SMSE

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

SMSE has hired Lantana Oil & Gas Partners to coordinate the sale of a package of 14 producing, non-operated wells in the Eagle Ford.

The wells, in La Salle County, Texas, are operated by Chesapeake Energy Corp. (NYSE: CHK) and produce about 160 barrels of oil equivalent per day net to SMSE. Net cash flows from the assets are about $400,000 per month.

SMSE has an average working interest of 3.2% and an average net revenue interest of 2.4% in the assets. The package includes 5,450 gross acres, with rights form the surface to the base of the Eagle Ford shale.

Proved developed producing (PDP) reserves total 172,000 bbl and 1749 million cubic feet (MMcf) of natural gas worth a present value of $8.1 million when discounted at 10%.

Capital costs are around $7 million per well. The average internal rate of return is in estimated to be in excess of 100% for all proven, undeveloped locations.

The effective date for the transaction is April 1 and the bid due date is April 3. Closing is scheduled for May 16. For additional information, contact Andy Taurins at Lantana Oil & Gas Partners at 713-426-9001 or andy@lantanaog.com.