The following information is provided by Eagle River Energy Advisors LLC. All inquiries on the following listings should be directed to Eagle River. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Highpoint Resources Corp. retained Eagle River Energy Advisors LLC for the sale of certain nonoperated working interest assets in the Delaware and Denver-Julesburg (D-J) basins. Bids, due Jan. 23, can be submitted on any or all asset packages.
Package One: D-J Basin Nonop Wellbores
- About 157 Working Interest and 11 Royalty Interest only wellbores in Weld County, Colo.
- Seller divesting wellbore only interest
- 1,265 barrels of oil equivalent per day (boe/d) net production / 45% Oil (July 2019)
- About 17.1% Working Interest / 14.0% Net Revenue Interest average
- Predominantly operated by Bonanza Creek Energy Inc.
- About $729,000 per month operating cash flow (July 2019)
- Cash flow anticipated to exceed $1,350,000 per month in November 2019 from 13 wells brought online since July with about 14% average Working Interest
Package Two: Wyoming D-J Basin Nonop
- Roughly 2,328 net acres nonoperated leasehold in Laramie County, Wyo.
- About 27 extended-reach lateral Codell wells operated by EOG Resources Inc.
- 540 boe/d net production / 83% Oil (July 2019)
- 15% Working Interest / 12% Net Revenue Interest in each well
- About $536,000 per month operating cash flow (July 2019)
- Future Codell and Niobrara upside remains in the undeveloped drilling spacing unit (DSUs) to the east as a result of ongoing delineation efforts across the play
Package Three: Delaware Basin Nonop
- About 110 net acres nonoperated leasehold in core of Lea County, N.M.
- About 8.6% Working Interest / 7.1% Net Revenue Interest in 1280-acre DSU with existing stripper well
- Operated by Marathon Petroleum Inc.
- Three drilled but uncompleted wells (DUCs) spud in August 2019 in the Third Bone Spring, Wolfcamp A and Wolfcamp XY with completions in first-quarter 2020
- 10 additional wells with authority for expenditures (AFEs) approved by Seller
- Four additional wells planned with AFEs forthcoming
Bids are due by 4 p.m. MT Jan. 23. The virtual data room will be available starting Dec. 20. The transaction is expected to have a Jan. 1 effective date.