Marketed: EOG Resources Marcellus Shale, Bradford County, Pennsylvania

Transaction Type
Sellers
Marketers
Basin
Appalachian Basin; Marcellus Shale
Announce Date
Post Date
Close Date
Room Opening Date
Estimated Price
0MM
Description

The following information is provided by UBS Securities LLC. All inquiries on the following listings should be directed to UBS. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

EOG Resources Inc. is offering for sale certain Marcellus Shale assets primarily located in Bradford County, Pa.

EOG’s preference is to sell the properties in a single cash transaction, according to UBS Securities LLC which was retained by the company to serve as its exclusive financial adviser for this transaction.

Bids will be due in September. Online virtual data room and UBS data room presentations are currently available. The transaction effective date is July 1. Contact UBS at EOGmarcellus@ubs.com for further information.

Highlights:

  • Roughly 25,000 contiguous net acres located in Bradford County, Pa., in the Northeast Core dry gas fairway (99% operated); 92% HBP
  • About 55 million cubic feet per day net from 40 horizontal wells with significant net cash flow of $2.6 million per month (Based on estimated next 12 months average of July 2019-June 2020)
    • Pipeline quality dry gas with low water production allowing for simple infrastructure and low lease operating expenses
    • Ability to further enhance ultimate recoveries through compression upgrades
  • Proven development opportunities in the Lower Marcellus including 10 drilled but uncompleted (DUC) wells and 52-plus infill drilling locations at 1,000-ft spacing
    • Recent 2017/2018 EOG high-density completions on 17 wells proved enhanced production potential and supports greater than 3 billion cubic feet per 1,000-ft average EUR type curves on the remaining DUCs and upside locations
    • 10 DUC wells with very high IRR offering low-risk, near-term growth
    • Self-funding development program with the ability to live within cash flow
  • Potential to double Lower Marcellus locations with stacked landing targets at tighter spacing
  • Turnkey operations; EOG-owned gathering system with over 29 miles of high and low-pressure lines and two compressor stations
  • Central facilities and field office included
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