December 16, 2016 Petro Scout www.plsx.com E&P Serving the US upstream industry with information, analysis & prospects for sale Volume 27, No. 18 Diamondback doubles down in the Delaware, adds more rigs PDC to drill long laterals in Publicly-listed Diamondback Energy doubled down this week with a $2.4 DJ, integrate Delaware billion acquisition of Brigham Resources’ 76,319 net acres to bring total leasehold PDC Energy is preparing to execute in the sub-basin to 95,499 net acres. In less than six months, in 2017 on moves it made this year to Diamondback has gone from a Midland Basin pure-play enter the Delaware Basin and drill longer to over half of its acreage now in the southern Delaware. This is a remarkable laterals in the DJ Basin after commitment to Permian E&P. The acquisition brings net drilling locations in the consolidating its position. Delaware to 1,500 in the Wolfcamp A The company will spend Adds 1,200 net locations in Southern and B and the Second and Third Bone significantly more in 2017—$725-775 Delaware Basin. Spring in Pecos and Reeves counties. million vs. this year’s $400-420 million— “With Diamondback’s proven ability to execute, we now believe we have the resource and acreage base to efficiently support 15-20 operated rigs,” CEO Travis PDC sets capex at $750 million and Stice said. The company had already planned to add a sixth rig in Reeves County but plans to bring 170 wells online. will now add two more to drill the Brigham acreage. and bring 25 more wells online (170 total). Diamondback says Wolfcamp A EURs on the new acreage are in the top quartile of PDC expects production to increase over its IRRs exceeding 100%, similar to top Midland Basin wells. Continues On Pg 4 40% at midpoint to 82,200-90,400 boe/d. Anadarko adds firepower onshore, hits pay offshore This growth will start slowly with Q1 Anadarko further solidified US onshore plans that will be fueled by cash the volumes flat to 4Q16 but steady growth company expects to generate after increasing Gulf of Mexico investment earlier this beginning in subsequent quarters to exit fall. As it closed its acquisition of Freeport-McMoRan’s deepwater assets this week, 2017 at 97,000 boe/d. PDC projects a 37% the company said it expects to end 1Q17 with 14 operated rigs in the Delaware Basin YOY increase in lateral feet drilled at YE17. and six in the DJ Basin. The company was running seven Delaware rigs and Most of PDC’s 2017 activity will be one DJ rig at the end of Q3 but at its legacy Wattenberg acreage, where added two in each in Q4. Anadarko will run 14 rigs in Delaware it will run three to four rigs and allocate Basin, six in DJ Basin. At the time of the acquisition, 65% of its capex. Continues On Pg 4 CEO Al Walker said assets would generate sufficient cash flow to increase onshore investment and deliver 10-12% five-year compounded oil growth rate in a $50-$60 DEALS FOR SALE oil-price environment. Now, Walker says, “We now believe we have the ability to deliver a five- SOUTH TEXAS NONOPERATED SALE 51-Hz Producing Wells. year compounded annual oil growth rate of 12-14%, while investing within KARNES & DEWITT CO. expected cash inflows.” Continues On Pg 9 EAGLE FORD Vertical Depths: ~12,160-12,240 Ft. PP BP sanctions $9B Mad Dog expansion amid climbing oil prices 20 PUD Locations Identified. Varying NonOperated WI & NRI. NONOP First major Gulf of Mexico project approved since mid-2015 Net Production: 61 BOPD & 86 MCFD The Mad Dog field expansion is officially a go for BP, backing up E&P head 3-Mn Avg. Net Cash Flow: ~$82,000/Mn Bernard Looney’s statement this summer that “Some people say that deepwater is Net Proved PV10: ~$7,000,000 finished. We have a different view.” BP successfully trimmed costs by more PP 1136DV than half to $9 billion from estimates as high as $22 billion in 2013. Chief ANDREWS CO., TX PROPERTY executive Bob Dudley said the Expansion sees $13B price reduction 7-Total Wells. 