King's Peak Energy LLC is offering about 22,000 net acres HBP in Southwest Wyoming and Northeast Utah in a negotiated transaction as the company seeks strategic alternatives for the assets.
The offer is comprised of operational control over three producing units and four producing fields with a PV-10 value of $31.8 million. The Denver-based company retained Bay Capital Corp./Riviera-Ensley Advisors to handle the transaction.
The assets consist of the Mountain Field, Whiskey Springs Field, Taylor Ranch Field, Graham Reservoir Field, Lucky Ditch Unit, Bridger Lake Unit and Whiskey Springs Unit.
Highlights:
- Total proved reserves of 9.1 million gross (6.4 million net) barrels of oil equivalent (boe);
- Consists of 58.9% proved developed producing (PDP), 5.1% proved developed non-producing, 35.9% proved undeveloped and a PV-10 value of $31.8 million;
- Net production averages 705 gross (496 net) boe/d with 90% oil by revenue;
- Average monthly operating cash flow (trailing three months) was $235 million;
- King Peak's operates all units, leases and wells;
- The reserves-to-production ratio for PDP is 13.9 years;
- The average net revenue interest for all leases is more than 80%; and
- Focused area of operations with all production and reserves located within an area that is about nine miles long and seven miles wide.
The assets include upside potential as downspacing to 320 acres would add drilling locations and reserves since most wells are drilled on 640-acre spacing, the release said.
King's Peak is considering numerous financial structures for the assets, which include but not limited to:
- Total sale;
- Partial sale (nonoperated interest);
- Industry joint venture partner;
- Financial partner;
- Strategic alliance; or
- Merger.
For information visit rivieraensley.com or contact Chris Nelson, business development manager with Riviera-Ensley, at 713-622-7332.
Recommended Reading
Gushing, Ohio: EOG Joins Ascent, Encino in Top Oil Wells
2024-01-22 - EOG’s latest wells in its new Ohio oil play are rolling into state public records, while Ascent Resources and Encino Energy are reporting the biggest producers. All three are landing 3-milers. Some are 3.5 miles.
Commentary: The Oil and Gas Future—Believe It or Not
2024-01-10 - If you believe the IEA’s analysis, plenty of oil and gas companies won’t survive very far into the future.
US Drillers Cut Oil, Gas Rigs for Third Week in a Row
2024-01-05 - The oil and gas rig count, an early indicator of future output, fell by one to 621 in the week to Jan. 5.
US Drillers Cut Oil, Gas Rigs for Second Week in a Row
2024-01-12 - The oil and gas rig count, an early indicator of future output, fell by two to 619 in the week to Jan. 12, the lowest since November.
Prairie Operating Acquires More D-J Basin Assets for $94.5MM
2024-01-15 - Houston-based Prairie Operating Co. is scaling its D-J Basin footprint with a $94.5 million acquisition of Nickel Road Operating LLC.