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.

Hunt Marcellus LLC, a subsidiary of Hunt Oil Co., is offering for sale its Appalachian Basin leasehold, minerals and related midstream assets located in Elk County, Pa.

Hunt Oil Marcellus/Utica Operated Minerals Map (Source: Detring Energy Advisors)

The assets offer an attractive opportunity to acquire about 20,600 contiguous net acres (93% Fee Minerals, 100% HBP) with exposure to a prolific stacked-pay resource across the Marcellus and Utica Shales. Hunt has retained Detring Energy Advisors as its exclusive adviser relating to the transaction.

Asset Highlights:

  • 20,600 Net Acres (100% HBP)
    • Large, Operated, Contiguous and HBP Acreage Position
      • 19,100 mineral acres (100% NRI) and 1,500 leasehold acres (87.5% NRI)
      • Ideal for operations and extended reach laterals
      • Fee ownership yields long-term optionality and bolsters economics (99% NRI average across the position)
    • 3 MMcfd Net Production
      • $1.5 Million operational cash flow (NTM PDP)
      • Majority of production from Seven horizontal Marcellus wells
    • Prolific stacked-pay resource with more than 450 ft in the Marcellus and Utica-Point Pleasant and a combined potential resource scope of over 2 Tcf
      • Hunt assets located within Seneca Resources “Western Development Area” where modern completion techniques have greatly improved regional Marcellus results
      • Seneca continues to actively de-risk the Utica in Elk County with initial results supporting a type curve of more than 2 Bcf/1,000 ft
    • Significant inventory across a highly contiguous position drives operational efficiencies
      • About 120 Marcellus and about 60 Utica locations with an 8,300-ft average lateral length
      • More than 60 locations off existing pads
    • Facilities in-place to support immediate development
      • Six pad sites, centralized facility, water supply and impoundments, and gathering system connected to Dominion Gas Pipeline and Domtar Paper Plant
      • Immediate proximity to TGP and Seneca provides takeaway capacity optionality
  • Pipeline to Domtar Paper Plant secures take-away and yields significant cash flow
    • Three-mile pipeline built and operated by Hunt to supply plant’s about 13 MMBtu/d daily gas demand
      • Operation and maintenance fees generate about $2.5 Million annual cash flow net to Hunt
      • 25-30 MMBtu/d peak capability

Process Overview:

  • Evaluation materials available via the Virtual Data Room on July 23
    • Data room presentations available upon request
  • Proposals due Aug. 22

For information visit detring.com or contact Matt Loewenstein at matt@detring.com or 713-595-1003.