Apache Corp. (NYSE: APA) and Pedernales Energy LLC are selling leasehold acreage in West Texas in Garza and Lynn counties.
The package covers a combined 26,876 gross (21,493 net) acres. Apache holds 12,128 gross (8,522 net) acres of the leasehold and Pedernales holds 14,748 gross (12,971 net) acres.
Simplex Energy Solutions LLC has been retained by the companies to handle the sale.
Highlights:
- Leasehold covers 26,876 gross (21,493 net) acres;
- 3-D seismic available (southern acreage);
- All rights, all depths;
- Structurally-controlled play;
- 78.55% net revenue interest (average); and
- Upside includes horizontal/vertical drilling locations of Stawn, Ellenberger, Mississippian and San Andres potential targets.
The Apache acreage carries an average 80.13% net revenue interest. Pedernales' acreage carries an average 77.5% net revenue interest.
Expirations on the Apache acreage start in January 2016. Lease extensions are available on portions of the acreage.
Expirations on the Pedernales acreage are almost all in May. Two-year extension options are available on the acreage at $300/acre.
The State Unit 10 #1H well on the acreage had “good shows” in the Mississippian Formation before it was plugged and abandoned due to a pipe sticking in the lateral, Simplex said.
Apache and Pedernales will consider offers on all or a partial block of acreage of substantial size.
For information contact Roy Jackson, Simplex managing partner, at 432-683-3791.
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