The following information is provided by Detring Energy Advisors LLC. All inquiries on the following listings should be directed to Detring. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
BC Operating Inc. retained Detring Energy Advisors to market for sale its nonoperated working interests located in the core of the northern Delaware Basin in southwest Lea County, New Mexico.
Based in Midland, Texas, BC Operating is the operating company for and owned equally by Crump Energy Partners II LLC and Crown Oil Partners V LP. The company is engaged in the exploration, development, and production of oil and natural gas resources and has more than 30 years of experience in the Permian Basin region.
The assets offer an attractive opportunity, according to Detring, to acquire a majority interest in the Broadside 13-24 Fed Com unit where Devon Energy has a rig on-location drilling four recently AFE’d 2-mile laterals targeting the prolific Upper Wolfcamp with anticipated TIL by March. The assets include interest in the offsetting Broadside 1H, a prolific recent completion generating substantial cash flow, Detring added.
Highlights:
- 61% Nonoperated Working Interest in four AFEs
- Majority interest in Devon-operated Broadside 13-24 Fed Com Unit
- Four AFEs for 2-mile Wolfcamp wells
- Rig on-location (1st well spud Sep. 20)
- Full-pad TIL in first-quarter 2022
- $8.0 million average gross D&C per well
- ~$19 million total net capex
- Total AFE’d well PV10 and net reserves of ~$41 million and 2.7 MMboe, respectively
- World-Class Well Results Underpin Robust Economics
- Recent offsetting well-results de-risk the position
- Unit surrounded by 2021 development
- Numerous 1+ MMbbl EUR wells immediately offsetting the position
- Upper Wolfcamp type curve generates a BTAX IRR of >200%:
- IP-30: ~2,800 boe/d
- EUR: 1.5 MMboe (66% oil)
- Recent offsetting well-results de-risk the position
- Top-Tier Delaware Basin Operator
- Devon is a premier Delaware Basin operator, delivering on production and capital efficiency goals
- Impressive well results outpacing type curves throughout the basin
- 13 rigs/four crews across the basin
- Second-quarter 2021 basin-wide average D&C of $543/ft and LOE + GP&T of $5.97/boe
- Devon is a premier Delaware Basin operator, delivering on production and capital efficiency goals
Process Summary
- Evaluation materials available via the Virtual Data Room on Oct. 4
- Proposals due on Oct. 29
For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.
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