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

Twin Oaks Production Partners has retained EnergyNet for the sale of a Piceance Basin Opportunity in Garfield County, Colorado. The Lot #110924 package includes an average royalty ownership of 2.9% in 2,790 wells.

Twin Oaks map
(Source: EnergyNet)

Opportunity highlights:

  • Large Contiguous Garfield County, Colorado Position
    • Greater than 6,100 developed mineral acres in the Piceance Basin in Garfield County, Colorado
    • 85% of value is in strategic producing area operated by Caerus Oil & Gas (successor to EnCana/Ovintiv)
    • Operator owned production infrastructure contributes to decades of economic life remaining:
      • Parachute Ranch - 619 wells with average well life remaining of ~32.9 years
      • Other Assets - 1,936 wells with average well life remaining of ~30.0 years
  • Unique, Large Royalty Ownership
    • Average royalty ownership of 2.9% in 2,790 wells
      • 500 wells (72% of total PV10 value) have royalty ownership in excess of 10% NRI
      • 432 wells have royalty ownership greater than 1% and less than 10%
  • Predictable Production and Cash Flow
    • Low-decline, predictable production profile from established Piceance tight gas sands wells
    • PDP net production of ~4,500 Mfce/d (95% gas) 1H 2023 average from LOS
    • Next twelve-month production decline is ~6.1%
    • NTM PDP Cash Flow of ~ $5.7 MM
      • Next 36-month PDP Cash Flow of ~$5.9 MM/yr without Capex or further development
    • All assets are fully held-by-production (HBP)
  • High Profit Potential
    • 95% gross margins
    • Very low administration (4 checks per month account for all asset revenue)

Bids are due Dec. 14 at 4:00 p.m. CST. For complete due diligence, please visit indigo.energynet.com or email Zachary Muroff, managing director, at Zachary.Muroff@energynet.com.

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