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.
A private seller retained Detring Energy Advisors for the sale of a Permian Basin mineral and royalty package. The offering comprises about 1,700 net royalty acres throughout the prolific Midland and Delaware basins.
According to Detring, the package includes diversified exposure covering the cores of the two highest-returning U.S. basins plus substantial near-term cash flow from about 100 horizontal proved developed producing (PDP) wells and 85 horizontal drilled but uncompleted wells (DUCs) and permits. Detring added that the asset has premier operators drilling extended laterals utilizing next-gen completion techniques and high royalty interest units under development, providing strong near-term cash flow and growth.
- 1,699 net royalty acres (normalized to 1/8th)
- 60% Midland Basin and 40% Delaware Basin
- Premier location with exposure to top operators (Occidental Petroleum Corp., Pioneer Natural Resources Co., Cimarex Energy Co., EOG Resources Inc., Diamondback Energy Inc., etc.)
- $3.6 million next 12-month cash flow from PDP, DUCs and Permits, with attractive long-term growth driven by substantial inventory of economic undeveloped locations
- About 100 horizontal producing wells with near-term growth driven by high royalty interest horizontal DUCs (55) and Permits (30)
- World-Class Inventory Across Multiple Horizons
- Operators completing prolific wells across multiple economic Wolfcamp, Spraberry and Bone Spring targets
- IPs, EURs, and rate of returns consistently top 1,500 barrels of oil equivalent per day, 1 million barrels of oil equivalent and 70%, respectively, in current pricing environment
- About 400 horizontal rigs currently running throughout the Permian ensure mineral value acceleration
- Evaluation materials available via the Virtual Data Room Oct. 14
- Proposals due Nov. 13
Detring said the seller anticipates executing a purchase and sales agreement by mid-December, with closing occurring in January.
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