Scotia Waterous (USA) Inc. (“Scotia Waterous”) has been retained as exclusive financial advisor by Saber Resources, LLC (“Saber” or the “Company”) for the sale of certain oil and gas interests located in the Permian Basin (the “Offering”). The assets will be offered as a single package, and include interests in two primary Devonian fields: Denton and South Knowles, along with interests in one other field in New Mexico and 10 fields in Texas.
BACKGROUND TO SALE
Saber Resources, LLC was formed on June 8, 2004 with a focus on acquiring and exploiting oil and gas properties located in the Permian Basin. The Company is headquartered in Midland, Texas.
OFFERING OVERVIEW
The two main fields in which the Company holds an interest are located within the Devonian and Wolfcamp producing trends in eastern Lea County , New Mexico. The other fields in which the Company holds and interest include another Devonian field in Lea County, New Mexico and 10 fields in Dawson, Howard, Gaines, Mitchell, Yoakum, and Ward Counties, Texas. All fields have production and most with upside potential.
Using January 2, 2008 NYMX strip pricing, the total, net proved reserves, as estimated by the Company, are 9.32 MMboe (PDP, PDNP, and PUD categories) with a PV-10% value of $187.4 MM effective January 1, 2008. Total net production in December, 2007 was ~920 boe/day. Before the big increase in oil prices and the Company returning many of the Denton field wells to production, cash flow for these assets was ~$2.6 MM for the third quarter of 2007.
The Company holds interests in 62 wells (24 producers (19 operated), one operated SWD well and 37 SI wells (15 non-operated) and approximately 2,670 gross acres in the Denton Field area. This area includes production and development locations as well as upside opportunities in the Devonian Formation. The Company's current net production from the area is ~615 boe/day, with total net reserves of 4.5 MMboe (all proved categories). The Company has identified eight PDNP and 44 PUD (42 deepenings and two new-drills) opportunities targeting primarily deeper zones within the ~800 foot thick Devonian pay. An additional ~200 net boe/day will be realized just by returning producing wells to production when the new saltwater disposal pump (H pump) installed at the end of 2007 is commissioned in January, 2008.
The Company holds interests in 11 operated wells (five horizontal producers, three vertical producers and three SWD wells) and approximately 1,160 gross acres in the South Knowles Field area. This area includes production and re-development locations as well as upside opportunities in the Devonian Formation. The Company's current net production from the area is ~200 boe/day, with total net reserves of 3.7 MMboe (all proved categories). The Company has identified eight PUD laterals (6 laterals added to existing wells and 2 new drills) to open heretofore undeveloped Devonian pay down to the initial oil-water contact. Completion of the primary power grid should yield additional run time and lower power costs.
TRANSACTION PROCESS
Proposals will be accepted for the entire Offering. The timetable for the transaction is as follows:
| Milestone |
Date |
Information Memorandum/VDR CD |
week of January 28, 2008 |
Data Room opens in Houston |
February 4, 2008 |
Bids due at 12:00 pm ( Houston Time): |
March 26, 2008 |
Closing: |
April 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 Confidentiality Agreement (“CA”) provided by the Company. 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 the Company 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
