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Energy Advisors Group Releases Northern Rockies Study
Six Basin Study – Uinta, Green River, Powder River, Piceance, Wind River, Bighorn HOUSTON, April 3, 2025: Energy Advisors Group (“EA”) has released a 50-page study on six Basins in the Northern Rockies in Wyoming, Utah, and Colorado. The region currently produces ~440,000 Bopd and 5.0 Bcfpd with 29 active rigs (22 horizontal, 7 vertical). Brian Lidsky, Director of Research, notes: “The Northern Rockies is seeing a surge of deal activity as operators and investors seek foundational assets that thrive short and long-term and come with entry costs that are significantly less than the highly competitive Permian.” Surge in M&A Activity The Northern Rockies recorded >$6.5 billion in deals in 2024, ranking second to Permian ($24.2B) and ahead of the Bakken ($5.5B) and Eagle Ford ($3.3B), per Enverus. Leading the charge is Quantum Energy backing Caerus Oil & Gas’ $1.8B Uinta and Piceance purchase. Quantum also joined with Kayne Anderson to support FourPoint Energy’s $2.0B Ovintiv Uinta Basin assets buyout. Northern Rockies Presents Multiple Oil & Gas Opportunities Stacked pay cube development in the Powder River and Uinta. Examples: • In Wyoming’s central Powder River Basin, publicly traded Amplify Energy sees cube development of five zones and 16 wells per section. The Turner and Parkman formations are generating IRRs >50% at $65 oil, results that compete favorably with the Midland Basin. • In Utah’s Uinta Basin, SM Energy holds 63,000 net acres and reports development with 5 Upper Cube targets and 6 Lower Cube targets. The Lower Cube outperforms its Midland Basin and Austin Chalk assets by >30% with average 2-year cumulative volumes of ~325,000 bbls per 1,000’ lateral. The Upper Cube is on par with the company’s assets in Permian. High-rate conventional gas opportunities and emerging plays. Examples: • Five vertical wells in the Williams Fork formation in Colorado’s Piceance Basin brought online by QB Energy (via its purchase of Caerus Oil & Gas) at initial peak rates from 10 to 13 MMcfpd. • Three vertical wells in the Lance formation in Wyoming’s Greater Green River Basin area brought on by PureWest Energy at rates greater than 7.5 MMcfpd. • Two horizontal wells in the emerging Lewis Shale, also in the Green River Basin, brought on by Williams achieved impressive results of more than 200 Boepd per 1,000’ lateral (> 75% oil). Secondary and Tertiary Recovery Projects: • Study includes a map of 19 secondary (waterflood) and tertiary (CO2) projects across Wyoming• Each project includes field name, primary operator, current volumes and number of wells. • Since 2010, ~10% of Wyoming’s total oil volumes have been from CO2 projects. Advantageous Gas Infrastructure The region offers optionality for premium pricing. • Piceance, Uinta and Green River Basin operators (Multiple outlets): Westbound via the Opal hub in Lincoln County, Wyoming (priced at NWP-Rox) or Eastbound via the Cheyenne hub in Weld County, Colorado or Southbound through San Juan priced at El Paso/San Juan. • Powder River, Wind River, and Big Horn operators (east of the Continental Divide): Mostly forced Eastward via the Cheyenne hub and priced at CIG. • Rockies Gas Price Advantage: For perspective, Rockies gas commanded as much as a >$5.00 premium to Henry Hub during winter 2023/2024 and currently is priced at par or slightly above for winter 2025/2026. Lots of Operators Attracting Potential Buyers The Northern Rockies is home to >300 operators of which the top 35 produce 95% of all volumes. • Top Ten Private Operators (22% of area vols): ~67,000 Bopd, 1.3 Bcfpd • Top Ten Public Operators (33% of area vols): ~175,000 Bopd, 1.5 Bcfpd • Top 10 P/E Backed Operators (30% of area vols): ~137,000 Bopd, 1.5 Bcfpd It is this wide landscape of operators and Basin expertise that is attracting capital and deals to the Northern Rockies as buyers seek high-quality proven assets with long-term development runways in an area that has ample infrastructure, oilfield services and takeaway capacity and is now competing with more expensive areas like the Permian. To receive this EA Basin Perspective Series report, visit energyadvisors.com and contact us. About Energy Advisors Group Energy Advisors Group is a leading provider of global oil and gas divestment services. The firm and its partners have worked on over 1,000 assignments and advised on over $100 billion in transactions for over 400 clients. More information can be found at: http://www.energyadvisors.com under Research. Contacts: Brian Lidsky Director of Research 713-600-0138 blidsky@energyadvisors.com Blake Dornak VP, Marketing 713-600-0123 bdornak@energyadvisors.com
