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.

Birch Operations Inc. is offering for sale its vertical Midland Basin wellbore-only operated interests in Howard, Martin and Midland counties, Texas.

The assets offer an attractive opportunity to acquire 89 liquids-rich wellbores (85% liquids) in the Permian Basin producing 975 boe/d (net) and generating a resilient, high-margin cash flow stream driven by efficient operations, according to Detring Energy Advisors LLC, which Birch has retained as its exclusive adviser related to the transaction.

Highlights:

  • Robust Operating Cash Flow ($5 million NTM PDP) and Production (975 boe/d | 85% Liquids)
    • Five+ years of production history provides confidence in forecast volumes and cash flow
    • Resilient cash flow stream ensured by low operating expenses and healthy margins
      • ~$16.21/boe operating cash margin
    • PV-10 of $19 million
      • Midland: 22%
      • Martin: 58%
      • Howard: 22%
    • Net reserves of 3.2 million boe
      • Midland: 16%
      • Martin: 59%
      • Howard: 25%
  • High ownership interest and operational control
    • Average Working Interest: 98% | Average Lease Net Revenue Interest: 77%
    • 89 PDP wells
      • Midland: 7
      • Martin: 62
      • Howard: 20
    • This is a wellbore-only package
Detring Energy Advisors Marketed Location Map - Birch Operations Midland Basin Production Acquisition Opportunity
(Source: Detring Energy Advisors LLC)

Process Summary:

  • Evaluation materials available via the Virtual Data Room on May 10
  • Proposals due on June 9

For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.

Onshore