DALLAS--(EON: Enhanced Online News)--Chi Partners, LLC has retained E-Spectrum Advisors LLC, an affiliate of Energy Spectrum Advisors Inc., to sell certain operated, conventional waterflood properties in the Permian Basin. The properties are located in the prolific Clearfork trend in Hockley County, Texas.
Chi is the operator of the properties with a 57% working interest in 17 producing wells across 1,537 contiguous acres. The acreage is unitized and held by production.
Production and cash flow continue to increase as a result of successful secondary recovery efforts. Recent net production of 210 barrels of oil equivalent (BOE) per day, 98% of which is oil, is climbing and expected to reach approximately 300 net barrels of oil equivalent (BOE) per day by year-end based on the current secondary recovery response. Estimated net operating cash flow from the properties is approximately $635,000 per month.
Net proved reserves are 1.5 million barrels of oil equivalent (BOE) with a net present value of $41 million when discounted at 10%. Approximately 70% of the reserves are proved developed producing (PDP). Upside includes low-risk waterflood expansion opportunities that are supported by multiple analogies in the area. The reserves are long-lived with a proved reserves to production ratio of 20 years.
The data room is open September 23. Offers are due October 17.