King's Peak Energy LLC is offering about 22,000 net acres HBP in Southwest Wyoming and Northeast Utah in a negotiated transaction as the company seeks strategic alternatives for the assets.
The offer is comprised of operational control over three producing units and four producing fields with a PV-10 value of $31.8 million. The Denver-based company retained Bay Capital Corp./Riviera-Ensley Advisors to handle the transaction.
The assets consist of the Mountain Field, Whiskey Springs Field, Taylor Ranch Field, Graham Reservoir Field, Lucky Ditch Unit, Bridger Lake Unit and Whiskey Springs Unit.
- Total proved reserves of 9.1 million gross (6.4 million net) barrels of oil equivalent (boe);
- Consists of 58.9% proved developed producing (PDP), 5.1% proved developed non-producing, 35.9% proved undeveloped and a PV-10 value of $31.8 million;
- Net production averages 705 gross (496 net) boe/d with 90% oil by revenue;
- Average monthly operating cash flow (trailing three months) was $235 million;
- King Peak's operates all units, leases and wells;
- The reserves-to-production ratio for PDP is 13.9 years;
- The average net revenue interest for all leases is more than 80%; and
- Focused area of operations with all production and reserves located within an area that is about nine miles long and seven miles wide.
The assets include upside potential as downspacing to 320 acres would add drilling locations and reserves since most wells are drilled on 640-acre spacing, the release said.
King's Peak is considering numerous financial structures for the assets, which include but not limited to:
- Total sale;
- Partial sale (nonoperated interest);
- Industry joint venture partner;
- Financial partner;
- Strategic alliance; or
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