Marketed: Stroud Exploration East Texas Cotton Valley Asset

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

Stroud Exploration Co. LLC has retained PetroDivest Advisors to sell its East Texas Cotton Valley mostly HBP assets in Rusk County, Texas.

The package offers an attractive opportunity to acquire 7,706 gross acres held by 13 producing long-life, low-decline vertical wells, according to PetroDivest.

Asset Highlights:

• 5,029 Net Acres In The Prolific Cotton Valley
  • Concentrated, contiguous acreage ideal for extended laterals
    • 5,029 net acres with rights to the Cotton Valley (5,889 acres gross, 86% HBP)
      • 85% Average Working Interest, 75% Lease Net Revenue Interest
    • 6,161 net acres with rights to the Bossier (7,664 acres gross, 89% HBP)
      • 80% Average Working Interest, 75% Lease Net Revenue Interest
  • No primary term lease expirations until second-quarter of 2020
• Consistent Operating Cash Flow of about $9,100/Month (last 12-month average)
  • 13 producing vertical wells
    • About 220,000 cubic feet equivalent per day (86% gas)
    • 92% Average Working Interest, 77% Average Lease Net Revenue Interest
  • Stable, low decline production
    • About 7% annual decline from January 2017 through present day
• Active Cotton Valley Development
  • Cotton Valley largely de-risked as demonstrated by robust offsetting well results
  • About 17 Cotton Valley locations identified
    • Additional undeveloped locations in the Bossier as a secondary target
  • Infrastructure included with saltwater disposal well to support future development
    • About 19 miles of gathering lines

Process Overview:

• Evaluation materials available via the Virtual Data Room Jan. 28
• Proposals due Feb. 27

For information visit petrodivest.com or contact Ken Reed, director of PetroDivest, at ken@petrodivest.com or 713-595-1016.