The following information is provided by Eagle River Energy Advisors LLC. All inquiries on the following listings should be directed to Eagle River. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Eagle River Energy Advisors LLC has been exclusively retained by a private seller to divest certain overriding royalty interest (ORRI) assets and associated development rights in the Williston Basin of North Dakota’s Dunn, McKenzie, McLean and Mountrail counties.
Highlights:
- Significant Producing Assets in the Core Williston Basin
- ORRI position in about 60 DSUs / about 137,000 DSU acres on the Ft. Berthold Reservation in the Williston Basin
- About 334 existing wells
- About 120 boe/d net production (January 2021 Forecast)
- 77% Oil / 12% NGL / 11% Gas
- About $21.3 million net cash flow since 2012 (about $2.4 million average per year)
- New Asset Operatorship and Other Active Operator
- Impending acquisition of QEP Resources by Diamondback Energy provides catalyst to restored development of Seller’s assets
- QEP operates 33 DSUs / 177 wells with 73% of net production
- Diamondback Energy publicly announced its intention to divest the QEP Williston Basin assets
- Seller’s assets to meaningfully benefit from a change in operator
- Recent activity on assets by WPX Energy, XTO Energy, QEP Resources and RimRock Oil & Gas
- Flat production through 2018 as a result of about 32 wells drilled per year
- Optimal Portfolio of Production with Upside Development
- Drilling economics at current prices across three viable targets yield IRRs of 40%–65% and EURs 1–1.2 MMboe
- Production base with sizeable undeveloped inventory provides ideal mixture of producing and future upside reserves
- About 5 average PDP wells / DSU with about 30% of DSUs only having one well
- About 38 near-term locations either drilled awaiting completion, on confidential status, or permitted
- About 550 economic locations in the Bakken and Three Forks 1st and 2nd
The transaction is expected to have a Jan. 1 effective date.
Bids are due at 4 p.m. MT on Feb. 24. A virtual data room will be available starting Jan. 25.
For information contact Mallory Weaver, marketing director at Eagle River, at 720-726-6093 or mweaver@eagleriverea.com.
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