Navidad Resources and Burk Royalty Co. Ltd.

Navidad Resources and Burk Royalty Co. Ltd. have retained Macquarie Tristone to sell oil- and NGL-producing properties on 83,000 net acres in Fort Trinidad Field, Texas.

About 42% of the properties--in Houston, Madison, and Walker counties, Texas--are held by production. The properties have over 230 identified vertical locations targeting commingled Buda, Georgetown, Kiamichi, Edwards and Glen Rose reservoirs and multiple proved horizontal Buda locations.

The sellers will deliver an average working interest of 100% and an average net revenue interest of approximately 78%. All properties are operated by Navidad or Burk, each of which owns about 50% of the acreage position.

Total reserves from the acreage is estimated at 59 million barrels of oil equivalent (BOE) with a PV10 $909 million. The net proven reserves are estimated around 33 million BOE with a PV10 $636 million.

Net production from the assets was about 4,300 BOE per day in December 2012, generating a net operating income of about $7.8 million. The assets include a substantial number of upside opportunities, including Buda-Rose refracs, downspacing and extension locations. In addition, there are horizontal locations in the Eaglebine, Buda, Georgetown, Kiamichi, Edwards and Glen Rose reservoirs.

The Fort Trinidad Field area includes a 13,000 barrel per day salt water disposal facility, more than 90 miles of gathering lines, 32 million cubic feet (MMcf) per day of leased gas processing capacity, a field office with a four-acre pipe yard and an equipment storage building.

For additional information, contact David Hopkins, senior vice president at Macquarie Tristone, at 713-651-4220 or david.hopkins@macquarie.com. The data room is open from April 1 through April 26. Bids are due by May 8.