Mallard Exploration to solicit partnerships for certain operated producing, drilled uncompleted and/or development working interest assets in the DJ Basin
DENVER, CO, UNITED STATES, April 19, 2021 /EINPresswire.com/ — Eagle River Energy Advisors, LLC ("Eagle River") has been exclusively retained by Mallard Exploration ("Seller") to solicit partnerships for a 50%-75% proportionate share of certain operated producing, drilled uncompleted, and/or development working interest assets in the DJ Basin of rural Weld County, CO.
The package includes a combination of JV opportunities whereby a partner may choose to invest in (i) PDP, (ii) a 2021 DUC completion program, and/or (iii) a 2021-2022 development program. Key attributes associated with these assets include 7,200 BOEPD Net Production from the PDP, $82MM in completion capital relating to 21 DUCs currently being completed and $287MM in drilling and completion capital relating to 56 Niobrara wells across 8 DSUs that are drill ready with IRRs of >90% @ $5.9MM D&C.
The assets are located in the northeast extension of the Wattenberg Field in rural Weld County of the DJ Basin of Colorado, which is characterized by a less restrictive regulatory climate given its distance from the more densely populated areas of the front range. Importantly, Mallard’s assets were relatively unaffected by the recent 2,000 ft. setback rules instituted by the Colorado Oil and Gas Conservation Commission. Per a study conducted by Rystad Energy, Mallard Exploration has 276 approved new drill permits outside the 2,000 ft. setback window, which is more than any other DJ Basin operator.
Mallard Exploration is run by a high-quality management team that has established a significant track record of success through extensive experience operating across the DJ Basin with Extraction Oil & Gas and Anadarko Petroleum Company dating back to 2006. Mallard has been a pioneer in developing the northeast extension of Wattenberg Field through the implementation of its geologic model and innovative drilling and completion designs. Mallard’s Niobrara wells vastly outperform those of other offset operators and have delivered some of the highest rates of return in the entire DJ Basin due to the team’s ability to consistently drill and complete wells under AFE cost.
“Our team is pleased to serve another client with a high-quality asset in the DJ Basin. The Rockies (and the DJ Basin in particular) remain a focus area for our team at Eagle River given our technical expertise and track record of success. We believe this rural location within Weld County, Colorado will continue to garner a strong level of investor and operator interest given its more favorable regulatory environment. With impressive well performance from the prolific Niobrara formation and well costs currently less than $6MM (two-mile laterals), the drilling economics at $50+ oil are very compelling.”
Bids for the Acquisition Opportunities in the rural DJ Basin with Mallard Exploration referenced in this press release are due May 19th, 2021.
About Eagle River Energy Advisors
Eagle River is an industry leading A&D advisory firm focused exclusively on the North American oil and gas sector. We specialize in middle market transactions ranging from $5MM – $300MM. Based in Denver, Eagle River has a team of industry professionals with diverse backgrounds in finance, land, business development, engineering, and geology.
Learn more at: https://www.eagleriverenergyadvisors.com/
Source: EIN Presswire