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
- About 670 barrel per day of oil (net)
- 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
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.
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