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 completed the sale of working interest wells located in six Texas panhandle counties. The seller was a private individual and the purchasers were partners Bracken Operating LLC and DWR Energy LP. The purchase price was $228,000. The facilitator for this transaction was Philip Smart, a partner with EBCO.
According to Mr. Smart, this transaction took several months to put together. He states, "The foundation of this package, like any other successful transaction begins with data preparation. If the buyer doesn't understand the information, a deal will never get done." Smart went further to discuss the issues associated with accounting. "In a package like this one with nine operators for the 26 wells, each of whom used different accounting software, or reported expenses differently, it's easy for a client to get confused. I took that information and created Lease Operating Statements for each operator using a unified format recategorizing expenses if need be, that way it didn't matter which Lease Operating Statement any prospective buyer opened they would be able to tell exactly what was going on."
Mr. Smart further discussed the amount of time devoted to this one transaction. "In several cases, I had to contact the operator in order to understand the adjustments they were making on both the revenue statement and the joint interest billing." He explains, "That's all part of going the extra mile for the client. While our competitors typically require the seller to do all the data preparation, we are willing to roll up our sleeves and share in the work. This way our buyers never leave our data rooms feeling like they need to do additional due diligence.
In the end, Mr. Smart put together a package that was salable. "We negotiated a price with the high bidder that was acceptable to the seller. Both parties were pleased with the results," says Mr. Smart.
[EBCO is an Oklahoma-based marketing company that sells oil and gas properties, minerals, and leases at its website, ebcoauctions.com]
