Bluestem Energy Partners LP

Bluestem Energy Partners LP has retained Wells Fargo Securities LLC to coordinate the sale of its interests in about 26,000 net acres in the Permian Basin.

The current net production is about 2,100 barrels of oil equivalent (BOE) per day, which is scheduled to grow to 4,500 BOE per day under the current drilling schedule. Proven reserves on the acreage total about 38 million BOE. The acreage is in four separate plays and Wells Fargo will consider bids for any or all of the identified packages.

The first is in the Wolfberry Trend, where Bluestem is offering about 6,000 net contiguous and de-risked acreage with 62 proved, developed wells producing 1,400 BOE per day on about 6,000 net acres. About 80% of the acreage is held by production and leases have a 75% net revenue interest.

Bluestem also has about 7,000 net acres in three portions of the Delaware Basin, in Lea and Eddy counties New Mexico and Pecos County, Texas. Production from the Bone Spring Core totals about 700 net BOE per day from four proved, developed producing wells, three of which are operated by Concho.

Bluestem operates about 2,000 net acres in the Bone Spring and produces about 1,100 BOE per day. In the Wolfbone Extension, Bluestem is offering about 2,800 net acres.

In the Grayburg Waterflood, Bluestem has documented plans approved to waterflood existing Grayburg production. In addition, Bluestem has a large, contiguous acreage position in the Cline shale. Firewheel and Devon continue to test acreage to the west and south in Mitchell and Nolan counties.

Wells Fargo will open a data room available in mid-February and will expect bids in mid-March. For additional information, contact David Marcell, managing director at Wells Fargo: 713-346-2714 or david.marcell@wellsfargo.com.