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.

Merit Energy Co. retained Detring Energy Advisors to market for sale its 100% operated producing properties, leasehold and related assets located in Campbell and Crook counties, Wyo.

According to Detring, the assets offer an attractive opportunity to acquire high-margin, low-decline, 100% oil waterflood properties generating about $8 million of annual cash flow, with multiple economic development projects including waterflood optimization, operational efficiencies and development and infill drilling.

Highlights:

  • Long-Life Oil Production
    • About 670 barrel per day of oil (net)
      • 100% oil
      • 7% annual decline
    • Current net annual operating cash flow of about $8 million
    • Low lifting costs of about $12.65 per barrel
    • $37 million PDP PV-10 value
    • 4.2 million barrels net PDP reserves
    • 17-year reserve life
  • 100% Operated Waterflood Assets
    • About 11,660 net acres
    • Operational control across 11 fields under active waterflood with low well count
      • 32 active producers
      • 10 injectors and minimal shut-in wells / P&A obligations
      • Ease of operations due to concentrated position
    • Meaningful uplift opportunities through waterflood installation and facility upsizing
    • 15 additional undeveloped vertical infill locations identified
      • Continue Merit’s successful, seismically delineated development program targeting the shallow Minnelusa C (about 8,000 ft total vertical depth)
  • World-Class Reservoir with 12%-25% Porosity (Minnellusa Sand)
    • Permian-aged aeolian dune reservoir is the most prolific conventional horizon in the Powder River Basin
    • High porosity and well deliverability provide a multitude of upside opportunities
Marketed: Merit Energy Powder River Basin Waterflood Asset
Source: Detring Energy Advisors

Process Summary:

  • Evaluation materials available via the Virtual Data Room Jan. 29
  • Proposals due Feb. 26

For information visit detring.com or contact Melinda Faust at mel@detring.com or 713-595-1004.

Onshore