The following information is provided by PetroDivest Advisors. All inquiries on the following listings should be directed to PetroDivest Advisors. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
Rock Oil Holdings has retained PetroDivest Advisors for the sale of a mineral and royalty opportunity in Howard County, Midland Basin. The package includes 2,200 net royalty acres.
Opportunity highlights:
- $2.4MM Next-Twelve-Months Cash Flow | Primed For Pad Development & Growth
- 180 producing wells delivering stable base of existing cash flow
- PDP PV10: $7.9MM
- PDP NTM Cash Flow: $1.7MM
- Majority operated by SM Energy
- SM operates 70% of Rock Oil’s net production and 90% of its NRA
- Other operators include Vital, Sinclair (SOGC), Callon and Occidental
- 180 producing wells delivering stable base of existing cash flow
- ~2,200 Net Royalty Acres | Well-Positioned High-Interest Units
- High-interest units (up to ~7% RI)
- Highest interest acreage in prime drilling fairway well-positioned for imminent development
- SM Energy is focused on Howard County with the majority of its remaining North Midland Basin inventory (~50%+) under Rock Oil’s footprint
- Rock Oil positioned under SM’s key remaining scalable inventory
- SM Energy well performance in the county outperformed peers by 30%
- High-interest units (up to ~7% RI)
- 330 Undeveloped Locations | ~35% Horizontally Developed
- Imminent potential development set to substantially accelerate royalty value
- 3P PV10: $47MM ($100MM+ PV0)
- 3P Net Reserves: 2.2 MMBoe
- Proven primary horizontal targets across the Middle Spraberry, Jo Mill, Lower Spraberry Shale, and Wolfcamp A, B and D
- Position surrounded by recent permits and multi-bench pad development
- Estimated Operator avg. IRR of 70%
- Imminent potential development set to substantially accelerate royalty value
Bids are due April 10. For complete due diligence, please visit petrodivest.com, or email Jerry Edrington, managing director, at jerry@petrodivest.com.
Recommended Reading
Analyst: Exxon Mobil, Pioneer Deal Close Likely ‘Imminent’
2024-05-01 - With approval from the Federal Trade Commission, Exxon Mobil could close its $59.5 million acquisition of Pioneer Natural Resources after more than six months of review.
Oil, Gas Production Fee Set to Hit Colorado Producers
2024-05-01 - The deal reached this week will eliminate several proposed ballot measures targeting the fossil fuel industry ahead of this year's election, including one that would have halted drilling in summer months.
Guyana’s Stabroek Boosts Production as Chevron Watches, Waits
2024-04-25 - Chevron Corp.’s planned $53 billion acquisition of Hess Corp. could potentially close in 2025, but in the meantime, the California-based energy giant is in a “read only” mode as an Exxon Mobil-led consortium boosts Guyana production.
US Interior Department Releases Offshore Wind Lease Schedule
2024-04-24 - The U.S. Interior Department’s schedule includes up to a dozen lease sales through 2028 for offshore wind, compared to three for oil and gas lease sales through 2029.
Utah’s Ute Tribe Demands FTC Allow XCL-Altamont Deal
2024-04-24 - More than 90% of the Utah Ute tribe’s income is from energy development on its 4.5-million-acre reservation and the tribe says XCL Resources’ bid to buy Altamont Energy shouldn’t be blocked.