New Frontier Energy Inc.

Transaction Type
Sellers
Marketers
Basin
DJ
Post Date
Close Date
Estimated Price
0MM
Description

New Frontier Energy Inc. has retained Meagher Energy Advisors to sell certain assets in the Colorado DJ Basin.

The package includes nonoperated horizontal Niobrara wells and leasehold in 12,040 gross acres (3,000 net) in Weld and Morgan counties. All fee leases cover all depths. There is a remaining carried working interest of 11.3% of one net well to
be drilled by Carrizo Oil & Gas Inc. Carrizo, EOG Resources and Continental Resources are operators.

The leasehold features 78% net revenue interest with a majority of leases expiring from 2012 to 2013 and many leases including extension options.

Production for October is projected to be 24,500 gross barrels of oil equivalent (5,500 barrels net) with monthly net cash flow of $340,000.

Upside includes interests in 33 potential 640-acre Niobrara spacing units (22 approved), low-risk development and down-spacing potential with the Niobrara expected to be drilled on 160-acre spacing. The assets also feature additional horizontal targets in the Fort Hays, Codell and Greenhorn formations.

The bid due date is Oct. 5. The effective date is Oct. 1. Contact Julia Foster, (303) 721-6354 ext. 229, jfoster@meagheradvisors.com.