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

Elk River Resources, LLC (Elk River) has retained Detring Energy Advisors to market for sale its oil and gas leasehold in a single operated, HBP, stand-up 640-acre unit (100% WI & 75% NRI) in Reeves County, Texas. The asset offers an attractive opportunity to acquire (i) 420 Boed of net production from 5 horizontal Wolfcamp A wells; (ii) $4.3MM in NTM PDP cash flow, underpinning future development capital with low lifting costs; and (iii) 4 additional two-mile horizontal development locations in proven Bone Spring targets with multiple nearby analogs showcasing redevelopment above existing Wolfcamp A producers with strong results.

Elk River Resources Delaware Basin
(Source: Detring Energy Advisors)

Asset Highlights:

  • $4.3MM Operating Cash Flow (NTM PDP Only)
    • Oil-rich production generated from 5 Wolfcamp A horizontal wells
      • PDP PV10: $18MM
    • Low-cost, high-margin production
      • LTM lifting cost of $14/Boe
    • Operated, HBP position with developmental control
      • 640 gross/net acres
      • 100% WI / 75% NRI
  • Four Undeveloped Locations Across Proven Bone Spring Targets
    • De-risked position offset by active rigs and recent completions
      • Chevron and Patriot demonstrated nearby return development in the Bone Spring over existing Wolfcamp wells
    • Robust type curves generate IRR’s >60% and EURs >120 MBoe/Mft
      • 3P Net Reserves: ~6 MMBoe
      • 3P PV10: ~$55MM

Bids for this lot are due on Aug. 9. For complete due diligence information on this property, please contact Melinda Faust at mel@detring.com.

Comments