RE: Re: SWP23 Dec 2021 21:55
CUDA Energy LLC retained Detring Energy Advisors to market for sale its large, contiguous roughly 16,500 net-acre-position in the prolific Powder River Basin in Wyoming’s Converse and Natrona counties.
Provided by Detring Energy Advisors
Tue, 12/21/2021 - 02:05 PM
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The following information is provided by Detring Energy Advisors LLC. All inquiries on the following listings should be directed to Detring. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
CUDA Energy LLC retained Detring Energy Advisors to market for sale its large, contiguous roughly 16,500 net-acre-position in the prolific Powder River Basin.
The assets offer the opportunity to acquire nonoperated working interest underneath a focused operator with a production base generating roughly $5 million in cash flow (next 12-month). Detring added that near-term production growth is driven by an active miscible gas flood program and exposure to horizontal development potential across multiple stacked-pay targets.
Highlights:
Increasing Production Base (~500 bod net | 100% oil)
56 PDP wells generate strong production and cash flow across the Barron Flats Unit (BFU) and the Cole Creek Field Unit (CCU)
Average PDP: Working Interest: 28% | Net Revenue Interest: 22%
Resilient cash flow supported by efficient operations and high netbacks
PDP Cash Flow: $5 million (next 12-month)
PDP PV-10: $39 million
Netback: $46/bbl (Average 2022E)
2022E PDP exit rate of 600 Bod as gas flood continues trend of increased rate
Miscible Gas Flood Drives Continued Growth
De-risked production growth from miscible gas flood with proven results
Oil production has increased 75% since implementation of gas flood
Gas injection volumes increased 10x in first-half 2021 with oil production in early response stage
Significant OOIP of ~230 million barrels
Gas flood projected to drive 40%-50% incremental recovery
New infrastructure with direct access to injection feedstock
Prudent Operator Actively Developing Substantial Upside
Canadian Overseas Petroleum Ltd. (COPL) is sole operator
Publicly disclosed growth outlook:
Plans to increase gas injection in BFU
Targeting 17 recompletes in CCU
BFU deep test completed in September confirmed six oil-bearing sands with ~250 ft total net pay
Conventional and unconventional horizontal targets under active development by offset operators
Primary Zones: Turner, Frontier
Detring Energy Advisors Marketed Map - CUDA Energy Conventional Powder River Basin Nonop Oil Opportunity
(Source: Detring Energy Advisors LLC)
Process Summary:
Evaluation materials available via the Virtual Data Room on Jan. 5
Proposals due on Feb. 4
For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.
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