San Juan Basin Horizontal Mancos Dry Gas Project
San Juan Resources has assembled a 7500-acre Mancos Dry Gas Project with over
36 projected two-mile laterals and seeks partners to take to the next level.
General Overview:
- 19 BCF EUR per 10,000' lateral
- 2 NEPA Approved 7-acre pads in Carson National Forest
- Lateral analogs significantly de-risk project, lease line offset drilled in 2011
- SJR owns 4900 gross, 3440 net acres, controlling presence in hot area
Size of Prize:
- NPV10 $328MM (Gross, fully developed)
- ROI to investor 106%;
- 32 Unit wells-- Mancos B and C zones
- Gross Reserves- 584 BCF
Deal Terms:
- 15% carry in 4 commitment wells earns pro rata share of leasehold
- Commitment fee
- $9.4 MM AFE
- Single well economics - 108% IRR, 1.2 year payout
Other Key Attributes:
- SJR to operate or operations available
- Approval includes two 7-acre well pads -- up to 36 horizontal wells includes water lines, gas gathering rights-of-way in Forest, Unit plan
- 80 MMFCD Cabresto Gathering line (12") bisects Unit-ready to hook up
- $9.4 MM for first 2-mi lateral, (with drilling efficiencies < $7.0 MM)
- 19 Bcf EUR two-mile laterals, a dozen drilled by BP & WPX a township to west.
- 6 Bcf EUR one mile lateral, drilled ½ mile on eastern edge of project by Black Hills Gen1 frac (634#/ft).
- Water plan is to drill shallow gas wells with water potentials, haul into area from Lake Navajo.
- SJR Fee leases are 2019 5 yr leases + 5 yr extension. Additional acreage north of Unit ~ 450 net acres non-Unit,
- Pictured Cliffs is viable hi-btu gas zone in the project.
Contact Jerry at jmchugh@sanjuanbasin.com for additional details, access to the data room, and showing.
