Talon Oil & Gas LLC

Transaction Type
Sellers
Marketers
Basin
Fort Worth
Post Date
Close Date
Estimated Price
MM
Description

Dallas-based, shale-focused E&P company Talon Oil & Gas LLC has retained RBC Richardson Barr to sell its interests in certain oil and gas properties and related assets in the Barnett shale, in the Texas Panhandle and in East Texas. The assets contain high BTU gas, with a significant liquids component.

The collective properties are in 11 counties in Texas, and comprise a mix of currently producing assets and undeveloped upside potential in the Barnett shale, Granite Wash, Travis Peak, Pettet, James lime and Haynesville shale. Talon operates 95% of the total value of the package.

In the Barnett shale, the package involves an average working interest of nearly 100% on a leasehold position of approximately 20,000 net acres, with an associated gathering system. Total net proved reserves are 726.6 billion cubic feet equivalent (70% gas; 41% PDP). Net production from 208 active wells is expected to be 84.6 million cubic feet equivalent per day (70% gas) in October. As well, monthly net operating cash flow is expected to be approximately $10.2 million per month. Upside includes an inventory of 819 low-risk recompletion, refract, development drilling and downspacing opportunities.

In the Texas Panhandle, the package involves a 100% working interest in 7,000 net acres, of which 4,000 net acres are prospective for Granite Wash. Total net proved reserves are 76 Bcfe (57% gas; 13% PDP). Net production from 24 active wells is expected to be 1.6 MMcfe/d (58% gas) in October. As well, net operating cash flow is expected to be approximately $200,000 per month. Upside includes some 50 future drilling locations and 33 potential high-impact horizontal wells.

In East Texas, the package involves a leasehold position of approximately 23,500 gross acres (10,000 net acres), including 4,600 net acres with deep rights, and a company-owned gathering system. Total net proved reserves are 48.9 Bcfe (89% gas; 36% PDP). Net production from 66 active wells is expected to be 5.3 MMcfe/d (89% gas), primarily in the Travis Peak and Pettet formations, in October. As well, net operating cash flow is expected to be $600,000 per month. Upside includes inventory of approximately 150 recompletions and future drilling locations.

The data rooms open Sept. 7. The bid due date is Oct. 5. Contact Craig Lande, craig.lande@rbccm.com, 713-585-3335.