Marketed: Galley NM Assets LLC Delaware Basin Royalty Interests

The following information is provided by Detring Energy Advisors. 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.

Galley NM Assets LLC retained Detring Energy Advisors to market for sale its oil and gas overriding royalty interests located in the core of the northern Delaware Basin, New Mexico.

The assets provide an attractive opportunity to acquire: (i) 2,303 Net Royalty Acres generating $21MM in NTM Cash Flow in the most active and economic basin in the Lower 48; (ii) 400+ near-term DUC’s and Permits which underwrite growth through mid-2024; and (iii) ~2,300 additional PUD locations throughout six horizons of the most productive horizontal targets in North America, ensuring continued development and premium allocations within operator portfolios.

Asset Details:

• Active, Growing Development with $21MM Cash Flow (2023E)
  • Substantial operator activity results in rapid growth underwritten by recent DUCs (52) and permits (202)
    • DUC & permit inventory provides ~2 years of line-of-sight growth
  • ~900 producing wells (~820 hz) provide a stable cash flow base
    • Net Production: ~800 Boed (71% liquids)
    • PDP PV8: $31MM
• Premier Northern Delaware Footprint Encompassing ~2,300 Net Royalty Acres
  • Extensive core position offers exposure to the most active & prolific region in the United States
    • Average 18 permits/month sustained on-lease as operators continue bulk pad development across multiple zones
    • ~4x increase in wells TIL’d over 5 years (2019-2023E)
  • High-interest units under basin-focused, well-capitalized operators including Devon, Exxon, Cimarex & Oxy
• Assets Only 25% Developed with ~2,300 Highly Economic PUD Locations Remaining
  • Large remaining inventory provides 15+ years of running room
    • 3P PV10: $194MM ($480MM PV0)
    • 3P Net Reserves: 12.5 MMBoe
  • Six primary horizontal targets across the Wolfcamp, Bone Spring & Avalon, with additional long-term potential not quantified
  • World-class, repeatable well results generate 250+ Boed/Mft IP30 (avg.)
    • U.S.-leading ~5x ROI-Disc. across all major targets ensures continued allocation of operator capital

Proposals are due Feb. 22. Upon execution of a confidentiality agreement, Detring will provide access to the Virtual Data Room, which opens on Jan. 18.

For more information, visit detring.com or contact Melinda Faust, managing director at Detring Energy Advisors, at mel@detring.com or 713-595-1004.