Marketed Delaware Basin Mineral Position Florida Oil TenOaks Energy Advisors

Florida Oil LP is offering its Delaware Basin mineral position through a sale handled by TenOaks Energy Advisors.

The offer comprises core Delaware mineral acreage including more than 50 producing wells located in Loving and Winkler counties, Texas. The properties generated a cash flow of $230,000 per month from February to April, according to TenOaks.

Highlights:

  • 2,340 net mineral acres;
  • 4,680 net royalty acres (25% lease royalty on all acreage);
  • Cash flow from February to April was $230,000 per month;
  • 54 producing wells (19 horizontal wells);
    • Average 24-hour IP-rate of 1,150 barrels of oil equivalent per day on all horizontal wells, TenOaks said;
  • Operators include RSP Permian Inc. (NYSE: RSPP), Anadarko Petroleum Corp. (NYSE: APC) and Royal Dutch Shell Plc (NYSE: RDS.A);
  • 20 active horizontal permits and eight additional wells currently being drilled or completed; and
  • Drilling inventory includes more than 2,600 remaining locations identified in the Lower Wolfcamp A, Wolfcamp XY, Wolfcamp B, 2nd Bone Spring, 3rd Bone Spring and Avalon formations.

Bids are due June 16. The sale is expected to close July 28.

For information visit tenoaksenergyadvisors.com or contact B.J. Brandenberger, TenOaks partner, at 214-420-2323.