Shallow, 6% annual decline
    • Annual operating cash flow of about $11 million (2019E)
    • Majority of production on artificial lift with opportunity for operational value-add projects (474 active producers, 258 active injectors)
    • Low oil differential benefitting from recent Permian infrastructure investment and build-out (about $4.50 per barrel discount to West Texas Intermediate)
  • Operated Waterflood Assets (100% HBP)
    • Predictable, low-decline, operated waterflood assets with high ownership interest and control
    • Apache has prioritized its core Permian portfolio over its Eastern Shelf position
      • Operational control provides opportunity to boost cash flow with additional operational oversight and capital budget
  • Legacy Assets with Operational and Development Opportunities
    • Contiguous, operated fields prime for operational improvement and development upside through waterflood optimization and infill drilling opportunities
    • Multiple Pennsylvanian zones (e.g. Canyon, Strawn) have been proven as suitable horizontal and recompletion targets by offset operators
Apache Permian Basin Eastern Shelf Exit Asset Map (Source: Detring Energy Advisors)
Apache Permian Basin Eastern Shelf Exit Asset Map (Source: Detring Energy Advisors)

Process Summary:

  • Evaluation materials available via the virtual data room beginning the week of Oct. 21
  • Proposals due the week of Nov. 18

Detring said Apache anticipates executing a purchase and sales agreement in mid-December, with closing occurring by Jan. 31.

For information visit detring.com or contact Melinda Faust at mel@detring.com or 713-595-1004.

Onshore