SMSE

Transaction Type
Sellers
Marketers
Post Date
Estimated Price
MM
Description

SMSE has hired Lantana Oil & Gas Partners to coordinate the sale of a package of 14 producing, non-operated wells in the Eagle Ford.

The wells, in La Salle County, Texas, are operated by Chesapeake Energy Corp. (NYSE: CHK) and produce about 130 barrels of oil equivalent per day net to SMSE. Cash flows from the assets are about $400,000 per month.

SMSE has an average working interest of 3.2% and an average net revenue interest of 2.4% in the assets. The package includes 5,450 gross acres, with rights form the surface to the base of the Eagle Ford shale.

Proved developed producing (PDP) reserves total 159,000 bbl and 182.9 million cubic feet (MMcf) of natural gas worth a present value of $9.245 million when discounted at 10%.

Capital costs are around $9 million per well. The average internal rate of return is in estimated to be in excess of 100% for all proven, undeveloped locations. For additional information, contact Andy Taurins at Lantana Oil & Gas Partners at 713-426-9001 or andy@lantanaog.com.