St. Mary Land & Exploration Co.

St. Mary Land & Exploration Co. has retained Tristone Capital to sell certain interests in the Powder River and Green River basins mostly in Wyoming. The package includes interest in 930 producing wells and leasehold in approximately 383,000 gross acres (246,000 net). From January through February 2009, the properties produced at an average net rate of 19.5 million cubic feet per day (99% gas). Total proved reserves as of July 1, 2009, are 52.2 billion cubic feet equivalent (287 billion proved, probable and possible). Estimated operating cash flow is $6.1 million. The Powder River Basin package involves a 76% average working interest in 223,000 gross acres (184,000 net), of which some 40% is held by production and operated by St. Mary. Highlight areas include Hanging Woman Basin and the River areas, largely in Sheridan County, Wyoming. Production is 11.7 million cubic feet per day from 512 wells from the Fort Union Coals formation. Proved reserves are 30.2 billion cubic feet (226 billion proved probable and possible). Approximately 1,600 development opportunities exist with exposure to the Mowry shale. The Green River Basin Atlantic Rim package, which is operated by Anadarko Petroleum Corp. and Double Eagle, involves a 10% average working interest in 18,000 gross acres (6,700 net) in Carbon County, Wyoming, of which 97% is held by production. Production is 2.6 million cubic feet per day from 243 wells producing from the Mesaverde coals. Proved reserves are 7.9 billion cubic feet equivalent (23.8 billion proved probable and possible). Upside includes 230 development opportunities. The Green River Basin conventional package involves a 22% average working interest in 142,000 gross acres (55,000 net) in Sublette, Sweetwater, Carbon and Moffat counties, Wyoming, of which 73% is held by production. It also includes a 4% overriding royalty interest in multiple Pinedale townships. Net production is 5.2 million cubic feet per day from 178 wells producing from the Upper Cretaceous formations. More than 100 infill drilling opportunities exist. Proved reserves are 14 billion cubic feet equivalent (37 billion proved probable and possible). The data room opens July 10. The bid due date is Aug. 6. Contact Miles Redfield, 713-651-4221, mredfield@tristonecapital.com.