San Juan Basin Horizontal Mancos Oil Project

 

San Juan Resources has assembled a 25,000-acre Mancos oil horizontal project
with over 250 projected laterals and seeks partners or investor to take to the next level

General Overview:

 

  • Surrounded by 50 MMBO, 250 BCF vertical production
  • 25,000 Acres, Federal and Fee (40% fee, 40% HBP)
  • 500-950 MBOE EUR per well, strong show wells
  • Two Federal Units being formed and APD's are in process
  • Very low-cost entry into Project
 

Size of Prize:

  • 250-Mancos 1-mi lats (Mancos C & B)
  • NPV15 $698 MM
  • ROI 98%, @ 7/2021 strip adjusted to net wellhead pricing
  • 72 MMBO; 211,000 MMCF
  • $5 MM D&C: 1-mi laterals, long-term drilling program efficiencies of scale
 

Deal Terms:

  • 10% carry in 3 wells earns pro rata share of AMI leasehold
  • 36% IRR, 2-year payout, single well economics (promoted)
  • Project shovel ready
  • 35% committed to project (65% available)
 

Other key attributes:

  • Existing gas gathering infrastructure  -take away up to 7 mmcfpd
  • Stable New Mexico State regulatory structure due to Permian Basin anchor
  • Multiple producing formations-- Dakota--Conv, Unconv (2 zones) Oil, condensate, and Hi Btu Gas AND Pictured Cliffs--Hi Btu Gas
  • DJR Energy and Enduring are developing Mancos HZ averaging 8900 and 7500 MBOEPD respectively, EOG has 125-well HZ program nearby
 

Contact Jerry at jmchugh@sanjuanbasin.com for additional information, access to data room, and presentation.   

Click here for slideshow featuring Lindrith Project