Marketed: Diversified Permian Basin Mineral, Royalty Package

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 has retained Detring Energy Advisors to market for sale its oil and gas mineral and royalty interests across the prolific Midland and Delaware basins.

The assets offer an attractive opportunity, according to Detring, to acquire roughly 1,300 net royalty acres of diversified exposure across the two highest-returning basins in the Lower 48 and significant near-term cash flow garnered from 79 horizontal PDP and 24 horizontal DUCs/permits. The offering also includes 300 additional, highly economic horizontal locations across the Wolfcamp, Bone Spring and Spraberry targets, with continuous pad development expected across the properties, Detring added.

Highlights:

• Diversified Permian Mineral & Royalty Package (~1,300 Net Royalty Acres)
  • 80% Delaware Basin / 20% Midland Basin
  • High-quality acreage underpinned by exposure to well-capitalized, Permian-focused operators including Pioneer Natural Resources, Callon Petroleum, Surge Energy, ConocoPhillips, HighPeak Energy and others
  • Substantial cash flow growth from active development across minerals
    • 29 on-lease wells spud in 2021
    • 19 on-lease wells completed in 2021
• World-Class Inventory Across Multiple Benches
  • Operators completing prolific wells across multiple economic Wolfcamp, Spraberry and Bone Spring targets
    • IP’s, EUR’s, and operator ROR’s consistently top 1,000 boe/d, 1 million boe, and 100%, respectively
  • Total 3P net reserves of 3.0 million boe across ~400 wells and locations
    • Large inventory of undeveloped locations provides years of continued development & consistent cash flow
• Meaningful Near-Term Cash Flow ($1.8 million Next 12-month Cash Flow from PDP/DUCs/Permits)
  • Cash flow continues to increase as commodity prices surge and rigs return to the Permian Basin
    • ~270 current horizontal rigs versus 160 rigs one year ago (Midland and Delaware)
  • Operators have shifted almost exclusively to pad development, a boon for mineral owners
    • Well-understood geology and well performance allow for simultaneous completion of multiple targets

Process Summary:

• Evaluation materials available via the Virtual Data Room on Feb. 16
• Proposals due on March 16

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