San Juan Basin Horizontal Mancos Dry Gas Project
San Juan Resources has assembled a 6400-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, 3 APD's (multi-well pads)
- Lateral analogs significantly de-risk project, lease line offset drilled in 2011
- SJR owns controlling presence in this area
Size of Prize:
- NPV15 $194MM (Gross, fully developed)
- ROI to investor 55%;
- 32 Unit wells-- Mancos B and C zones
- Gross Reserves- 600 BCF
Deal Terms:
- SJR to have 15% carry through the tanks in 4 commitment wells
- Investors earn pro rata share of leasehold
- Single well economics (promoted) - 30% IRR, 2.5 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--will be available for take away
- $13.5 MM for first 2-mi lateral, (with drilling efficiencies < $11.5 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).
- Pipe water into area from Lake Navajo.
Contact Jerry at jmchugh@sanjuanbasin.com for additional details, access to the data room, and showing.
