Stanolind Oil and Gas LLC is offering for sale certain Permian Basin assets in West Texas and New Mexico.
The offer consists of about 53,675 gross (41,356 net) acres with long-lived conventional production. The assets include potential for horizontal development, according to TenOaks Energy Advisors LLC, which was retained by Stanolind and its subsidiaries as exclusive financial and technical adviser for the sale.
Stanolind is backed by Natural Gas Partners. The company currently operates in the Permian in Hockley, Cochran, Winkler and Crockett counties in Texas and Lea County, N.M., according to its website.
Highlights:
- About 53,675 gross (41,356 net) acres, 65% HBP;
- Properties located in prolific fields with stacked pay zones, according to TenOaks;
- More than 98% of the properties are operated by Stanolind;
- Average working interest of 90%;
- Average net revenue interest of 71%;
- Several lease with an 87.5% net revenue interest;
- Long-lived, conventional production;
- Forecast 2016 proved developed producing net production of about 1,100 barrels of oil equivalent per day;
- Production mix is about 50% oil/NGL;
- Forward 12-month cash flow (proved developed producing only) of $4.9 million;
- Shallow annual production decline of less than 10%; and
- Proved reserves-to-production ratio of 37 years.
Upside consists of vertical development programs across several areas targeting the San Andres, Grayburg and Penn Sand and low-risk waterflood implementation and expansion projects. The offering also includes of several high-impact behind-pipe projects, TenOaks said.
Offers are due Sept. 2. The data room is open. The sale is expected to close Oct. 21 with an Oct. 1 effective date.
For information visit tenoaksenergyadvisors.com or contact B.J. Brandenberger, TenOaks partner, at 214-420-2323.
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