The following information is provided by Eagle River Energy Advisors LLC. All inquiries on the following listings should be directed to Eagle River. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

Eagle River Energy Advisors LLC has been exclusively retained by Sam Gary Jr. & Associates Inc. to raise $10 million via the sale of a volumetric production payment (VPP) or a similar structured financing on certain operated working interest assets in Kansas.

Summary:

  • Financing Terms
    • Proceeds: $10 million
    • Term: Three years
    • Collateral: First lien on 163 operated PDP wells
    • Scheduled VPP Production: ~172,000 BO
  • Excellent credit profile
    • Scheduled VPP Production:
      • ~52% of ~332,000 PDP BO over three-year term
    • ~9% of ~1.9 MMBO total PDP BO over life of wells
    • Cash Flow Coverage Ratio: 1.7x
    • Well seasoned production base with stable decline from legacy vertical wells in Kansas
    • Highly diversified production across 18 fields and 12 counties
    • Highly experienced, well capitalized operator
  • Summary of Collateral
    • Net Production of 385 bbl/d (May)
    • ~7% annual production decline
    • Last 12-month net cash flow of $6.4 million
    • ~1.9 MMBO PDP reserves
    • PDP PV-10 = $32.1 million; PDP PV-20 = $22.2 million
Hart Energy July 2022 - Eagle River Energy Advisors Marketed Map Kansas Operated Assets Volumetric Production Payment
(Source: Eagle River Energy Advisors)

Bids are due by 4 p.m. MT on Aug. 15. The transaction effective date is Sept. 1. A virtual data room will be available starting July 25. For information contact Chris Martina, technical director at Eagle River, at 720-726-6092 or cmartina@eagleriverea.com.

Onshore