Discussing the Eagle Ford, Pearsall and Permian plays
This notice of intended divestment posted today. Website link below shows the location of their Heard and Axle Tree areas.
Cinco Offers Producing Eagle Ford Acreage
Cinco is the operator and has 100% working interest in the acreage, all of which is held by production. Proved reserves are estimated at 13.5 million barrels of oil equivalent (BOE), about 26% of which is proved, developed, producing. The present value of the reserves base is about $248 million when discounted at 10%.
Production from the acreage is about 1,750 BOE per day, 76% of which is from liquids.
The acreage includes six producing wells in the Axle Tree Area and five producing wells in the Heard Area. In addition, both areas have 35 potential drilling locations. The current development strategy calls for at least 5,000 BOE per day by 2014 and the entire project is expected to be self-funding by 2015.
Cinco prefers to sell the asset in a single transaction, but will consider bids for individual areas. Data rooms will be open in mid February with bids due in mid-March. For additional information, contact Tim Saxman, managing director at Citigroup, 713-821-4771 or Dane Isenhower, managing director at Wells Fargo Securities, 713-346-2721.