San Saba Resources LLC

San Saba Resources LLC has retained Raymond James | Albrecht to sell 13,000 gross (10,200 net) primarily contiguous acres in the rapidly expanding horizontal Wolfbone Play in the Delaware Basin in Reeves County, Texas.

Although a sale of the properties to one buyer is preferred, San Saba is willing to consider proposals such as sale of a partial interest for cash and a drilling carry or bids for portions of the offering. This will be a negotiated sale.

San Saba Resources has an average 79% working interest, and half of the locations have over 98% working interest. San Saba has an average 76% net revenue interest in the leases.

The acreage includes about 150 barrels of oil equivalent (BOE) per day of net production from four vertical wells. The leases have an average of 13 months remaining on the primary lease terms with two-year extensions available.

The acreage includes multiple horizontal targets in the Wolfcamp and Bone Spring formations. San Saba has drilled six vertical wells on its acreage since 2011. All of the data collected from these wells has shown significant support for developing this play horizontally rather than vertically.

The acreage directly offsets 38 BHP Billiton horizontal wells. None of these wells are online yet, as BHP is awaiting completion of its gas processing plant and pipeline. The Colt 4-24H was tested at a rate of 1,054 BOE per day, 43% of which was oil, from the Wolfcamp. EOG recently started drilling wells about 20 miles northwest of San Saba’s acreage targeting the Wolfcamp.

The effective date of the transaction is April 1 and the bid due date is May 1. For additional information, contact Harrison Williams, executive vice president, at 713-951-9586 or Harrison.williams@raymondJames.com.