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

EnCore Permian is offering for sale its Colt 45 State Unit oil and gas assets located in western Reeves and Culberson counties, Texas, within the Delaware Basin. The company retained Barclays as its exclusive financial adviser in connection with the transaction.

Highlights:

Contiguous Position in the Delaware Basin

  • Contiguous operated acreage position in the most active and economic basin in the U.S.
    • ~7,700 net acres with 100% working interest

Stable Cash Flows with Strong Returns on Future Inventory

  • Current net production of 6,300 boe/d
    • 29% oil, 38% gas, 33% NGL
    • Backlog of workovers focused on artificial lift optimization projects to further boost PDP
  • Second-half 2021E Annualized EBITDA of ~$55 million
  • Proved Developed (PDP, PDNP, DUC) PV-10 of ~$125 million
  • High inventory of IRR > 100% Wolfcamp locations

Prolific Geologic Setting with High Quality Well Results

  • Proven stacked pay in the Wolfcamp A and B as well as untapped resource potential in the Wolfcamp C and Lower Bone Spring
  • Acreage with relatively homogeneous lithology and manageable structure thanks to seismic coverage

Asset Primed for Full Field Development

  • Optimal development designed to capture full upside potential
  • Large inventory of longer lateral locations targeting the Wolfcamp A and Wolfcamp B with additional upside in the Wolfcamp C
    • 39 Wolfcamp A net locations / 55 Wolfcamp B net locations

Sufficient Infrastructure for Future Growth

  • Acreage connectivity and investment in field level infrastructure positions the asset for full potential
  • Midstream infrastructure holds the capacity to handle rapid asset growth
    • No MVCs in addition to having gathering and marketing simplicity among all production streams
    • No H2S issues or treating facility requirements
  • Ability to decrease opex significantly below current costs and improve the revenue stream by implementing certain surface level technologies already underway
Barclays Marketed Map - EnCore Permian Operated Delaware Basin Position
EnCore Permian Operated Delaware Basin Position Asset Map (Source: Barclays)

On behalf of EnCore, Barclays is reaching out to a select group of potential buyers with respect to EnCore’s operated position in the Delaware. Preliminary indications will be due mid- to late September.

A virtual data room is available. All communication or inquiries related to the sales process must be directed to Barclays representatives. Primary Barclays contacts for the transaction are Associate Johnny Gragg, Johnny.Gragg@Barclays.com, and Analyst Elizabeth Owen, Elizabeth.Owen@Barclays.com.

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