Marketed: Kansas Operated Assets, Volumetric Production Payment

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

Eagle River Energy Advisors LLC has been exclusively retained by Sam Gary Jr. & Associates Inc. to raise $10 million via the sale of a volumetric production payment (VPP) or a similar structured financing on certain operated working interest assets in Kansas.

Summary:

• Financing Terms
  • Proceeds: $10 million
  • Term: Three years
  • Collateral: First lien on 163 operated PDP wells
  • Scheduled VPP Production: ~172,000 BO
• Excellent credit profile
  • Scheduled VPP Production:
    • ~52% of ~332,000 PDP BO over three-year term
  • ~9% of ~1.9 MMBO total PDP BO over life of wells
  • Cash Flow Coverage Ratio: 1.7x
  • Well seasoned production base with stable decline from legacy vertical wells in Kansas
  • Highly diversified production across 18 fields and 12 counties
  • Highly experienced, well capitalized operator
• Summary of Collateral
  • Net Production of 385 bbl/d (May)
  • ~7% annual production decline
  • Last 12-month net cash flow of $6.4 million
  • ~1.9 MMBO PDP reserves
  • PDP PV-10 = $32.1 million; PDP PV-20 = $22.2 million

Bids are due by 4 p.m. MT on Aug. 15. The transaction effective date is Sept. 1. A virtual data room will be available starting July 25. For information contact Chris Martina, technical director at Eagle River, at 720-726-6092 or cmartina@eagleriverea.com.