Details

Need to sign NDA and provide proof of funds and bio for full details.

Excellent California Oil Acquisition Opportunity

Acquisition Price - $16MM

Average Cost to Drill each (initial 4 Wells) Well - $1.9MM

Number of Wells to be drilled - 92

Potential Recoverable New Oil Reserves- 92,000,000 Barrels

Potential Net Income from 20 Wells is at $435MM

The Client will handle all logistics from setting up the drilling to selling the oil.

This Acquisition Opportunity located in California includes existing oil production and approximately 2,000 acres of mineral rights. Based on an analysis by the seller, a petroleum engineer with direct knowledge of this Acquisition target since 1974, there is an estimated recoverable oil reserve of 92,000,000 barrels of oil within the acreage held-by-production and targeted offsetting acreage. The estimated potential PV10 for a new well is $9,900,000 with an associated 1,000,000 barrels of oil being recovered. The development of this Acquisition will initially involve the drilling of 4 new wells. The estimated initial oil rate from a new well is (at a minimum) 300 barrels of oil per day with the potential to be higher. More wells will be drilled and completed in the coming years and the current plan is to develop the Project from cash flow after drilling initial new wells. Financial figures herein have utilized a constant oil price of $70 per barrel and constant lease operating expenses of $30 per barrel of oil produced. The Acquisition includes existing production which is forecast to generate ~$1,000,000 in net income from March 1, 2019 to February 28, 2020.

The Acquisition lies in an obvious Oil Fairway in California. The mineral rights acreage held-by-production has 12 productive zones ranging between 1,000 feet and 4,000 feet and other exploration depths extending to 7,500 feet. In these zones, the oil gravity ranges from 15oto 42oAPI gravity. Based on historical production, rock properties and oil saturation norms derived from existing wells, reasonable estimates of projected production, operating costs and income from the existing producing wells can be made. In addition, this information leads to reasonable estimates regarding potential oil production from acreage offsetting the existing productive acreage (some of which will need to be acquired via farmout agreements or leasing).

drilling oil wells
Individual well funding can be advanced as new wells are scheduled for drilling as follows:
New Well #1 (Estimated Drilling & Completion Cost) $2,300,000
New Well #2 (Estimated Drilling & Completion Cost) $2,300,000
New Well #3 (Estimated Drilling & Completion Cost) $1,500,000
New Well #4 (Estimated Drilling & Completion Cost) $1,500,000
TOTAL $7,600,000

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Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.