Buffalo Creek Minerals LLC is offering its minerals assets located in the Oklahoma Scoop oil window in a sale managed by Detring Energy Advisors.
The assets comprise a large, contiguous minerals position in McClain County, Okla. The offer also includes about $250,000 cash flow in the past six months.
- 8,820 net royalty acres;
- 70% of acreage located in the more active, westernmost townships (3W-4W);
- 100% of McClain year-to-date horizontal spuds and current rigs are located on Buffalo Creek minerals;
- More than 25% of acreage open/unleased, providing large lease bonus revenue potential;
- Acreage located entirely within the prolific Scoop oil window;
- About $250,000 cash flow over last six months (roughly $500,000 annualized);
- Cash flow is up about 4x over the last 12 months due to accelerating activity within the county, according to Detring;
- Substantial increase in McClain horizontal development (Scoop oil), Detring said;
- Spuds up 10x in 2017 vs. 2014 (annualized);
- Regulatory applications up 3x over the last 12 months;
- Operators include EOG Resources Inc. (NYSE: EOG), Newfield Exploration Co. (NYSE: NFX), Citizen Energy II LLC, Casillas Petroleum Resource Partners LLC, BP Plc (NYSE: BP) and Eagle Energy Exploration LLC;
- Operators primarily targeting the horizontal Woodford and Sycamore, with single-well rate-of-return's exceeding 100%; and
- Additional stacked-pay upside in the Hunton and Viola.