Marketed: Mallard Exploration Rural D-J Basin JV Opportunity

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.

Mallard Exploration has exclusively retained Eagle River Energy Advisors LLC to solicit partnerships for 50%-75% proportionate share of certain operated producing, drilled uncompleted and/or development working interest assets in the Denver-Julesburg (D-J) Basin of rural Weld County in Colorado.

Highlights:

Opportunity 1 (PDP Sale)

• ~7,200 boe/d net production to Mallard’s interest (March 2021 forecast)
  • 66% Oil / 21% NGL / 13% Gas Sales
• 17 producing wells across two DSUs in 8N/9N 59W of Weld County
• ~$64.1 million NTM estimated net operating cash flow
• ~7.430 million boe / $141.5 million PV-10 of PDP net reserve

Opportunity 2 (2021 DUC Completion Program)

• Active completion program includes 21 Niobrara wells across three DSUs in 8N 60W of Rural Weld County
  • Continuous completions beginning March 2021 through July 2021
  • First sales anticipated June 2021 through August 2021
• Mallard implementing Basin-leading completion designs with high pump rates, diversion and high proppant intensities (>2,500 #/ft)
• $82 million completion capital to Mallard’s interest in 2021 with $35.6 million sunk drilling capital 
• ~$133.3 million NTM estimated net operating cash flow
• ~12.660 million boe / $229.2 million PV-10 of DUC net reserves

Opportunity 3 (2021-22 Development Program)

• Opportunity to drill in the Rural D-J Basin with a premier operator demonstrating Basin-leading well results & industry-leading returns
• Drill-ready program of 56 Niobrara wells across 8 DSUs in 8N/9N 60W/61W of Rural Weld County
  • Potential one-rig program beginning June 2021 through Jul7 2022
  • First sales forecasted beginning October 2021 through November 2022
• Industry-leading drilling economics for Niobrara standard XRL yield IRRs of >90%and EURs of 690,000–885,000 boe (59% Oil)
• $5.9 million D&C AFE for standard XRL (~9,900-ft Lateral Length)
• $286.8 million D&C capital to Mallard’s interest in 2021-22
• ~27.400 million boe / $300.6 million PV-15 of Development net reserves

Bids are due by 4 p.m. MT May 18. A virtual data room will be available starting April 19.

For information contact Mallory Weaver, marketing director at Eagle River, at 720-726-6093 or mweaver@eagleriverea.com.