The following information is provided by Houlihan Lokey Capital Inc. All inquiries on the following listings should be directed to Houlihan Lokey. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

New Emerald Energy LLC is offering for sale oil-weighted properties with substantial inventory located in the Bakken play of North Dakota. The company retained Houlihan Lokey Capital Inc. as its exclusive financial adviser to assist with the transaction.

New Emerald Energy Bakken Asset Map (Source: Houlihan Lokey Capital Inc.)

Highlights:

  • Large acreage position with a deep proved undeveloped (PUD) inventory and stable proved developed producing (PDP) base
    • About 81,500 net acres, mostly HBP with significant running room
    • Average drilling and spacing unit (DSU) working interest of 77% / 64% net revenue interest
    • Individual wells achieve an internal rate of return in excess of 50%
  • PUD Type curve IP of 802 barrels of oil equivalent per day (boe/d)
  • 67% initial decline
  • About 924,000 boe EUR
    • Predictable PDP base decline of 17%
    • Asset currently operated by Petro-Hunt Dakota LLC
    • Operations will be conveyed to buyer
  • Extensive gathering, processing and other infrastructure in place
    • More than 50 existing wells in Dakota Midstream dedicated area
    • Ability to ramp up current production without capacity constraints
  • Significant PV-10 value with valuable upside potential
    • Current production of about 2,500 boe/d net from about 109 gross / 84 net PDPs
    • 578 identified future drilling locations based on 10,000-ft laterals and six-well per DSU spacing
    • Opportunity to introduce latest generation drilling and completion technology
    • Net production projected to peak at about 22,000 boe/d by 2026

Bids are due Nov. 12. For information visit hl.com or contact Kirk Tholen, managing director and head of E&P A&D for Houlihan Lokey, at KTholen@HL.com or 832-319-5110.

Onshore