Pizzitola Resources Inc. have retained E-Spectrum Advisors LLC, an affiliate of Energy Spectrum Advisors Inc., to sell certain producing overriding royalty interests in the heart of the oil and condensate windows of the Eagle Ford shale play.
The package includes a weighted average 1% overriding royalty interest across 29,588 gross, mostly contiguous acres in Dimmit County, Texas. Recent net cash flow is $232,252 per month (97% oil) from 52 producing wells and continues to climb. All of the properties are subject to a 90-day continuous drilling clause.
The properties are operated by Murphy Oil Corp., which is actively developing this area, with eight additional wells in various stages of completion and eight permitted drilling locations. Murphy has been bringing anywhere from two to four wells online per month. Upside includes 285 drilling locations on 80-acre spacing and an additional 314 locations on 40-acre spacing. The properties are also surrounded by significant Eagle Ford development activity from Chesapeake and Anadarko.