Marketed: Gulf Coast Conventional Waterflood Properties

Transaction Type
Sellers
Marketers
Basin
Gulf Coast
Announce Date
Post Date
Close Date
Room Opening 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.

South Carlton LLC retained PetroDivest Advisors to market for the sale of Gulf Coast conventional waterflood leasehold and producing assets in Alabama in Clarke and Baldwin counties.

The offer comprises a roughly 5,400 gross acre unitized field, entirely operated by South Carlton, with low-decline production, stable cash flow and substantial near-term potential through improved operations and further development, according to PetroDivest.

Asset Highlights:

  • 5,408 Gross Acres 100% HBP
    • Field-wide unitized position covering the full extent of prod. formations
      • Fully HBP, allowing a future operator to schedule undeveloped and operational opportunities within cash flow
    • Exhaustive technical data available to support estimated OOIP, recovery factors and waterflood potential
      • Discovered in 1950 and unitized in 2005 with decades of technical data
  • Robust Oil Production about 100% Working Interest and 82% Royalty Interest
    • Low-decline production maintained by operations, with substantial rate increases through increased injection
      • About $1.1 million 2018 operating cash flow
      • Roughly 250 barrels per day (bbl/d) of oil net production (about2% decline)
      • About 600 bbl/d of oil potential near-term
    • 41 Operated wells producing the Massive, Pilot & Eutaw reservoirs
      • 34 vertical and directional Pilot wells
      • One vertical Massive well, and 5 vertical commingled Massive-Pilot wells
      • One vertical Eutaw well (87.5% Royalty Interest)
  • Ongoing Waterflood With Abundant Reserves
    • ‘Pilot’ interval est. at ~90 MMBo OOIP; only about 7% recovered to-date
      • Geologically parallel to the Massive and separated by only roughly 100 ft, with similar anticipated recovery of 25% or more
      • Six EOR injection wells running 2,000 bbl/d of water, with additional locations identified
    • ‘Massive’ interval estimated at roughly 20 million barrels of OOIP with about 17% recovered to-date
      • Active water drive mechanism

Process Overview:

  • Evaluation materials available via the Virtual Data Room on March 26
  • Proposals due on May 1

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