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

Sierra EF LP retained Detring Energy Advisors to market for sale its oil and gas producing properties, leasehold, and related assets located in the Eagle Ford Shale in La Salle, McMullen and Live Oak counties, Texas.

The assets include a large, operated and contiguous position supported by substantial cash flow from four recently completed wells and comprehensive technical data, de-risking a drill-ready development program including more than 130 horizontal Lower Eagle Ford locations, according to Detring.

Highlights:

  • Operated and highly contiguous leasehold across the dry-gas window
    • About 52,000 Net Acres (25% HBP)
    • Position favorable for extended laterals and efficient operations
    • Location in South Texas provides ample gas takeaway capacity
      • No volume commitments
  • Robust Operating Cash Flow (about $2.8 million Next 12-Months PDP)
    • Significant production from four recently completed horizontal wells
      • Six total horizontal wells
      • 100% Working Interest and 75% Royalty Interest
    • Net Production: about 11 million cubic feet equivalent per day (100%  gas)
    • PDP: $12 million PV-10 value (19 billion cubic feet equivalent net res.)
    • 3P: about $600 million PV-10 value (about 3 trillion cubic feet equivalent net res.)
  • Drill-Ready Development Plan featuring 130-plus Lower Eagle Ford Locations
    • Single-rig program, with minimal drilling requirements, maximizes go-forward footprint
    • Horizontal program underpinned by in-depth technical analysis
      • Geologic modeling confirms more than 80 billion cubic feet original gas-in-place/section across majority of the acreage
  • Dry-Gas Eagle Ford out-preforms Tier 1 Marcellus on both a cash margin and production basis
    • Sierra Eagle Ford realizes about 3.5 times the cash margin and produces about 13% higher billion cubic feet per foot vs. Dry Gas Marcellus
  • Extensive petrophysical analysis, mapping, and static modeling used to characterize the reservoir properties across the position
    • Increased predictability and confirmation of significant resource in-place
  • Consistent thickness of the Lower Eagle Ford in excess of 200 ft throughout the acreage footprint
    • Ample thickness coupled with frac barriers overlying the top (Austin Chalk) and the bottom (Buda) provide ideal environment for maximizing hydrocarbon recovery

Process Summary:

  • Evaluation materials available via the Virtual Data Room on Feb. 26
  • Proposals due on April 1
Marketed: Sierra EF LP, Eagle Ford Gas Opportunity

For information visit detring.com or contact Melinda Faust at mel@detring.com or 713-595-1004.

Onshore