The following information is provided by RedOaks Energy Advisors LLC. All inquiries on the following listings should be directed to RedOaks. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Land and Natural Resource Development Inc. has retained RedOaks Energy Advisors as its exclusive adviser in connection with the sale of certain operated, conventional properties in Pickens and Lamar Counties, Ala. The package includes the Black Warrior gathering and processing facility.
Upstream Asset Highlights:
- 3,681 gross / net acres (100% HBP)
- Proved Developed Producing (PDP) PV-10 value: $12.6 million
- Projected 2019 PDP cash flow: $385,000 per month
Midstream Asset Highlights:
- About 97 miles of pipe
- Current throughput: about 4.3 million cubic feet per day
- Refrigeration JT Plant
- Projected 2019 cash flow: $60,000 per month
Secondary Recovery Upside:
- Implemented secondary oil recovery (gas injection)
- 1 million barrels of incremental reserves
- Probable PV-10 value: $20 million
The continued strength of the Permian Basin will force smaller oil and gas companies to merge or be acquired by larger competitors, which Gibson Dunn attorneys say is a positive for the industry.
EnergyNet has been retained to handle state and federal oil and gas lease sales across the U.S. including nearly 1 million acres for lease in Wyoming alone.
Contrast that to the S&P 500 over that period, and, “the rest of the market looked pretty easy to make money in. There’s a lot of frustration in the market.”