Non-Operated Assets for Sale in the Wyoming DJ Basin

Property for Sale

Property Information

  • Bid Date: October 18, 2018
  • Effective Date: September 01, 2018
  • Closing Date: TBD
  • Area Size:  
  • Type of Basin: DJ Basin

Executive Summary

Eagle River Energy Advisors, LLC has been exclusively retained by Hat Creek Energy LLC ("Seller") for the divestiture of non-operated working interest assets located in the DJ Basin of Laramie County, Wyoming, predominately operated by EOG Resources.

Property Description

Production Base with Additional Near-Term Cash Flow

  • ~250 Boe/d net production July 2018 (79% Oil / 12% NGL / 9% Gas)
  • ~$236,000/mn net cash flow (Mar-May 2018 average)
  • ~$930,000 additional net cash flow and 21.6 Mboe anticipated in first year from 10 Codell wells completed in July/August 2018
  • Low political risk of development on Wyoming side of the DJ Basin

Wyoming DJ Basin Non-Operated Position

  • ~5,225 net/ ~24,889 gross acres entirely non-operated
  • 22 PDP wellbores with average of 6.8% WI (80% 8/8ths NRI)
  • 100% of net production currently operated by EOG Resources
  • 154 Codell permits (8.2 EOG / 7.6 Anadarko / 0.9 Samson net wells

Engineered Reserves

  • ~274 MBoe / $5.5MM PV-10 PDP Reserves (22 Wells)
  • Compelling HZ Codell economics with EURs of ~450 MBoe for 2-mi lateral with $4.6MM D&C yielding IRRs > 50%
  • ~200 potential drilling locations
  • Significant future resource potential in the Niobrara Formation

Operators Actively Developing Position

  • EOG classifies the WY DJ Basin as one of its “Premium” oil plays
  • EOG active with 2 rigs and near-term plan to develop position
    • EOG submitted AFE to delineate eastern portion of Seller’s acreage in Sept. 2018
    • EOG submitted 4 AFEs with intent to drill by Oct. 2018
  • Recent development proposed by Samson Exploration

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