Riverbend Exploration & Production LLC

Transaction Type
Sellers
Marketers
Post Date
Close Date
Estimated Price
MM
Description

Riverbend Exploration & Production LLC has hired Raymond James | Albrecht to sell its non-operated working interest in the Permian Basin and the Fayetteville shale.

The portfolio of non-operated working interests has acreage in three distinct areas with stable gas production and organic oil growth. The estimated March 2013 net cash flows from the acreage is about $2.1 million.

Within the Permian Basin, the assets target the Wolfberry with experienced operators. The estimated net production in March 2013 is about 667 barrels of oil equivalent (BOE) per day from 154 wells. Riverbend owns an average 9.7% working interest in 17,449 gross acres (1,663) net in Dawson, Martin, Howard, Midland, Glasscock, Upton and Reagan counties, Texas.

Within the Fayetteville shale, the operators include Southwestern Energy Co. (NYSE: SWN), XTO Energy and BHP Billiton Ltd. (NYSE: BHP). The March 2013 estimated net production is about 13.3 million cubic feet (MMcf) of natural gas per day. Proved reserves are about 107.6 Bcfe worth about $56.1 million when discounted at 10%. Riverbend has leasehold interest of 2.5% in 312 sections, all of which is held by production.

In addition, Riverbend is offering a separate diversified set of assets with predictable, low-risk profile with exposure to multiple basins, operators and development stages. The March 2013 net production from the diversified package -- which includes acreage in Texas, Oklahoma, New Mexico, Colorado, Louisiana, Mississippi, Utah, Wyoming North Dakota and Montana -- is about 1.5 million cubic feet equivalent (MMCFE) per day. The average working interest is 3% and the net revenue interest is 2.5% on average.

The data room is scheduled to open from May 28 to July 2 with final offers due by July 16. For additional information, contact Chris Simon at Raymond James | Albrecht: 713-278-5206 or chris.simon@raymondjames.com.