Replies to This Discussion

Permalink Reply by dbob on June 17, 2014 at 13:19

If the net acreage is right and the dollar amount is right, thats nearly $39,000 per acre.  Any chance we can get Mark P to comment on this one?  If that is accurate, a whole lot of land just got a hell of a lot more valuable.  

Permalink Reply by Rock Man on June 17, 2014 at 14:18

One of the metric benchmarks for production related purchases is $100,000 per flowing barrel.

This deal works out to about $85,000 per flowing BOE - or a tad low as to this metric.

If you just look at the 82% oil rate (6912 BOPD), the number is $103,440 per flowing barrel - or pretty much dead on.

Tough sometimes to figure which parameter to focus on when looking at deals like this - sometimes you have to look at all the calculations and see the deal as a "mix" of financial evaluation metrics.

For example, "x" % of the price is for production, "x" % is for undrilled PUD's and "x" is for undeveloped / unproven acreage

Permalink Reply by Skip Peel - Mineral Consultant on June 17, 2014 at 15:42

The royalty burden is also quite advantageous for an operator.  I don't recall  seeing any contemporary deals with NRIs as high as 83.4%

Permalink Reply by dbob on June 17, 2014 at 16:33

Still, w

Permalink Reply by Alvin T. Kmiec on June 17, 2014 at 16:43

I just got a permit from CGG to do all the seismic work on our ranch. Form the map the guy showed me they will be coming from the J7 stock farms area and work north and west into Leon Co. The first stage will start in Leon Co. then into Houston Co. with the second stage. I wonder who ever is buy them out is having this done. Has anyone else been contacted by them?

Permalink Reply by Steve H on December 25, 2015 at 4:04

Well that didn't last long !
Energy and Exploration Partners Inc. (ENXP) said Dec. 7 it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code.

The filing converts the involuntary petition for ENXP Operating LP filed by certain vendors into a voluntary petition, the release said.

Prior to the filing, the company initiated a reduction in staffing to match its personnel levels with its expected activity levels in the current commodity price environment.

Several senior executives also resigned to pursue other interests, including:

Executive Vice President Business Operations and Development Robert Karpman;
Executive Vice President of Acquisitions and Divestitures David Patty;
COO John Richards;
Chief Accounting Officer Jim Howe; and
CFO Brian Nelson.
John Castellano, of AlixPartners LLP, will join the company as interim CFO. The other roles will be covered by existing personnel during the restructuring process, the release said.

ENXP also secured commitments for up to $135 million of new debtor-in-possession financing from a group of its existing senior lenders, subject to court approval. Proceeds will fund its operations during the restructuring process.

ENXP said it has been and continues to work closely with its suppliers and business partners to ensure its business continues uninterrupted. The company "fully expects" to continue producing oil and gas and maintain adequate staff.

The Fort Worth, Texas, company owns acreage in the East Texas Basin and the Denver-Julesburg Basin.

Bracewell & Giuliani LLP is ENXP's legal adviser. The company has engaged AlixPartners LLP as its restructuring adviser. Evercore is its investment banker.