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Lambda Energy Resources LLC retained Meagher Energy Advisors for the sale of Michigan production and leasehold with bids due June 13.
The offer includes a large HBP acreage position with shallow production and steady cash flow in Alcona, Alpena, Missaukee, Montmorency, Oscoda and Roscommon counties, Mich.
- Shallow Production Decline and Steady Cash Flow
- Monthly net cash flow of $350,029 (June, projected)
- Net proved developed producing (PDP) reserves of 1.827 million barrels of oil, 19.6 billion cubic feet and 48,000 barrels of NGL
- PDP of $27.0 million with additional $94.6 million in upside (PV-10 value)
- 321 net barrels per day (bbl/d) of oil primarily from secondary recovery with shallow declines, often greater than 6%.
- 6.0 net million cubic feet per day of gas and 18 bbl/d of NGL from PDC and Antrim vertical wells
- 442 producing wells and 129 injection/saltwater disposal wells averaging 96% working interest and 85% net revenue interest
- Includes one gas plant and 20 central processing facilities
- Large HBP Acreage Position
- Roughly 62,000 net acres, 100% operated
- 100% of the leasehold is HBP (some leases require rentals)
- 10,590 net acres consolidated in the Richfield waterfloods
- Upside Opportunities
- Extensive analysis of behind-pipe, drilling, and secondary recovery opportunities
- Greater than 60% internal rate of returns require little up-front capital in most cases
Meagher expects to close the sale July 26 with an effective date of June 1.
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