Marketed: McCabe Vertical Waterflood, Schleicher County, Texas

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The following information is provided by Simplex Energy Solutions LLC. All inquiries on the following listings should be directed to Simplex Energy. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

McCabe Energy Inc. retained Simplex Energy Solutions LLC for the sale of operated production and conventional waterflood development in Schleicher County, Texas, through an offering closing Oct. 8.

The offering includes five operated wells and associated leasehold interest located southwest of Eldorado, Texas.

According to Simplex, a waterflood study has been prepared by Russell K. Hall and Associates and assumes that four new producers and five new injectors will be drilled on the acreage. The expected source of injection water is Triassic brackish water at an approximate depth of 800 ft.

Highlights:

  • Two oil wells producing from the Leonard Dolomite (at about 2,200 ft subsurface)
  • Three gas wells producing from the Eldorado (Canyon) Field
  • Net income averaging $51,448 per month (March-May)
  • Primary reserves estimated to be 563,000 barrels of oil
  • Secondary reserves estimated to be 536,000 barrels of oil
  • PV-10 value of $7,269,527 (at about $54.75 per barrel NYMEX)
  • First response three months after injection begins; peak response five months later
  • Net pay thickness ranges from 7 ft to 35 ft with an average of 16 ft

Bids are due by 4 p.m. CST Oct. 8. For further information contact Karl Reiter at kreiter@simplexenergy.com or 432-683-3791.

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