Marketed: Alamo Resources Gulf of Mexico Shelf Assets

The following information is provided by PetroDivest Advisors. All inquiries on the following listings should be directed to PetroDivest. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

Alamo-Palace MP 59 LLC retained PetroDivest Advisors to market for sale its Gulf of Mexico Shelf assets located in Block 59 of the Main Pass protraction area.

The assets comprise on an opportunity to acquire a roughly 60% nonoperated working interest in a prolific legacy field operated by a well-capitalized, active operator with an oil-weighted, low-decline production base generating substantial cash flow. The assets also include highly attractive new drill, recompletion and production-optimization opportunities and high-integrity, recently upgraded facilities with minimal abandonment liability.

Asset Highlights:

• Robust Production and Cash Flow
  • Oil-rich production of ~250 boe/d net (98% revenues from oil)
    • 10 active producing wells | two platforms
  • $5.7 million next 12-month cash flow (PDP)
  • PDP PV-10 and reserves of $26 million and 735,000 boe, respectively
    • Ability to fund development opportunities out of current cash flow generated by the assets
  • The assets are operated by Cantium LLC, a well-capitalized private operator who acquired the interests from Chevron in 2017
  • Alamo maintains a controlling vote on Block 59 leases (average working interest of ~60%)
• Immediately Actionable Low-Risk Upside Opportunities
  • MP 59 contains productive hydrocarbons in 10+ reservoirs ranging in age from Lower Pliocene to Upper Miocene at depths from 4,900 ft-6,500 ft
  • Meaningful proven opportunities certified by 3rd party engineers
    • 12 undeveloped opportunities
    • Opportunity to test deeper horizons (with low-risk “bail-out” reservoir)
  • Total 1P PV-10 and reserves of $114 million and 3.5 MMboe, respectively
  • Modest facilities upgrades will support future development and yield incremental production from existing wellbores
    • Additional pipeline capacity from MP59A to MP41B platforms will reduce wellhead back-pressure
    • Recently completed facilities upgrades include multiphase pump refurbishment (30%-40% production uplift) and wellhead deck remediation/safety upgrades

Process Summary:

• Evaluation materials are available via the Virtual Data Room on Aug. 24
• Proposals are due on Sept. 28

For information visit petrodivest.com or contact Jerry Edrington, director of PetroDivest, at jerry@petrodivest.com or 713-595-1017.