Energy Advisors Group announces a sale process for South Texas oil and gas assets
Pursuant to Bankruptcy of El Dorado Gas & Oil, Hugoton Operating and affiliate interests First Sale Package Launched Includes Two Fields A.W.P. Olmos Field in McMullen County, Texas Mecom Ranch Lease (J.C. Martin Field) in Zapata County, Texas Houston — August 9, 2024 — Energy Advisors Group (“EA”) has been retained as Sales Agent for the liquidation of the oil and gas interests of El Dorado Gas & Oil, Hugoton Operating LLC and related entities in a bankruptcy process underway in the Mississippi Southern Bankruptcy Court. The first sale package includes the Debtor’s interest in A.W.P. field in McMullen County, Texas and the Mecom Ranch lease located in the J.C. Martin field in Zapata County, Texas. The Trustee is accepting Qualified Bids for both assets or for each individual asset if separate sales still assure the sale of both packages. All offers are subject to Court approval of the following planned timeline: Qualified Bids Due September 9, 2024 Auction Scheduled September 12, 2024 Sale Hearing Planned September 16, 2024 A.W.P. Olmos Field, McMullen County, Texas A.W.P. field was first developed by Shell Oil in early 1982 and to date has produced over 360 Bcf of natural gas and 14 million barrels of oil. The field’s primary producer is the tight Olmos sand which holds large amounts of hydrocarbons in a low-permeability, depletion-driven reservoir at depths ranging from 10,000 to 11,000 feet. Notably, the Olmos reservoir stretches from an oily window in the northern part of the field to a rich gas window to the south. Silverbow Energy’s predecessor, Swift Energy, acquired a 4,900-acre leasehold and 65 wells in 1988 and expanded the field. By year-end 2008, Swift had >550 vertical producers and initiated its first horizontal Olmos producer and by 2013 had 30 horizontal wells, with 5,000’ average laterals. The Debtor acquired the asset, now for sale, over a series of acquisitions from Silverbow Energy and White Oak Resources putting together a largely contiguous position of 40,605 gross acres (100% working interest, 76% net revenue interest). The asset operated under the names El Dorado Gas & Oil and Dorado Drilling is depth limited to the Olmos. After field production dropped after the bankruptcy filing, production is being restored and continues to rise steadily. New compression in the field is soon scheduled in August to further boost volumes. A third-party engineering firm estimates that as of June 1, 2024 using NYMEX pricing, the PV10 value of the remaining Proved Reserves is $30,500,690, with $26,151,109 classified as Proved Developed Producing. Mecom Ranch Lease (J.C. Martin Field), Zapata County, Texas The second asset for sale is the 8,304-acre Mecom Ranch lease (99% working interest, 70% net revenue interest) in northwest Zapata County, Texas which has produced over 340 Bcf from the J.C. Martin Field. The contiguous single lease asset began production in 1975 and changed hands over time to Coastal Oil & Gas, Kerr McGee, and Anadarko. Anadarko sold the asset in 2011 as part of a larger package to Bluestone Natural Resources, an NGP private-equity backed company who later transferred the asset to Blackbeard Operating who sold the asset to the Debtor in 2020 who operated the asset under the name Hugoton Operating. The field’s primary production is from the Wilcox (Lobo Trend) through a series of Lobo sands (Lobo 1-Lobo 6) characterized as low permeability, geopressured and fault compartmentalized ranging in depth from 7,000 to 10,000 feet. The first well (J.W. Mecom #1) came online in 1975 and produced over 16 Bcf. A third-party engineering firm estimates that as of June 1, 2024 using NYMEX pricing, the PV10 value of the remaining Proved Reserves is $9,223,034 of which $7,932,773 is classified as Proved Developed Producing. ABOUT ENERGY ADVISORS GROUP EAG is a leading provider of global oil and gas marketing and advisory services. The firm and its partners have worked on over 1,000 assignments and advised on over $100 billion in transactions for over 400 clients. More information on the Sale Package can be found at: www.energyadvisors.com.
