For the sale of its shallow Arkoma Basin assets, the private-equity firm Canaan Resources LLC retained the investment banking firm Energy Capital Solutions LLC, the company said June 26.
The assets sit on 64,144 HBP net acres across Haskell, Hughes, McIntosh and Pittsburgh counties, Okla. and contain 560 producing wells. These produce 11 million cubic feet equivalent per day (MMcfe/d), Canaan said. The assets mainly produce from the Hartshorne Coal Formation between 2,000 and 2,500 feet, the company said. There is also production in the Bartlesville, Booch, McAllister and Savanna Formations, Canaan said. The assets also include additional HBP acreage, infrastructure and proprietary 3-D seismic, the company added.
Interested parties must submit nonbinding interest indications by July 25, the company said.
In 2013’s net revenue from the assets’ net production—12.8MMcfe/d, more than 99% of it gas—was $12 million, Canaan said.
At year-end 2013, cash flow from production was $373,200, Canaan said, noting that in April of this year, cash flow from production was $607,200. Current cash flows can support additional drilling, the company noted.
Netherland, Sewell & Associates Inc. had created the reserve report at year- end 2013, Canaan said.
The assets will benefit from increased gas prices, the company said, noting that a price increase to $6 per million British thermal units could increase the proved reserves to 47.1 Bcfe with a PV-10 value of $57.3 million.Canaan Resources LLC is based in Oklahoma City, and Energy Capital Solutions LLC is based in Dallas.
Recommended Reading
Utah’s Ute Tribe Demands FTC Allow XCL-Altamont Deal
2024-04-24 - More than 90% of the Utah Ute tribe’s income is from energy development on its 4.5-million-acre reservation and the tribe says XCL Resources’ bid to buy Altamont Energy shouldn’t be blocked.
Oil, Gas Production Fee Set to Hit Colorado Producers
2024-05-01 - The deal reached this week will eliminate several proposed ballot measures targeting the fossil fuel industry ahead of this year's election, including one that would have halted drilling in summer months.
Guyana’s Stabroek Boosts Production as Chevron Watches, Waits
2024-04-25 - Chevron Corp.’s planned $53 billion acquisition of Hess Corp. could potentially close in 2025, but in the meantime, the California-based energy giant is in a “read only” mode as an Exxon Mobil-led consortium boosts Guyana production.
BWX Technologies Awarded $45B Contract to Manage Radioactive Cleanup
2024-03-05 - The U.S. Department of Energy’s Office of Environmental Management awarded nuclear technologies company BWX Technologies Inc. a contract worth up to $45 billion for environmental management at the Hanford Site.
Laredo Oil Settles Lawsuit with A&S Minerals, Erehwon
2024-03-12 - Laredo Oil said a confidential settlement agreement resolves a title dispute with Erehwon Oil & Gas LLC and A&S Minerals Development Co. LLC regarding mineral rights in Valley County, Montana.