Maverick Drilling & Exploration Limited (MAD) has opened a data room to test the divestment of its producing oil properties in the Blue Ridge field, a piercement-type salt dome located south of Houston, Texas. Maverick has nearly 100 percent 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 ("Clearinghouse"), a leading broker-dealer and A&D advisory firm in Houston, to assist in the potential sale. 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. Maverick has a unique low cost approach to the field development through the use of its owned and operated drilling rigs, completion/workover rigs and other service equipment.
"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, Executive Chairman & Chief Executive Officer of Maverick. "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 chosen Clearinghouse for several reasons to assist us with the transaction," Yeager continued. "Clearinghouse has a strong track record of closing these type transactions with quality buyers. 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."
"Assuming the transaction is completed, we will focus exclusively on our exciting 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 finalizing our development planning for this significant opportunity, and evaluating several potential partners," concluded Yeager.