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.
Winfield Resources LLC is offering for sale its horizontal Marcellus wellbore-only interests in Pennsylvania’s Butler and Armstrong counties in two sub-packages: nonop working interest and minerals/royalties.
According to Detring Energy Advisors LLC, which Winfield retained to market the packages, the assets offer an attractive opportunity to acquire (i) high-margin cash flow with net revenue interest greater than working interest (including royalties), (ii) a well-distributed value position minimizing concentration risk; (iii) established production history enabling high-confidence forecasts; (iv) well-maintained properties which constitute about 40% of the operator’s, PennEnergy Resources LLC, gross production; and (v) fully developed pads with negligible risk of “frack hits” from future drilling activity.
Highlights:
- Substantial Production (27 MMcfd) and Cash Flow ($17 million Next 12-month)
- Net reserves of 126 Bcf (100% gas)
- Net PV-10 of $80 million (83% Working Interest / 17% Minerals/Royalties)
- Comprised of 86 modern, horizontal Marcellus completions
- High Margin Cash Flow (15.8% Working Interest / 16.5% Net Revenue Interest)
- About $2/Mcf netback for a resilient, low-cost cash flow stream
- 74 wells include an average royalty/ORRI of 3%, improving overall margin
- Stable, predictable production with about 93% of reserves and PV-10 generated by wells online for over one year
- Access to Dom South & TETCO M2 with ability to take gas in-kind (historical realizations at a premium to Dom South)
- Core PennEnergy Asset (40% of Operated Production)
- Well stewarded asset with minimal downtime and no shut-ins due to recent events
- Full pad development minimizes “frack hit” risk to production with PennEnergy operating offset units
Process Summary:
- Evaluation materials available via the Virtual Data Room on Nov. 16
- Proposals due on Jan. 6
For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.
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