Lario Oil & Gas Co.

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

Lario Oil & Gas Co. has retained Meagher Oil & Gas Properties Inc. to sell producing properties and leasehold in the Powder River Basin of Wyoming. The package involves 25,424 gross acres (9,070 net) in Campbell, Crook, Converse and Weston counties. The assets include 70 gross wells (27.8 net, 70% operated) on Lario legacy properties with long-life reserves. Gross production for July was 1,265 barrels of oil equivalent per day (406 barrels net) primarily from the Minnelusa and Muddy formations. Cash flow for June was $546,000 net. Lario holds a 50% average working interest (41.5% net revenue interest) in 50 gross operated wells (25 net) producing 885 barrels of oil equivalent per day gross (284 barrels net). The company has a 13.3% average working interest (11.1% average net revenue interest) in 21 gross nonoperated wells (2.8 net) producing 380 barrels equivalent per day gross (122 barrels net). Upside includes infill drilling locations, Muddy waterflood potential, CO2 flooding potential, resource play potential, horizontal Frontier and Niobrara in Converse County and horizontal Mowry in Weston County. The bid due date is Nov. 18. The effective date is Jan. 1, 2010. Closing is expected by Dec. 31. Contact Julia Foster, 303-721-6354, ext. 229.