Marketed: Read & Stevens Operated, Nonoperated Delaware Basin Properties

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

Read & Stevens Inc. and First Century Oil Inc. are offering for sale certain operated and nonoperated properties located in the Delaware Basin. The company has retained TenOaks Energy Advisors as its exclusive adviser in connection with the transaction. The company’s preference is for a cash-free, debt-free corporate / entity sale.

Key Considerations:

• Premier operated and nonoperated portfolio centered in Lea and Eddy Counties, New Mexico
• Next 12-month PDP cash flow of $20 million anchored by diversified production base (~1,200 net boe/d) of operated and nonoperated interests
• Significant free cash flow potential over the next decade from operated and nonoperated growth

Operated Properties:

• Core operated footprint in Lea County with operational control across six contiguous sections in T20S R34E
• Significant undeveloped potential (153 gross locations) targeting five delineated zones
• Historically undercapitalized asset poised for next stage full-scale pad development by a well-capitalized operator

Nonoperated Properties:

• Unique nonoperated position includes non-op working interests and royalty interests with 19 DUCs / 86 permits / pre-permits (AFEs) on position
• Partnered with well-capitalized operators with multiple rigs on position (Mewbourne Oil Co., Coterra Energy Inc., Occidental Petroleum Corp. and EOG Resources Inc.)

Bids are due mid-September. Closing of the transition is targeted by the fall with an effective date of Nov. 1.

A virtual data room is available. For information visit tenoaksenergyadvisors.com or contact Forrest Salge at TenOaks Energy Advisors at 817-233-4096 or Forrest.Salge@tenoaksadvisors.com.