Marketed: ORRI Assets in Core Williston Basin

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.

Eagle River Energy Advisors LLC has been exclusively retained by a private seller to divest certain overriding royalty interest (ORRI) assets and associated development rights in the Williston Basin of North Dakota’s Dunn, McKenzie, McLean and Mountrail counties.

Highlights:

  • Significant Producing Assets in the Core Williston Basin
    • ORRI position in about 60 DSUs / about 137,000 DSU acres on the Ft. Berthold Reservation in the Williston Basin
    • About 334 existing wells
    • About 120 boe/d net production (January 2021 Forecast)
      • 77% Oil / 12% NGL / 11% Gas
    • About $21.3 million net cash flow since 2012 (about $2.4 million average per year)
  • New Asset Operatorship and Other Active Operator
    • Impending acquisition of QEP Resources by Diamondback Energy provides catalyst to restored development of Seller’s assets
    • QEP operates 33 DSUs / 177 wells with 73% of net production
      • Diamondback Energy publicly announced its intention to divest the QEP Williston Basin assets
      • Seller’s assets to meaningfully benefit from a change in operator
    • Recent activity on assets by WPX Energy, XTO Energy, QEP Resources and RimRock Oil & Gas
    • Flat production through 2018 as a result of about 32 wells drilled per year
  • Optimal Portfolio of Production with Upside Development
    • Drilling economics at current prices across three viable targets yield IRRs of 40%–65% and EURs 1–1.2 MMboe
    • Production base with sizeable undeveloped inventory provides ideal mixture of producing and future upside reserves
      • About 5 average PDP wells / DSU with about 30% of DSUs only having one well
    • About 38 near-term locations either drilled awaiting completion, on confidential status, or permitted
    • About 550 economic locations in the Bakken and Three Forks 1st and 2nd

Marketed: ORRI Assets in Core Williston Basin

The transaction is expected to have a Jan. 1 effective date.

Bids are due at 4 p.m. MT on Feb. 24. A virtual data room will be available starting Jan. 25.

For information contact Mallory Weaver, marketing director at Eagle River, at 720-726-6093 or mweaver@eagleriverea.com.

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