5-Active. 1-Shut-In. 1-SWD. announcement demonstrates that “big HORIZONTAL SAN ANDRES PLAY from high of $22B. deepwater projects can still be economic ~4,800 Gross/~1,700 Net Acres. PP in a low-price environment in the US if they are designed in a cost-effective way.” Up To 100% OPERATED WI; 75% NRI SAN Net Production: 47 BOPD & 78 MCFD ANDRES Mad Dog Phase 2 will construct a floating production platform to process 140,000 6-Mn Avg Net Cash Flow: ~$60,000/Mn bo/d from up to 14 wells. It is the first major Gulf project to be sanctioned since Wells Have Cumm’d >77 MBOE. July 2015, when Shell moved forward with its 175,000 boe/d, 15-well Appomattox Total Est Reserves: 6.1 MMBO & 3.1 BCF deepwater platform. Other producers have pursued smaller and cheaper tieback OFFERS DUE: JANUARY 26, 2017 projects this year—such as Anadarko at Lucius and Caesar/Tonga—but Mad Dog 2 PP 5900DV is the first big-ticket project. PLS tracks thousands of deals for The Mad Dog platform will be installed 6 miles southwest of the existing truss spar, sale at www.plsx.com/listings which is in 4,500 ft of water. Continues On Pg 10 All Standard Disclaimers & Seller Rights Apply. PetroScout 2 December 16, 2016 Midcontinent Drilling & Production Jones completes 15 Cleveland wells on way to 2016 target of 19 ■■ Approach Resources completed Jones Energy’s Q3 was its most active of the year with a resumed three-rig three wells during Q3 in addition to two Cleveland program and an entrance into the STACK/SCOOP. The company spudded 18 previously reported wells completed when wells, completed 15 and brought 13 online in the Cleveland, bringing total wells coming it resumed its completion online to 19 on the year through Sept. 30. program for the first time Jones is increasing the low end of full-year production guidance to 18,600- this year. The latest wells—one Wolfcamp 19,400 boe/d from 17,900-19,400 boe/d driven by well outperformance as well A and two Wolfcamp C—posted an as higher working interest in the Cleveland. average IP rate of 813 boe/d (58% oil). The company raised capex guidance $20 million Regional Oil & Gas Intelligence November 18, 2015 This rate was slightly lower than the first MIDCONTINENT SCOUT to $110 million on higher working interest in the Serving the local market with drilling activity, permits & deals for sale Volume 03, No. 22 two wells—a Wolfcamp B and C, which Continental bullish on STACK, SCOOP performance Regional Activity (State Data) The stars of Continental Resources’ that are three times higher than wells in (11/02/15 to 11/13/15) Q3 production were the company’s normally pressured windows. The Ludwig Compls Permits STACK and SCOOP wells, according to 1-22-15XH had a rate of 2,782 boe/d averaged 861 boe/d (59% oil). Four wells play, up to 85-90% from 80%, and the start-up of Nebraska – 1 its most recent operational update. (76% oil), while the Ladd 1-8-5XH came KansasMidcontinent28 75 Continental completed its Scoutsecond Dec. 8 Oklahoma 6 64 and third STACK wells during the Over-pressured STACK has 3x higher rates than normal-pressure window. North Texas (RRC 5) – 1 quarter and is drilling or completing four North Texas (RRC 7B) 5 28 more. The company says its acreage in the in at 2,181 boe/d (79% oil). Continental awaited completion as of Sept. 30 but North Texas (RRC 9) 13 30 STACK/SCOOP drilling activity. CEO Jonny Jones TX Panhandle (RRC 10) 4 8 trend will “compete head-to-head” with its says 95% of its STACK acreage is in the SCOOP development, which the company over-pressured window. Through