The following information is provided by Meagher Energy Advisors. All inquiries on the following listings should be directed to Meagher. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
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.
Highlights:
- 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.
For information visit meagheradvisors.com or contact Nick Asher, vice president of business development at Meagher, at nasher@meagheradvisors.com or 303-721-6354 ext. 260.
Recommended Reading
NOV's AI, Edge Offerings Find Traction—Despite Crowded Field
2024-02-02 - NOV’s CEO Clay Williams is bullish on the company’s digital future, highlighting value-driven adoption of tech by customers.
Patterson-UTI Braces for Activity ‘Pause’ After E&P Consolidations
2024-02-19 - Patterson-UTI saw net income rebound from 2022 and CEO Andy Hendricks says the company is well positioned following a wave of E&P consolidations that may slow activity.
Private Equity: Seeking ‘Scottie Pippen’ Plays, If Not Another Michael Jordan
2024-01-25 - The Permian’s Tier 1 acreage opportunities for startup E&Ps are dwindling. Investors are beginning to look elsewhere.
Marathon Chasing 20%+ IRRs with Los Angeles, Galveston Refinery Upgrades
2024-02-01 - Marathon Petroleum Corp. is pursuing improvements at its Los Angeles refinery and a hydrotreater project at its Galveston Bay refinery that are each boasting internal rate returns (IRRs) of 20% or more.
NGL Growth Leads Enterprise Product Partners to Strong Fourth Quarter
2024-02-02 - Enterprise Product Partners executives are still waiting to receive final federal approval to go ahead with the company’s Sea Port Terminal Project.