The following information is provided by Indigo Energy Advisors. All inquiries on the following listings should be directed to Indigo Energy Advisors. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
BP Exploration & Production Inc. retained Indigo Energy Advisors for an offshore overriding royalty interest acquisition opportunity in the Gulf of Mexico and Louisiana.
The Lot #120281 opportunity includes 100% HBP royalty interest and had an average net production of approximately 1,100 boe/d in first-quarter 2024.
Opportunity Highlights
- Unique Overriding Royalty Interest
- Opportunity to acquire multiple lease level overrides within the Gulf of Mexico
- 100% HBP royalty interest
- Net production of ~1,100 boepd Q1 2024 average
- Successful workover within the Kodiak Field is online but production data is not reflected in the previously mentioned net production
- Meaningful Investment Platform
- Rare opportunity for Gulf of Mexico exposure with no working interest obligations
- Exposure to leading offshore operators such as Talos, Kosmos, Occidental, and Murphy
- Lease level overrides provide exposure to future development and exploration across premier properties within the Gulf of Mexico
- Kodiak-3 workover successfully completed in July 2024 and performing above operator's expectations
- 2 new-drill opportunities forecasted within Lucius in 2025
- 1 remaining prospect within South Santa Cruz modeled in 2026
- Premium Oily Asset
- Favorable geographic location to Gulf Coast market supports basis differentials above WTI
- Production weighted average royalty ownership of ~2.33%
- Low Decline Conventional Asset
- Shallow PDP NTM production decline of ~7.1%
- Robust producing asset NTM cash flow of ~ $23,100,000
- Additional forecasted upside NTM cash flow of ~ $6,800,000
- Long life nature of asset ensures steady returns
Bids are due at 4:00 p.m. CST on Nov. 12. For complete due diligence information, please visit indigo.energynet.com or email Cody Felton, managing director, at Cody.Felton@energynet.com.
Recommended Reading
As Permian Targets Grow Scarce, 3Q M&A Drops to $12B—Enverus
2024-10-16 - Upstream M&A activity fell sharply in the third quarter as public consolidation slowed and Permian Basin targets dwindled, according to Enverus Intelligence Research.
LandBridge Expands in Southern Delaware Basin with $245MM Acquisition
2024-11-19 - LandBridge is acquiring approximately 46,000 largely contiguous surface acres in the Wolf Bone Ranch from a subsidiary of Vitol-backed VTX Energy Partners.
Logan Energy Closes Gran Tierra Joint Venture Acquisition
2024-12-18 - Logan Energy Corp. paid approximately $37 million for 50% working interests in Gran Tierra’s Simonette Montney assets and will assume operatorship.
Oxy Divests Some Powder River Basin Assets to Anschutz
2024-11-11 - Occidental Petroleum and Anschutz Exploration confirmed the transaction but didn't disclosed details as, separately, Powder River Basin operator Peak Resources plans an IPO this week.
Freehold Closes $182MM Acquisition of Midland Basin Interests
2024-12-16 - Freehold Royalties’ acquisition from a private seller includes around 1,300 boe/d of net production and 244,000 gross drilling acres largely operated by Exxon Mobil and Diamondback Energy.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.