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
- Scheduled VPP Production:
- 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
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.
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