Opal Resources LLC

Opal Resources LLC has retained Albrecht & Associates Inc. to sell its operating interests in certain producing Wolfberry properties in Texas in a negotiated transaction.

The package includes an average 99.5% working interest (79.1% net revenue interest) in 29 producing wells on 8,004 gross contiguous acres (7,968 net acres) in the Wolfberry trend in Martin and Dawson counties. Approximately 4,560 gross acres (4,560 net) are held by production. Projected proved developed producing cash flow for the first 12 months following the effective date of Oct. 1 is $19.8 million.

Upside includes one proved nonproducing opportunity and 171 proved undeveloped locations in the Wolfberry Trend in Martin and Dawson Counties, Texas. A total of 25 more wells must be drilled to hold all of the acreage.

All of the PUDs are 40-acre infill development locations targeting the Wolfberry. Net proved reserves are estimated at 24 million barrels of oil, 22 billion cubic feet of gas and 7.9 million barrels of NGL. Net proved producing reserves are 3.1 million barrels of oil, 3.1 billion cubic feet of gas and 1.1 million barrels of NGL. Proved undeveloped reserves are based on the average EUR of the 21 Wolfberry producers on Opal's acreage.

Average October 2010 net sales volumes are projected to be 780 barrels of oil per day, 430,000 cubic feet per day and 150 barrels per day of NGL. The heating content of the wellhead gas averages 1.400 MMBTU per Mcf. The accompanying economics are based on a three-rig drilling program with each rig drilling two wells per month. All facilities are in place for full-scale development of the acreage block.

The data room opens Aug. 9. The negotiation is expected to close Sept. 29. Contact Harrison Williams, 713-951-9586, hwilliams@albrechtai.com.