ORRI Assets for Sale in the Williston Basin

Eagle River Energy Advisors, LLC has been exclusively retained by a Private Seller to divest certain overriding royalty interest assets and associated development rights in the Williston Basin of Dunn, McKenzie, McLean & Mountrail Counties, North Dakota.

 

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Teaser & CA

Significant Producing Assets in the Core Williston Basin

  • Overriding royalty interest position in ~60 DSUs / ~137,000 DSU acres on the Ft. Berthold Reservation in the Williston Basin
  • ~334 existing wells
  • ~120 Boe/d net production (Jan-21 Forecast)

                 - 77% Oil / 12% NGL / 11% Gas

  • ~$21.3MM net cash flow since 2012 (~$2.4MM avg / year)

New Asset Operatorship & Other Active Operator

  • Impending acquisition of QEP 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, XTO, QEP and RimRock
  • Flat production through 2018 as a result of ~32 wells drilled / year

Optimal Portfolio of Production with Upside Development

  • Drilling economics at current prices across three viable targets yield IRRs of 40%–65% and EURs 1,000–1,200 MBoe
  • Production base with sizeable undeveloped inventory provides ideal mixture of producing and future upside reserves

-       ~5 avg PDP wells / DSU with ~30% of DSUs only having one well

  •          ~38 near-term locations either drilled awaiting completion, on confidential status, or permitted
  •      ~550 economic locations in the Bakken and Three Forks 1st & 2nd