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
Exclusive: ‘Reality Has Hit,’ NatGas Not Just a Bridge Fuel, Landrieu Says
2024-04-11 - The Biden administration's LNG pause is "disappointing" and natural gas is a "solution to energy woes," co-chairs for Natural Allies for a Clean Energy Future Senator Mary Landrieu and Congressman Kendrick Meek told Hart Energy's Jordan Blum at CERAWeek by S&P Global.
CERAWeek: Energy Secretary Defends LNG Pause Amid Industry Outcry
2024-03-18 - U.S. Energy Secretary Jennifer Granholm said she expects the review of LNG exports to be in the “rearview mirror” by next year.
Energy Transition in Motion (Week of March 22, 2024)
2024-03-22 - Here is a look at some of this week’s renewable energy news, including a new modeling tool for superhot rock.
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.
National Petroleum Council: A Realistic Path to Scaling US Hydrogen
2024-05-15 - A report by the National Petroleum Council, the culmination of about 18 months of work, offered 23 recommendations to help the hydrogen industry grow through 2050.