Savoy Energy, LP and certain partners have retained E-Spectrum Advisors LLC to sell their properties targeting the Trenton/Black River formations in southern Michigan. The properties are 99% operated and include 47 producing wells, along with seven Central Production Facilities and three SWD wells.
Current net production is 2,492 BOEPD (95% oil & natural gas liquids). Production is projected to reach over 6,600 BOEPD (net) in 2015 based on the current two rig development program that is funded entirely out of cash flow. Projected net operating cash flow for March 2014 is $5.6 million and is forecast to average ~$14 million per month in 2015.
The package includes 6,473 gross / 5,197 net acres, most of which held by production. Savoy enjoys high average working and net revenue interests with the average lease delivering an 86% NRI.
Net Proved reserves are 7.1 million barrels of oil equivalent (BOE) with a PV-10 value of $321.7 million, of which 55% is Proved Developed. Upside includes an inventory of low-cost, high rate of return drilling locations.
The online data room is open. Bids are due Wednesday, April 23.