The following information is provided by Energy Advisors Group Inc. (EAG), formerly PLS Divestment Services. All inquiries on the following listings should be directed to EAG. EnerCom Inc. is not a brokerage firm and does not endorse or facilitate any transactions.

Deal Summary

Energy Advisors Group has been retained by an independent producer seeking development capital for its operated oilfield in Kern Co., California.

As of fall 2019, the asset is producing approximately 103 BOPD (gross) and 40 BOPD (net) of 15° API oil. The property has twenty active producers and no idle wells. The asset has over ten (10) years of production history, and the operator has drilled four (4) discovery wells in the last decade. Lease operating expenses average about $15.50/bbl for the last six months ended August 31, 2019.

There are 22 PUD locations over the 3,500 gross acres under lease with PV10 of ~$2.2 million and net reserves of over 310,000 bbls. The property’s overall PV10, according to the most recent third-party reserve report (May 2019), exceeds $2.7 million. Currently on primary production, the field is an excellent candidate for steamflooding. The operator has made plans to pilot a steamflood and seeks capital to commence this program in mid-2020.

This is a unique opportunity to participate in a low-cost producer’s profitable field, with over ten years of continuous production, no idle wells, and material upside available in the form of PUD drilling and steamflooding.

Potential Capital Uses Including:

  • $2,000,000-$3,000,000 For Drilling & Completion
  • $1,200,000-$1,250,000 For Steam Flood Pilot
  • <$100,000 Additional Land & Lease Acquisition Work
  • <$200,000 Potential Lease Workover Projects
  • $100,000-$250,000; Infrastructure Improvements

Asset Highlights

  • 20+ PUD Locations. 3,500 Acres
  • SAN JOAQUIN BASIN.
  • DYER CREEK & MOUNT POSO
  • VEDDER FORMATION (15 Degree API)
  • Fair and Low Operating Costs.
  • STEAM FLOOD PLANNED.
  • OPERATOR SEEKS CAPITAL TO EXPAND
  • NonOperated 50%+ Position Available.
  • Current Production: 108 BOPD
  • Profitable Operation. Premium Crude Price.
  • OPERATOR SEEKS CAPITAL & PARTNER
  • Possible Budget or Capex: $3.0-$6.0 MM
  • FLEXIBLE ON TERMS

California Development Opportunity or Independent producer seeking development capital for its operated oilfield in Kern Co., California - Energy Advisors Group

 

Click here to view the online data room or visit www.energyadvisors.com/deals to view our other 30+ assignments.

For more information, contact David Kessler, Director with EAG, at [email protected] or 713-600-0123.


Legal Notice