Marketed: Stack And Midcontinent Assets, Payne Exploration, Energy Capital Solutions

Privately-held Payne Exploration Co. is offering its E&P assets, which include an acreage position in Oklahoma’s Stack Play, in a complete or partial sale.

The offer comprises the company’s Stack assets within the Sooner Trend/Anadarko Basin in Kingfisher and Logan counties, Okla., and other assets across multiple basins and counties in Oklahoma, Kansas, Nebraska and Texas.

The company and its affiliates retained Energy Capital Solutions LLC (ECS) to handle the sales process. Founded in 1951 by W.C. Payne, Payne Exploration holds about 28,591 net acres across the Midcontinent region, all of which are being marketed.

Payne Exploration: Asset Map

Highlights:

Stack Asset Package

  • Net to Payne’s interest, consulting firm DeGolyer & MacNaughton assigned total 1P reserves of 161 billion cubic feet (Bcf) and 10.9 million barrels (bbl), of which 64% is rich gas, with a PV-10 value of $218.9 million;
    • 23 Bcf and 1.5 million bbl net proved developed producing ($55.6 million PV-10 value);
    • 93 Bcf and 9.5 million bbl net proved undeveloped ($163.2 million PV-10);
  • 8,840 net acres (99% HBP) in Kingfisher and Logan with 100 producing wells and 83 proved undeveloped locations;
    • Payne operates 96% of proved developed producing PV-10 value (75% of the wellbores);
  • Full development across the Stack acreage would require an additional $485 million to drill 372 wells,; and
    • Such development would add reserves of 292.5 Bcf and 33 million bbl (58% rich gas) with a PV-10 value of $458.9 million, according to ECS.

Non-Stack Asset Package

  • Net to Payne’s interest, DeGolyer & MacNaughton assigned total 1P reserves of 8.9 Bcf and 700,000 bbl, of which 69% is rich gas with a PV-10 value of $13.2 million;
    • 4.5 Bcf and 200,000 bbl net proved developed producing ($8.2 million PV-10 value);
    • 4.4 Bcf and 500,000 bbl net proved undeveloped ($5 million PV-10 value);
  • 19,751 net acres (41% HBP) and 186 producing wells and seven proved undeveloped locations; and
    • Payne operates 46% of proved developed producing PV-10 value (24% of the wellbores).

A virtual data room is open through Aug. 4. Bids are due Aug. 7. For information visit energycapitalsolutions.com or contact Mark Pruett, ECS analyst, at 214-219-8210.