Marketed: Forge Interests Core Delaware Basin ORRI

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.

Forge Interests LP is offering for sale its oil and gas overriding royalty interests (ORRI) located in the active core of the southern Delaware Basin.

Detring Energy Advisors, retained to handle the transaction, said the Forge assets offer an opportunity to acquire roughly 1,500 net royalty acres of concentrated exposure to a premier and focused operator in Percussion Petroleum, which is currently running a two-to-three rig program across their footprint as they hold their University Lands leasehold position subject to continuous development. Additionally, the offering includes significant near-term cash flow garnered from 26 PDP and 28 permits; and 175+ highly-economic development locations targeting four de-risked benches across the Wolfcamp and Bone Spring formations.

Highlights:

• Substantial Production Base | $5.4 million next 12-month cash flow (PDP/Permits)
  • Meaningful existing production consists of 100 bbl/d (oil), 115 MMcf/d (gas), and 16 bbl/d (NGL) (~75% oil / 85% liquids)
    • PDP PV-10: $8.5 million
    • PDP Net Reserves: 333,000 boe
    • Well Count: 26 current producers
  • Acceleration of on-lease activity provides line-of-sight to near term development underpinned by 28 high-interest permits
    • Driven by Percussion (13 Permits) and Forge Energy II (15 Permits)
• High-Interest Royalty Units | ~1,500 net royalty acres, 1.6% average ORRI
  • Forge’s ORRI covers ~35% of Percussion Petroleum’s operated acreage (8 drilling units), a Southern Delaware pure-play operator with a 2-to-3 rig program
    • The majority of Percussion’s operated position is comprised of University Lands leasehold subject to Continuous Development
  • The remaining two DSU’s are operated by Forge II & Battalion
    • Forge II will TIL the UL Empire Unit beginning Feb. 2023, where 15 high royalty interest permits are currently in-place
• World-Class Inventory Across Multiple Horizons
  • Total 3P net reserves of 5 MMboe across 231 horizonal locations
    • 177 undeveloped locations provide years of continued development and consistent production and cash flow growth
  • Operators are completing prolific wells across four highly-economic, de-risked Wolfcamp and Bone Spring targets
    • IP’s, EUR’s, and operator ROR’s consistently top 900 boe/d, 800 MMboe, and 200%, respectively

Bids are due Oct. 19. Forge anticipates PSA execution by mid-November and closing by late December.

A virtual data room is available. For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.