Bid Date: January 30, 2020 | Effective Date: January 1, 2020

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Teaser: Non-Operated Acquisition Opportunities in the Delaware Basin of NM and DJ Basin of WY/CO

Form of CA - HighPoint Resources Corporation

EXECUTIVE SUMMARY

Eagle River Energy Advisors, LLC has been exclusively retained by HighPoint Resources Corporation ("Seller") to divest certain non-operated working interest assets in the Delaware and DJ Basins. Bids can be submitted on any or all asset packages.

PROPERTY DESCRIPTION

Package 1: DJ Basin Non-Op Wellbores

  •          ~157 WI & 11 RI only wellbores in Weld County, CO
  •          Seller divesting wellbore only interest
  •          1,265 BOEPD net production / 45% Oil (Jul-19)
  •          ~17.1% WI / 14.0% NRI averag
  •          Predominantly operated by Bonanza Creek
  •          ~$729,000/mn operating cash flow (Jul-19)
  •          Cash flow anticipated to exceed $1,350,000/mn in Nov-19 from 13 wells brought online since Jul-19 with ~14% average WI

Package 2: Wyoming DJ Basin Non-Op

  •          ~2,328 net acres non-operated leasehold in Laramie County, WY
  •          ~27 XRL Codell wells operated by EOG Resources
  •          540 BOEPD net production / 83% Oil (Jul-19)
  •          15% WI / 12% NRI in each well
  •          ~$536,000/mn operating cash flow (Jul-19)
  •          Future Codell & Niobrara upside remains in the undeveloped DSUs to the east as a result of ongoing delineation efforts across the play

Package 3: Delaware Basin Non-Op

  •         ~110 net acres non-operated leasehold in core of Lea County, NM
  •        ~8.6% WI / 7.1% NRI in 1280-acre DSU with existing stripper well
    •         Operated by Marathon Petroleum
  •         Three (3) DUCs spud in Aug-19 in the 3rd Bone Spring, Wolfcamp A and Wolfcamp XY with completions in Q1 2020
  •         Ten (10) additional wells with AFEs approved by Seller
  •         Four (4) additional wells planned with AFEs forthcoming