GeoMet

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

GeoMet has retained Lantana Oil & Gas Partners to sell its operated, non-operated, royalty and overriding royalty interests in the Black Warrior and Cahaba Basins in north central Alabama.

The assets are in Tuscaloosa, Walker, Jefferson, Shelby and Bibb counties, Alabama. In the Black Warrior Basin, GeoMet is offering a non-operated royalty and overriding royalty interests in the White Oak Creek, Short Creek, RG33, Blue Creek, and Deerlick Creek fields.

Within the White Oak Creek Field, which is operated by EP Energy, GeoMet has a 15.5% working interest and a 12.5% net revenue interest. In addition, the company holds royalty and overriding royalty interests between 1% and 13% in five different fields within the Black Warrior Basin. More than 32,000 acres are held by production.

The assets currently produce 6.2 million cubic feet (MMcf) per day of natural gas net to the company. The proved, developed producing (PDP) reserves are 22.2 billion cubic feet worth a present value of $40.5 million when discounted at 10%.

Net operating cash flows from the Black Warrior Basin assets totaled $428,529 per month at an average price of $3.12 per Mcf.

Within the Cahaba Basin, GeoMet is offering an opportunity to acquire a substantial operated production and leasehold interest in the Gurnee Field in Bibb and Shelby counties, Alabama. The package includes an operated interest in 217 active wells on 39,232 gross (39,191 net) acres.

The field currently produces 6.1 MMcf per day of natural gas, 4.5 MMcf per day of which are net to the company. Net operating cash flows averaged $235,644 per month at an average price of $3.59 per Mcf. The proved, developed producing reserves from the field are estimated at 35.9 billion cubic feet (Bcf) worth a net present value of $33.2 million when discounted at 10%.

The online and physical data rooms opened March 12. Bids are due April 16th with a closing date of May 24. For additional information, contact Melinda Faust at Lantana Oil & Gas Partners, mel@lantanaog.com or 713.426.9001.