Chevron Corp. (NYSE: CVX) is selling its stake in Alabama and Kansas assets in upcoming sealed-bid offerings.
Assets include operated coalbed methane (CBM) properties in Alabama’s Black Warrior Basin and nonoperated interest in a Kansas joint venture (JV) covering more than 16,000 gross acres.
EnergyNet has been retained by Chevron U.S.A. Inc., a subsidiary of the San Ramon, Calif.-based company, to handle the sales.
Alabama—Black Warrior Basin
Chevron is selling Black Warrior Basin assets in Fayette, Tuscaloosa and Walker counties, Ala.
The assets include operations, CBM assets, surface fee, non-producing shallow gas rights in the Blue Creek and Cedar Cove oil fields.
- Blue Creek Field in northern Tuscaloosa County;
- 161 total Chevron-operated CBM wells;
- 100% mineral fee covering 6,699.5 net mineral CBM acres with 104 CBM wells
- Leasehold acreage covering 4,128 net acres;
- 100% gross working interest and 81.25%-99.6% net revenue interest;
- 57 CBM wells;
- Additional mineral and royalty interests in a portion of the acreage;
- Royalty interest revenue from CBM production on 19,981.5 net mineral acres (minerals not included on 342 producing wells);
- Surface fee covering 50.5 acres, including two ponds for water treatment/disposal;
- Surface fee covering 7.7 acres on the field office location;
- Cedar Cove Field in southeastern Tuscaloosa County;
- 64 total producing CBM gas wells;
- 1/6 of 8/8ths royalty covering 3,400 acres on occluded natural gas or methane;
- 30% royalty covering 2,395.5 acres (proportionately reduced) on occluded natural gas or methane;
- 44% surface and mineral fee in an 1.25 acre tract (currently non-producing);
- Leasehold acreage covering 31.54 gross acres HBP from a CBM well, which Chevron owns no interest;
- Non-producing shallow gas rights covering 88,653.7 acres in Fayette, Tuscaloosa and Walker counties;
- 12-month average monthly net income is $119,649/month; and
- Six-month average 8/8ths production is 15,484 thousand cubic feet per day (Mcf/d) of gas.
Bids are due at 4 p.m. CT on July 14.
Kansas—Hugoton, Greenwood, Bradshaw Areas
Chevron is selling its stake in a JV in the Hugoton, Greenwood and Bradshaw gas areas in Kansas.
The offering consists of a full interest in nonoperated producing property working interests, overriding royalty interests, royalty interests and fee interests. The sale also includes all of Chevron’s net profit interests, unproven acreage, noncore acreage and other interests.
The assets are located across 28 counties in the Stirrup, Adamson, Panoma, Spivey Grabs Basil and Guymon NE oil fields.
- 16,124.25 gross (11,490.05 net) acres;
- Six-month average monthly net income is $59,408/month;
- Six-month average 8/8ths production is 361 barrels per day of oil and 2,880 Mcf/d of gas;
- 70 total nonoperated wells;
- 12.5%-40.6171% gross working interest and 10.938%-39.32% net revenue interest;
- 1%-12.5% overriding royalty interests;
- 0.34664%-10.9375% royalty interests;
- 3.125%-50% mineral fee;
- 43.75%-85% net profit interests;
- Stirrup Enhanced Recovery Unit in Morton County;
- 0.107268% working interest and 0.013409% net revenue interest;
- 34 nonoperated wells;
- Leona Waterflood Unit in Haskell County;
- 0.137475% working interest and 0.120291% net revenue interest;
- 12 nonoperated wells;
- Net profit interests covering 14,478.4 gross acres in Hamilton and Kearny counties;
- 85% net profit interests in 21 nonoperated wells;
- 85% net profit interest burdening a 25%-100% working interest;
- 43.75% net profit interests in three nonoperated wells
- Unproven interests covering 46,483.01 gross (26,612.09 net) acres;
- Noncore retained rights covering 1,030.9 gross (570.9 net) acres; and
- Other interests covering 9,111.9 gross (3,576.91 net) acres.
Bids are due at 4 p.m. CT on July 19.
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