Marketed: Operated Conventional Williston Basin Opportunity

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.

Western Meadowlark Energy exclusively retained Eagle River Energy Advisors LLC to divest certain operated working interest assets and associated lands in the Williston Basin of Montana.

The assets provide the opportunity to acquire a mature, conventional production profile with a shallow 6% annual decline rate. The assets are producing approximately 45 bbl/d of oil from the Red River Formation, and next 12-month cash flow is anticipated to be about $625,000. The assets also have additional upside with several recompletion and reactivation candidate wells, according to Eagle River. 

Highlights:

Operated Assets in Montana

• Operated working interest position across Medicine Lake Field and Neiser Creek Field in Montana’s Sheridan County
• High average working interest (94%) and net revenue interest (87%/ 8/8th) provides operational control and high revenue margins
• $625,000 annualized cash flow (second-quarter 2021)

Mature Conventional Production Profile

• ~45 bbl/d of oil net production (second-quarter 2021 average)
• Oil weighted production (100%)
• 11 existing operated wells including injection well
• Mature, conventional production with ~6% annual decline
• Historical well production from the Red River, Gunton, Interlake, Ratcliffe and Kibbey reservoirs

Producing Assets with Additional Upside

• ~182,000 net boe / $2.1 million PV-8 PDP reserves
• Several wells identified as recompilation candidates
• Reactivation potential: 8 PDSI wells

Bids are due at 4 p.m. MT on Sept. 1. The transaction is expected to have an Aug. 1 effective date.

A virtual data room will be available beginning Aug. 9. For information contact Chris Martina, technical director at Eagle River, at 720-726-6092 or cmartina@eagleriverea.com.