Cinco Resources Inc. has retained Wells Fargo Securities LLC and Citigroup to sell its interest in 2,721 net acres in the Axle Tree and Heard areas of the Eagle Ford shale.
Cinco is the operator and has 100% working interest in the acreage, all of which is held by production. Proved reserves are estimated at 13.5 million barrels of oil equivalent (BOE), about 26% of which is proved, developed, producing. The present value of the reserves base is about $248 million when discounted at 10%.
Production from the acreage is about 1,750 BOE per day, 76% of which is from liquids.
The acreage includes six producing wells in the Axle Tree Area and five producing wells in the Heard Area. In addition, both areas have 35 potential drilling locations. The current development strategy calls for at least 5,000 BOE per day by 2014 and the entire project is expected to be self-funding by 2015.
Cinco prefers to sell the asset in a single transaction, but will consider bids for individual areas. Data rooms will be open in mid February with bids due in mid-March. For additional information, contact Tim Saxman, managing director at Citigroup, 713-821-4771 or Dane Isenhower, managing director at Wells Fargo Securities, 713-346-2721.
Recommended Reading
TPG Adds Lebovitz as Head of Infrastructure for Climate Investing Platform
2024-02-07 - TPG Rise Climate was launched in 2021 to make investments across asset classes in climate solutions globally.
JMR Services, A-Plus P&A to Merge Companies
2024-03-05 - The combined organization will operate under JMR Services and aims to become the largest pure-play plug and abandonment company in the nation.
Chord Energy Updates Executive Leadership Team
2024-03-07 - Chord Energy announced Michael Lou, Shannon Kinney and Richard Robuck have all been promoted to executive vice president, among other positions.
First Solar’s 14 GW of Operational Capacity to Support 30,000 Jobs by 2026
2024-02-26 - First Solar commissioned a study to analyze the economic impact of its vertically integrated solar manufacturing value chain.
SunPower Begins Search for New CEO
2024-02-27 - Former CEO Peter Faricy departed SunPower Corp. on Feb. 26, according to the company.