Marketed: Permian Mineral Opportunity, Culberson County, Texas

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.

Boulders Royalty Corp. retained Detring Energy Advisors to market for sale its oil and gas mineral and royalty interests located in northeast Culberson County, Texas.

The assets comprise of four high-interest royalty units (3.4% average interest) under imminent development and operated by Cimarex Energy Co. plus four producing and eight recently permitted wells with anticipated 2022E cash flow of over $8 million ($5 million PDP/Permit). The opportunity also includes more than 70 additional, highly economic horizontal locations across Wolfcamp and Bone Spring targets, with forecast continuous pad development of the assets, according to Detring.

Highlights:

• High-Interest Royalty Units With Eight Permits In-Hand 
  • 1,480 net royalty acres
    • 100% operated by Cimarex
  • Central to Cimarex’ stated plans for development in northeast Culberson
    • Eight permits filed on Boulder assets (Apollo Unit) in the last 30 days
• Current Production With Imminent Near-Term Growth
  • Anticipated spud and first production in July and fourth-quarter 2021, respectively, for eight permitted wells
    • PDP + Permit: $16 million PV-10 and $5 million next 12-month cash flow
  • High likelihood of continued development due to low royalty burden, existing infrastructure, and long-lateral units
    • Cimarex has reduced DC&F cost per lateral foot by roughly 40% since 2018, lowering capital requirements for full development
  • Regional activity (within three miles of the assets) sustained 2019 levels throughout the pandemic and is on-track for a record year in 2021
    • 37 total permits granted as of early June 2021 (84% filed by Cimarex)
• World-Class Resource Actively Developed by Cimarex
  • 70+ high-returning locations beyond PDP and permitted well inventory
    • 3P PV-10: $74 million (~$170 million PV0)
    • 3P Net Reserves: 9 MMboe
  • Regional Wolfcamp A performance demonstrates world-class results competitive with Delaware Basin “State Line” area
    • 2,500+ boe/d IP24 / 2.75+ MMboe EUR (10,000-ft lateral)
    • 1 MMboe cumulative production achieved in less than three years
    • Working interest payout in six months
  • Cimarex is a top-tier Permian operator with a fantastic track record of operatorship and well performance
    • Culberson County to continue as focus area post-merger with Cabot Oil & Gas Corp.
  • Stacked-pay with four proven targets & additional potential horizons
    • Northeast Culberson provides cube inventory for long-term development across ~5,000-ft of stacked pay and multiple highly-economic Bone Spring and Wolfcamp targets

Process Summary:

• Evaluation materials available via the Virtual Data Room June 16
• Proposals due on July 21

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