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.

CUDA Energy LLC retained Detring Energy Advisors to market for sale its large, contiguous roughly 16,500 net-acre-position in the prolific Powder River Basin.

The assets offer the opportunity to acquire nonoperated working interest underneath a focused operator with a production base generating roughly $5 million in cash flow (next 12-month). Detring added that near-term production growth is driven by an active miscible gas flood program and exposure to horizontal development potential across multiple stacked-pay targets.

Highlights:

  • Increasing Production Base (~500 bod net | 100% oil)
    • 56 PDP wells generate strong production and cash flow across the Barron Flats Unit (BFU) and the Cole Creek Field Unit (CCU)
      • Average PDP: Working Interest: 28% | Net Revenue Interest: 22%
    • Resilient cash flow supported by efficient operations and high netbacks
      • PDP Cash Flow: $5 million (next 12-month)
      • PDP PV-10: $39 million
      • Netback: $46/bbl (Average 2022E)
    • 2022E PDP exit rate of 600 Bod as gas flood continues trend of increased rate
  • Miscible Gas Flood Drives Continued Growth
    • De-risked production growth from miscible gas flood with proven results
      • Oil production has increased 75% since implementation of gas flood
      • Gas injection volumes increased 10x in first-half 2021 with oil production in early response stage
    • Significant OOIP of ~230 million barrels
      • Gas flood projected to drive 40%-50% incremental recovery
    • New infrastructure with direct access to injection feedstock
  • Prudent Operator Actively Developing Substantial Upside
    • Canadian Overseas Petroleum Ltd. (COPL) is sole operator
    • Publicly disclosed growth outlook:
      • Plans to increase gas injection in BFU
      • Targeting 17 recompletes in CCU
    • BFU deep test completed in September confirmed six oil-bearing sands with ~250 ft total net pay
    • Conventional and unconventional horizontal targets under active development by offset operators
      • Primary Zones: Turner, Frontier
Detring Energy Advisors Marketed Map - CUDA Energy Conventional Powder River Basin Nonop Oil Opportunity
(Source: Detring Energy Advisors LLC)

Process Summary:

  • Evaluation materials available via the Virtual Data Room on Jan. 5
  • Proposals due on Feb. 4

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

Onshore