YE15, Most Active Operators by Permits says continues to show strong results. the company will operate 2-3 rigs and ➊ Altavista Energy 16 159 Permits;Continental’s 130 wells completed Completions; in the spud an additional 2-3 wells there. ➋ Owens Petroleum 8 said the company began operating a rig on its new ➌ Enervest Operating 6 over-pressured STACK have 90-day rates Continues On Pg 5 won’t come online until 2017. However, Permits by Formation (by Last Scout) Chesapeake’s Oklahoma long laterals include record 9,395 ft During Q3, Chesapeake Energy drilled completed. The company’s multi-section 99Formation Rigs11/18 11/04 Running.10/21 a company record lateral length of 9,395 ft extended laterals that it is drilling in the Squirrel 31 46 38 Mississippian 21 23 34 on its JJJ 23-25-11 1H well, which was in Mississippian Lime save ~$1.4 million Approach said it will drill two wells in Q4. STACK/SCOOP acreage in December. Arbuckle 8 15 15 the completion stages as of the release of per well, a 27% decrease in D&C costs Bartlesville 8 17 6 the company’s quarterly operations update. compared to two separate standard laterals. Barnett 7 5 3 Net production from the Mississippian Woodford 7 14 5 Multi-lateral wells & multi-section extended laterals drilled in Miss. Lime. Lime stayed relatively flat at an average of Cleveland 3 4 6 31,000 boe/d during Q3, a 1% sequential ■■ California Resources resumed Granite Wash 3 6 2 Marble Falls 3 4 4 That quarter also saw the first multi- decrease. Chesapeake says its YTD Other Formations 116 147 104 lateral well drilled by Chesapeake in the completed wells average laterals of 4,500 ft TOTAL 207 281 217 Mississippian Lime, the Wilber 26-27-11 and nine frac stages at a cost of $2.8 million Sources: TXRRC, OCC, KGS & NOGCC 1H, which has dual laterals of 4,653 ft vs. its 2014 averages of 4,450 ft and nine frac Active Rigs Running (Baker Hughes) 114 and 4,556 ft and is also being presently stages at $3 million. Continues On Pg 5 drilling during Q3 after stopping in Fraser ranks Oklahoma as best for E&PContinental investment STACK Position Deals For Sale

EXCELLENT POSITION IN PLAY • ~146,300 NET ACRES OKLAHOMA & KANSAS • ~95% IN OVER-PRESSURE- D March on low commodity prices. The ~11,000-Net Acres. (100% HBP) WINDOW WOODS CO., OK & BARBER CO., KS • ~90% LIQUIDS-RICH Ladd 1-8-5XH Global oil and gas executives ranked Oklahoma as the most•~60% HBP attractiveMarks 1-9-4X placeH 21 Active Wells. to 3 Horizontal. invest, PP OPERATED & NONOP WI FOR SALE OUTSTANDING MERAMEC Ludwig 1-22-15XH Gross Prod:69 BOPD & 2.2 MMCFD RESULTS Total Proved: 111 MBO, 4.6 BCF, & -- 2.3 • 2,782 BOEPD, 2,100 PSI FCP company added one rig in the San Joaquin (LUDWIG) --& 160 MBC NGL MMCFED •2,181 BOEPD, 2,000 PSI FCP SELLER IS REVIEWING OFFERS according to an annual survey by Canadian think tank Fraser(LADD) Institute. The annual • 994 BOEPD, 625 PSI FCP PP 5989DV (MARKS) • 73% TO 79% OIL NORTH TEXAS PROSPECTS 2-Prospects. Up to 500 Acres. Basin for steamfloods and a second rig 3 WELLS DRILLING AND FT. WORTH BASIN AREA DV 1 WELL WOC survey evaluates 96 jurisdictions, ranking them based on barriers to investmentOver- Normally- Proven Shallow Oil Potentialsuch as Pressured Pressured Oil Pay Objectives At 1,000’ - 5,000’ CURRENT PLANS THROUGH Industry Over-pressured Industry Over-pressured Generator Will Participate Up To 25% WI YEAR END 2 mi. lateral 1 mi. lateral Industry Normally- Industry Normally- Nearby Field Cum’s : 80 MBO-18 MMBO • 2-3 OPERATED DRILLING RIGS pressured 2 mi. lateral pressured 1 mi. lateral CLR Drilling Rigs CLR Hz Meramec Wells in Wilmington field of the Los Angeles DV 5259 • 2-3 ADDITIONAL WELLS TO SPUD Industry Drilling Rigs CLR Planned Wells 2015 taxation, a