These seven oil wells are located in two separate fields near Vernal, Utah. These oil well leases have decades of proven production, along with the upside opportunity to add additional wells. The leases sit on a total of approximately 760 acres that are authorized for 22 additional wells. These black wax oil wells have averaged a combined 13,000 barrels of annual production over the last ten years. Net revenue interest for the wells averages 80% and the net working interests are 100%. All of the production is currently handled by the seller and his son, so operating costs are comparably low. However due to other business interests, they have not realized the full production capacities of the existing wells, nor have they drilled new ones. The current owner’s leases are termed “held by production,” meaning that as long the production continues, the leases have indefinite terms.
At the one site, production depths are at approximately 10,000 feet. In the other, depths range between 7,200 and 7,500 feet. Other wells are currently being drilled near these wells and are not having to be drilled any deeper. Production volumes are solid in these neighboring wells and producers have not had to use any fracking. Each of the seller's wells also produce small amounts of natural gas that the owner, at one time, sold to the marketplace. They ceased this practice a number of years ago as the third-party pipeline owners at the time provided inconsistent service and the price per MCF averaged $1.00. With current pricing being around the $3.00 per MCF, new owners could resume selling the gas. With current volumes, this would add an additional $2,000 per month of income.
Asking Price $2,500,000
You May Also Like
Exploration Opportunity-3 Prime BLM Leases #451170 posted Aug 7, 2016
- Utah, United States
Public Company looking to assign premium asset to any serious bidders. Company holds 3 separate BLM leases approx 6,000 acres in Sevier and Beaver County, Utah. These Leases are fully paid for and yearly rentals are not due till February 2017. The leases lie in Utah's Central Thrust belt and close proximity...
Oil Shale Leases in Utah #369707 posted Nov 22, 2014
- Utah, United States
- Between $1,000,000 and $2,500,000
Oil Shale Leases in Utah coverings thousands of acres of valuable energy reserves. No current revenues or production. Available to qualified Buyers Only. Buyer fee. No brokers or intermediaries.
Dolomite & Chainman Oil Prospect - Drill Ready #191412 posted May 8, 2010
- Nevada, United States
- Between $2,500,000 and $5,000,000
The Devonian Dolomite formation is responsible for 85% of the worlds largest oil deposits and 13 of 17 new field discoveries in 2013. Nevada is host to the largest producing oil well in the USA. In 1983, the Grant Canyon #1 well began producing 5,200 barrels of oil per day from a Dolomite formation...
Disclaimer: MergerNetwork has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness.