The following information is provided by Core Energy Advisors LLC. All inquiries on the following listings should be directed to Core Energy. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Verado Energy Inc. and partners retained Core Energy Advisors as their exclusive adviser for the sale of operated properties located within the Permian Basin in the Hermleigh East Field of Scurry County, Texas. The vast majority of production is from the horizontally developed Strawn Sand reservoir. The sellers’ acreage is located within the thickest portion of the Strawn reservoir. The PUDs in the sellers’ package have excellent log coverage and 360-degree type curve coverage, according to Core Energy.
Highlights:
- An opportunity to acquire a core producing property with well defined, undeveloped locations in the Hermleigh East Field.
- 1,703 gross (991 net) bbl/d of oil; 6,182 gross (2,931 net) Mcf/d of gas.
- 7,976 gross (7,287 net) acres that is 80% HBP.
- Predictable PDP reserves from moderate well count.
- Total proved PV-10 of $116.7 million and PDP PV-10 of $78.4 million.
- Next 12-month PDP cash flow of $32.7 million.
- 15 horizontal and 16 vertical operated wells plus one nonop horizontal well.
- Well defined PUDs can be developed within cash flow.
- Eight well defined PUDs with IRRs averaging 79%.
- Development program assumes drilling of 1-2 wells per year.
- 53% of total proved net oil reserves are undeveloped.
Process Summary:
Offers will be due July 27. To obtain the expected price range, contact Harrison Williams, managing principal, at Hwilliams@coreenergyadvisors.com or 713-962-1400. To obtain access to a virtual data room, contact Williams or Powers Ramsey, at Pramsey@coreenergyadvisors.com or 214-219-8208, for an NDA.
Recommended Reading
Civitas Resources C-Suite Chat: Rising to the Challenge(s)
2022-12-01 - Civitas Resources in the D-J Basin is aligning executive compensation with stakeholders, meeting emissions reduction targets and is on target to generate $1 billion in annual free cash flow this year. And inside its C-suite, a millennial woman from Colombia is showing everyone how it’s done.
BP Weighs Ending its 70-Year-Old Statistical Review of World Energy
2022-11-28 - CEO Bernard Looney has radically shifted BP’s focus since taking office in 2020 and its Statistical Review of World Energy report has been seen by some BP executives as detrimental to the company’s new direction, sources told Reuters.
TotalEnergies Leads Shell, BP in Renewables Race, but Shares Sag [GRAPHIC]
2022-11-07 - Despite the growing focus on the climate, investors remain cautious for now, with shares of the three European giants trailing their oil and gas-focused U.S. rivals Exxon Mobil Corp. and Chevron Corp. so far this year.
NextEra Grows RNG Portfolio in $1.1 Billion Deal
2022-10-28 - The Florida-based renewables energy powerhouse intends to convert the funds’ portfolio of landfill gas-to-electric projects and assets to renewable natural gas.
BP Joins Rivals with Bumper $8.2 Billion Profit
2022-11-01 - BP said it expects to pay around $2.5 billion in taxes for its British North Sea business this year, including $800 million in a windfall tax.