costly regulatory environment and environmental obstacles.CLR Leasehold OklahomaNo Commission. Call 713-650-1212 was Source: Continental Resources November 04, 2015 via PLS docFinder (www.plsx.com/finder) All Standard Disclaimers & Rights Apply. first in the Policy Perception Index, which measures the extent to which policy may Basin working half-time. The company discourage E&P activity. drilled and completed 21 wells. CEO “Most US states are Oklahoma followed by Texas in survey Todd Stevens said CRC plans to increase ranking investment ease. bucking the global trend of drilling activity as it closes out the year decreasing confidence for investment, and Oklahoma’s top spot in this year’s ranking and into 2017. demonstrates how coherent environmental policy and sound regulation can improve investor perception,” said Kenneth Green, Fraser’s senior director of natural resource ABOUT PLS studies and co-author of the survey. Petroscout (USPS 13410) is published every 8 of top 10 jurisdictions were onshore Eight of the top 10 jurisdictions in the United States. three weeks by PLS Inc. the study were in the US. Texas was No. PetroScout covers news and analysis on the 2. The others were Kansas, Wyoming, North Dakota, Mississippi, Utah and Montana. E&P sector, including new well discoveries, Texas was also tops among the 12 jurisdictions that have the largest amount of reserves. drilling activities, acreage sales, statistics UAE, Qatar, Alberta and China follow. Fraser said every region fell with respect to and technological updates. investment attractiveness this year except for the Middle East and Europe. To obtain additional PLS product details, “With oil and gas sector confidence declining around the world, it’s especially drill www.plsx.com/publications. important for policymakers to pursue competitive tax and regulatory regimes, and to Periodicals postage paid at Houston TX. have stable environmental protections that attract, not deter, petroleum investments,” PLS Inc. said Taylor Jackson, senior policy analyst at Fraser. One Riverway, Ste 2500 Houston, Texas 77056 POSTMASTER: Large Reserve Holder Comparisons Please send address changes to PLS Inc. Policy Proved Policy Proved 713-650-1212 (Main) Country Perception Reserves Country Perception Reserves 713-658-1922 (Facsimile) Index Score (Bboe) Index Score (Bboe) To obtain additional listing info, contact us 1. Texas 97.65 29.53 7. Iraq 47.26 165.05 at 713-650-1212 or [email protected] 2. UAE 83.00 138 8. Nigeria 46.69 70.8 with the listing code. Only clients are able to receive additional information. To become a 3. Qatar 75.44 188.14 9. Indonesia 45.83 23.01 client call 713-650-1212. 4. Alberta 66.87 175.3 10. Russia 39.21 395.53 © Copyright 2016 by PLS, Inc. 5. China 65.80 55.29 11. Libya 15.24 58.3 Any means of unauthorized reproduction is 6. Algeria 56.57 41.93 12. Venezuela 0 335.19 prohibited by federal law and imposes fines Source: Fraser Institute up to $100,000 for violations.

Find more on the E&P arena at To learn more about PLS, call 713-650-1212 Volume 27, No. 18 3E&P Resilient year closes on Midcontinent rig gains & oil above $50 Gastar drills 3rd Meramec well as rate improves on 2nd PLS’ finalPetroScout of the year hits Gastar Exploration has drilled and completed its third operated Meramec well, as many E&P companies close the year the Ingle 29-1H. While results were not available, the company’s previous operated leaner but more efficient than they started Meramec well, Holiday Road 2-1H, has improved. The well has established a new peak it. West Texas led the largest rig gain 24-hour rate of 654 boe/d (83% oil) and is currently flowing 508 boe/d. The first well, since April 2014 the week IN THIS Deep River 30-1H, reached