Marketed: PennMarc Resources Appalachia ORRI Position

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

PennMarc Resources retained PetroDivest Advisors to market for sale its oil and gas royalty interests located in Pennsylvania’s Wyoming County.

The assets include a large core dry-gas overriding royalty interest (ORRI) position in the prolific Northeastern Pennsylvania’s Marcellus Shale play, exposure to premier Marcellus operators actively drilling extended laterals utilizing next-gen completion techniques and stable, predictable cash flow from over 200 currently producing wells, PetroDivest said.

Highlights:

• 624 Net Royalty Acres (100% ORRI)
  • ~21,000 gross acres providing a large mineral footprint in the geologic sweet-spot of the Marcellus Shale
  • Diversified exposure to premier operators whose positions represent the premier assets within their respective portfolios
    • Chesapeake Energy Corp., BKV Operating, Chief Oil & Gas, Southwestern Energy Co. and Cabot Oil & Gas Corp./Cimarex Energy Co.
• ~1 Million Next 12-month Net Cash Flow (~750 Mcf/d Net Production)
  • Substantial current production from >200 horizontal wells in the most active gas basin in the U.S. generates significant free cash flow and discounted value
    • PDP PV-10: $2.7 million
    • PDP R/P: ~10 years
  • Current on-minerals activity with 5 DUCs and 2 permits
  • Over 40 highly economic Marcellus upside locations identified on-lease
• World-Class Well Results Established On-Lease
  • 7,500-ft+ average TLL
  • 3.5 MMcfd/Mft average IP24

Process Summary:

• Evaluation materials available via the Virtual Data Room on July 12
• Bids are due on Aug. 4

PetroDivest anticipates the sign and close to occur by late September. For information visit petrodivest.com or contact Jerry Edrington, director of PetroDivest, at jerry@petrodivest.com or 713-595-1017.