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 closed the sale of a lease operated by E Lyle Johnson, Inc. that was located in Major County, OK. The lease consisted of the Roberts 1 well located in Township 22 North, Range 14 West. The well produces approximately 3 BOPD.
The lease was marketed strictly through a private, negotiated sale and was not subject to competitive bidding. In this instance, EBCO was approached in late 2023 by a buyer seeking wells with specific attributes. The criteria included acquiring operations and purchasing wells that are properly maintained. If the wells happened to be in an area where they already operate, their interest level would increase.
At about the same time, E. Lyle Johnson, Inc., a second generation oil company with offices in Denver, approached EBCO regarding selling their final oil and gas wells that happened to be located in Oklahoma. A discussion began about whether to mass-market the lease or simply locate a buyer. As well, a reserve price that met or exceeded market value needed to be determined. A reserve price was agreed upon and it was left at the discretion of EBCO as to the method of locating a buyer.
EBCO immediately contacted the buyer that requested assistance in locating wells. “I began gathering data from the seller in order to have a package worth evaluating,” said EBCO senior partner Paul Smart. “Upon describing the lease, the buyer knew exactly where it was located and requested data. Soon thereafter, I was presented with an offer that exceeded the reserve price. Upon sharing this offer with the Johnsons, they decided to accept it and the offer was formalized with a Letter of Intent.”
The closing occurred remotely from the seller’s officed in Denver and at a location in Oklahoma City.
[EBCO is an Oklahoma-based marketing company that facilitates the sale of oil and gas properties, minerals, and leases through its website, www.ebcoauctions.com]
