Element Petroleum LP

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

Element Petroleum LP has retained BMO Capital Markets to sell certain interests in the Wolfberry trend of the Permian Basin.

The package includes 70,677 gross acres (42,541 net) in Howard and Glasscock counties in West Texas. More than 75% of the holdings are operated with high working interests. Most leases have 75% or greater net revenue interest and include all depths.

Current production is more than 1,500 barrels of oil equivalent per day (75% oil). Four rigs are currently drilling. Monthly cash flow is $3.2 million, with more than 85% of revenue from oil and liquids. Element owns a saltwater-disposal system that contributes to low operating costs of $11 per BOE.

Upside includes 1,530 gross 40-acre locations. Average estimated ultimate recoveries have averaged 145,000 BOE per well in core acreage, with many exceeding 180,000 BOE.

The data room opens April 13. The bid due date is May 17. Contact Miles Redfield, 713-546-9715, miles.redfield@bmo.com.