ICA Energy Inc.

Transaction Type
Sellers
Marketers
Post Date
Estimated Price
0MM
Description

ICA Energy Inc. has retained Simplex Energy Solutions to sell nonoperated assets in Texas in a negotiated sale.

The package consists of seven active producing wells on 2,073 acres in southeastern Glasscock County. The properties cover two permits on 19 locations. Working interest ranges from 15.588% to 17.714% (11.691% to 13.286% net revenue interest) with 75% net revenue interest on an 8/8th basis. Hannathon Petroleum LLC is operator and will consider selling its position and operations as well.

Production is 727.6 barrels of oil per day (94.4 barrels net) and 2.2 million cubic feet (292,000 cubic feet net). Average net income was $290,000 for December 2011.

Upside includes immediate plans to drill the Ray 27 #2 well followed by the George Michael SWD sometime between February and April. The operator then plans to drill one well in the second quarter, two wells in the third quarter and two wells in the fourth quarter.

The effective date is Feb. 1. Contact David Fowler, 432-683-3791, dfowler@simplexenergy.com.