Bid Date: March 27, 2020 | Effective Date: January 1, 2020

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Teaser - Operated Leasehold 

Private Seller - Confidentiality Agreement

EXECUTIVE SUMMARY

Eagle River Energy Advisors, LCC has been exclusively retained by a Private Seller ("Seller") for the divestiture of certain operable working interest leasehold and associated development rights in the Powder River Basin of Converse County, Wyoming and in the Williston Basin of Burke & Divide Counties, North Dakota.

PROPERTY DESCRIPTION

Opportunity 1: Operated Leasehold in the Powder River Basin

  • ~3,966 net acres majority operable leasehold in the Powder River Basin
    • 9 approved DSUs
    • 115 operated permits submitted for the Niobrara, Turner & Mowry
    • ~42 immediately drillable locations across multiple pay zones
  • No major expirations until 2022 with extension eligibility

Significant Resource Potential

  • Recent offset horizontal wells demonstrate economic viability of extended laterals and larger completion designs
    • Prolific offset well results with 1,322 Boe/d IP30 average
  • Strong shows and existing producing wells across Seller's acreage position de-risk development potential in multiple pay zones
    • Analogous Turner geology to successful wells in Converse County
    • Offset Mowry delineation proves economic viability
    • Significant proved resource potential in the Niobrara and Turner
  • Leasehold with similar structure to successful offset wells verified by 2D seismic

Proven Offset Development by Leading Operators

  • Offset development and active delineation efforts by Basin-leading operators Chesapeake, OXY and Devon proves stacked-pay potential
  • Consistent offset activity with 8 active horizontal rigs currently drilling in the area

Opportunity 2: Operated Leasehold in the Williston Basin

  • ~5,650 net acres majority operable leasehold in the Williston Basin
  • ~25 operable DSUs lend 2 rig-years of potential inventory
    • 17 1280-acre DSUs & 8 1920-acre DSUs
    • ~125 quantified drilling locations in the Middle Bakken provide significant running room for development
  • No major expirations until 2022 with extensions availability

Proven Offset Development by Leading Operators

  • Comparable Bakken reservoir quality to analog Kraken development area in central Williams County iwth average pay thickness of 50+ ft
    • Production uplift as high as 3x to vintage, parent wells
  • Continental drilled successful Bakken well in 2018 directly offsetting leasehold in 162N 96W with 700 Boe/d IP30
  • Liberty Resources recently completed four, 3-mile laterals with 1,000 #/ft proppant, with results in-line with the Kraken Middle Bakken type curve
  • Economic Middle Bakken development potential with 1,052 MBoe EUR and $9.0MM D&C yielding IRRs ~38%
  • Significant probable resources potential in the Three Forks