Hunt Marcellus LLC

Transaction Type
Sellers
Marketers
Basin
Appalachian Basin
Post Date
Close Date
Room Opening Date
Estimated Price
MM
Description

Hunt Marcellus LLC, a subsidiary of Hunt Oil Co., is offering for sale its Appalachian Basin leasehold, minerals and related midstream assets located in Elk County, Pa.

The assets offer an attractive opportunity to acquire about 20,600 contiguous net acres (93% Fee Minerals, 100% HBP) with exposure to a prolific stacked-pay resource across the Marcellus and Utica Shales. Hunt has retained Detring Energy Advisors as its exclusive adviser relating to the transaction.

Asset Highlights:

  • 20,600 Net Acres (100% HBP)
    • Large, Operated, Contiguous and HBP Acreage Position
      • 19,100 mineral acres (100% NRI) and 1,500 leasehold acres (87.5% NRI)
      • Ideal for operations and extended reach laterals
      • Fee ownership yields long-term optionality and bolsters economics (99% NRI average across the position)
    • 3 MMcfd Net Production
      • $1.5 Million operational cash flow (NTM PDP)
      • Majority of production from Seven horizontal Marcellus wells
    • Prolific stacked-pay resource with more than 450 ft in the Marcellus and Utica-Point Pleasant and a combined potential resource scope of over 2 Tcf
      • Hunt assets located within Seneca Resources “Western Development Area” where modern completion techniques have greatly improved regional Marcellus results
      • Seneca continues to actively de-risk the Utica in Elk County with initial results supporting a type curve of more than 2 Bcf/1,000 ft
    • Significant inventory across a highly contiguous position drives operational efficiencies
      • About 120 Marcellus and about 60 Utica locations with an 8,300-ft average lateral length
      • More than 60 locations off existing pads
    • Facilities in-place to support immediate development
      • Six pad sites, centralized facility, water supply and impoundments, and gathering system connected to Dominion Gas Pipeline and Domtar Paper Plant
      • Immediate proximity to TGP and Seneca provides takeaway capacity optionality
  • Pipeline to Domtar Paper Plant secures take-away and yields significant cash flow
    • Three-mile pipeline built and operated by Hunt to supply plant’s about 13 MMBtu/d daily gas demand
      • Operation and maintenance fees generate about $2.5 Million annual cash flow net to Hunt
      • 25-30 MMBtu/d peak capability

Process Overview:

  • Evaluation materials available via the Virtual Data Room on July 23
    • Data room presentations available upon request
  • Proposals due Aug. 22

For information visit detring.com or contact Matt Loewenstein at matt@detring.com or 713-595-1003.