Marketed: Midland Basin Operated Assets in Borden County, Texas

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 a private seller to divest certain operated assets in the Midland Basin in Borden County, Texas.

The assets are producing about 65 gross bbl/d of oil, with a roughly 80% oil cut, and a next 12-month cash flow projected at $855,000. This is a low cost, shallow horizontal oil carbonate play, with a shallow 10% annual production decline from the Mississippian formation, according to Eagle River. The DSU offsets the largest Mississippian Chert Field in the Permian Basin and has 11 potential horizontal drilling locations in the Mississippian, Wolfcamp and Spraberry formations, the firm added.

Highlights:

Operated Oil Production

• Single operated DSU in Borden County, Texas
  • 89% Working Interest / 67% Net Revenue Interest
• Two producing wells ~65 gross bbl/d of Oil
• ~$855,000 next 12-month cash flow
• Offsetting the largest Mississippian Chert field in the Permian Basin (Fluvanna Field)
• Oil production with ~80% oil cut
• Shallow decline production profile at ~10%

Upside Potential in Undeveloped Locations

• ~$52 million total potential capex investment
• Multiple prospective plays including the Wolfcamp, Mississippian Chert, Ellenberger, Strawn and Spraberry
• Three horizontal Mississippian infill locations
• Eight potential horizontal drilling locations in the Mississippian, Wolfcamp and Spraberry formations
• Low cost, shallow horizontal oil carbonate play

Bids are due at 4 p.m. MT on Aug. 5. The sale is expected to have a July 1 effective date.

A virtual data room will be available starting July 7. For information contact Chris Martina, technical director at Eagle River, at 720-726-6092 or cmartina@eagleriverea.com.