Citrus Energy Corp.

Transaction Type
Sellers
Marketers
Post Date
Close Date
Estimated Price
MM
Description

Citrus Energy Corp. has retained Meagher Oil & Gas Properties Inc. to sell operated production and gathering systems in Ellis County, Oklahoma. The package includes 18 producing wells and one shut in with an 80% average net revenue interest. Seven sections held by production are in T18N R23W, and seven held by production in T18N R24W. Average net production for 2008 was 823,000 cubic feet and 18 barrels of oil per day. Average net cash flow was $192,760 per month. Average LOE per well was $1,007 per month without overhead. Proved developed producing net reserves are 5.28 billion cubic feet and 75,100 barrels of oil. The package additionally includes two company-operated gathering systems with an average net income in 2008 of $6,143 per month. Upside includes the ongoing horizontal Atoka play, multiple drilling locations in the Cottage Grove formation, behind-pipe potential in the Cleveland and Cottage Grove formations, and horizontal Cleveland potential. The bid due date is May 12. The effective date is June 1. The closing is to be June 10. Contact Jacque Semple, 918-481-5900, ext. 221.