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.

EnerVest Energy Institutional Fund XIV-1A LP has retained Detring Energy Advisors to market for sale a 15% nonoperated position in its Nora Field assets located in Virginia and West Virginia.

The package includes upstream properties, gathering pipelines, disposal wells and a compressor fleet located in Virginia’s Dickenson, Buchanan, Wise and Russell counties and West Virginia’s Clay and Kanawha counties. Underpinned by strong, shallow-decline production, low royalty burdens, advantaged pricing, and a top conventional operator (EnerVest Ltd.), the asset yields robust and predictable cash flow and provides substantial optionality across the fully HBP position, Detring said.

Highlights:

  • 15% nonoperated interest in the highly contiguous Nora Field
    • About 54,000 Net Acres (100% HBP)
    • EnerVest owns the remaining 85% interest, ensuring alignment of interest
    • Significant royalty interests buoy field level economics
      • 98% average Net Revenue Interest
  • Robust operating cash flow (about $7 million next 12-month PDP)
    • Net Production: about 15 MMcf/d (100% gas)
      • About 6% annual decline next 12-month
    • PDP: $54 million PV-10 value (95 Bcfe net reserves)
      • Reserves to Production ratio: 18 years
  • About 100% of gas sold at plus pricing or at Transco Z5
    • Advantageous location for marketing and transportation yields realized pricing of +$0.04 (2020E), +$0.23 (2021E), and +$0.25 (2022E) to Henry Hub
  • Extensive midstream infrastructure provides value-add integration with vast upstream holdings
    • About 1,300 miles of gas gathering pipelines
    • Six disposal wells with roughly 5,200 bbl/d of water capacity
    • About 80,500 HP from 61 owned and 17 leased compressor units
  • Low risk, repeatable development locations allow for flexible operations
    • Drilling 75 wells/year within cash flow holds production flat
    • Active workover program of about 35 projects scheduled for 2020
      • 2019 program of 56 workovers yielded 200% internal rate of return
  • Production from multiple intervals highlights the stacked-pay capabilities of the asset
    • Current production from shallow coalbed methane, deeper conventional sands and carbonate intervals, along with the local unconventional horizontal target, the Huron shale
    • Partnership with Virginia Tech and the Department of Energy is currently testing new horizons
Marketed: EnerVest Nonop Nora Field Natural Gas Opportunity

Process Summary:

  • Evaluation materials available via the virtual data room on June 3
  • Proposals due July 1

For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.

Onshore