ERG Resources LLC

Transaction Type
Marketers
Basin
Gulf Coast Salt Dome
Field
Barbers Hill, High Island, Red Fish Reef
Post Date
Close Date
Estimated Price
0MM
Description

ERG Resources LLC has retained Scotia Waterous (USA) Inc. to sell its interests in the Gulf Coast region of Texas and Louisiana and in Wyoming's Powder River Basin. ERG's assets are primarily oil, located mainly onshore Texas and Louisiana and in the Texas inland waters, most of which are in Galveston Bay. The assets are concentrated in the Gulf Coast Salt Dome Basin with controlling interests over several of the salt domes including Barbers Hill and High Island onshore and Red Fish Reef Field in Galveston Bay. The primary producing reservoirs are the Miocene, Frio and Vicksburg at depths from 3,000 feet to 13,000 feet. The company operates more than 95% of its production (89% oil). Significant remaining upside potential exists. ERG also holds interests in two oil fields in Wyoming. Net production during August averaged approximately 1,970 barrels of oil equivalent per day (45% onshore, 55% Texas inland waters) from 206 active wells with a net revenue interest of 66% for onshore wells and 81% for Texas inland water wells. Current monthly net income is about $2.8 million per month with an additional $200,000 per month in hedges. Total proved reserves are 15.2 million barrels of oil equivalent (49% onshore, 51% inland waters. The data room will open in late October. The bid due date will be in late November. The effective date is Sept. 1. Contact Adrian Goodisman, 713-437-5050, adrian_goodisman@scotiawaterous.com.