To avoid confusion and better serve our customers, we are now doing business as EBCO. For more information about the history of the company please visit: The EBCO Press Archives
To avoid confusion and better serve our customers, we are now doing business as EBCO. For more information about the history of the company please visit: The EBCO Press Archives
EBCO, in late March of 2022, entered into an agreement with Tulsa-based KVR Energy L.L.C. (“KVR”) to sell a majority of their oil and gas assets, which were operated under the entity KLO, LLC (“KLO”). KLO and KVR shared common ownership in both entities.
The leases were to be sold through a negotiated sale process utilizing EBCO’s website, email database, and marketing tools in order to facilitate the sale. The oil and gas leases are comprised of Oklahoma and NE Texas locations, with the majority being in Oklahoma and located east of Interstate 35. Rather than group the leases in one package, it was decided to split the leases into common operating regions.
These regions consisted of a single Cleveland County lease, a north Creek and Pawnee County package combined, a south Creek County package, a single Garfield County lease, a Hughes County package, a Kay County package, an Okfuskee County package, a single Oklahoma County lease, a single Okmulgee County lease, an Osage County package, a single Payne County lease, a single Pontotoc County lease, a Seminole County package, a Tulsa County package, and groups of wells in Cass and Rusk Counties in Texas.
These packages hit the market as oil was approaching the $100/barrel price point. EBCO’s first email blast garnered nearly 4,000 views and drove many new viewers to its website.
The first properties to sell was a portion of the Hughes County package. “We originally didn’t intend to break up any of packages,” says Paul Smart, a partner in EBCO. “The buyer previously owned the properties on which they’d made an offer and the offer was well above KVR’s reserve price. KVR asked us to sell that portion of the package; so, we declared it sold.”
The next package to sell was the Candy #1 lease in Payne County. “It was a 2 BOPD well that was priced at fair market value and it sold quickly,” adds Mr. Smart. “Shortly thereafter, we sold another portion of the Hughes County package to an operator with adjacent production. That was followed by a single Cleveland County lease. Following was the sale of the Tulsa County package. Most of the buyers were small to mid-size Oklahoma oil and gas operators. In addition to viewing the data at our site, most would conclude their due-diligence by inspecting the equipment and gauging the oil the oil in the tanks in order to confirm daily production.”
[EBCO is an Oklahoma-based marketing company that facilitates the sale of oil and gas properties, minerals, and leases through its website, ebcoauctions.com]
