The following information is provided by Permian Energy Partners LLC (PEP). All inquiries on the following listings should be directed to PEP. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Permian Energy Partners (PEP) is the exclusive agent for Grace Petroleum Operating LLC for the sale of an operated sale package featuring Devonian high-volume lift in Gaines and Yoakum counties, Texas.
The offering includes two Devonian wells plus two disposal wells that are permitted/capable of handling 5x the amount of water currently being disposed of at 4,550 bbl/d. It’s important to note, PEP said, that the current cash flow from these two producing wells, at $100/bbl oil, minus the monthly average LOE of $46,000/month (3-, 6-, and 12-month average), is approximately $100,000 net per month (also net of oil severance tax of 4.6%).
The $45,960/month average net income is reflective of the 6-month average net income at an oil price of $72.23/bbl. Drastically different than the oil price today of $120/bbl, the firm added. PEP also noted that one of the two Devonian wells just had the ESP replaced (March/April) after a multiyear run of the ESP. Both wells will run 2.5 to 3.5 years between ESP replacements.
Highlights:
- Gaines / Yoakum counties, Texas (Permian Basin)
- 100% Operated Working Interest, 73%-74.5% Net Revenue Interest
- 73 bbl/d of oil, 4,550 bbl/d of water
- Two vertical Devonian wells
- Two disposal wells (Permitted 5x Disposal Capacity)
- 2.5 to 3.5 Years Between ESP Replacements
- Low Decline, Long Lived Reserves
- Approximately $100,000 Net Income at $100/bbl
Offers are accepted on first-come, first-served basis. For information contact David Fowler at David@permianenergypartners.com or Tony Martinez at Tony@permianenergypartners.com.
Recommended Reading
DOE Awards Pioneer Energy $27MM for Emissions Reduction Projects
2025-01-08 - Pioneer Energy said it will allocate most of the funds toward advancing its Emission Control Treater, a near zero emissions well pad production technology, as it implements projects in the Eagle Ford, Cotton Valley and Colorado.
SM’s First 18 Uinta Wells Outproducing Industry-Wide Midland, South Texas Results
2025-02-20 - Shallow tests came on with 685 boe/d, 95% oil, while deeper new wells averaged 1,366 boe/d, 92% oil, from two-mile laterals, SM Energy reported.
Vital, SM: Woodford-Barnett Wildcats Flush with Barrels in Southern Midland
2025-02-25 - An initial SM Energy test made 250,000 boe in its first eight months online. Vital Energy is reporting more than 150,000 gross boe per 10,000 ft of lateral in its first-six-month output.
Coterra to Rig Back up in Marcellus to Arrest Decline
2025-02-26 - “This increase in activity is from zero to ‘some’ activity. I wouldn't characterize this as ‘leaning into’ a gas market,” Shane Young, Coterra Energy’s CFO, told investors.
BP’s Eagle Ford Refracs Delivering EUR Uplift, ‘Triple-Digit’ Returns
2025-02-14 - BP’s shale segment, BPX Energy, is seeing EUR uplifts from Eagle Ford refracs “we didn’t really predict in shale,” CEO Murray Auchincloss told investors in fourth-quarter earnings.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.