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

Merit Energy Co. retained Houlihan Lokey Capital Inc. for the sale of its liquids-weighted, shallow-decline Hugoton Basin properties located in southern Kansas and northern Oklahoma.

Merit Energy Hugoton Basin Asset Map (Source: Houlihan Lokey Capital Inc.)

Highlights:

  • Current production of about 2,700 barrels of oil equivalent (boe/d) net (56% liquids) and stable proved developed producing (PDP) base decline of 5%
  • Meaningful footprint of about 250,000 company net acres (roughly 100% HBP, 98% operated)
  • High operated ownership of 93% working interest / 80% net revenue interest
  • Net proved (1P) reserves of about 17 million boe; PV-10 value of roughly over $133 million
  • Multiple secondary recovery opportunities with favorable economics
  • Large inventory of 3-D seismic data will be transferable with the asset sale
  • Competitive midstream market with ample takeaway capacity
  • Additional value uplift from helium extraction supported by strong global demand

Bids are due Feb. 1. For information visit hl.com or contact Justin Zammit, senior vice president at Houlihan Lokey, at JZammit@hl.com or 214-665-8643.

Onshore