The following information is provided by EnergyNet. All inquiries on the following listings should be directed to EnergyNet. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

BKV Chelsea has retained EnergyNet for the sale of a 214 non-operated well package in Bradford, Lycoming, Sullivan, Susquehanna, Tioga and Wyoming counties, Pennsylvania. The lot# 115742 package includes 209 active wells with current net production of 7.5 MMcfe/d.

EnergyNet
(Source: EnergyNet)

Opportunity highlights:

  • Premium Non-Operated Appalachian Basin Portfolio
    • Attractive opportunity to acquire non-operated working interests with leading operators in the NE Pennsylvania dry gas Marcellus play;
    • $26.3MM PDP PV-10;
    • PDP NTM CF estimated at $2.9 MM;
    • 209 active wells with current net production 7.5 MMcfe/d;
    • Approximately 26,000 gross acres / 6,700 net acres; 100% HBP; and
    • Average well ownership 7.1% WI / 5.8% NRI; 18% average royalty burden (8/8ths).
  • Predictable Production and Durable Cash Flows
    • Stable cash flow from diversified portfolio featuring 200+ wells with six operators over five counties;
    • Asset value distributed throughout portfolio with 75 wells accounting for top 80% of estimated PV-10;
    • Wells have been producing for more than 10 years on average with established and predictable production profile and shallow base decline less than 10%; and
    • Minimal near-term abandonment exposure with only $300k of estimated P&A spend through 2030.
  • Meaningful Upside Exposure
    • 111 identified new drill opportunities with estimated $37.1MM PV-10 in addition to refrac targets on early generation wells;
    • Natural gas forward strip pricing shows consensus for significant increases in coming years driven by LNG startups and export premium; and
    • 100% HBP acreage position offers ownership in future developments unlocked in higher gas price environment.

Bids are due April 23 at 4 p.m. CDT. For complete due diligence, please visit indigo.energynet.com or email Ethan House, managing director, at Ethan.House@energynet.com, or Jessica Scott, buyer, at Jessica.Scott@energynet.com.

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