Marketed: Stake In San Joaquin Basin, Austin Chalk Wells

Oil and gas assets in California’s San Joaquin Basin and the Austin Chalk Play in South Texas are on the market in separate, sealed-bid offerings, according to EnergyNet, which has been retained to handle the sale.

The San Joaquin sale comprises Target Oil & Gas Drilling Inc.’s operations plus overriding royalty interest in 30 wells in Kern County, Calif. The assets also include upside from recompletion opportunities and proposed drilling locations.

In the Austin Chalk, Zarvona Energy LLC is offering operated and nonoperated working interest in 22 wells in Burleson, Fayette, Grimes and Wharton counties, Texas. The offer also includes potential additional upside development in the Buda/Georgetown and Pecan Gap formations, EnergyNet said.

Bids for both offerings are due by 4 p.m. CST Aug. 24. For information visit energynet.com or contact EnergyNet’s Denna Arias at 281-949-8463.

Target Oil & Gas Drilling—San Joaquin Basin

Highlights:

• 30-well package in the San Joaquin Basin in Kern County, Calif.;
• 100% working interest/83.33%-100% net revenue interest in 30 wells;
• Seven producing and 20 non-producing wells;
• Two active injection and one inactive injection wells;
• 6.25% overriding royalty interest in the Atkinson 18 well;
• Six-month average 8/8ths production of 36 barrels per day (bbl/d) of oil; and
• Three-month average net income of $36,968 per month.

Upside opportunities (provided by the seller):

• Several recompletion opportunities in Canal, Midway-Sunset, Strand and Ten Section fields; and
• 11 proposed drilling locations in the Midway-Sunset Field.

Zarvona Energy—Austin Chalk

Highlights:

• 22-well package in the Austin Chalk in Burleson, Fayette, Grimes and Wharton counties, Texas;
• Operated working interest in 21 Austin Chalk Wells (14 horizontal);
• 11.96841%-97.5% working interest/9.259646%-73.067158% net revenue interest;
• 20 producing and one non-producing wells;
• Nonoperated working interest in the Gold Zapp #3 in Wharton County;
• 7.760132% working interest and 5.450674% net revenue interest;
• Operated by Llewellin Operating Co. LLC;
• Six-month average 8/8ths production of 68 bbl/d of oil and 761,000 cubic feet per day (Mcf/d);
• 12-month average net income of $22,965 per month;
• $1.91 million PV-10 value (PDP, PNP, OH); and
• 48,000 bbl of oil/1.015 Bcf net reserves.

Potential upside, according to EnergyNet:

• 256,000 bbl of oil/1 Bcf upside in restimulation, additional perfs and sidetracks;
• Horizontal development in Austin Chalk; and
• Additional upside development in Buda/Georgetown & Pecan Gap.