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
Battalion in Compliance with NYSE American after 2023 Meeting
2024-02-13 - Previously, Battalion Oil was not in compliance with the NYSE after failing to hold an annual meeting of stockholders during the fiscal year ending Dec. 31.
JMR Services, A-Plus P&A to Merge Companies
2024-03-05 - The combined organization will operate under JMR Services and aims to become the largest pure-play plug and abandonment company in the nation.
New Fortress Energy Sells Two Power Plants to Puerto Rico
2024-03-18 - New Fortress Energy sold two power plants to the Puerto Rico Electric Power Authority to provide cleaner and lower cost energy to the island.
Tellurian Executive Chairman ‘Encouraged’ by Progress
2024-03-18 - Tellurian announced new personnel assignments as the company continues to recover from a turbulent 2023.
Kissler: OPEC+ Likely to Buoy Crude Prices—At Least Somewhat
2024-03-18 - By keeping its voluntary production cuts, OPEC+ is sending a clear signal that oil prices need to be sustainable for both producers and consumers.