Lario Oil & Gas Co.

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Description

Lario Oil & Gas Co. has retained BMO Capital Markets to sell its non-operated working interest in assets located in North Dakota and Montana.

The assets include 12,200 net acres producing 885 barrels of oil equivalent (BOE) per day from 238 producing wells. That number is expected to increase to about 980 BOE per day by yearend with six new wells awaiting completion. Backlog includes an additional 5 drilling, 11 completing and 20 permitted wells.

Lario prefers to sell the properties in a single cash transaction but will consider offers on separate packages that will be presented to participants in the near future.

Lario has an average working interest of 4.1% and a net revenue interest of 3.3% in the assets. Recent high IP wells in Divide County indicate new frac techniques are improving estimated ultimate recoveries. About 70% of the acreage is held by production.

The acreage is located in eight core counties of the Bakken and Three Forks formations. Operators include Continental EOG, Hess Corp. Marathon, Statoil, Slawson and Oasis.

The data rooms will be available in the middle of October; final offers will be due in mid-November. For additional information, contact Matt Lipscomb, BMO Capital Markets associate at 713-546-9799 or matt.lipscomb@bmo.com.