Crimson Energy Partners, L.P. (“Crimson” or the “Company”) has initiated a process to monetize its Middle/Lower Bossier, Buda/Georgetown, Knowles Limestone, Woodbine, and expanded Travis Peak contiguous acreage position in Brazos County, Texas (the “Offering”). Scotia Waterous (USA) Inc. (“Scotia Waterous”) has been retained to assist in this process.
BACKGROUND TO SALE
Crimson is an independent oil and gas company which began operations in June 2005 with funding from EnCap Investments. The Company is focused on its core areas in South Texas and East Texas . Crimson's asset base includes 82,000+ acres in South Texas and approximately 11,600 acres in East Texas . Crimson is focused on maximizing growth in its asset base while dedicating itself to conducting business in a socially responsible and ethical manner.
OFFERING OVERVIEW
The Middle/Lower Bossier represents one of the most active and significant onshore gas plays in the United States . The Crimson leasehold is located adjacent to some of the largest producing, US onshore wells in the past decade. Crimson has a large, focused leasehold position in the prolific Middle/Lower Bossier trend located near the prolific Savell and Amoruso fields. The Company has a 100% WI and 80% NRI leases in ~11,600 acres. Crimson's leasehold is offsetting several recently completed Middle/Lower Bossier wells producing at sustained rates of > 50 MMcf/day. The Middle/Lower Bossier play type has a very attractive risk/return profile. The acreage position has additional potential in the established Buda/Georgetown reservoirs along with the Knowles Limestone, Woodbine, and expanded Travis Peak . There are three Buda/Georgetown PUD locations with an additional 19 locations identified. Crimson will assign a 75% net revenue interest in the leasehold to the buyer.
The Bossier is a basin-centered gas play having certainty of finding pay sands with the primary risk being the reservoir quality. Development activity is continuing with excellent results in the more basinward off-the-shelf area, in a favorable stratigraphic position to encounter multiple, thick Middle/Lower Bossier sands. The reserve distribution of producing Bossier wells in Robertson and Leon Counties shows an EUR of 5.0 Bcfe at 50% cumulative probability, and can be as high as ~90 Bcfe. The reserve distribution of Buda/Georgetown producing wells in Robertson and Brazos Counties shows an EUR of ~180 Mboe at the 50% cumulative probability and can be as high as ~700 Mboe. In addition, there are upside opportunities with Woodbine production in nearby Kurten field, an emerging Knowles Limestone play, and 2D Seismic shows expanded Travis Peak over the Crimson leasehold.
TRANSACTION PROCESS
Proposals will be accepted for the entire Offering. The timetable for the transaction is as follows:
Milestone |
Date |
VDR CD / Data Room |
Week of December 10 , 2007 |
Bids due at 12:00 pm ( Houston Time): |
January 31, 2008 |
Parties interested in receiving an Information Memorandum can do so by contacting one of the Scotia Waterous representatives listed below. To receive confidential information companies will be required to execute the Crimson Confidentiality Agreement (“CA”), which can be found on the Scotia Waterous website listed below. The completed CA can be faxed to Scotia Waterous at 713-222-0572. After execution of the CA. interested parties may then be provided access to the on-line Virtual Data Room. At no time should you contact anyone at Crimson regarding the Offering, unless otherwise directed. Should you have any questions regarding the Offering please feel free to contact a Scotia Waterous representative listed below:
CONTACTS
Scotia Waterous ( USA) Inc.
Pennzoil Place - South Tower
711 Louisiana, Suite 1400
Houston, Texas
USA 77002-2716
Tel: (713) 222-0546 Fax: (713) 222-0572
Email: houston@scotiawaterous.com
