The following information is provided by EnergyNet. All inquiries on the following listings should be directed to EnergyNet. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Arkoma Drilling II LP retained EnergyNet Indigo for the sale of a Williston Basin opportunity through a sealed-bid offering closing March 17. The 113 well package comprises nonoperated working interest in North Dakota’s Dunn, McKenzie, Mountrail and Williams counties.
Highlights:
- Excellent Nonoperated Opportunity:
- Unique opportunity to acquire high quality, unconventional, nonoperated working interests in the core areas of the prolific Williston Basin
- 109 attractive, stable producing wells across the basin
- Nonoperated position with average working interest of ~12.8% and net revenue of ~10.3%
- Established production profile leading to long term cash flow predictability
- ~47% Middle Bakken and ~53% Three Forks 2021 production weighted average
- Strong, Consistent Cash Flow and Production
- Last 12-month average net production of ~3,127 boe/d (~56% oil)
- Strong cash flow of ~$31.9 million/year (last 12-month)
- Exposure to Leading Basin Operators
- Diversified ownership with 11 experienced operators in the Williston Basin
- Enerplus, XTO Energy, Continental Resources, Devon Energy, Slawson Exploration, et al.
- Continued reinvestment through asset purchases and swaps by top operators in Arkoma Drilling's position
- Attractive infrastructure development assisting with continual reduction in operating costs
- Diversified ownership with 11 experienced operators in the Williston Basin
- Upside Opportunity
- Significant stranded oil and gas in place within the Middle Bakken and Three Forks
- Exxon Bullberry Pad (four DUCs) scheduled for completion year-end 2022
- 30 PUD locations targeting both the Middle Bakken and the Three Forks
- Full area exit for Arkoma Drilling II (all acreage, all rights, all depths)
- 30 active rigs in the basin within close proximity to Arkoma Drilling's potential future development locations
- Significant stranded oil and gas in place within the Middle Bakken and Three Forks
Bids are due at 4 p.m. CDT on March 17. The transaction is expected to close in March with an effective date of Feb. 1.
A virtual data room is available. For complete due diligence information visit indigo.energynet.com or email Zachary Muroff, vice president of business development, at Zachary.Muroff@energynet.com, or Denna Arias, vice president of corporate development, at Denna.Arias@energynet.com.
Recommended Reading
Energy Transfer Remains Hungry for M&A, Sees 1Q Oil Volumes Surge
2024-05-09 - Energy Transfer reported record first-quarter crude volumes and expects demand for petrochemicals to continue rising.
For Sale? Trans Mountain Pipeline Tentatively on the Market
2024-04-22 - Politics and tariffs may delay ownership transfer of the Trans Mountain Pipeline, which the Canadian government spent CA$34 billion to build.
Summit Midstream Launches Double E Pipeline Open Season
2024-04-02 - The Double E pipeline is set to deliver gas to the Waha Hub before the Matterhorn Express pipeline provides sorely needed takeaway capacity, an analyst said.
Kinder Morgan Sees Need for Another Permian NatGas Pipeline
2024-04-18 - Negative prices, tight capacity and upcoming demand are driving natural gas leaders at Kinder Morgan to think about more takeaway capacity.
Scathing Court Ruling Hits Energy Transfer’s Louisiana Legal Disputes
2024-04-17 - A recent Energy Transfer filing with FERC may signal a change in strategy, an analyst says.