Macquarie Americas Corp.

Macquarie Americas Corp. has retained Macquarie Tristone to sell interests in certain Wolfberry assets in the West Texas Permian Basin.

The package includes approximately 40,000 gross acres in two lease positions: approximately 32,000 acres in the War Admiral area in Andrews and Martin counties and approximately 8,000 acres in the Gallant Fox area in Ector County. The assets feature 105 producing wells and represent a 20% net profits interest in the Wolfberry trend of the Permian Basin. Midland, Texas-based Reliance Energy Inc. is operator.

Production is approximately 835 barrels of oil per day and 1.7 million cubic feet of gas per day. Net proved reserves are 18.7 million barrels equivalent. Net monthly operating income is $1.7 million. Long-life reserves are predicted to have peak production of more than 3,600 barrels equivalent per day in 2019.

Upside includes 1,892 undeveloped locations with 753 proved undeveloped locations based on 40-acre spacing and 1,139 probable infill locations mainly based on 20-acre spacing. There is also additional Atoka potential. The assets feature an ongoing drilling program with four rigs driving production growth with drilling rate of returns exceeding 40%.

Bids are due in mid-December. Contact David Hopkins, 713-651-4220, david.hopkins@macquarie.com.