Canaan Resources to Sell Arkoma Basin Producing Package and Undeveloped Contiguous Woodford Acreage Package
Undeveloped Package
Canaan’s Undeveloped Package includes 33,932 net contiguous acres (83% HBP) of Woodford drilling locations supported by a proprietary 122 sq. mi. 3D seismic dataset across Scipio Field in Pittsburg, Hughes and McIntosh Counties, Oklahoma. The package includes only the deep rights below the Hartshorne Coal formation on this acreage. This is a unique opportunity to acquire largely contiguous acreage position in the core of the Arkoma Woodford with additional economic stacked pay from the Caney and Mayes formations. Net to Canaan’s interest, the Company estimates resource potential of 786 Bcfe with a PV-10 value of $334MM. Woodford wells generate on average more than 2.3x ROI and 30% IRR at $3.00/Mcf NYMEX gas.
Producing Package
The Canaan Producing Package includes currently producing wells, infrastructure and associated acreage, including 65,052 net acres with Hartshorne rights (94% HBP) and 20,392 net acres with Woodford rights (92% HBP). Canaan has identified 604 producing wells, 119 PUD locations and 139 additional locations in this package. Associated reserves are 93 Bcfe net PDP ($71.7MM PV-10), 62 Bcfe net PUD ($32.9MM PV-10), and 46 Bcfe net Probable/Possible ($14.8MM PV-10). Last twelve months’ cash flow is $13.1MM from average net daily production of 23.4 MMcfe/d. Installed infrastructure and field personnel are available to continue to efficiently manage operations at a relatively low cost.
Energy Capital Solutions has an online data room for interested parties to review the assets in more detail upon execution of a confidentiality agreement.
www.energycapitalsolutions.com
ContactsEnergy Capital Solutions LLC
Scott Trulock, 214-219-8204
Managing Director
[email protected]
or
David Malkowski, 214-219-8209
Director
[email protected]
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DALLAS–(BUSINESS WIRE)–Canaan Resources, LLC has retained Energy Capital Solutions, LLC to sell
Canaan’s Arkoma Basin assets located primarily in Pittsburg and Hughes
Counties, Oklahoma. Canaan is selling its assets in two packages. The
Undeveloped Package is comprised of 33,932 net contiguous acres with
approximately 300 drilling locations in the Woodford delineated by 122
sq. mi. of proprietary 3D seismic, plus potential Caney and Mayes
formation upside. The Producing Package is comprised of 20,392 net
Woodford acres and 65,052 net Hartshorne acres with 604 producing wells
with 93 Bcfe of PDP reserves, 119 PUD locations with 62 Bcfe of PUD
reserves, and 139 additional locations. Non-binding indications of
interest are due from interested parties by August 4.
Undeveloped Package
Canaan’s Undeveloped Package includes 33,932 net contiguous acres (83%
HBP) of Woodford drilling locations supported by a proprietary 122 sq.
mi. 3D seismic dataset across Scipio Field in Pittsburg, Hughes and
McIntosh Counties, Oklahoma. The package includes only the deep rights
below the Hartshorne Coal formation on this acreage. This is a unique
opportunity to acquire largely contiguous acreage position in the core
of the Arkoma Woodford with additional economic stacked pay from the
Caney and Mayes formations. Net to Canaan’s interest, the Company
estimates resource potential of 786 Bcfe with a PV-10 value of $334MM.
Woodford wells generate on average more than 2.3x ROI and 30% IRR at
$3.00/Mcf NYMEX gas.
Producing Package
The Canaan Producing Package includes currently producing wells,
infrastructure and associated acreage, including 65,052 net acres with
Hartshorne rights (94% HBP) and 20,392 net acres with Woodford rights
(92% HBP). Canaan has identified 604 producing wells, 119 PUD locations
and 139 additional locations in this package. Associated reserves are 93
Bcfe net PDP ($71.7MM PV-10), 62 Bcfe net PUD ($32.9MM PV-10), and 46
Bcfe net Probable/Possible ($14.8MM PV-10). Last twelve months’ cash
flow is $13.1MM from average net daily production of 23.4 MMcfe/d.
Installed infrastructure and field personnel are available to continue
to efficiently manage operations at a relatively low cost.
Energy Capital Solutions has an online data room for interested parties
to review the assets in more detail upon execution of a confidentiality
agreement.
www.energycapitalsolutions.com
Contacts
Energy Capital Solutions LLC
Scott Trulock, 214-219-8204
Managing
Director
[email protected]
or
David
Malkowski, 214-219-8209
Director
[email protected]
