Marketed: Saka Fasken Nonop Dry Gas Properties, Webb 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.

Saka Fasken LLC retained Detring Energy Advisors to market for sale its nonoperated properties located in Webb County, Texas, in the core of the dry gas Eagle Ford and Austin Chalk fairway.

The assets offer an opportunity to acquire a 36% working interest across a contiguous, fully HBP, footprint to about 8,000 gross acres with well-established production of 22 MMcf/d (net) generating $80 million in next 12-month operating cash flow, according to Detring. The properties are operated by SilverBow Resources Inc., a publicly listed, pure-play Eagle Ford E&P, with seven near-term development wells and an active horizontal development program.

Asset Highlights:

• High-Margin Gas Production | 22 MMcf/d (100% Gas) | $80 million Next 12-month Operating Cash Flow
  • Well-established production underpinned by 127 PDP wells (94 horizontal/33 vertical)
    • Primarily generated by Lower Eagle Ford
    • Moderate 18% annual decline
  • $80 million next 12-month operating cash flow ($37 million PDP)
    • Existing cash flow easily funds horizontal development
  • PDP PV-10 and net reserves of ~$145 million and ~80 Bcf, respectively
  • Low lifting costs of $0.30/Mcf provide world-class cash flow margins of >90%
• Contiguous, HBP Footprint | 36% Working Interest | 8,000 Gross Acres
  • Single unit with 36.0% Working Interest and 28.7% Net Revenue Interest
  • Operated by SilverBow Resources, a well-capitalized “pure-play” operator with 100% of its portfolio located in the Eagle Ford
    • >50% of 2022E capex allocated to Webb County dry gas
  • EOG Resources Inc. actively developing its Webb County “Dorado” play to the southeast
    • EOG on-pace for ~50 Webb County horizontal wells spud in 2022 (Austin Chalk/Eagle Ford co-development)
• Large Inventory of Austin Chalk and Upper Eagle Ford Horizontal Locations
  • 80 remaining locations within the Austin Chalk and Upper Eagle Ford
    • EUR: >18 Bcf (Austin Chalk) / 9 Bcf (Upper Eagle Ford)
    • Location Count: 33 Austin Chalk / 47 Upper Eagle Ford
    • Lower Eagle Ford fully developed on-lease
  • Seven wells planned by SilverBow for 2022E ($66 million PV-10) with 73 remaining PUD locations ($380 million PV-10)
    • 2022 Plan includes 6 Austin Chalk wells and 1 Upper Eagle Ford well
  • 3P PV-10 and net reserves of ~$590 million ~420 Bcf, respectively

Process Summary:

• Evaluation materials are available via the Virtual Data Room on July 5
• Bids are due Aug. 10

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