The following information is provided by Barclays. All inquiries on the following listings should be directed to Barclays. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
EnCore Permian is offering for sale its Colt 45 State Unit oil and gas assets located in western Reeves and Culberson counties, Texas, within the Delaware Basin. The company retained Barclays as its exclusive financial adviser in connection with the transaction.
Highlights:
Contiguous Position in the Delaware Basin
- Contiguous operated acreage position in the most active and economic basin in the U.S.
- ~7,700 net acres with 100% working interest
Stable Cash Flows with Strong Returns on Future Inventory
- Current net production of 6,300 boe/d
- 29% oil, 38% gas, 33% NGL
- Backlog of workovers focused on artificial lift optimization projects to further boost PDP
- Second-half 2021E Annualized EBITDA of ~$55 million
- Proved Developed (PDP, PDNP, DUC) PV-10 of ~$125 million
- High inventory of IRR > 100% Wolfcamp locations
Prolific Geologic Setting with High Quality Well Results
- Proven stacked pay in the Wolfcamp A and B as well as untapped resource potential in the Wolfcamp C and Lower Bone Spring
- Acreage with relatively homogeneous lithology and manageable structure thanks to seismic coverage
Asset Primed for Full Field Development
- Optimal development designed to capture full upside potential
- Large inventory of longer lateral locations targeting the Wolfcamp A and Wolfcamp B with additional upside in the Wolfcamp C
- 39 Wolfcamp A net locations / 55 Wolfcamp B net locations
Sufficient Infrastructure for Future Growth
- Acreage connectivity and investment in field level infrastructure positions the asset for full potential
- Midstream infrastructure holds the capacity to handle rapid asset growth
- No MVCs in addition to having gathering and marketing simplicity among all production streams
- No H2S issues or treating facility requirements
- Ability to decrease opex significantly below current costs and improve the revenue stream by implementing certain surface level technologies already underway
On behalf of EnCore, Barclays is reaching out to a select group of potential buyers with respect to EnCore’s operated position in the Delaware. Preliminary indications will be due mid- to late September.
A virtual data room is available. All communication or inquiries related to the sales process must be directed to Barclays representatives. Primary Barclays contacts for the transaction are Associate Johnny Gragg, Johnny.Gragg@Barclays.com, and Analyst Elizabeth Owen, Elizabeth.Owen@Barclays.com.
Recommended Reading
TGS, SLB to Conduct Engagement Phase 5 in GoM
2024-02-05 - TGS and SLB’s seventh program within the joint venture involves the acquisition of 157 Outer Continental Shelf blocks.
StimStixx, Hunting Titan Partner on Well Perforation, Acidizing
2024-02-07 - The strategic partnership between StimStixx Technologies and Hunting Titan will increase well treatments and reduce costs, the companies said.
Forum Energy Signs MOU to Develop Electric ROV Thrusters
2024-03-13 - The electric thrusters for ROV systems will undergo extensive tests by Forum Energy Technologies and SAFEEN Survey & Subsea Services.
Axis Energy Deploys Fully Electric Well Service Rig
2024-03-13 - Axis Energy Services’ EPIC RIG has the ability to run on grid power for reduced emissions and increased fuel flexibility.
TotalEnergies Rolling Out Copilot for Microsoft 365
2024-02-27 - TotalEnergies’ rollout is part of the company’s digital transformation and is intended to help employees solve problems more efficiently.