Excellent California Oil Acquisition Opportunity

Not Disclosed, CA

Asking Price: Annual Revenue:
$16,000,000 Not Disclosed

Manufacturing: Energy, Oil, Petroleum, Gas Production

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RE: Excellent California Oil Acquisition Opportunity Broker: Sundeep Gill

Quick Facts

Asking Price: $16,000,000
Annual Revenue: Not Disclosed
Net Profit: Not Disclosed
Cash Flow: $435,000,000
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: Not Disclosed
Employees: Not Disclosed
BBN Listing #: 462126891
Broker Reference #: s041219g

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Business Overview:

Average Cost to Drill each (initial 4 Wells) Well - $1.9MM

Number of Wells to be drilled in addition to the existing wells- 92

Potential Recoverable New Oil Reserves- 92,000,000 Barrels

Potential Net Income from 20 Wells is at $435MM

The Client will handle all logistics from setting up the drilling to selling the oil.

This Acquisition Opportunity located in California includes existing oil production and approximately 2,000 acres of mineral rights. Based on an analysis by the seller, a petroleum engineer with direct knowledge of this Acquisition target since 1974, there is an estimated recoverable oil reserve of 92,000,000 barrels of oil within the acreage held-by-production and targeted offsetting acreage. The estimated potential PV10 for a new well is $9,900,000 with an associated 1,000,000 barrels of oil being recovered. The development of this Acquisition will initially involve the drilling of 4 new wells. The estimated initial oil rate from a new well is (at a minimum) 300 barrels of oil per day with the potential to be higher. More wells will be drilled and completed in the coming years and the current plan is to develop the Project from cash flow after drilling initial new wells. Financial figures herein have utilized a constant oil price of $70 per barrel and constant lease operating expenses of $30 per barrel of oil produced. The Acquisition includes existing production which is forecast to generate ~$1,000,000 in net income from March 1, 2019, to February 28, 2020.

The Acquisition lies in an obvious Oil Fairway in California. The mineral rights acreage held-by-production has 12 productive zones ranging between 1,000 feet and 4,000 feet and other exploration depths extending to 7,500 feet. In these zones, the oil gravity ranges from 15oto 42oAPI gravity. Based on historical production, rock properties and oil saturation norms derived from existing wells, reasonable estimates of projected production, operating costs and income from the existing producing wells can be made. In addition, this information leads to reasonable estimates regarding potential oil production from acreage offsetting the existing productive acreage (some of which will need to be acquired via farm out agreements or leasing).

Key Highlights
• Potential PV10 for a new well recovering 1,000,000 barrels of oil is $9,900,000. Using the estimated recoverable of 92,000,000 barrels, the Project can drill up to 92 new wells.
• The Contract Operator has experience on this Acquisition dating back to 1974. This gives them an upper hand on how to run such a project.
• This Acquisition opportunity lies in an obvious Oil Fairway with a proven track record of Production
• The Acquisition has 12 productive zones that range in depth from 1,000 feet and 4,000 feet. These zones have multiple reservoir targets with oil gravity ranging between 15o to 42o API gravity
• Gross oil recovered to date exceeds 20,800,000 barrels, demonstrating the productivity of the target zones.
• The Acquisition has shallow heavy oil and harbors exploration opportunities for extensions and deeper zones.
• The Acquisition has existing bypassed pay zones and waterflood possibilities.
• The Project plan aims at utilizing the cash-flow from the initial 3 new wells to grow the Project over time.

Individual well funding can be advanced as new wells are scheduled for drilling as follows:
New Well #1 (Estimated Drilling & Completion Cost) $2,300,000
New Well #2 (Estimated Drilling & Completion Cost) $2,300,000
New Well #3 (Estimated Drilling & Completion Cost) $1,500,000
New Well #4 (Estimated Drilling & Completion Cost) $1,500,000
TOTAL $7,600,000

To request more information regarding this listing, simply check the ADD TO REQUEST INFO BASKET button and when you are done searching and have made all your selections, simply click on the REQUEST INFO button at the bottom of the page.

Additional Details:

  • The property is owned.
  • The owner is not willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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