Marketed 80000 Net Southern Delaware Basin Acres Whitehorse Energy

Whitehorse Energy LLC is marketing 80,000 net acres of producing oil and gas properties and undeveloped acreage in the Delaware Basin. Citi has been retained by Whitehorse to act as its exclusive financial and technical adviser for the transaction.

The asset is being billed as the largest remaining core position in the Southern Delaware, with primary target areas including the Wolfcamp, Bone Spring, Barnett and Woodford.

The company has divided the acreage into two areas:

  • Whitehorse North, with about 60,000 acres, has potential in the Bone Spring and Wolfcamp formations, with a section thickness of about 3,500 ft; and
  • Whitehorse South, with about 20,000 acres, has potential in the Bone Spring, Barnett, and Woodford formations.

Whitehorse prefers to sell both asset packages in a single transaction but will consider separate proposals for either.

Highlights:

  • 100% operated with a 92% average working interest
  • Multiple stacked-zone targets in the core of the Southern Delaware Basin’s overpressured oil window;
  • More than 3,000 gross drilling locations identified;
    • Operated drilling inventory with about 60% lateral lengths longer than 7,500 ft;
    • Intervals suited for long-lateral development;
  • Single-well EURs of 1.026 million barrels of oil equivalent (MMboe) to 1.536 MMboe;
    • More than 70% oil and internal rate of returns of up to 80%;
  • Recent oil EURs between 110 barrels (bbl) to 140 bbl of oil/ft of lateral length in adjacent acreage;
  • Nearby industry spacing tests to 660 ft; and
  • Limited lease expirations allow an attractive and flexible operational and investment schedule.

Proposals are due March 22. For information contact Fritz Schlopy, Citi managing director, at 713-821-4818.