Valcore, Inc.

Industry

Real Assets

Company Type

Oil and Gas

Location

US

Size

$77.7 million

Investment Type

Equity

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Overview

  • Valcore, Inc is seeking $77.7 million of equity to purchase the assets of three operating companies in the Bakken play.
  • Mature gross operated production of 1,900 BOPD from 84 operating wells.
  • Next twelve months expected operating cash flow of $14 million (detailed financial model with assumptions and scenario analysis functionality available upon request).
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Opportunity

Contiguous oil position in the Bakken

  • 56,000 contiguous net acres in Williston Basin ─ acreage optimally situated for drilling longer laterals
  • Acreage position is 99% held by production leases which ensures significant control over field development
  • Acreage is adjacent to top tier Bakken operators including Continental and Whiting

Established production and cash flow

  • Mature gross operated production of 1,900 BOPD from 84 operated wells
  • Stable and predictable PDP cash flow to help future upside development
  • Substantial production base with compelling results from Bakken wells drilled to date
  • Infrastructure, including water supply and takeaway capacity, in place across position

Current oil price enhances project economics

  • Compelling reservoir opportunity highlighted by latest generation drilling & completion technology resulting in substantial EUR uplift potential
  • Bakken step-out proven to the north of the play; significant opportunity to replicate northern core extension success

Valuations

  • Proved developed producing PV10 value of $74 million
  • Reserves total proved valuation PV10 value of $235 million
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Strategy/Solution

Valcore’s plans to make timely acquisitions of exceptional energy properties/assets that meet strictly established criteria. Expect to enhance the value of these assets by leveraging advanced technologies and the extensive experience of the management team. The management team has an impressive track record in all aspects of the oil & natural gas industry.

  • Offer price will not be made on NPV valuations alone
  • Extensive negotiations with the owners prior to making a final offer
  • Comprehensive due diligence of the target companies will be conducted prior to bidding on the assets
Helping Great Companies Grow

Management

Nick Khan

CEO

  • Over 30 years of broad sales and management experience in the energy industry
  • Highly successful founder of two exploration and production companies Novoll and Drilcor
  • Expert in enhanced oil recovery systems
  • Experienced in the Austin Chalk and Bakken formations, Texas and Oklahoma oil exploration and recovery
  • University of North Texas in Denton majoring in Economics and Finance

Doug Lamb

COO

  • Independent oil and gas operator since 1977 in southeast Kansas and northeast Oklahoma
  • Founder and Manager of SEK Energy Operating, LLC
  • Supervised oil field operations for numerous public and private energy companies and individual investors
  • Grew Quest Resource Corporation into a public-owned entity with a market value of $100 million
  • BS degree in Business Administration from Wichita State University

Dan Zeigler

VP Geological Operations

  • Founder of First Order Exploration LLC
  • Broadly skilled exploration geoscientist with working knowledge of all aspects of exploration including petroleum system analysis, play generation, petrophysics, rock analysis, seismic processing and interpretation, advanced data management, wellsite operations, gravity/magnetics, and unconventional direct detection exploration techniques
  • Leading geoscientist promoting and using Direct Hydrocarbon Indicator Technologies (DHITs)
  • Published explorationist in two major domestic frontiers – Triassic Rift Basins on the East Coast and the Cotton Valley Reef Trend and the Bossier Sand Trend of the East Texas Basin
  • BS Degree in Geology from University of Texas – Dallas

Terry Carrol

VP Management

  • 40 years of experience in the oil & gas industry focusing on the evaluation, acquisition, development and operation of oil and natural gas assets
  • Served as President, CEO and CFO of United States Exploration, Inc., a public company engaged in oil & gas exploration, development, and operations
  • Founded Argas Inc., a private oil field development and operating company. Participated in the drilling of over 100 oil and gas wells and the construction and operation of eight natural gas gathering systems
  • Founded Windgate Oil Inc. Engaged in the exploration and development of oil and gas properties. Drilled and completed over 75 oil and gas wells
  • BS degree in Business Administration and Finance from California State University, Hayward

William Bramlett

 

  • Over 25 years diversified landsman experience – acquisition, divestiture, exploration, and production
  • Founded, capitalized and led the acquisition of significant positions within the East Texas Deep Bossier Play, culminating in a $12 Million dollar net profit on a $2 million dollar investment
  • Joint venture with ATKO Partners Ltd. in the acquisition of royalty and mineral interests in over 500,000 acres in the San Juan Basin
  • BA degree from Sam Houston State University

Paul Mueller

Operations Manager

 

  • Owner of Mueller Energy Consulting – second-generation oil and gas consultant
  • Provides other operators with seasoned consultants for all phases of a well’s life cycle
  • 35 plus years of onsite drilling experience with both day rate and turnkey situations
  • Expert horizontal drilling and completions including fracking and production facilities
  • Bachelor of Business from University of Mississippi
Helping Great Companies Grow
Learn More About This Transaction

CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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