Marketed: Core D-J Basin Mineral, Royalty Opportunity

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

A private seller retained Detring Energy Advisors to market for sale about 10,270 net royalty acres concentrated in the prolific core of the Denver-Julesburg (D-J) Basin.

The assets, according to Detring, include meaningful cash flow of about $30 million (next 12 months) generated by more than 2,400 wells producing about 1,500 boe/d (net) and near-term growth driven by over 255 DUCs, 150 permits and roughly 40 locations within approved comprehensive drilling plan areas. Additionally, Detring added that substantial, high-returning inventory remains across over 2,600 undeveloped locations underneath premier, well-capitalized operators focused on the basin, with on-mineral development accelerating to about 45% of basin-wide TILs year-to-date—80% within two miles and 99% within five miles.

Highlights:

• $30 million Cash Flow (Next 12-month) | 1,500 boe/d (60% Liquids)
  • >2,400 producing wells anchor a stable and reliable cash flow base
  • Top in-basin operators remain focused on the assets with >120 wells TIL year-to-date (~375 annualized)
    • Over 250 DUCs and >150 permits provide line-of-sight to continued near-term development
    • PDP+DUC PV-10: $83 million
    • PDP+DUC Reserves: 5.8 million boe
  • Cash flow expected to increase from $30 million (Next 12-month) to over $35 million by 2024 at current activity levels
• 10,270 Net Royalty Acres | Core D-J Basin
  • High-quality footprint under premier, well-capitalized operators
    • PDC, Chevron, Oxy and Civitas account for 75% of NRA, >90% of DUCs, and 95% of 2021 TILs
    • Basin being developed almost exclusively utilizing pad development
• World-Class Inventory | >2,600 Undeveloped Locations
  • Primary targets include the Codell, Niobrara B, and Niobrara C
  • Compelling well performance and economics ensure continued development
    • EURs of ~600,000-900,000 boe
    • Average operator IRR >100% for all zones (~5-12 month payout)
    • Total net reserves and PV-10 of 17 million boe and ~$225 million, respectively ($470 million PV0)

Process Summary:

• Evaluation materials available via the Virtual Data Room on Aug. 9   
• Proposals due on Sept. 15

For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.