United States Federal Bankruptcy Court Orders Massive West Texas Ranch Sold
DALLAS/FORT WORTH and MIDLAND, Texas, Oct. 16, 2018 /PRNewswire/ -- Bernard Uechtritz' Icon Global Group announced today an immediate call for offers and combination sealed bid sales program deadline of November 30, 2018 for the owned land, water and mineral rights for a much coveted 37,000 +/- acre ranch with a production capability of approximately 400,000 BBLS of frac water per day.
The KC7 Ranch near Balmorhea, Texas will be liquidated in its entirety inclusive of all owned assets which importantly include extensive water, mineral and surface fee simple rights. The property includes a nearly 10,000 sq. ft. original 1890's stone lodge remodeled in 2007 along with extensive other capital improvements, headquarters compound, infrastructure, plant and equipment.
Federal Judge Hon. Mark Mullins ordered the appointment of Uechtritz and his Icon Global Group to immediately sell the property in an unopposed hearing in United States Federal Bankruptcy Court - Northern District of Texas, Fort Worth Division. Uechtritz' appointment was at the recommendation of the Debtor's designated Chief Marketing Professional (CMP), attorney Joseph M. Coleman with Kane Russell Coleman and Logan PC.
Coleman stated, "I interviewed many of the state's leading ranch brokers and chose Bernard Uechtritz specifically because of his extensive experience and track record in successfully and aggressively selling a diverse range of big-ticket properties, particularly in unique and difficult circumstances, such as we have with the KC7 Ranch, Ltd. Bankruptcy. I have full confidence that this Ranch will be sold in an expedited and timely manner consistent with the approved marketing strategies pursuant to the Court's order."
The ordered sale stems from the bankruptcy filings of KC7 Ranch, Ltd. and related entities as reported by the Fort Worth Star Telegram.
Significantly, a valuable ground water rights component is included in the offering, which incorporates a massive potential frac water development opportunity. As set forth in most recent court documents, the Chief Marketing Professional (and thus Broker) is authorized by the Court to "sell the property free and clear of the ground water lease among KC7 Ranch, Ltd. and Wolfcamp Water Partners, LLC."
"The inclusion of the previously unavailable but immensely valuable owned water rights in this property is a game changer and makes for an extremely unique and potentially revenue rich investment opportunity with predicted income streams potentially worth many multiples beyond any surface value acquisition price," said Uechtritz. "I have seen data which indicates up to 400,000 barrels a day of water production is possible."
"Current frac water rates in the area range from sixty cents to two dollars. This could potentially mean a payback as much as $70M a year for decades."
"In fact, there is a distinct two-fold option in the water asset for a new owner; in either A) benefitting from a potential royalty earning position when and if the rights are monetized by a pre-existing developer or B) developing and monetizing the rights themselves as the owner. This is now a wide-open deal, and everything is on the table."
Previously on the market at $52 million, there is now no list price set in the current offer/sealed bid plan. "However, I expect realistic entry level bids which will get enough of our attention to go to the court for approval will start around $35/40 million and go up from there," said Uechtritz. "I fully expect multiple bids from multiple interested parties several of whom have already been in contact prior to today's announcement."
About KC7 Ranch. Ltd
Based in Fort Worth, Texas, KC7 Ranch, Ltd., is a privately held company that owns a real property asset known as the "KC7 Ranch". KC7 Ranch filed for Chapter 11 bankruptcy protection (Bankr. N.D Tex. Case No. 17-45166) on Dec. 28, 2017. The Debtor estimated assets between $50 million and $100 million, and liabilities between $10 million and $50 million.
About the KC7 Ranch
KC7 Ranch is situated on 37,759 +/- acres of topography rich land two hours southwest of Midland near Balmorhea, TX. This highly improved property comes completely turnkey and is a sportsman's paradise. The blend of open and mountainous terrain, pasture land and water provide an abundance of recreational activities as well as peaceful tranquility. The renovated historic main residence overlooks the large spring fed trophy bass lake and offers luxurious accommodations. The entire perimeter of the ranch is fenced, and the interior is cross fenced into 11 pastures. This ranch is 2 hours from Midland, TX, an hour from Fort Davis, 1.5 hours from Alpine.
Water: This property has superior surface and subsurface water for the area. 10 natural springs flow from the mountains creating an oasis for wildlife, 3 of the springs feed water to pastures. There are also two lakes that cover 40 acres. The property also on top of the Capitan reservoir and according to hydrology reports can produce an estimated 400,000 barrels per day of frac water with could be potentially distributed to the Delaware and Permian basin oilfields for decades to come.
Minerals: The property has 10,650+- net mineral acres included in the offering.
About Icon Global Group
Icon Global (www.Icon.Global) designs and implements strategic, tactical marketing and sales campaigns for private clients with unique, high-end properties around the world. The company specializes in one of a kind, complex deals on behalf of high net worth clients, international investment funds, corporations, oil and gas ventures, among many others.
Icon Global was founded by complex deal maker and international real estate advisor, Bernard Uechtritz. The Australian native most notably led the record-breaking global marketing and sale of W.T. Waggoner Ranch in Vernon, Texas. Listed at $725 million, the iconic property sold in 2016 to billionaire businessman Stan Kroenke, earning the "Real Estate Deal of the Century" title. The company's combined listings and sales volume reached or exceeded $1 billion in 2016 and 2017, including the well-publicized sales of the $60M Barefoot Ranch (TX), $45M Rio Bonito Ranch (TX), $21M Dodge Ranch (WY), $34M Broseco Ranch (TX), among many others.
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SOURCE Icon Global Group
