Marketed: SM Energy Permian Basin Assets, Howard and Martin Counties, Texas

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

SM Energy Co. retained EnergyNet for the sale of two separate asset packages in the Permian Basin through sealed-bid offerings closing July 7.

The offerings include operations in 14 wells in Howard and Martin counties, Texas, plus another package comprised of nonoperated working interest in 10 wells in Howard County operated by affiliates of Callon Petroleum Co. and Occidental Petroleum Corp. Both packages include HBP leasehold acreage.

Bids for both packages are due at 4 p.m. CST on July 7. For complete due diligence information on any of the packages visit energynet.com or email Lindsay Ballard, vice president of business development, at Lindsay.Ballard@energynet.com, or Denna Arias, vice president of corporate development, at Denna.Arias@energynet.com.

Lot 82601 (Operated Permian Basin Opportunity)

Highlights:

• Operated Working Interest in 14 Wells in Howard and Martin Counties, Texas:
• 100.00% to 55.531226% Working Interest / 80.00% to 42.203732% Net Revenue Interest (Before Payout)
• 13 Producing Wells | One Non-Producing Well
• Six-Month Average 8/8ths Production: 64 bbl/d of Oil and 143 Mcf/d of Gas
• 596.19 Net HBP Leasehold Acres
• Operator Bond Required

Lot 59277 (Nonoperated Permian Basin Opportunity)

Highlights:

• Nonoperated Working Interest in 10 Producing Wells in Howard County, Texas:
  • 35.43849% to 5.058847% Working Interest / 28.3508% to 3.787941% Net Revenue Interest
  • Operators: Callon Petroleum Operating Co. and OXY USA Inc.
• Six-Month Average 8/8ths Production: 630 bbl/d of Oil and 1,110 Mcf/d of Gas
• Six-Month Average Net Cash Flow: $104,601/Month
• 632.00 Net HBP Leasehold Acres