Marketed: Nichols Brothers Operated Assets In New Mexico, Oklahoma, Texas

Transaction Type
Sellers
Marketers
Basin
Midcontinent; East Texas; Permian Basin
Announce Date
Post Date
Close Date
Room Opening Date
Estimated Price
0MM
Description

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

Nichols Brothers Inc. (NBI) retained Continental Energy Advisors for the sale of operated assets in New Mexico, Oklahoma and Texas as part of a Chapter 11 bankruptcy filed by NBI and certain of its affiliates.

The offer, which includes assets in the Permian Basin, comprises PDP  with tremendous redevelopment upside, along with reserve potential in other formations, according to Continental Energy Advisors.

Asset Overview:

  • About 14,700 barrels of oil and 13.6 million cubic feet (MMcf) of gas per moth of current production
  • Roughly 38,000 Gross Acres
    • HBP
    • 96% - 100% operated
    • 65% - 87% Net Revenue Interest
  • Tremendous Redevelopment Upside in New Mexico San Andres, also Oklahoma Bartlesville and Prue Sands
    • About 22,700 barrels of oil and 39 MMcf of gas per month of historic production level across all plays
    • Fallen to roughly 14,700 barrels of oil and 13.6 MMcf of gas per month current production across all plays
    • Simple maintenance fixes and workovers could restore production to previous levels
    • Full infrastructure and pipelines
    • Horizontal drilling and gas injection potential in some fields for higher recoveries
  • Wolfcamp, Bone Springs, Morrow and Queen potential in New Mexico Permian Basin acreage
  • Wilcox, Oswego, Red Fork and other potential in some Oklahoma acreage
  • Recently completed capital projects add substantial cash flow

The deadline to designate stalking horse bidder is March 28. Deadline for competing bids is noon CST April 12. The auction/sale hearing will be held on April 24.

For information visit continentalenergyadvisors.com or contact David Martin, managing director of Continental Energy Advisors, at 713-300-1422 or dmartin@continentalea.com.