OOGC America LLC; CNOOC Ltd.
Transaction Type
Sellers
Marketers
Basin
Denver-Julesburg Basin
Post Date
Close Date
Estimated Price
MM
Description
OOGC America LLC, a wholly owned subsidiary of CNOOC Ltd., retained Meagher Energy Advisors to sell Denver-Julesburg (D-J) Basin core nonoperated working interests in Colorado and Wyoming.
Highlights:
- Core D-J Basin Wells with Exponential Growth and Increasing Cash Flow
- Interests in 173 wells with nine recently completed horizontals in Weld County
- Additional 12 wells waiting on completion or currently being drilled
- 62 well proposals received and queued for drilling
- About 1,600 additional drilling locations in Weld, Arapahoe, Adams and Laramie Counties
- $383,000/month average 2017 cash flow before investment
- $619,000 July forecasted cash flow with new wells online
- 323 Net bbl/d of Oil, 728 Net Mcf/d and 96 Net bbl/d of NGL
- Operators include Noble, PDC, Verdad and Bonanza Creek
- Tier 1 Acreage Focused in Low GOR Areas with Expanding Rig Counts
- 7,557 net acres in Weld County, 99% HBP
- 739 net acres in Laramie County, 20% HBP, with majority expiring in 2020 or 2021
- 84% average NRI with 4,621 net acres privately held, 2,910 state, and 27 net federal acres in Weld County
- 116 net acres in Adams and Arapahoe Counties
- Greater than 6,000 net acres undeveloped
- Hundreds of permits waiting on approval in spacing units encompassing OOGC acreage
- Basin extents continuing to expand as operators continue to drill and permit wells to the North and to the East
- Rural footprint mitigates potential setback issues
- 2018 operator budgets increased from 2017
- Additional Acreage Position in Goshen County
- 1,976 net acres in Goshen County and four nonoperated wells
Bids are due Aug. 9. The sale is expected to close Oct. 5 with an effective date of July 1.
For information visit meagheradvisors.com or contact Chris McCarthy, executive vice president for Meagher, at cmccarthy@meagheradvisors.com or 303-721-6354 ext. 224.