Marketed: Private Seller Operated Minerals Opportunity in Southern Midland Basin

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

A private seller is offering a high-interest minerals opportunity in the Southern Midland Basin. This lot includes 6,510 Net Royalty Acres (100% minerals), ~7MM in NTM cash flow from 22 producing hz wells and 10 hz DUC's and permits, offering line-of-sight growth through mid-2024. The private seller has retained Detring Energy Advisors as its exclusive advisor relating to the transaction.

Asset Highlights:

• $6.8MM NTM Cash Flow; PDP + Line-of-Sight
  • Active growth underwritten by high-interest DUCs (2) and permits (8)
  • Average RI of ~5% across imminent near-term locations
• 27 producing wells (22 horizontal) provide a stable cash flow
  • Net Prod: 290 Boed (71% liq.)
  • PDP PV10: $14MM
• 6,510 Net Royalty Acres; 100% Minerals | 6.7% Avg. RI
  • Dense NRA per section provides
    material uplift with every new well or
    pad developed across the position
    • 8 section gross footprint of 5,120
      acres with high unit royalty interest
      ranging from 2.8%-15.3%
  • Key operators include Pioneer, Hibernia, Driftwood, & Henry
    • Recent leasing to spur dev. activity
• 76 PUD Locations; Footprint Only 30% Developed
  • Significant remaining locations and
    anticipated lease bonus offer material
    medium-term growth and longevity
    over asset life
    • 3P PV10: $91MM ($241MM PV0)(1)
    • 3P Net Reserves: 6.4 MMBoe
  • Operators actively extending Wolfcamp A & B development across and beyond Seller’s position
    • Three Wolfcamp targets (WCA,
      WCB Upper, WCB Lower) offer
      >100% avg. IRR

Bids are due on June 7. For complete due diligence information, please visit detring.com or email Melinda Faust, managing director, at mel@detring.com.