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.
- 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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