Marketed: Arkoma Drilling Contiguous Haynesville Position in North Louisiana

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

Arkoma Drilling II LP and its affiliates are offering for sale its portfolio of northeastern Haynesville assets in the Ark-La-Tex Basin located in Bienville, Bossier and Webster parishes Louisiana. The company retained EnergyNet Indigo as the exclusive financial and technical adviser for this transaction.

Key Investment Highlights:

Excellent Haynesville Shale Acreage

• Unique opportunity to acquire high contiguous undeveloped Haynesville acreage
• Nine attractive, stable producing wells; producing ~51 MMcef/d; PDP PV-10 at $120.2 million
• Operated production with 92.4% working interest and 73.0% net revenue interest
• Full control of operations and future development planning
• Established production profile leading to long term cashflow predictability
• Active development continuing to take place across Bossier and Webster Parish

Stacked Resource Upside Potential

• Repeatable drilling inventory, with de-risked future development as a result of Arkoma development
• Extensive upside inventory due to stacked resource formations on Arkoma’s acreage
• Unevaluated potential value in development of Pettet for expansion of Lake Bistineau gas storage facility

Contiguous Development Opportunity & Stable Cash Flow

• Highly contiguous and consolidated operated position within Bossier and Webster parish
• Well delineated asset with drill-ready development locations, strategically located near Gulf Coast demand centers
• Average monthly cash flow ~$7.5 million/month

Delineated, Premium Inventory Potential

• Upside location development timing is consistent with typical pad development
  • 25 pads with 83 upside locations
  • Haynesville Formation is main target for future development
  • Assuming 10,000’ laterals spaced at 4 wells per section
• Bossier shale and Cotton Valley present within Arkoma’s acreage
  • Upside cases haven’t been modeled
  • Gross Bossier thickness of 250 ft-350 ft

Bids for Lot# 101385 are due Dec. 1. The transaction effective date is Oct. 1.

A virtual data room is available. For complete due diligence information visit energynet.com or email Zach Muroff, managing director, at Zach.Muroff@energynet.com, or Denna Arias, executive director of acquisitions and divestments, at Denna.Arias@energynet.com.