Merger involves Colorado’s third largest oil field

The acquisition of private Black Raven Energy Inc., Denver, by EnerJex Resources Inc. would create a combined entity that owns most of Colorado’s third largest oil field and substantial other interests in the Denver-Julesburg basin.

Aggregate consideration in the transaction is expected to be $45 million and the anticipated assumption by EnerJex of $15 million of additional long-term debt in order to discharge or acquire Black Raven’s existing debt.

Black Raven is majority owned by West Coast Opportunity Fund LLC, which owns about 16% of EnerJex. WCOF will own about 46% of the post-merger company on a diluted basis. Closing is expected by the end of the third quarter of 2013.

Black Raven has under lease more than 75,000 net acres in the DJ basin, including 45,000 net acres held by production. Black Raven’s assets are focused in two core projects described below, both of which are located on trend with emerging unconventional oil resource plays.

Black Raven owns a 100% working interest in 19,000 acres located in Morgan County, Colo., covering the vast majority of Adena field, which has been held by production since it was unitized by the Union Oil Co. of California in 1956. The Colorado Oil and Gas Conservation Commission ranks Adena as the third largest oil field in the history of Colorado behind Rangely and Wattenberg, having produced 75 million bbl of oil and 125 bcf of natural gas.

Nearly all Adena field producing wells were temporarily abandoned or shut-in during the secondary recovery phase in the mid-1980s when oil prices collapsed, and only a small number of wells have been produced since that time.

Black Raven produces 250 gross b/d of oil and gas equivalent, 68% oil, from eight J sand wells and seven D sand wells in Adena at 5,500 ft. Another 135 wells are shut-in or temporarily abandoned, of which Black Raven has initially identified 80 to be re-activated in the J sand or recompleted in the D sand.

Black Raven’s producing J sand wells average more than 10 b/d of oil, and its most recent D sand recompletion achieved an initial peak rate of 100 b/d before stabilizing at 30 b/d. In addition, Black Raven initiated a waterflood in an isolated D sand oil pool in the first quarter of 2013.

Black Raven also owns leases covering more than 55,000 net acres in Phillips and Sedgwick counties, Colo., and Perkins County, Neb., of which 25,000 acres are held by production and more than 15,000 acres expire after 2015. Black Raven produces 250 Mcfd of gas from the Niobrara formation in this project, the majority of which is attributable to a 6% overriding royalty interest that it owns in 200 wells that were drilled during the past few years by a large independent oil and gas company.

Black Raven’s Niobrara acreage was highgraded based on structural features identified through analysis of 114 miles of 2D and 165 sq miles of 3D seismic data on its original position of 330,000 net acres. The company has identified more than 150 high-ranked Niobrara drilling locations on its existing acreage based on 3D seismic analysis that has historically yielded success rates of 90% in this play.

Black Raven’s acreage is well situated with direct access to the Cheyenne Hub market and immediate proximity to the 1,679-mile Rocky Mountain Express pipeline and the 436-mile Trailblazer pipeline.

EnerJex’s assets are in eastern Kansas and South Texas.

White Papers

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

When Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST



On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected