Lone Star Land & Energy and PetroQuest Energy LLC have retained Meagher Energy Advisors to offer certain producing Niobrara assets in Wyoming.
The package includes 100% working interest (80% net revenue interest) in approximately 10,323 gross acres (10,183 net) in the northern DJ Basin in Laramie County. The assets feature five producing wells, with four operated and one operated by SM Energy. The assets target the Niobrara oil play and feature 3,200 net held-by-production acres. There are state and fee leases covering all depths. The area is being developed on 640-acre spacing units and the sellers control operatorship in majority of potential spacing units.
Production for May is projected at 13,200 gross barrels of oil (7,900 net) or approximately 440 barrels per day (263 barrels net). Proved net reserves are 1.4 million barrels of oil (550,000 proved developed producing) and 616 million cubic feet of gas of (325 million proved developed producing).
Upside includes low-risk development and down-spacing potential with the Niobrara expected to be drilled on 160-acre spacing. There are additional horizontal potential in the Codell formation, and the deeper Greenhorn and Penn Perm are prospective targets.
The bid due date is April 5. The effective date is May 1. Contact Julia Foster, 303-721-6354 ext. 229, jfoster@meagheradvisors.