ERG Resources LLC is divesting its operated Casmalia Field position in Santa Barbara County, Calif., according to PLS Inc. , which was retained to market the sale.
The lease contains 572 net acres that are all HBP and include all depth rights. The property has 100% working interest and an above-average net revenue interest ranging from 86% to 99%, depending on the leases. Cash flow for the last 12 months averaged about $113,700 per month, with March 2014 reporting about $135,000. These wells have maintained long stable production with a low decline rate going back to the early 1980s.
A total of 27 active vertical wells and four salt water disposal wells will be sold. Gross production for the last three months has averaged 100 barrels per day (bbl/d) of oil after removing 10 bbl/d of light crude oil.
The field uses about 10 to 12 bbl of light crude oil per day, with an average differential of some $20/bbl during the last few months.
The position for sale also has eight proved undeveloped (PUD) wells targeting the Monterey Formation. These should have production longevity, according to PLS Inc. The total proved EUR for the property is 910,000 bbl of oil a PV-10 value of some $16.6 million. The proved developed producing PV-10 has a value of $9.4 million with 443,000 bbl of oil via stable, low-decline primary production. In addition to the PUD wells, cyclic steaming and steam-flooding provide the position with additional upside potential.
For information, contact Brian Green , PLS vice president, at 713-650-1212.
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