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.
EOG Resources Inc. retained Detring Energy Advisors to market for sale its roughly 3,400 net-acre contiguous and operated position along the eastern region of the northern Delaware Basin in Lea County, N.M.
According to Detring, three operated, producing wells targeting three of the four primary zones have geologically de-risked the position, with substantial economic inventory remaining for development utilizing extended-reach laterals and efficient capital deployment via pad drilling.
- 3,385 net acres
- 100% operated
- About 82% average Working Interest
- Blocky, contiguous position with attractive opportunity for extended 10,000-plus ft laterals
- Efficient Drilling and Completion capital costs due to pad development and shared facilities
- Undeveloped inventory includes 95 gross locations averaging about 10,700 ft lateral length
- Three of four targets proven on-lease and currently productive (Wolfcamp A, 1st/3rd Bone Spring)
- Multiple proven results in the highly economic 2nd Bone Spring bracket the position
- About 340 barrels of oil equivalent per day net production (about 81% liquids)
- Proved Developed Producing (PDP): about $3.4 million Next 12-Month Cash Flow / $14 million PV-10 value
- Total 3P: about $380 million PV-10 value / 75 million barrel of oil equivalents net reserves (PDP plus Undeveloped)
- Roughly 3,850 ft of gross interval (about 2,750 ft Bone Spring / about 1,100 ft Wolfcamp)
- Primary targets include the 1st & 2nd Bone Spring, which generate 60%-75% Internal Rate of Return (IRR)—demonstrated both on-lease by EOG and proximal by offset operators
- Additional upside in the Wolfcamp A and 3rd Bone Spring (30%-40% IRR)
- Evaluation materials available via the Virtual Data Room on Sept. 9
- Proposals due on Oct. 9
Detring said EOG anticipates executing a purchase and sales agreement by late October, with closing occurring by mid-December.
2022-06-27 - While Stratas Advisors said in its latest oil price forecast that they are less concerned about the talk of price caps at the G7 meeting, the firm is increasingly concerned about the risk of further escalation of the Russia-Ukraine conflict because of several developments.
2022-04-11 - Increasing downside risks? Stratas Advisors expects further pressure on oil prices for the upcoming week with prices moving toward the lower level of the firm’s forecast.
2022-04-25 - While the factors affecting oil prices for the upcoming week are more negative than positive, the one caveat is Stratas Advisors forecasts oil prices will quickly reverse course if the EU announces a Russian oil ban.
2022-05-02 - Stratas Advisors explores the possibility of a price breakdown in its latest oil price forecast.
2022-05-16 - According to Stratas Advisors, the question remains: when will oil prices break out of their current pattern and in which way will they break—below the lower support level or upwards to new highs?