Marketed: EnerVest Nonop Nora Field Natural Gas Opportunity

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

EnerVest Energy Institutional Fund XIV-1A LP has retained Detring Energy Advisors to market for sale a 15% nonoperated position in its Nora Field assets located in Virginia and West Virginia.

The package includes upstream properties, gathering pipelines, disposal wells and a compressor fleet located in Virginia’s Dickenson, Buchanan, Wise and Russell counties and West Virginia’s Clay and Kanawha counties. Underpinned by strong, shallow-decline production, low royalty burdens, advantaged pricing, and a top conventional operator (EnerVest Ltd.), the asset yields robust and predictable cash flow and provides substantial optionality across the fully HBP position, Detring said.

Highlights:

• 15% nonoperated interest in the highly contiguous Nora Field
  • About 54,000 Net Acres (100% HBP)
  • EnerVest owns the remaining 85% interest, ensuring alignment of interest
  • Significant royalty interests buoy field level economics
    • 98% average Net Revenue Interest
• Robust operating cash flow (about $7 million next 12-month PDP)
  • Net Production: about 15 MMcf/d (100% gas)
    • About 6% annual decline next 12-month
  • PDP: $54 million PV-10 value (95 Bcfe net reserves)
    • Reserves to Production ratio: 18 years
• About 100% of gas sold at plus pricing or at Transco Z5
  • Advantageous location for marketing and transportation yields realized pricing of +$0.04 (2020E), +$0.23 (2021E), and +$0.25 (2022E) to Henry Hub
• Extensive midstream infrastructure provides value-add integration with vast upstream holdings
  • About 1,300 miles of gas gathering pipelines
  • Six disposal wells with roughly 5,200 bbl/d of water capacity
  • About 80,500 HP from 61 owned and 17 leased compressor units
• Low risk, repeatable development locations allow for flexible operations
  • Drilling 75 wells/year within cash flow holds production flat
  • Active workover program of about 35 projects scheduled for 2020
    • 2019 program of 56 workovers yielded 200% internal rate of return
• Production from multiple intervals highlights the stacked-pay capabilities of the asset
  • Current production from shallow coalbed methane, deeper conventional sands and carbonate intervals, along with the local unconventional horizontal target, the Huron shale
  • Partnership with Virginia Tech and the Department of Energy is currently testing new horizons

Process Summary:

• Evaluation materials available via the virtual data room on June 3
• Proposals due July 1

For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.