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.

Merced Capital retained Energy Advisors Group Inc. (EAG) for the sale of nonoperated working interest in the Denver-Julesburg (D-J) Basin operated by Occidental Petroleum Corp. and Great Western Petroleum LLC with about $83,430 per month net cash flow in the first half of 2019.

The sale package consists of nine producing wells located in Weld County, Colo., in the Wattenberg Field. Current gross production totals 866 barrels per day (bbl/d) of oil and 7.983 million cubic feet per day (MMcf/d) of gas. The nine wells have cumulative over 2.1 million barrels of oil equivalent (boe) since October 2017, first reported production.

A third-party reserve report was prepared by Ryder Scott. As of August, proved developed producing (PDP) net reserves are 225,000 boe with a PV-10 value of about $2.7 million. Energy Advisors is in the process of updating these runs as of Nov. 20.

In total, the D-J portfolio includes about 4.6% nonoperated working interest and 3.9% net revenue interest ownership with recent net production of 41 bbl/d of oil and 294,000 cubic feet per day of gas. The interests are wellbore only.

This sale package allows a buyer to acquire strong cash flow from successful Niobrara and Codell wells under solid operators. The seller expectations are in line with recent transaction metrics of 30-34 months current cash flow and or offers that tie to multiple engineering runs. EAG has a PHDWin data set it can forward interested parties.

Highlights:

  • Weld County, Colo., Nonop For Sale
  • Nine Wells. Relatively New. Completed 2017
  • Wattenberg Field
  • Codell and Niobrara Formations
  • Under Solid Operators
  • About 4.6% Nonoperated Working Interest and 3.9% Net Revenue Interest
  • Gross Prod: 866 bbl/d of Oil and 7.983 MMcf/d of Gas
  • Net Production: 41 bbl/d of Oil and 294,000 cubic feet per day of Gas
  • First-half 2019 Net Cash Flow: about $83,430 per month
  • PDP PV-10 Value: $2,749,110
  • Net Reserves: 225,000 boe (57% Liquids)
  • Accepting Offers Now
Merced Capital Niobrara Producing Nonop Asset Map Weld County, Colorado (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 Blake Dornak, A&D associate with EAG, at bdornak@energyadvisors.com or 713-600-0123.

Onshore