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.

Four Corners Petroleum II LLC retained Detring Energy Advisors LLC to market for sale Central Basin Platform asset packages within the Permian.

The offering includes oil and gas leasehold, royalty and related assets located in Ward and Winkler counties, Texas, in two sub-packages: working interest and royalties.

Detring said the assets offer an opportunity to acquire durable, high-margin cash flow due to efficient operations and advantaged marketing agreements; a differentiated investment portfolio that strikes an optimal balance between concentration risk and operational scope; and a turn-key operational platform to serve as a base for additional development expansion.

Highlights:

  • Robust Operating Cash Flow ($12.4 million next 12-month PDP) and Production (2,100 boe/d)
    • Working Interest Package:
      • 38 PDP wells
      • $11.5 million next 12-month PDP cash flow
      • PV-10 and reserves of $47 million and 4.7 million boe, respectively (PDP)
    • Royalties Package:
      • 36 PDP wells (FCP op. only)
      • $900,000 next 12-month PDP cash flow
      • PV-10 and reserves of $4 million and 275,000 boe, respectively (PDP)
    • Total Package:
      • 38 PDP wells
      • PV-10 and reserves of $51 million and 5 million boe, respectively (PDP)
  • Optimal land position ensures maximum operational and development flexibility
    • About 14,000 net acres
    • 100% HBP / 100% Working Interest
    • Depths primarily from the base of the Queen to the top of the Barnett
    • Large, contiguous position ideal for operations with no CDO’s, Pugh clauses, or acreage retention provisions
  • Low risk, repeatable development locations underpinned by extensive geologic analysis of key subsurface drivers of the Pennsylvanian
    • Northern Development
      • Seven remaining PUD locations
      • 25%-plus IRR at $50/$2.50 flat pricing
    • Southern Development
      • Eight remaining PUD locations
      • 15%-plus IRR at $50/$2.50 flat pricing
    • All locations are offset by current PDP wells/production
    • Additionally 56 PDNP opportunities have been identified, and 1.5 million barrels of oil upside potential exists in a pre-scoped waterflood project
Marketed: Four Corners Central Basin Platform Asset Packages

Process Summary:

  • Evaluation materials available via the Virtual Data Room on Nov. 4
  • Proposals due on Dec. 9
  • Bids will be requested by package (Working Interest and Royalties) with preference given to offers for the combined position

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

Onshore