Marketed: Permian Basin Mineral, Royalty Opportunity

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.

A private seller retained Detring Energy Advisors to market for sale its oil and gas mineral and royalty interests across the prolific Midland and Delaware basins in the Permian.

The assets offer an attractive opportunity, Detring said, to acquire significant near-term cash flow garnered from 180 horizontal PDP and 32 horizontal DUCs/permits plus 725 net royalty acres of diversified exposure across the two highest-returning basins in the Lower 48. Additionally, the package includes about 700 highly economic horizontal locations across the Wolfcamp, Bone Spring and Spraberry targets, with continuous pad development expected across the properties, according to Detring, from top regional operators, such as Diamondback Energy, EOG Resources, Pioneer Natural Resources among others.

Highlights:

• 725 Net Royalty Acres (~30% Delaware and ~70% Midland)
  • High-quality acreage across the Midland and Delaware Basins with exposure to well-capitalized, Permian-focused operators
  • Substantial cash flow growth from active development across minerals
    • 15 DUCs and 17 permits on-minerals coming online over the next year as operators quickly resume development
• Multiple Horizons and World-Class Inventory
  • Operators completing prolific wells across multiple economic Wolfcamp, Spraberry and Bone Spring targets
    • IP’s, EUR’s and operator ROR’s consistently top 1,000 boe/d, 1 MMboe and 100%, respectively
  • Total 3P net reserves of 1.7 MMboe across ~1,000 wells and locations
    • Rapidly developed, high-quality inventory provides years of sustained, elevated production
• $2.2 million Next 12-month Cash Flow (PDP/DUC/Permit)
  • Cash flow continues to increase as commodity prices surge and rigs return to the Permian Basin
    • ~315 current basin-wide horizontal rigs versus 230 rigs one year ago (Midland plus Delaware)
  • Operators have shifted almost exclusively to pad development, a boon for mineral owners
    • Well-understood geology and well performance allow for simultaneous completion of multiple targets

Process Summary:

• Evaluation materials are available via the Virtual Data Room on June 6
• Bids are due on July 1

For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.