Marketed: Verado Energy, Partners Permian Basin Operated Horizontal Development Opportunity

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

Verado Energy Inc. and partners retained Core Energy Advisors as their exclusive adviser for the sale of operated properties located within the Permian Basin in the Hermleigh East Field of Scurry County, Texas. The vast majority of production is from the horizontally developed Strawn Sand reservoir. The sellers’ acreage is located within the thickest portion of the Strawn reservoir. The PUDs in the sellers’ package have excellent log coverage and 360-degree type curve coverage, according to Core Energy.

Highlights:

• An opportunity to acquire a core producing property with well defined, undeveloped locations in the Hermleigh East Field.
  • 1,703 gross (991 net) bbl/d of oil; 6,182 gross (2,931 net) Mcf/d of gas.
  • 7,976 gross (7,287 net) acres that is 80% HBP.
• Predictable PDP reserves from moderate well count.
  • Total proved PV-10 of $116.7 million and PDP PV-10 of $78.4 million.
  • Next 12-month PDP cash flow of $32.7 million.
  • 15 horizontal and 16 vertical operated wells plus one nonop horizontal well.
• Well defined PUDs can be developed within cash flow.
  • Eight well defined PUDs with IRRs averaging 79%.
  • Development program assumes drilling of 1-2 wells per year.
  • 53% of total proved net oil reserves are undeveloped.

Process Summary:

Offers will be due July 27. To obtain the expected price range, contact Harrison Williams, managing principal, at Hwilliams@coreenergyadvisors.com or 713-962-1400. To obtain access to a virtual data room, contact Williams or Powers Ramsey, at Pramsey@coreenergyadvisors.com or 214-219-8208, for an NDA.