Marketed: ConocoPhillips Chittim Ranch Waterflood, Maverick County, Texas

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.

ConocoPhillips Co. retained Detring Energy Advisors to market for sale its Chittim Ranch waterflood properties located in Maverick County, Texas.

The assets offer an attractive opportunity, Detring said, to acquire an oil-weighted production base generating about 550 boe/d (roughly 99% oil) on a consistently low decline producing from the San Miguel reservoir with significant, stable cash flow providing reliable, long-term returns on investment. Additionally, the offering includes multiple opportunities for historically demonstrated field optimization and development to unlock additional production, reserves and cash flow.

Highlights:

• ~30,000 Net Acre Position (100% Working Interest and 100% HBP) 
  • Large, operated, HBP and contiguous position provides control for buyer improvements of waterflood and ongoing operations
  • Low royalty burden (12.5%) with 100% working interest and 87.5% revenue interest across the asset
  • Contiguous acreage and well locations provide economies of scale for operations and workovers
• Low-Decline Production (~550 boe/d at 99% Oil on ~6% Decline)
  • Oily production base on low and steady decline ensures confidence in future cash flow and returns
    • ~$6 million Next 12-month operated cash flow (PDP)
  • $25 million PDP NPV-10 with 2.6 MMboe net reserves (~13 year reserves-to-production ratio)
  • Operated by a COPC affiliate, providing a well-maintained asset prepared for further improvements
    • Developed field with infrastructure in-place to facilitate operations
• Legacy Assets Primed for Optimization & Redevelopment
  • Significant workover potential with ~70 wells identified to return low-risk, meaningful production online
  • Multiple existing patterns with infill and reactivation potential
  • Historically successful opportunities for production uplift through developed asset improvement
  • Upside available through modern refracturing, recompleting of legacy wells, and waterflood pattern optimization

Process Summary:

• Evaluation materials available via the Virtual Data Room on June 23
• Proposals due on July 28 

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