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.

Remnant Oil Co. LLC has retained Energy Advisors Group Inc. (EAG) to market its low-decline conventional waterflood projects in Chaves, Eddy and Lea Counties, N.M. The project consists of about 25,000 gross acres broken into six core areas and one noncore assortment.

The 306 wells (281 producers and 25 injectors/saltwater disposals) have a gross production of 134 barrels per day (bbl/d) of oil and 1.462 million cubic feet per day (MMcf/d) of gas—378 barrels of oil equivalent per day (boe/d)—and the package is made of existing waterflood units with significant development upside with a total proved net reserves greater than 12.1 million barrels of oil and 16.4 billion cubic feet of gas.

A two-phase exploitation plan is outlined in the package presentation which entails the enhancing and expanding of current waterflood operations followed by the drilling of new producers and injectors to further increase production.

Majority 100% operated working interest for the core areas incorporated in the package with all water injection and saltwater disposal wells being owned and operated by Remnant Oil.

Area #1 Turkey Tract Sec. 3 Unit

  • Eddy County, N.M.
  • 100% Operated Working Interest and Up to 75% Net Revenue Interest
  • 28 Wells (25 Producers and Three Water Injection Wells)
  • Average Gross Production (January 2018-December 2018): 7 bbl/d of Oil, 14,000 cubic feet per day of Gas, 213 bbl/d of Water and 74 bbl/d of Water Injected
  • Total Proved PV-10 Value: $21,002 as of March 1, 2019

Area #2 North Square Lake Unit

  • Eddy County, N.M.
  • 100% Operated Working Interest and 63% Average Net Revenue Interest
  • 90 Wells (80 Producers and 10 Water Injection Wells)
  • Average Gross Production (January 2018-December 2018): 54 bbl/d of Oil, 582 bbl/d of Water and 647 bbl/d of Water Injected

Area #3 South Red Lake II Unit

  • Eddy County, N.M.
  • 99% Operated Working Interest and 74.5% Net Revenue Interest
  • 18 Wells (10 Producers and 8 Water Injection Wells)
  • Average Gross Production (January 2018-December 2018): 3 bbl/d of Oil, 4,000 cubic feet per day of Gas, 24 bbl/d of Water and 174 bbl/d of Water Injected

Area #4 Lusk Seven Rivers Unit

  • Lea County, N.M.
  • 100% Operated Working Interest and 74.6% Net Revenue Interest
  • Six Producing Wells
  • Average Gross Production (January 2018-December 2018): 14 bbl/d of Oil, 4 bbl/d of Water and 0 bbl/d of Water Injected

Area #5 Hackberry Waterflood Pilot Project Area

  • Eddy and Lea Counties, N.M.
  • 100% Operated Working Interest and 74.5% Net Revenue Interest
  • 25 Wells (24 Producers and 1 Active Saltwater Disposal)
  • Average Gross Production (January 2018-December 2018): 15 bbl/d of Oil, 74 bbl/d of Water and 194 bbl/d of Water Injected

Area #6 Pecos Slope Area

  • Chaves County, N.M.
  • 50%-100% Operated Working Interest and 75% Lease Net Revenue Interest
  • 94 Conventional low-rate dry gas wells
  • Average Gross Production (January 2018-December 2018): 1.273 MMcf/d (100% Gas)

The seller is entertaining offers on individual areas highlighted within the package.

Highlights:

  • Northwest Shelf Waterfloods
  • 306 Wells. About 25,000 Gross Acres
  • Chaves, Eddy & Lea Counties, N.M.
  • Multiple Exploitation Projects
  • San Andres, Seven Rivers, Grayburg, Queen, Yates, Abo Gas and More Formations
  • Majority 100% Operated Working Interest For Sale
  • Gross Production: 134 bbl/d of Oil and 1.462 MMcf/d of Gas
  • Two-Phase Remediation Plan:
  • Proved developed non-producing (PDNP) Workovers, RTPs and New Drilling
  • Total Proved Net Reserves greater than 12 million barrels of Oil and 16 billion cubic feet of Gas
  • Seller Seeking Immediate Offers
Permian Basin Chapter 11 Sale Asset Map (Source: Energy Advisors Group Inc.)
Permian Basin Chapter 11 Sale 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 on the conventional, South Louisiana operated sale package, contact Eric Thompson, A&D director with EAG, at ethompson@energyadvisors.com or 713-600-0136.

Onshore