Energy Advisors Group Releases Focused Oil & Gas Perspectives Series
Initial studies on Eagle Ford Area, Delaware and Appalachian Basins HOUSTON, September 12, 2023: As part of its ongoing research and thought leadership efforts, Energy Advisors Group (EAG) launches its Oil & Gas Basin Perspectives Series intended to provide industry participants with actionable intelligence regarding oil and gas resource plays. “These reports provide content, contrast, and context by incorporating analysis on M&A activity, E&P operations and capital market highlights,” said Ronyld W. Wise, Founder and Managing Partner of the firm. Eagle Ford Perspectives – Surge in M&A Activity Energy Advisors’ inaugural Eagle Ford Perspectives highlights factors driving a surge in Eagle Ford A&D activity to $11.7 billion for the 12 months ending June 30, 2023, the highest volume since the 12 months ending June 30, 2014. In just three months from November 2022 to February 2023, the play saw four billion-plus dollar deals with buyers including Marathon, Wildfire, INEOS and Baytex. These buyers all seek to establish or expand core areas with enough running room to maintain production levels for years to come. The play, which stretches along the Texas Gulf Coast, is attractive with ample existing infrastructure and proximity to both oil and LNG export markets. The play also includes all commodities from dry gas to oil and continues to evolve with the Austin Chalk renewal being the latest example of meaningful value creation. Delaware Basin Perspectives – Industry’s Most Active Play Next in the series is the Delaware Basin, a play that tracks from West Texas into Southeast New Mexico. The Delaware is currently the industry’s most active U.S. resource play and witnessed increased A&D activity such as the $7.1 billion in 1H 2023 deals compared to $8.7 billion in all of 2022. Virtually all of this deal activity was triggered by small to mid-cap public companies on the buyside and the exit of private equity backed companies on the sellside. Energy Advisors expects competitive A&D pressures to remain strong in the Delaware as the universe of meaningful private and private equity backed companies shrinks to just 24 and 12, respectively. Recent buyers report well level breakeven economics as low as $40 per barrel. The area is home to a host of operating innovations including optimized co-development of multiple benches and a pilot project to drill a “horseshoe” lateral which, if successful, would save $5 million and up to 50% by drilling one two-mile lateral versus two one-mile laterals. In services, Atlas Energy Solutions is building the “first of its kind” 42-mile conveyor belt for sand delivery – an effort that will not only provide cost efficiencies but also reduce truck traffic and related fatalities. Appalachian Basin – Industry’s Largest Natural Gas Play Our most recent study is the Appalachian Basin Perspectives, a play that accounts for ~30% of U.S. natural gas production yet is currently hampered by pipeline takeaway capacity and lower natural gas prices. These factors caused an abrupt pause in A&D in 1H 2023 to just $125 million after a stellar $8.6 billion in deals in 2022 – the highest level of deal dollars since the record $10.4 billion in 2014. Despite the current short-term challenges, this basin’s long-term future is bright given the increasing importance of U.S. natural gas on a global scale. According to some industry sources, surges in U.S. Gulf Coast LNG takeaway capacity plus exports to Mexico may drive a projected 4.8 Bcf/d shortfall in supply by year-end 2025 and leave U.S. consumers in competition with offshore LNG buyers. Also supporting strong underlying demand outlook and despite headlines of natural gas storage being above the five-year average, the days of supply of natural gas storage is actually below trend driven by record demand for natural gas for electricity generation. On the E&P side, the top three operators (EQT, Chesapeake and Southwestern Energy) account for 37% of the basin’s output. EOG Resources is also active, having leased nearly 400,000 incremental acres in late 2022 as it focuses on expanding the Utica Combo play in Ohio westward. Regarding takeaway, the Mountain Valley Pipeline got the green light to complete construction of the 42-inch, 2 Bcf/d pipeline which is expected year-end 2023. Williams is also progressing on its Southeast Supply projects to increase capacity for natural gas flows from Appalachia to the Texas/Louisiana Gulf Coast. Brian Lidsky, Director of Research at Energy Advisors, notes that additional reports are in the works including Oklahoma’s SCOOP and STACK play to be released in September along with a report on the Haynesville. “These reports are helpful for buyers, sellers and capital providers as they make decisions on portfolio rationalization” says Lidsky. The EAG team understands oil and gas dealmaking having been in the space for over 30 years under the PLS