HHE to sell Appalachia production and midstream properties

Hayden Harper Energy KA, LLC has retained E-Spectrum Advisors to sell certain operated producing properties and midstream assets in Appalachia. The properties are located in Kentucky, West Virginia, Virginia, Pennsylvania, and New York and have an average historical net operating cash flow of approximately US$ 1.1 million per month.

The producing properties include ownership in over 1150 wells holding over 135 000 acres of shallow rights (100% HBP). Net production has averaged 7.8 million ft² equivalent per day (98% gas) from shallow formations. The liquids-rich Kentucky production has a 1200 - 1400 BTU content and is processed through the gas processing facility owned by the Company. Average historical net operating cash flow from the production is approximately US$ 872 000 per month.

The low decline reserve base includes total proved reserves of 75.8 billion ft² equivalent (75% proved developed producing) with a PV-10 of US$ 73.6 million. Upside includes numerous low-cost, low-risk new drills and recompletions as well as unquantified potential in HBP acreage. Future development program is self-funding.

The midstream assets include a newly constructed, 20 million ft³/d gas processing plant with a long-term supply contract as well as a 30 mile, 8 in. fixed-fee pipeline with 15 million ft³/d capacity. Current run rate EBITDA on the midstream package is US$ 481 000 per month.

The online data room is open. Bids are due 10 December.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/31102014/hhe-to-sell-appalachia-production-and-midstream-properties/