Fortson Oil Co.

Fortson Oil Co. has retained Energy Spectrum Advisors Inc. to sell certain producing properties in the West Texas Third Bone Spring play in Ward County. Working interests and royalty interests in these properties are being offered in separate packages. The working interest package includes approximately 100% working interest in eight producing wells and a single nonoperated well covering approximately 2,600 net acres. Based on a third-party reserve report as of Sept. 1, total net proved reserves are estimated to be 3.6 million barrels of oil equivalent (65% proved developed, 82% oil). Recent net production from nine producing wells was 945 barrels of oil equivalent per day with another horizontal Third Bone Spring well expected to come on line in early October. Recent net monthly cash flow was approximately $1.4 million. Upside includes six low-risk proved undeveloped locations and two probable locations, all targeting the Third Bone Spring formation just above the Wolfcamp. Fortson is also selling its 25% royalty interests in seven of the producing wells and four of the proved undeveloped locations offered in the working interest package. Total proved reserves net to the royalty interests are 864,000 barrels of oil equivalent (60% proved developed producing). Recent production net to the royalty interests was 302 barrels of oil equivalent per day. Recent monthly cash flow net to the royalty interests was approximately $500,000. The data room will open Oct. 5. The bid date for both packages is Oct. 27. Closing is expected by Dec. 15. Contact Charlie Lapeyre, 214-987-6123, charlie.lapeyre@energyspectrum.com.