East Texas Exploration LLC

East Texas Exploration LLC (ETE) is offering for sale its oil and gas leasehold and related assets located in Harrison and Panola counties, Texas.

The assets offer an attractive opportunity to acquire about 17,000 contiguous net acres (62% Operated, 100% HBP) with exposure to multiple liquids-rich, stacked-pay horizontal targets across the Cotton Valley and Travis Peak formations. ETE has retained Detring Energy Advisors as its exclusive adviser relating to the transaction.

Asset Highlights:

• 17,000 Net Acres (100% HBP)
  • Large, contiguous, HBP acreage position with rights to all zones above the Haynesville Shale
    • 10,500 net acres operated (~100% avg. WI)
    • 6,500 net acres operated by Covey Park (~40% avg. WI)
  • Liquids-rich Stacked Pay (Primary Targets: Lower Taylor Cotton Valley and Travis Peak Sands)
    • Cotton Valley de-risked with optimized completion techniques yielding ~1.5 Bcfe/1,000 ft EUR
    • The Burnett interval of the Travis Peak formation has yielded robust economics with the strongest well delivering ~1,000 boe/d IP-30 (90% oil) from ~2,200 ft of treated lateral, achieving pay-out in four months
    • Additional resource potential includes both Upper Cotton Valley Sands (BCD and Davis) and the Travis Peak McJimsey interval
• Significant Proved Reserves & Cash Flow
  • 4 MMcfe/d net operated production (45% liquids)
  • ~$3.8 million NTM cash flow (PDP only)
  • 41 Bcfe net proved reserves (45% liquids)
    • 10.7 Bcfe net PDP reserves (48% liquids)
    • $42 million PV-10 value (1P)

Process Overview:

• Evaluation materials available via the Virtual Data Room on July 30
  • Data room presentations available upon request
• Proposals due on Aug. 29

Contact Matt Loewenstein at matt@detring.com or 713-595-1003 to request a confidentiality agreement, schedule a presentation or learn more about this opportunity. For further questions visit detring.com or contact Melinda Faust at mel@detring.com or 713-595-1004.