Kerns Resources LP

Transaction Type
Sellers
Marketers
Basin
Anadarko
Post Date
Close Date
Estimated Price
0MM
Description

Kerns Resources LP has retained Energy Spectrum Advisors Inc. to offer certain nonoperated properties in the Granite Wash of the Texas Panhandle.

The package includes 2,166 gross acres (368 net) in Roberts and Hemphill counties, featuring four original vertical wellbores with 25% working interest (18.75% net revenue interest). The 13 other existing wells and undeveloped locations have 17% working interest (12.75% net). The acreage is 100% held by production and all properties are operated by Unit Corp. There is a preferential right to purchase the properties for both the operator (Unit) and the seller (Kerns).

Production is 2.3 million cubic feet of gas, 100 barrels of oil and 356 barrels of gas liquids for a total 842 barrels of oil equivalent per day. Net proved reserves are 566,000 barrels of oil, 1.7 million barrels of gas liquids and 11.2 billion cubic feet of gas for a total 4.17 million barrels of oil equivalent, and proved and probable reserves are 8.4 million barrels equivalent. Net cash flow is $534,411 per month.

Upside includes an average estimated ultimate recovery of 1.2 million barrels per well for future horizontal Granite Wash wells. Proved undeveloped locations is based on four wells per 640-acre section (on 160-acre spacing) and probable undeveloped locations is based on eight wells per 640-acre section (on 80-acre spacing).

The bid due date is April 11. The effective date is May 1. Contact Lindsay Sherrer, 214-987-6109, lindsay.sherrer@energyspectrum.com.