Marketed: Core Haynesville Overriding Royalty Interest

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 its overriding royalty interests (ORRI) located in Caddo Parish, Louisiana.

The assets include 1,445 net royalty acres concentrated in two units under active development in the core of the Haynesville. Operated by Paloma Natural Gas (PNG), the assets deliver $18 million in next 12-month cash flow from 10 high-interest locations, including five DUCs in various stages of completion and five wells currently being drilled.

Asset Highlights:

• High-Interest Royalty Units
  • Unique opportunity to acquire concentrated ORRI in two core units with imminent production
    • 1,445 NRA
    • 6.6% average ORRI
    • 100% operated by PNG
• Rapid Return on Investment
  • $18 million next 12-month Cash Flow
  • ~103,000 ft gross treated lateral (~7,000 ft net) with anticipated first sales in September 2022; fully online by January 2023
    • PV-10:  $40 million
    • Net Reserves:  14.7 Bcf
  • Cumulative three-year and total undiscounted cash flow of $33 million and $47 million, respectively
• World-Class Resource and Leading-Edge Completions
  • Prolific type curve supported by recent offset completions with 2.2+ Bcf/1,000 ft gross EURs
  • PNG is an experienced Haynesville operator with a track record of top-tier well performance
    • Currently running four rigs and completing wells with 100+ stages and 6,000 lb/ft
  • Proximity to Gulf Coast / LNG export ensures premium pricing

Process Summary:

• Evaluation materials are available via the Virtual Data Room on July 25
• Proposals are due on Aug. 24

For information visit detring.com or contact Matt Loewenstein at matt@detring.com or 713-595-1003.