ONE time Australian stockmarket “darling” Maverick Drilling & Exploration Limited has announced that it has opened a data room to test the divestment of its producing oil properties in its former “flag ship” Blue Ridge field in Texas.
Maverick has close to a 100% working interest in approximately 700 acres that are currently producing an average 500 gross barrels of oil per day. The company has engaged the Oil & Gas Asset Clearinghouse, a leading broker-dealer and A&D advisory firm in Houston, to assist in the potential sale. The company said the small working interest in the field not owned by Maverick will also be marketed.
Since the Blue Ridge field was discovered in 1919, it has produced more than 24 million barrels of oil. Maverick has acquired the first 3D seismic survey conducted over the field, and has reworked the long-term development plan.
“Over the last year, we have focused on improving the Blue Ridge field’s operations to better support the value of a long term field development plan,” said J. Michael Yeager, Maverick’s executive chairman and CEO said.
“To enhance our liquidity and help us develop our newly acquired acreage in the Eagle Ford formation in South Texas, we have decided to test the viability of selling our legacy oil properties in the Blue Ridge field.
“We have opened a data room to begin the sales process, and we have already received some unsolicited interest in the properties.
Secondly, with Clearinghouse assisting us on the sale of Blue Ridge, we can also keep our new Eagle Ford work moving forward.”
Mr Yeager said that assuming the transaction is completed, Maverick will focus exclusively on its new acreage in the Eagle Ford.
“We now have leased over 5,300 net acres with resource potential in three separate oil intervals, and which we believe can be economically drilled at today’s forward prices. We are working toward capturing approximately 13,000 acres in total, which would all be Maverick operated. We are currently finalising our development planning for this significant opportunity, and evaluating several potential partners,” Mr Yeager said.
Maverick, which traded close to the $1.50 per share mark in 2012, is now trading at around nine cents.