Marketed: CUDA Energy Conventional Powder River Basin Nonop Oil 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.

CUDA Energy LLC retained Detring Energy Advisors to market for sale its large, contiguous roughly 16,500 net-acre-position in the prolific Powder River Basin.

The assets offer the opportunity to acquire nonoperated working interest underneath a focused operator with a production base generating roughly $5 million in cash flow (next 12-month). Detring added that near-term production growth is driven by an active miscible gas flood program and exposure to horizontal development potential across multiple stacked-pay targets.

Highlights:

• Increasing Production Base (~500 bod net | 100% oil)
  • 56 PDP wells generate strong production and cash flow across the Barron Flats Unit (BFU) and the Cole Creek Field Unit (CCU)
    • Average PDP: Working Interest: 28% | Net Revenue Interest: 22%
  • Resilient cash flow supported by efficient operations and high netbacks
    • PDP Cash Flow: $5 million (next 12-month)
    • PDP PV-10: $39 million
    • Netback: $46/bbl (Average 2022E)
  • 2022E PDP exit rate of 600 Bod as gas flood continues trend of increased rate
• Miscible Gas Flood Drives Continued Growth
  • De-risked production growth from miscible gas flood with proven results
    • Oil production has increased 75% since implementation of gas flood
    • Gas injection volumes increased 10x in first-half 2021 with oil production in early response stage
  • Significant OOIP of ~230 million barrels
    • Gas flood projected to drive 40%-50% incremental recovery
  • New infrastructure with direct access to injection feedstock
• Prudent Operator Actively Developing Substantial Upside
  • Canadian Overseas Petroleum Ltd. (COPL) is sole operator
  • Publicly disclosed growth outlook:
    • Plans to increase gas injection in BFU
    • Targeting 17 recompletes in CCU
  • BFU deep test completed in September confirmed six oil-bearing sands with ~250 ft total net pay
  • Conventional and unconventional horizontal targets under active development by offset operators
    • Primary Zones: Turner, Frontier

Process Summary:

• Evaluation materials available via the Virtual Data Room on Jan. 5
• Proposals due on Feb. 4

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