Marketed: PayRock, Rumble Minerals Offer Core Stack ORRI Assets

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.

PayRock Energy Holdings LLC, Rumble Minerals LLC and their affiliates retained Detring Energy Advisors for the sale of overriding royalty interests (ORRI) in the core Stack play of central Oklahoma.

The assets comprise a concentrated position with exposure to multiple benches across the prolific Meramec, Woodford, Oswego and Osage horizons. PayRock retained Detring as its exclusive adviser relating to the transaction.

Highlights:

• About 8,400 Net Royalty Acres (normalized to 1/8th royalty)
  • 100% ORRI and roughly 96% HBP
• Core ORRI position, about 60% operated by top operator Marathon Oil Corp.
  • Marathon budgeting $500 million drilling and completions (D&C) capital to the Stack in 2019 (50-60 wells)
• Prolific stacked-pay in the oil window of the Meramec, Woodford, Oswego, Osage and Hunton reservoirs
  • Roughly 90 to 100 barrel of oil equivalent per 1,000-ft EURs with greater than 75% rate of returns and over 70% liquids content
• Three active rigs on-lease, with 32 rigs drilling within five miles of ORRI position
• Significant near term cash flow generated from 256 active horizontal producers and 48 horizontal drilled but uncompleted wells(DUCs)/permits (average roughly 1% roughly interest)
  • Net Production: about 380 barrels of oil equivalent per day
  • Net Cash Flow: roughly $4 million proved developed producing (PDP)/DUC/Permit (next 12 months), with substantial additional revenue anticipated from continued on-lease horizontal development

Process Summary:

• Virtual data room opens May 6
• Bids due June 5

For information visit detring.com or contact Melinda Faust at mel@detring.com or 713-595-1004.