Marketed: Fortuna Resources Development Delaware Basin Minerals, Royalties

Transaction Type
Sellers
Marketers
Basin
Permian Basin; Delaware Basin
Announce Date
Post Date
Close Date
Estimated Price
0MM
Description

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

Fortuna Resources Development LLC retained PetroDivest Advisors for the sale of mineral and overriding royalty interests within the Delaware Basin of the Permian in Reeves, Ward and Pecos counties, Texas.

The package comprises 590 net royalty acres in the core of the Delaware Basin under active development with multiple recently drilled wells and substantial undeveloped inventory, according to PetroDivest.

Highlights:

  • 590 Net Royalty Acres (normalized to 1/8th royalty)
    • About 71% Minerals and roughly 85% HBP
  • Rapid on-acreage development since 2017 ensures imminent cash flow and continued operational focus
    • Prolific well results on and surrounding the properties across multiple Bone Spring (2nd / 3rd) and Wolfcamp (A/B/C) horizons
  • Assets include 30 active producers (20 horizontal), nine horizontal drilled but uncompleted wells (DUCs), eight horizontal permits
    • Net Production: about 140 barrels of oil equivalent per day Proved Developed Producing (PDP)
    • Next 12-month Cash Flow: about $2.3 million (includes PDP, DUCs, Permits)
  • About 60% of producing and drilled horizontal wells operated by Jagged Peak Energy Inc., which budgeted roughly $600 million drilling and completion (D&C) for the Delaware Basin in 2019
    • Eastern acreage integral to Jagged Peak’s Whiskey River focus area
    • Multizone development expected beyond 2019 for Wolfcamp A, B, and 3rd Bone Spring
    • Five rigs scheduled to operate throughout the year, transitioning to multi-horizon co-development
    • Two current Jagged Peak rigs drilling Whiskey River Wolfcamp on-minerals (Pecos and Ward counties)

Process Summary:

  • Virtual Data Room opens May 1
  • Bids due May 29

For information visit petrodivest.com or contact Ken Reed, director of PetroDivest, at ken@petrodivest.com or 713-595-1016.

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