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.

Red Sky Resources has retained Detring Energy Advisors to market for sale its roughly 2,900 net acres of nonoperated working interest across the SCOOP/Merge/STACK (SMS) fairway.

The combined assets offer a 96% HBP footprint spanning the core of the play with exposure to 120+ drilling units and a liquids-rich production base of generating next 12-month cash flow of about $19 million (PDP only) fully supporting the continued development of 30 DUCs and 33 permits. Detrin added the assets include about 300 highly-economic undeveloped locations throughout the prolific Mississippian and Woodford formations.

Asset Highlights:

  • Substantial PDP Asset Base with Significant Free Cash Flow
    • Well-diversified footprint across the core of the SMS fairway
    • Liquids-rich PDP production of ~1,250 boe/d (~60% liquids)
      • Well Count: 163 horizontal (average 2.1% Working Interest)
      • PDP Net Reserves: 2.3 million boe
      • PDP PV-10: ~$50 million
    • PDP next 12-month cash flow of ~$19 million
      • Fully-funds 2022E capex (<$3 million net)
  • Line-of-Sight to Material Near-Term Development
    • 30 DUCs plus nine Permits to TIL in 2022
      • $30 million-plus PV-10 and >1.6 million boe net reserves (DUC + Permit)
    • Five rigs currently on-lease drilling Catskills, Flames, Josh and SCR pads
    • 2022 exit rate of ~1,700 boe/d
      • >5x increase over the prior 24 mos.
  • Robust Upside Inventory Across ~2,900 Net Acre Position
    • ~120 development units materially HBP and ready for full-field horizontal pad development
      • ~300 PUD locations across the Mississippi and Woodford (average 2.0% Working Interest)
      • 3P PV-10: $127 million
      • 3P Net Reserves: 10 million boe
    • Focused under premier, well-capitalized Midcon operators including Continental, EOG, Ovintiv, Camino and others
Detring Energy Advisors Marketed Map - Red Sky Resources SCOOP Merge STACK Nonop Assets
(Source: Detring Energy Advisors)

Process Summary

  • Evaluation materials available via the Virtual Data Room on April 14
  • Bids are due on May 19

For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.

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