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 are formed and APD's approval Q4 '22
- Very low-cost entry into Project
- Size of the Prize: 250-Mancos 1-mil lats (Mancos C & B)
Phase 1:
- 30 Mancos 1-mi lats (Mancos C & B)
- NPV15 $86 MM
- ROI 61%, @ 7/2022 strip adjusted to net wellhead pricing
- 10.7 MMBO; 32,000 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
- 48% IRR, 2-year payout, single well economics
- Project shovel ready
- 20% committed to project (80% available, ops 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.
