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Teaser - Eagle Ford Operated Assets

Vitruvian Exploration - Confidentiality Agreement

EXECUTIVE SUMMARY

Eagle River Energy Advisors, LLC has been exclusively retained by Vitruvian Exploration IV, LLC ("Seller") to divest certain operated working interest assets and associated lands in the dry gas window of the Eagle Ford Shale of South Texas.

PROPERTY DESCRIPTION

Sizeable Operating Footprint in Eagle Ford

  • ~96,862 net acres in the dry gas window of the Eagle Ford Shale of South Texas (>50% HBP or with expirations 2021+)
  • Consolidated leasehold position with ~67,000 net acres under only 5 leases
  • Operational autonomy with high WI in undeveloped leasehold & 100% WI in PDP wells

High Margin Producing Reserves & Cash Flow

  • ~11.9 MMcf/d 3-mn average production (Oct-19)
  • ~$380,000 3-mn average lease-level income (Oct-19)
  • ~13.4 Bcf / $8.6MM PV-10 PDP Reserves
  • Low basis differentials with proximity to Henry Hub
  • Low lifting costs at <$0.50/Mcfe (2019 avg)

Multiple Upside Opportunities

  • Offset operators such as EOG & Comstock are pushing the former economic limits of the dry gas window of the Eagle Ford (Escondido Resources proving multi bench development in the Eagle Ford)
  • Implementation of "higher intensity" frac designs provide an opportunity for higher EURs
  • Execution of pressure drawdown management offers potential for increased well productivity, profitability & ultimate recoveries
  • Austin Chalk potential is being delineated by Basin-leading, offset operator EOG
  • Significant leverage to higher gas prices