Juno Energy II LLC

Transaction Type
Sellers
Marketers
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Description

Juno Energy II LLC has retained RBC Capital Markets to market conventional oil-producing properties in the northern Permian Basin of West Texas and Central Oklahoma.

Juno operates all of the properties with an average working interest of 97.5%. The properties are almost entirely held by production. In Texas, the assets extend over 4,231 net acres, generally including rights to the base of the ClearFork. In Oklahoma, the properties reach 3,308 net acres, generally including the rights to the base of the Prue Sand. Juno controls additional prospective leasehold around the existing production in both states.

Current net production from the properties is 920 barrels of oil equivalent (BOE) per day, 96% of which is oil. The properties are shallow-decline, long-lived reserves primarily under secondary recovery. The proved developed producing (PDP) reserves have a reserve to production ratio of 32 years.

The net proved reserves total 32.9 million barrels of oil equivalent (BOE), with a net present value of $584 million when discounted at 10%. Total capital expenditures for proved reserves is estimated at $191.4 million. About 28% of the proved reserves in Oklahoma are producing, while 60% are proved, undeveloped. In Texas, about 33% of the reserves are proved, developed and about 66% are proved, undeveloped.

In Texas, the assets are focused on the prolific Clearfork trend of the north Permian shelf. In Oklahoma, the reserves are concentrated in long-established Prue Sand waterflood area.

The properties contain probable reserves of 5.1 million BOE for additional locations within the producing lease block. Current net operating cash flow is about $2 million per month. The average net lifting cost is about $13.83 per BOE, exclusive of production-related taxes.

Juno prefers a single all-cash offer for the properties but will consider offers on all Texas or Oklahoma packages individually. The online data room opened March 1. Initial bids are due by April 3 and the effective date is Jan. 1. For additional information, contact Craig Lande, managing director at RBC Capital Markets, 713-585-3335.