(GREENWOOD VILLAGE, Colo.) — NEWS: Eagle River Energy Advisors, LLC (“Eagle River”) is pleased to announce the sell-side engagement by a private company, seeking the divestment of certain ORRI assets located in Dunn, McLean, McKenzie & Mountrail Counties, North Dakota. The ORRI assets are located on the Ft. Berthold Indian Reservation and are diversified across 60 DSUs with a footprint of ~137,000 gross DSU acres and ~300 producing oil and gas wells. Additionally, the ORRI assets have averaged ~$2.4MM of cash flow per year over the past decade.
QEP Resources is the largest operator of the ORRI assets with ~177 PDP horizontal wells. WPX Energy is the second largest operator with 59 PDP Horizontal wells.
“Our team is pleased to serve another client with a high-quality royalty asset in the Williston Basin. These specific ORRI assets are located in the heart of the Bakken / Three Forks play, which continues to provide some of the best drilling economics of any shale play in the country.”
“Since inception, Eagle River has successfully closed 29 transactions in the Williston Basin comprising approximately $500 million in transaction value. The Williston Basin remains a focus area for our team at Eagle River given our technical expertise and track record of success in the basin. We believe the Williston Basin continues to provide some of the best risk-adjusted returns in the U.S. oil and gas industry given (i) its oil-weighted production profile, (ii) the low-risk nature of its development given the well-defined geologic fairways of the Bakken / Three Forks formations resulting from over a decade of horizontal drilling and (iii) a favorable regulatory environment in North Dakota. With EURs in the core of the Williston now exceeding 1 MMBOE and well costs currently below $7MM (two-mile laterals) for many operators, the drilling economics at $50+ oil are compelling. Add to the equation the recent announcements from the Biden administration regarding leasing and permitting on federal lands, we believe the Williston Basin will remain the premier location for companies seeking oil-weighted resource play investment opportunities in the Rockies.”
Bids for the ORRI assets referenced in this press release are due February 24, 2020.
About Eagle River Energy Advisors
Eagle River in 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/
Related link: https://www.eagleriverenergyadvisors.com/
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