Undisclosed

Transaction Type
Sellers
Marketers
Basin
Scoop/Stack, D-J Basin, Arkoma, Eagle Ford & Other
Post Date
Close Date
Estimated Price
MM
Description

An undisclosed seller is offering for sale mineral rights and well interests across the continental U.S. Meagher Energy Advisor has been exclusively retained to serve as the adviser for the divestiture.

The sale includes assets in the Scoop/Stack, D-J Basin, Arkoma and Eagle Ford across 32 states including Colorado, Oklahoma, Texas and Wyoming.

Highlights

  • 32 States and 571 Counties
    • 416,712 Net Mineral Acres
    • High-value acreage positions in the Scoop/Stack, D-J Basin, Arkoma and Eagle Ford
    • Interests in about 1,850 wells
    • ~3,500 horizontal drilling locations quantified in premier basins covering ~40,000 net acres
    • Cash flow expected to grow significantly due to largely undeveloped position
    • ~$16 million total net revenue and lease bonus income in 2017
    • ~385 Net bbl/d of Oil and 4,140 Net Mcf/d
    • ~280,000 net unleased mineral acres to contribute to future bonus income and exposure to frontier resource plays
  • Oklahoma
    • 4,252 net Scoop/Stack acres, 6,280 net Arkoma acres, 2,530 net Mississippian Lime acres
    • $324,000/Month average historical cash flow from 850 wells
    • 2,604 horizontal drilling locations with 26,015 Mboe resource potential
  • Colorado / Wyoming
    • 7,292 net mineral acres in tier 1 D-J Basin
    • $425,000/Month average historical cash flow from 533 wells
    • 852 drilling locations with 8,603 Mboe resource potential
  • Texas
    • 4,588 net Eagle Ford acres, 3,081 net Barnett acres, 102 net Permian Acres
    • $265,000/Month average historical cash flow from 383 wells
    • 1,590 undeveloped acres with 9,795 Mboe resource potential

Bids are due Oct. 4, with an anticipated economic effective date of Nov. 1, and a targeted closing on or prior to Dec. 31.

Potential bidders are requested to express interest as soon as possible, but no later than Aug. 31.

Contact Nick Asher at nasher@meagheradvisors.com or Chris McCarthy at cmccarthy@meagheradvisors.com to receive a non-disclosure agreement.

The competitive process will be managed in accordance with procedures to be established and communicated to qualified interested bidders, which procedures may be amended at any time in the sole discretion of the seller.

Potential bidders will be qualified subject to certain requirements. These may include relative experience in the ownership and development of mineral interests in the subject basins and a suitable credit profile based on market value, equity or asset holdings, among other criteria. Access to confidential information, including the identity of seller, will be subject to execution of a confidentiality and non-disclosure agreement.