Team EBCO closed the sale of a working interest in the South Graham Deese Sand Unit located in Carter County, Oklahoma, which produces 400 barrels of oil per day. The unit is located in the SHO-VEL-TUM field where production began in the 1920s. The unit consists of twenty six leases and over 700 wells. Over the years, operators have included Lamamco, Linn Operating LLC, and, currently, Scout Energy Management LLC.
The seller was the H.R. Collier and Benita Collier Revocable Living Trust and the buyers were Wildhorse Energy LLC and Big Sky Energy, LLC. The sale price was $350,000. EBCO partner Paul Smart stated that this is a low risk interest to own. "This property has a very flat production curve and has been in production for over 80 years," said Smart. "When a buyer looks at a lease with production from several hundred wells, that person knows that if one or two or a dozen wells goes offline, that lease is still going to continue to produce."
Mr. Smart stated that the initial bid for this property occurred before EBCO began its mass marketing effort. "We listed the property on-line and began upgrading our website. We wanted to wait for the upgrades before we began our mass-marketing event, which consists of sending an email campaign to over 10,000 names listed in our database," says Smart. "A client of ours submitted an initial offer that was already in range of our seller's expectations; however, we wouldn't feel as though our job was done until we got our seller top dollar for their property, which we did and got it sold."
[ Note: EBCO is an Oklahoma-based marketing company that sells oil and gas properties, minerals, and leases listed at its website, ebcoauctions.com]