Non-Binding Bids for the combined Dunvegan interests are due by noon on Wednesday, May 19, 2021.
Highlights include:
- 1.25% unitized working interest in the Dunvegan Gas Unit No. 1 with a 6% historical decline rate
- Includes working interest in the 240 MMcf/day gas plant facility and infrastructure
- 2.68% working interest in 2 non-Unit Debolt oil wells with a 4% decline rate
- 87 BOE/day (390 Mcf/day of 1,155 BTU/Scf sales gas, 8 Bbls/day of oil/condensate, some NGL’s)
- 63 Bbls/MMcf sales gas with deep cut that is currently shut down
- >35 BOE/day average well rate
- Last 4 months Net Operating Income annualized of ~$338 thousand
- Producing Reserve Life Indices of 8 to 11 years
- 2021 expected operating costs of $6.75/BOE and 5% royalties
- Netbacks of $3,500-$4,500/BOE/day depending on oil and gas price
- Inventory of infill development wells to continue drilling over the coming years with price recovery
- Continued optimization of existing wells with improved completion techniques on multiple zones
- Upper, Middle, and Lower Debolt all productive
- Very competent and efficient operator with apparent long term plans for the property
- Minimal near-term liabilities. Long term liabilities are not significant compared to future cash flows
Detailed information is available at www.cbsecurities.com or by emailing info@cbsecurities.com