DALLAS--(BUSINESS WIRE)--Harvey Ventures Group has retained Energy Capital Solutions, LLC to sell certain non-operated oil and gas properties, producing royalty interests, and undeveloped acreage in some of the most prolific oil and gas plays in the United States, including the Greater Williston, Permian, Denver-Julesburg, Powder River, Piceance, and San Juan Basins. This diverse asset package includes interests in over 300 producing wells and over 310,000 net leased acres, which is spread across 57 counties in ten states.
The Non-operated Properties are comprised of 85 wells (production is 53% oil & liquids) with a blended Net Revenue Interest of 4.0%. Sixteen high quality, major independent E&P companies operate the wells. Production increased 86% over Harvey’s four year average due to eight wells recently drilled by Devon Energy into the Bone Springs formation. Harvey also retained a 24.3% working interest in over 5,600 net acres following multiple lease assignments in Montana and New Mexico.
The Overriding Royalty Interest includes 229 wells (production is 70% natural gas). Harvey also retained a 3.76% Overriding Royalty Interest across over 31,000 acres following multiple lease assignments in Montana and New Mexico. Many of the E&P companies that operate the Royalty Interest wells have choked back production from gas wells and intend to increase production once commodity prices improve, indicating significant upside potential.
The Undeveloped Leasehold Properties include over 310,000 net acres spread across seven states, along with HBP acreage in an additional three states. About 72% of the acreage is located within the Greater Williston Basin, 22% is located within the Powder River/DJ Basins and the remaining 6% is located within the Uinta, Piceance, Permian and San Juan Basins. None of Harvey’s net acreage is scheduled to expire prior to 2017, and more than half of the leases have primary terms that expire after 2021. The Undeveloped Leasehold also includes retained net acreage and Working Interests following lease assignments to Continental Resources, Encana Corporation, Kraken Oil & Gas, Montana Oil Properties, and Slawson Exploration.
Energy Capital Solutions has a management presentation available and an online data room for interested parties to review the assets in more detail.
