Oil & Gas Exploration Company in the “Sweet Spot” of the Utica Shale

Price: $65,000,000

Location: Ohio

Industry: Oil and Gas Exploration and Production

Listing ID: OilGasEXPL

INDEPENDENT OIL EXPLORATION & PRODUCTION CO. SEEKING SEASONED PARTNER(S) FOR $65 Mil. UTICA SHALE PROJECT

  •  INDEPENDENT OIL EXPLORATION & PRODUCTION CO. SEEKING SEASONED PARTNER(S) FOR $65 Mil. /6-WELL UTICA PROJECT IN THE MIDDLE OF UTICA SHALE’S SWEET SPOT; ADDITIONAL ACREAGE AVAILABLE IN RUGGED TERRITORIES OF OH, NW. PA, W. VA.Ø Overview of Assets and Competencies Underlying This Project:    

    a. Two contiguous 800 & 750 Acre Pads. Additional Acreage Available  because the venture  provides attractive incentives to land owners. 

    b.As is shown by the above map, these drilling pads are in the middle of Utica’s Sweet Spot.

    c.On-site use of mobile cryogenic units enables attractive exploration economics early.

    Ø Competitive Business Value Generation Model: Designed to fit the medium level resources of this Independent Oil/Gas Exploration & Company aiming to use optimum horizontal exploration ( limiting it to 4K to 6K feet lower risk lateral penetration) and manage lack of likely immediate access to pipelines. These are the Key Elements of the Value Generation Model:

    oLeased on-site mobile cryogenic units will yield value added products that remain economic even without immediate access to pipelines (will use instead transportation via trucking and barges transportation.) Average cash flow growth rates in excess of 25%/year are estimated over 9 years.

    Under the above approach medium size acreage fields of less than 1,000 acres will be optimal.

    The Company will afford to give more favorable contracts to its land-owners driven by the more value added products. This company has a devoted following of Landowners and fellow Oilmen and enables it to have access to desirable Utica and Marcellus acreage.

    Ø Core Management Team Subject to Change as Growth Occurs:

    A team with 200+ years of collective experience in Oil/Gas Exploration & Production (including horizontal drilling  in western territories). They have equity incentives in the Company and they are now independent contractors and they desire to maintain operating majority in this venture.

    Functional Responsibilities of Key Members: Founder/Owner, Location & Construction Manager; Chief Petroleum Engineer & Completion Manager, Chief Geologist; Director CNG/LNG Conversions, Safety Manager/Rig Interviewer, Comptroller, Office Manager, BSB Partners, Directional Drilling Superintendent, Logistics and Safety Manager, Retained Outside Advisors (Accounting, Legal, Payroll and other as it might be appropriate.)

    ØNext Steps if Interested: Please submit your Confidentiality Agreements and Buyer Profile and once approved by client we will submit to you Confidential information and arrange meetings/conferences.

    • DISCLAIMER: THIS DOCUMENT IS NOT TO BE CONSTRUED AS A TERM SHEET OR ANY OTHER KIND OF OFFERING DOCUMENT. IT IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO PURCHASE AN SECURITY OR INVEST IN ANY PRIVATE PLACEMENT. ALL INFORMATION CONTAINED HEREIN HAS BEEN PROVIDED BY COMPANY MANAGEMENT. NONE OF THIS INFORMATION HAS BEEN INDEPENDENTLY INVESTIGATED OR VERIFIED. THERE IS NO REPRESENTATION OR WARRANTY AS TO ITS COMPLETENESS OR ACCURACY, IT IS SUBJECT TO CHANGE OR WITHDRAWAL WITHOUT NOTICE, AND MAY CONTAIN ERRORS. ALL PROSPECTIVE PARTIES TO A TRANSACTION SHOULD RELY UPON THEIR OWN VERIFICATION AND THE ADVICE OF THEIR REPRESENTATIVES (PROPERLY LICENSED) LEGAL, TAX, AND INVESTMENT PROFESSIONAL ADVISORS.
    • NOTE: Financial information will be presented to interested parties after they submit their Confidentiality Agreements and Buyer Profile to Business Broker and after approved by Seller.
    • For More Information please contact: Elias E. Ladon, Investment Banking Representative, Enterprise Development Resources, Inc. ADDRESS: 3659 Green Road, Suite 100, Cleveland, OH 44122; elias.ladon@EnterpriseDR.com; 216-295-1136 (m); 216-803-0107 (f)

Listing Details

Cash Flow: $730,000,000

Reason For Sale:

Founder of the firms wishes to Oil and Gas Exploration on acreage available for lease to the company and produce Oil and Gas and derivative products. The pads are located in the Sweet Spot of the Utica Shale.

Training & Support:

The company has well experienced employees in Oil and Gas Exploration and Production. They could provide all the training needed.

Operation

Year Established: Late eighties.

Employees: Has

Managers: Organizational chart available.

Location

Facilities Information:

Available in Business Review Summary.

Summary

Competition:

The only industry is a competitive commodity supply industry in which competitors need to have competent management, adequate financing and be positioned well to be economically viable in offering products at competitive prices. This company well positioned to do so as is outlined in the supplied summary and a more extensive business review that is currently to interested parties.

Financing/Terms:

None.

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