The following information is provided by Energy Advisors Group Inc. (EAG), formerly PLS Divestment Services. All inquiries on the following listings should be directed to EAG. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

Energy Advisors Group Inc. (EAG) has been retained by an independent producer seeking development capital for its operated oil field in Kern County, Calif.

As of Fall 2019, the asset is producing about 103 barrels per day of (bbl/d) oil (gross) and 40 bbl/d of oil (net) of 15° API oil. The property has 20 active producers and no idle wells. The asset has over 10 years of production history, and the operator has drilled four discovery wells in the last decade. Lease operating expenses average about $15.50 per barrel for the last six months ended Aug. 31.

There are 22 proved undeveloped (PUD) locations over the 3,500 gross acres under lease with a PV-10 value of about $2.2 million and net reserves of over 310,000 barrels. The property’s overall PV-10 value, according to the most recent third-party reserve report (May 2019), exceeds $2.7 million. Currently on primary production, the field is an excellent candidate for steamflooding. The operator has made plans to pilot a steamflood and seeks capital to commence this program in mid-2020.

This is a unique opportunity to participate in a low-cost producer's profitable field, with over 10 years of continuous production, no idle wells, and material upside available in the form of PUD drilling and steamflooding.

Potential Capital Uses Including:

  • $2,000,000-$3,000,000 For Drilling & Completion
  • $1,200,000-$1,250,000 For Steam Flood Pilot
  • Less Than $100,000 Additional Land and Lease Acquisition Work
  • Less than $200,000 Potential Lease Workover Projects
  • $100,000-$250,000; Infrastructure Improvements

Highlights:

  • 20-plus PUD Locations. 3,500 Acres
  • San Joaquin Basin.
  • Dyer Creek and Mount Poso
  • Vedder Formation (15 Degree API)
  • Fair and Low Operating Costs.
  • Steam Flood Planned.
  • Operator Seeks Capital To Expand
  • Nonoperated 50%-plus Position Available.
  • Current Production: 108 bbl/d of Oil
  • Profitable Operation. Premium Crude Price.
  • Operator Seeks Capital and Partner
  • Possible Budget or Capex: $3.0 million to $6.0 million
  • Flexible On Terms
California Development Opportunity Asset Map (Source: Energy Advisors Group Inc.)

Click here to view the online data room or visit energyadvisors.com/deals to view our other 30-plus assignments. For more information, contact David Kessler, A&D director with EAG, at dkessler@energyadvisors.com or 713-600-0123.

Onshore