Marketed: EOG Resources Western Anadarko Opportunity

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.

EOG Resources Inc. retained Detring Energy Advisors to market for sale its oil and gas producing properties, leasehold and related assets the Western Anadarko Basin located in Oklahoma’s Ellis and Roger Mills counties.

The assets offer an attractive opportunity, Detring said, to acquire a large, majority-operated, contiguous and fully HBP position totaling roughly 37,300 net acres and a liquids-weighted production base generating $37 million of high-margin cash flow. The offering, according to the firm, also includes a substantial inventory of proven, economic horizontal locations across a drill-ready development program targeting the prolific Cherokee and Marmaton formations.

Highlights: 

• Large, Contiguous, Majority-Operated Position
  • ~37,300 net acres (100% HBP) provide capital budget control and operational oversight
  • Rights across multiple productive horizons including the Cherokee, Marmaton, Cleveland, Atoka, Tonkawa and others
  • Extensive gathering, facilities, and infrastructure in place buttressed with advantageous water rates
• Substantial Liquids-Rich Production
  • Current net production: 2,770 boe/d (69% liquids)
    • PDP PV-10: $146 million
    • PDP Net Reserves: 10 million boe
    • Well Count: 188 producers (46 vertical / 142 horizontal)
  • Significant base of low-decline, predictable cash flow
    • PDP Next 12-month Cash Flow: $37 million
    • 14% Next 12-month PDP Decline (11% 2024E)
    • Low lifting costs of $9/boe
• Significant Resource Potential
  • ~385 highly economic and de-risked Cherokee and Marmaton undeveloped locations provide ample new-drill inventory
    • 218 Cherokee (>100% IRR)
    • 168 Marmaton (40% IRR)
    • Net PV-10 and reserves of ~$180 million and 48 million boe, respectively
  • High-return PDNP locations (23 return-to-production) and DUCs (four horizontal Cherokee) add an additional $14 million in combined PV-10
  • Total net PV-10 and reserves of ~$340 million and 59 million boe, respectively, with the full development program easily funded within cash flow

Process Summary 

• The assets are being offered in two distinct packages: Marmaton and Non-Marmaton; offers must be allocated by package
• Evaluation materials available via the Virtual Data Room on Feb. 7
• Bids are due mid/late March

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