Reed Energy LLC

Transaction Type
Sellers
Marketers
Post Date
Close Date
Estimated Price
0MM
Description

Reed Energy LLC has retained Evercore Partners to help sell its interests in about 25,000 acres in the highly prospective condensate window of the Utica/Point Pleasant in southern Ohio.

The acreage is near where numerous companies have recently announced some of the highest well rates in any shale play in history. Evercore Partners has been retained as exclusive financial advisor to Reed for this unique opportunity.

The acreage offers a large contiguous position in the highly sought after condensate window of the Southern Utica / Point Pleasant, including 25,000 net acres in Washington County. Nearby initial production (IP) on wells has consistently ranged between 1,800 and 7,600 barres oil equivalent (BOE) per day, and more than 90% of title cleared by Steptoe and Johnson.

Much like the Eagle Ford and Bakken shale plays, high productivity is attributed to the brittle calcareous nature of the “shale” reservoir (Point Pleasant) and low clay content. Independent petrophysical analysis confirms that Washington County’s Point Pleasant reservoir is better than many condensate window counties to the north in Ohio.

In most Point Pleasant samples in Washington County, porosity and permeability exceed 6% and 1000 nanodarcies (nd), respectively. The Top 13 announced IPs in the Utica / Point Pleasant have originated in the southern counties of Ohio, with average IPs in excess of 3,000 BOE per day.

Low-risk opportunity due to delineation of reservoir from legacy vertical producers; unstimulated well in Washington County produced over 20 MBO from only 14 ft of perforations. Reed has identified 228 drilling locations on 106 acre spacing.

The average working interest is 100% and net revenue interest of 80%. A dozen or more wells are planned or permitted for 2013 by offsetting operators in Washington County alone and there is additional upside potential in the Trenton that sits just below the Point Pleasant Process.

An online virtual data room will be available starting Jan. 28 and technical presentations begin Feb. 4 in Houston. The bids are due by Feb. 28. Evaluation materials will include independent petrophysical and reservoir analysis, summary lease agreements, land shape files, and detailed justification for type curve and economic model.

For additional information, contact Jerry Smith, vice president – technical, at Evercore Partners, 713-427-5147 or jerry.smith@evercore.com.