The following information is provided by Detring Energy Advisors LLC. All inquiries on the following listings should be directed to Detring. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Three Energy Co. LLC retained Detring Energy Advisors for the sale of certain oil and gas royalty interests located within the of the Northeastern Pennsylvania (NEPA) Marcellus Shale play.
The offer comprise a concentrated, core position underneath premier operators generating world-class well results and superior economics, according to Detring.
- 5,589 Net Royalty Acres (100% overriding royalty interest (ORRI) | ~100% HBP)
- ORRI located throughout the core of the prolific NEPA Marcellus
- 100% HBP (About 80% in horizontal units, about 20% outside horizontal units)
- Exposure to premier operators whose NEPA positions represent the premier assets within their respective portfolios
- Top operators include Chief Oil & Gas LLC, Cabot Oil & Gas Corp. and Chesapeake Energy Corp.
- Multi-decade inventory of highly economic locations in the lowest break-even gas play in the Lower 48
- Roughly $500,000 per Month Cash Flow (about 4.7 million cubic feet per day Net Production)
- Substantial current production from roughly 600 horizontal wells generates significant free cash flow
- Strong near term development potential with about 39,000 net acres in existing horizontal drilling units with a gross footprint of roughly 170,000 acres
- Strong current on-lease activity:
- 27 drilled but uncompleted wells (DUCs)
- 47 permits
- Eight rigs within three miles of the assets
- Regional infrastructure build-out yielding vastly improved natural gas price differential
- World-Class Well Results from Two Distinct Benches
- Lower Marcellus highly delineated and de-risked across the entire position with average EURs greater than 4 billion cubic feet (Bcf) per thousand lateral feet
- Majority of the position within the core of the emerging Upper Marcellus play with average EURs greater than 3 Bcf per thousand lateral feet
- Evaluation materials available via the Virtual Data Room on May 8
- Proposals due June 5