Marketed: Casillas Petroleum, Hugoton, SCOOP/STACK/Merge Opportunity

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

Casillas Petroleum retained Detring Energy Advisors to market for sale its operated and nonoperated leasehold and producing properties located throughout Kansas and Oklahoma.

The assets offer an attractive opportunity to acquire 521 producing wells throughout the Hugoton and SCOOP/STACK/Merge with a well-established production base of 8.7 MMcfe/d (78% gas) and a low, predictable about 10% next 12-month decline generating next 12-month PDP cash flow of $12.2 million including a significant inventory of low-cost development opportunities comprised of both behind pipe recompletions and green field development.

Asset Highlights:

• Low, Predictable Decline Production | 8.7 MMcfe/d (78% Gas) | $12 million next 12-month Operating Cash Flow
  • Well-established production underpinned by 521 currently producing wells (92% Kansas/8% Oklahoma)
    • Primarily from the Hugoton (90% of next 12-month cash flow, 10% from SCOOP/STACK/Merge)
    • Low, predictable 10% next 12-month decline
  • $12.2 million next 12-month operating cash flow
    • Existing cash flow easily funds development over the next three years, more than $100 million cumulative cash flow by 2030
  • PDP PV-10 and net reserves of $51 million and 38 Bcfe, respectively
• Shallow Permian aged intervals provide a prolific source of gas in the Hugoton with deeper oil potential in the Pennsylvanian and Mississippian
  • Four Oklahoma Horizontal locations targeting the Woodford and 74 vertical locations in both Kansas and Oklahoma add $45 million PV-10 and 25 Bcfe reserves
  • 17 low-cost behind pipe additions provide an additional $11 million PV-10
    • Behind pipe capital cost of $150,000 per project
  • Combined 3P PV-10 of $108 million and 66 Bcfe reserves

Process Summary:

• Evaluation materials are available via the Virtual Data Room on Nov. 7
• Bids are due on Dec. 7

For information visit detring.com or contact Danny Rathan at danny@detring.com or 713-240-5375.