Inc. brand. Lidsky adds, ”Lessons learned, and insights gained studying E&P operations, M&A and capital markets have led us to identify improved methods to originate, manage and close transactions on behalf of industry clients.” To receive the EAG Oil & Gas Basin Perspective Series reports email Richard Martin at rmartin@energyadvisors.com. About Energy Advisors Group EAG is a leading provider of global oil and gas marketing and advisory services. The firm and its partners have worked on over 1,000 assignments and advised on over $100 billion in transactions for over 400 clients. More information can be found at: www.energyadvisors.com. Contacts: Brian Lidsky Director of Research blidsky@energyadvisors.com (713) 600-0138 Cole Reynolds Director, Geosciences & Market Research cole@energyadvisors.com (281) 809-6186
TEXEGY Announces Gulf Coast Operating Divesture to Fortify Energy Using Energy Advisors Group
HOUSTON, May 5, 2022 /PRNewswire/— TEXEGY LLC ("TEXEGY"), a Texas-based oil and gas venture, and Chato Energy LLC ("Chato"), an affiliate of Fortify Energy ("Fortify"), today announced the closing of a transaction whereby TEXEGY has sold to Chato all of its leasehold in the South Bearhead Creek ("SBC"), Raccoon Bend and AWP fields, as well as a non-operating interest in the South Burr Ferry field for an undisclosed amount. Following the transaction, TEXEGY has retained an 18-month exclusive farmout over SBC. The transaction is in line with its strategy to focus on its the upside potential of the undeveloped proven reserves in SBC. TEXEGY Royalty LLC ("TEXEGY Royalty") holds full mineral ownership over approximately 80,000 acres, 50,000 of which are contiguous unleased acres in the Austin Chalk. "We view Chato as a great fit for our divested assets and look forward to partnering with them on the SBC farm-out. Through this transaction, we can sharpen our focus on exploiting our substantial mineral position in Austin Chalk of over 50,000 unleased contiguous acres, utilizing technical studies including fully processed 3D seismic that was shot recently over the entire footprint. Such a unique and a serious position in the Austin Chalk deserves our full attention," said Sherif Wadood, Co-Founder of TEXEGY group. The TEXEGY assets add meaningful production and cash flow to Fortify's existing portfolio of conventional, low decline assets, while also providing exposure to high quality, low risk recompletion opportunities and additional upside via the South Bearhead Creek farmout agreement." The acquisition of the TEXEGY assets fits well into Fortify's strategy of acquiring low risk producing properties, and their proximity to our existing operations along the Gulf Coast provide the opportunity for further operational efficiencies. Fortify is creating value via accretive acquisitions, current production optimization and exposure to high-quality, low-risk recompletion opportunities. We look forward to continuing this growth strategy with the acquisition of the TEXEGY assets," said Tony Schnur, CEO of Fortify Energy. AdvisorsEnergy Advisors Group served as exclusive financial advisor to TEXEGY. Energy Advisors Group (EAG) has been a trusted advisor to clients in both the upstream and midstream energy industry for more than 30 years. The firm assists clients with portfolio rationalization and optimization, and offers advice on commercial alternatives and transaction strategy. EAG’s proprietary CRM tools offer extensive market intelligence on past transaction activity, current M&A appetite, and forward plans. Comprised of engineering, geoscience, finance and marketing professionals, EAG does the heavy lifting for clients by efficiently organizing data, carrying out in-depth technical analysis, preparing tailored marketing materials, and leveraging complementary marketing channels to promote a successful sale process. EAG provides sellside, buyside, prospect marketing, and select capital markets services. EAG typically closes 30 to 35 deals per year and has successfully completed over 1,000 transactions since 1989. About TEXEGYTEXEGY was formed in late 2014 and has made a series of acquisitions of leaseholds across Texas and Louisiana. TEXEGY Royalty LLC owns full mineral rights of over 80,000 acres in the Austin Chalk. Additional information about TEXEGY can be found on the website at www.texegy.com. About Chato EnergyChato Energy was formed in 2020 as an affiliated entity of Arena Investors managed by Fortify Energy. Fortify is a private oil & gas merchant company acquiring and managing assets across Texas, Louisiana, Utah and Colorado with a focus on low risk producing properties. Arena Investors, LP is an institutional asset manager founded in partnership with The Westaim Corporation (TSXV: WED). With $3.4 billion of committed assets under management as of March 1, 2022, and a team of over 100 employees in offices globally, Arena provides creative solutions for those seeking capital in special situations.