Marketed: Grace Petroleum Operated Package, Devonian High-volume Lift

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.