Marketed: Williston Basin Assets, Vanguard Natural Resources

Vanguard Natural Resources Inc. has Williston Basin assets for sale through an auction handled by Eagle River Holdings LLC.

The offer comprises operated and nonop working interests, overriding royalty interests, HBP leasehold and associated development rights in 290 gross wells throughout Montana and North Dakota. The assets’ net income forecast is about $662,000 per month for the remainder of 2017, Eagle River said.

Highlights:

  • 100% HBP leasehold;
  • About 5.659 million barrels of oil equivalent (boe) and $52.214 million (PV-10 value) proven developed reserves;
  • Net production is forecast at about 1,200 boe/d (90% oil, 9% gas and 1% NGL);
  • Estimated net cash flow for remainder of 2017 is about $662,000 per month;
  • 290 gross wells;
    • 90 operated wells;
      • 86.1% average working interest;
      • 72.4% average net revenue interest;
    • 115 nonoperated wells;
      • 22.6% average working interest;
      • 19.1% average net revenue interest;
    • 85 overriding royalty wells;
      • 1.7% average overriding royalty interest;
  • About 5.135 MMboe net proved developed producing reserves (256 wells)
  • Producing formations include Red River, Madison, Bakken and Tyler;
  • 11 operated, saltwater disposal wells; and
    • Injecting in Dakota, Red River and other formations.

Operated properties include acreage in the Cedar Creek Anticline, Elm Coulee and Nesson Anticline fields. Additionally, Vanguard is accepting separate bid offers for its Horse Creek waterflood assets in Bowman County, N.D.

In May, Vanguard sold Midland Basin acreage in a bankruptcy auction to Occidental Petroleum Corp. (NYSE: OXY) for $101.2 million. The company emerged from Chapter 11 bankruptcy in August following the completion of its financial restructuring, which eliminated about $820 million of debt from Vanguard’s balanced sheet.

In addition, Vanguard said in September it hired Jefferies LLC as its financial adviser to oversee the strategic review of its asset base and development plans, including possible asset sales.

Bids for Vanguard’s Williston assets are due by Nov. 9. For information visit eagleriverholdingsllc.com or contact Eagle River’s Austin McKee at 303-832-5128.

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