HVL Energy LLC

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

HVL Energy LLC, a portfolio company of EncCap Investments LP, has retained Raymond James & Associates Inc. to sell certain Permian Basin assets in Texas.

The package includes 100% operated leasehold position in 7,900 gross acres (7,200 net) in Cochran, Yoakum, Terry, Gaines, Howard, Sterling and Brown counties. The properties average 98% working interest (76% net revenue interest) in 18 active producing wells and 19 saltwater-disposal wells in the core area. The wells target the Devonian, Fusselman and San Andres formations.

Gross production is approximately 500 barrels of oil equivalent per day (360 barrels net, 98% oil). A well waiting on additional saltwater-disposal capacity will bring gross production to 600 barrels equivalent per day (440 barrels net) in October.

High-volume lift (HVL) equipment has been used to increase production recoverable reserves in strong-water-drive reservoirs with high permeability.

Upside includes potential in Devonian, Fusselman, Wolfberry and San Andres formations and additional proved upside reserves in HVL opportunities.

Bids are due in early December. The effective date is Oct. 1. Contact Chris Simon, 713-278-5206, chris.simon@raymondjames.com.