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

Grace Petroleum Operating LLC retained Permian Energy Partners (PEP) for the sale of a Permian Basin operated sale package featuring Devonian high-volume lift in Gaines and Yoakum counties, Texas.

Provided by Permian Energy Partners

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.

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.

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