a peak 24-hour rate of 1,094 boe/d (71% oil). ISSUE ended Dec. 9—27 new rigs CEO J. Russell Porter said Holiday Road is projected to have an EUR as operating onshore US. That good or better than the Deep River. “That well is a good lesson that it’s easy was followed by a 13-rig gain this week, to draw the wrong conclusion from very early production data in the STACK 12 of those oil. Oil started the week at play.” The Ingle well is part of Gastar’s 60-well Meramec development JV with a private an 18-month high after OPEC and others partner in the company’s core Kingfisher County arcreage. Two more wells are awaiting agreed to surrender in a two-year price war completion, and two are drilling. Porter said up to seven wells could be drilled and with US shale producers. And the Gulf of completed under the program by year’s end. Mexico saw first signs of renewed life The company also increased its activity outside of the drilling JV to test the as BP sanctioned its $9 billion Mad Dog Osage and Oswego. field expansion (PG 1) as the Saudi-led production cut agreement was made. Continental drills another record STACK horizontal A major takeaway of OPEC’s price Continental Resources has drilled another company record well in the overpressured war was that US producers are resilient. oil window of Oklahoma’s STACK play. The Angus Trust 1-4-33XH flowed 4,642 boe/d As prices and equity plummeted, they (45% oil) on a 24-hour test. It was drilled just north of another Continental high-performer, quickly learned to do more with less. Boden 1-15-10XH, which is in the condensate window of south-central Blaine Companies zeroed in on capital efficiency County. The Angus Trust was oilier and technological innovation to deliver than Boden (3,508 boe/d, 28% oil). Angus Trust flows 4,642 boe/d (45% oil) on 24-hour test. 40% higher productivity on 50% lower Continental reduced costs 30% on Angus drilling and lease operating costs. Trust to $8.9 million from the Boden well. Angus Trust’s lateral is 9,500-ft, and it was US added 21 oil rigs in week after completed in 36 stages with 20 million lb of sand—similar to the Boden well. OPEC agreed to cut production. “Aside from being a company record well, it further validates our perspective of the extent of the over-pressured oil window,” said chairman and CEO Harold Hamm. High-return, low-cost drilling was Boden was the company’s first completion in the condensate window, and it has produced the name of the game in 2016. This was 591,000 boe (26% oil) in just over a year. The well is currently flowing 1,815 boe/d (22% oil). most evident in the Permian Basin, which Continental also increased its YE16 exit rate 4% on strong production in the attracted the lion’s share of producers’ Bakken and in Oklahoma. The company expects to exit the year at 213,000-218,000 capex and welcomed new players such as boe/d, up from 205,000-210,000 boe/d, and to maintain that through Q1. PDC Energy (PG 1) in the Delaware Basin and those rapidly building scale such as SM Continental’s Meramec Wells Strong over Long Term Energy (PG 6) in the Midland Basin. Technological precision drove drilling Prod Cum. Production Current Rate Current Flowing Well Name Days (MBoe) (Boepd) Pressure success this year. Companies hiked Boden 329 505 (27% oil) 2,006 (23% oil) 3,060 psi proppant loads (see Marathon PG 7), and Yocum 184 309 (99.5% gas) 1,317 (99.5% gas) 1,840 psi they transitioned to new completion types Ludwig (parent well) 338 298 (74% oil) 815 (72% oil) 1,060 psi (see Penn Virginia on PG 8). They also Compton 296 278 (69% oil) 616 (66% oil) 1,000 psi focused on geosteering to land precise Madeline 141 251 (63% oil) 1,607 (61% oil) 2,665 psi targets within formations (see Parsley