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) to market nonoperated working interest in Southern Midland Basin wells operated by Apache Corp. with a cash flow of about $60,930 per month in first-half 2019.

The package consists of two horizontal trend area wells located in the Spraberry Field of Upton County, Texas. The wells are completed in the Wolfcamp B formation, with lateral lengths from 8,000 ft to 9,000 ft. Combined, they have produced over 355,000 barrels of oil equivalent (boe) since brought online in March 2017. During July, gross production totaled 111 barrels per day (bbl/d) of oil and 1.012 million cubic feet per day of gas (279 boe/d) and net production of 39 bbl/d of oil and 353,000 cubic feet per day of gas (98 boe/d).

A third party reserve report was prepared by Ryder Scott. As of August, proved developed producing (PDP) net reserves are 236,000 boe with a PV-10 value of about $2.2 million.

This sale package allows a buyer to receive cash flow from successful Permian wells under a well-known public operator. The two wells included in this package, Stone 5202B (Alloc) 5H & Stone 5202D (Alloc) 6H, show stable low decline production. The package delivers about 46.6% nonoperated working interests and 34.9% net revenue interests before payout and an average 39.0% interest and 29.3% ownership after payout. The interests are wellbore only.

Highlights:

  • Two Nonoperated Wells.
  • Spraberry Field
  • 8,000 ft to 9,000 ft Horizontal Laterals.
  • About 47% Nonoperated Working Interest and 35% Net Revenue Interest
  • Gross Production of 111 bbl/d of Oil and 1.012 MMcf/d of Gas
  • Net Production of 98 boe/d
  • Six-Month Average Net Cash Flow of about $60,930 per month
  • PDP PV-10 value of $2,178,770
  • Net Reserves of 236,000 boe (65% Liquids)
Midland Basin Nonop Sale Asset Map (Source: Energy Advisors Group Inc.)

Bids are currently being accepted for this package. 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