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

Energy Advisors Group (EAG) retained by Welba Peak to market its unique, expansive and de-risked Niobrara development opportunity chasing 200 million boe in a horizontal volatile oil play across three benches in Colorado’s Moffatt and Routt counties. Welba estimates it will take $188 million in original capital to develop an immediate 18 wells and applicable infrastructure. The project anticipates individual wells to come on (30-day IP, after cleanup) just under 1,000 boe/d and recover 535,000 barrels of oil and 3.6 Bcf of gas (1.135 million boe/well, 47% oil) per 10,000-ft lateral.

Overview:

  • Significant Northwest Colorado Sand Wash Basin Project
  • 220-well Development Opportunity. 18-Initial Wells. 29,000-Net Acres
  • Prolific Niobrara Resource Play
  • Liquids-Rich Tow Creek, Wolf Mountain and Rangely Formations (10,200 – 10,900 ft)
  • Overpressure and Thermally Fractured Rock Offer Great Potential
  • Project De-risked By Pilot, Reservoir Modeling, Geological Studies and 2D Seismic
  • Pilot Horizontal Seven-Month Production: 93,000 barrels of oil and 300 MMcf of gas – on choke
  • Pilot Well Peak Rate of 820 bbl/d of oil and 2.9 MMcf/d of gas from 8,000-ft effective lateral
  • Single Well Drill and Complete Costs: $9.8 million for 10,000-ft lateral
  • Project Offers An Estimated IRR >100% at $60/bbl & $3.30/Mcf
  • Seeking Partners and Capital To Initiate 2+ Rig Program To Develop Project.
Energy Advisors Group Marketed Map - Welba Peak Northwestern Colorado Multi-bench Niobrara Development
(2) Well Locations: Enverus (Source: Energy Advisors Group)

Key Investment Highlights:

  • $11 million in upfront infrastructure costs (gas pipeline and saltwater disposal well) to kick off the project
  • $59 million D&C first tranche of wells (six wells on two pads)
  • $118 million D&C on next tranche of wells (12) to fill up capacity on planned gas pipeline
  • Ability to loop gas pipeline as needed when moving to full development

Bids are due in early April and the virtual data room is available at EnergyAdvisors.com/deals. For more information email Steve Henrich, EAG director of business development and execution, at shenrich@energyadvisors.com, or Alan Yoelin, EAG director and petroleum engineer, at ayoelin@energyadvisors.com.

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