Marketed: Fulcrum Energy Capital Nonop West Texas 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.

Fulcrum Energy Capital retained PetroDivest Advisors to market for sale its oil and gas leasehold, producing properties and related assets located in the Val Verde Basin of West Texas, primarily operated by Epic Permian Operating LLC.

The assets offer an attractive opportunity, according to PetroDivest, to acquire a liquids-rich, gas-weighted, stable production base plus reliable cash flow generation buttressed by strong operating cash flow margins and price resilient operations. Additionally, the opportunity has operational enhancements with continued development offering long-term production uplift and decline maintenance.

Highlights:

• Liquids-Rich Gas Production (2.9 MMcfe/d | $4.6 million Net Next 12-month Cash Flow)
  • Liquids-rich, low-decline production provides a stable PDP reserves base with substantial value
    • PDP PV-10: $20 million
    • PDP Net Reserves: 20 Bcfe (40% liquids)
    • 6% decline | 19 year R/P
  • Shallow-decline (~6%) production provides decades of predictable, high-margin cash flow
    • Production primarily from the Canyon and Ozona Sands with additional contribution from the Strawn and Clear Fork Formations
  • High-margin, low-lifting cost production resilient to any price environment
    • $6.35/Mcfe net revenue (next 12 months)
    • $4.45/Mcfe operating cash flow margin (next 12 months)
• Concentrated Val Verde Assets (PDP Average 7.7% Working Interest | 83% Lease Net Revenue Interest)
  • Broad, largely contiguous, nonoperated position with ~2,900 vertical wells, primarily operated by Epic (90%) and located in the prolific Val Verde Basin
  • Low-concentration risk through a distributed asset package
  • Acreage position is 100% HBP
• Infill Development and Recompletion Opportunities
  • Additional upside exists in the lobes of the Clear Fork Formation and the deeper Strawn Formation
  • ~2,800 Canyon locations remaining throughout Crockett County
    • Continued development of the Canyon sands maintains production
  • Clear Fork potential for new drills and recompletions of existing producing and shut-in Canyon wells
    • ~100 Clearfork opportunities exist throughout the field
    • Low capital costs of ~$400,000 D&C per well provide low-cost production enhancement

Process Summary:

• Evaluation materials are available via the Virtual Data Room on June 15
• Bids are due on July 20

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