Marketed: Nonop Interest, Hugoton Assets, Berry Petroleum, Houlihan Lokey

Berry Petroleum Co. LLC is offering its Hugoton Basin assets in a sale handled by Houlihan Lokey Capital Inc.

The offer includes nonoperated working interest in 2,414 producing wells across nearly 600,000 net acres in Kansas and Oklahoma.

Highlights:

  • Nonoperated, average working interest of 78%;
  • Income interest of 65%;
  • Linn Energy Inc. operates on behalf of Berry (Linn has a 22% working interest)
    • Berry has the right to convey operations, Houlihan Lokey said;
  • 596,184 net acres total net to Berry;
    • 490,220 net acres in Kansas;
    • 105,964 net acres in Oklahoma;
  • 326 billion cubic feet equivalent net proved reserves (76% natural gas);
  • 661 Bcfe net 3P resource;
    • 49% developed;
  • Projected net production as of May 1 is 56.7 MMcfe/d (77% natural gas and 23% liquids);
  • Roughly 6% annual proved developed producing decline with minimal capital investment, Houlihan Lokey said;
  • Assets include helium revenue generated from gas processing (about 12% annual revenue);
  • 1,309 gross drilling locations (Chase/Council Grove); and
  • "Extensive" infrastructure and available takeaway capacity in place to support additional development, Houlihan Lokey said.

Berry, formerly a subsidiary of Linn Energy, emerged as a standalone company in February following the completion of Linn’s Chapter 11 restructuring.

The transaction will be a negotiated sale and the properties are subject to prior sale. Berry will sell all of the properties to one buyer, Houlihan Lokey said.

Bids are due by June 8. The sale will have a May 1 effective date and is expected to close July 31.

For more information visit hl.com or contact Kirk Tholen, managing director and head of E&P A&D with Houlihan Lokey, at 832-319-5110.