Marketed: 1789 Minerals Fund I Haynesville Opportunity

The following information is provided by PetroDivest Advisors. All inquiries on the following listings should be directed to PetroDivest. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

1789 Minerals Fund I LP retained PetroDivest Advisors to market for sale its mineral and royalty interest in Harrison, Nacogdoches, Panola and San Augustine counties, Texas.

The assets offer an attractive opportunity, according to PetroDivest, to acquire roughly 925 net royalty acres with interest in 130 wells across the Haynesville play and net next 12-month cash flow of about $1.6 million through stable, gas-weighted production of about 1,000 net Mcfe/d (100% gas). Rapid development is also occurring across the position, PetroDivest said, with 23 wells online over the last 12 months in addition to more than 65 highly-economic remaining Haynesville and Bossier locations.

Highlights:

• ~925 Net Royalty Acres Across Active Haynesville Development
  • Region under active development by top Haynesville operators including Rockcliff, Aethon, Sabine and more
  • 118 producing horizontal wells generating ~1.0 net MMcfe/d (100% gas) with established decline profiles
    • ~0.2% average royalty interest
  • Net PDP PV-10: $4.8 million
  • Net PDP Next 12-month Cash Flow: $1.6 million
• 23 New Horizontal Wells Online In The Last 12 Months
  • Activity has quickly returned to the Haynesville as operators capitalize on improved commodity prices
    • 2022 on trend to be a record activity year throughout position
  • 1789’s position has seen steady, and increasing, on-minerals development
• 65+ Highly-Economic Horizontal Locations
  • Aethon and Rockcliff are running three and four horizontal rigs, respectively, offset 1789’s position, giving confidence in full development of the position
  • 65+ remaining horizontal Haynesville and Bossier locations based on unit spacing across the position
    • Average IRR: >100%
    • Net 3P PV-10: ~$8 million
  • Asset includes 100% of all title, rights, and all depths, providing long-term value beyond near-term development targets

Process Summary:

• Evaluation materials available via the Virtual Data Room on April 13
• Bids are due May 18

For information visit petrodivest.com or contact Jerry Edrington, director of PetroDivest, at jerry@petrodivest.com or 713-595-1017.