DJ Basin: ~3,983 Net Acres Operated & Non-Operated Leasehold (~100% HBP)

Property for Sale

Property Information

  • Bid Date: August 31, 2018
  • Effective Date: July 01, 2018
  • Closing Date: September 14, 2018
  • Area Size:  
  • Type of Basin: DJ Basin

Executive Summary

Eagle River Energy Advisors, LLC has been exclusively retained by IronHorse Resources, LLC (“Seller”) for the divestiture of operated working interest assets and associated development rights located in the DJ Basin of Weld County, CO and Laramie County, WY.

Property Description

HBP Assets with Significant Growth Potential

  • ~13,500 MBOE Proved net Reserves
  • ~20 BOE/d net production (97% Oil) and ~$16,000/mn net cash flow (6-mo average)
  • >300% production growth potential over 5-year development program with single well IRRs of 36% – 107%

 

Rural Position in the DJ Basin with Drilling Inventory

  • ~3,983 net and ~8,320 gross acres operated and non-operated leasehold (100% HBP) with high 8/8ths NRI of 80%
  • 11 gross / 7 net wellbores with average of 63.3% WI / 50.7% NRI
  • 24 gross / 8 net PUD locations with permits in process from Longs Peak Resources with 33.3% WI / 26.7% NRI
  • 78 gross / 44 net operated PUD locations with average of 56.9% WI / 45.5% NRI

 

Engineered Reserves

  • ~80 MBOE / $1.3MM PDP net Reserves
  • ~3,473 MBOE / $18.1MM non-operated PUD net Reserves (24 permits in process)
  • ~9,941 MBOE / $15.2MM operated net PUD Reserves (78 economic locations) in the Niobrara and Codell Formations
  • 2-Phase EUR range of 52-94 MBOE/1,000’ lateral length for Codell and Niobrara horizontal targets

 

Higher Recoverable Reserves from Modern Completions

  • Top DJ Basin operators, EOG Resources, HighPoint Resources, Longs Peak Resources, Enerplus and others, are actively permitting, drilling and completing offset to most leases
  • Modern completion techniques utilizing higher pump rates, larger water volumes and proppant are beginning to be tested by offset operators, lending potential for additional significant future upside in recoverable reserves

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