Marketed: Merit Energy Anadarko Basin Nonop, Mineral/Royalty Position

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.

Merit Energy Co. retained PetroDivest Advisors to market for sale its oil and gas nonoperated working interest and mineral and royalty interest concentrated in the core of the Anadarko Basin.

The assets offer an attractive opportunity, according to PetroDivest, to acquire robust, low-decline production with growth potential including five recently drilled DUCs plus long-term cash flow bolstered by strong operating margins. The offering also includes a large, diversified nonoperated working interest and mineral/royalty interest position covering roughly 15,200 net acres that supports continued development and delineation of proven pay zones including the prolific Woodford, Springer and Sycamore formations, PetroDivest added.

Highlights:

• Robust Production (~2,100 Mcfe/d; 8% Next 12-month Decline)
  • Low-decline, stable production provides reliable cash flow
    • 40+ Horizontal PDP | 450+ Vertical PDP
    • 3.4% average Working Interest and 3.4% average Royalty Interest
  • 1P Reserves: ~12 Bcfe
    • Oil: 26% | Gas: 65% | NGL: 9%
• Durable Cash Flow with Strong Cash Margins
  • The efficiently operated asset generates meaningful cash flow
    • $3.7 million Next 12-month PDP cash flow
    • $16 million PDP PV-10%
  • Resilient cash flow stream ensured by low operating expenses and healthy margins
    • ~$5/Mcfe Next 12-month operating cash margin
  • Cash flow from blended hydrocarbon production base bolstered by current commodity price rally
• Prolific Acreage Position
  • ~15,200 diversified net acre position
    • Mineral: ~4,300 net acres
    • Nonop: ~8,300 net acres
    • Mineral and Nonop: ~2,700 net acres
  • Leasehold acreage retains HBP status

Process Summary:

• Evaluation materials available via the Virtual Data Room on Oct. 14
• Proposals due on Nov. 3

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