~$328,000/mn net cash flow – Operated

Property for Sale

Property Information

  • Bid Date: May 24, 2018
  • Effective Date: July 01, 2018
  • Closing Date: TBD
  • Area Size: ~28,000 Net Acres acre
  • Type of Basin: Anadarko Basin

Executive Summary

Eagle River Holdings, LLC has been exclusively retained by Fairway Resources Partners III, LLC (“Seller”) for the divestiture of operated and non-operated working interest assets and associated development rights located in the Anadarko Basin of Hemphill, Lipscomb, Ochiltree and Roberts Counties of the Texas Panhandle.

Property Description

Stable and Diversified Cash Flow with Upside

  • ~95 BCFE total net Proved Reserves
  • ~3,500 Mcfe/d net production (54% Gas / 34% NGL / 12% Oil)
  • ~$328,000 net operating monthly cash flow (3-mo average)
  • Tecolote Energy, LLC announced record well results offsetting acreage with 4,070 Boe/d IP in the Marmaton Formation

Operated Position in the Western Anadarko Basin

  • ~28,000 net and ~67,000 gross acres (100% HBP) in the Texas Panhandle of the Anadarko Basin
  • 189 gross wellbores with 54.2% average WI / 45.7% average NRI
  • Legacy leasehold with majority of lease NRI in excess of 80%
  • Consolidated operated position with growing offset activity
  • Active offset rigs and permits by: BP, Tecolote, Jones Energy, Mewbourne, FourPoint and Le Norman

Engineered Reserves with Low Capital Cost Upside

  • ~16.3 BCFE PDP net Reserves (119 producing wells)
  • ~78.8 BCFE PUD net Reserves (65 Cleveland horizontal PUD locations identified)
  • Low capital cost upside with 27 identified workovers with potential uplift of ~700 net Mcfe/d (20% increase)
  • 29 identified recompletion candidates in the Cleveland, Douglas, Marmaton and Tonkawa Formations

Recent Offset Development Lends Further Upside

  • Unquantified upside associated with horizontal Marmaton and Tonkawa development proven to the southeast of acreage
  • Additional upside given further implementation of modern drilling and completion designs with offset testing of extended reach laterals and higher proppant loading and pump rates.
  • Large HBP operated position in Lipscomb Co. ideal for testing modern completion techniques in Mississippian reservoirs where early tests had small completions

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