Blurton 285 228 (74% oil) 534 (65% oil) 1,050 psi on PG 6). Downspacing and stacked Ladd 363 219 (74% oil) 500 (67% oil) 920 psi development increased estimates across Gillilan 171 204 (61% oil) 897 (51% oil) 875 psi US shale plays, such as Devon (PG 6) in Quintle 181 181 (69% oil) 749 (61% oil) 775 psi the Delaware Basin and Sanchez Energy Marks 408 171 (57% oil) 293 (48% oil) 685 psi in South Texas (PG 8). Foree 178 152 (58% oil) 509 (50% oil) 500 psi Looking to 1H17, Goldman Sachs Verona 71 132 (69% oil) 653 (66% oil) 1,250 psi said it believes WTI will hover at $55. The Frankie Jo 104 128 (47% oil) 904 (43% oil) 2,530 psi EIA expects shale to reverse a nearly half- Oppel 109 87 (66% oil) 714 (56% oil) 1,000 psi year decline in January as US producers Bernhardt (1‐mile) 183 69 (70% oil) 239 (67% oil) 220 psi responded to OPEC with a large rig gain. Source: Continental November 29 Presentation via PLS docFinder www.plsx.com/finder For general inquiries, email [email protected] Access PLS’ archive for previous E&P news PetroScout 4 December 16, 2016 Permian Drilling & Productions PDC Energy to integrate Delaware Continued From Pg 1 ■■ Bill Barrett resumed its extended- PDC has actively worked to extend laterals in the field, augmenting that effort with reach-lateral (9,500 ft) development an acreage swap with Noble Energy in late summer to core up. In 2017, the company program in the DJ Basin during Q3 with will bring 150 wells online in the field. nine wells spudded. The company is Extended-reach laterals Volumes expected to grow over 40% targeting the Niobrara B and C at midpoint from 2016. (9,500 ft) will account for a benches as well as the Codell. significantly larger portion of that count in 2017—38% vs. 13% in 2016. Bill Barrett plans to drill up to 15 PDC expects its 2017 Wattenberg wells to sport 7,300-ft laterals, up from 2016’s this year and complete five. That number 6,900-ft average. Extended-reach-lateral wells cost $4.5 million. is up from an earlier estimate of 12 wells In the Delaware Basin, PDC expects to run two rigs through 3Q17 and add a third in due to drilling efficiencies—the company Q4 on spending of $235 million. It will drill 28 wells: 12 in eastern Reeves County, 14 in is averaging eight days from spud to rig central Reeves and two in western Culberson County. Most will target the Wolfcamp A. release. Increased proppant of 1,350 lb The company also will bring 19 wells to sales. Of those, 13 will sport laterals exceeding per lateral foot will be used on new wells. 10,000 ft. PDC’s Delaware Basin extended-lateral well costs average $9.5 million. Capex will be $100 million in 2016. Acquired Wolfcamp A wells in eastern Reeves County are outperforming the 1.0 ■■ ExxonMobil released 60 Gulf MMboe type curve for the area, according to PDC’s most recent presentation. The of Mexico leases to BOEM this year, Keyhole, Hanging H and Sugarloaf wells delivered an average 30-day IP of 1,435 boe/d. including 20 that were part of a deepwater Their laterals average 4,100 ft. The rates slightly trail the nearby Silverback well Folk joint exploration agreement with Russia’s Rowling, which posted an IP-30 of 1,513 boe/d but with a longer, 6,200-ft lateral. Rosneft. An Exxon spokeswoman told Upstream that the leases had low Diamondback doubles down Continued From Pg 1 prospectivity. Seventeen that were part The company assumes that a Brigham Wolfcamp A well’s oil type curve is 43% of the Rosneft deal are in remote parts of higher than its Midland County Lower Spraberry: 1.1 MMboe vs. 990,000 boe. The the Western Gulf in Alaminos Canyon and Brigham Wolfcamp A wells average 1,336 boe/d (87% oil) peak Keathley Canyon. Five East Breaks blocks IP-30s with D&C costs of $6.7 million. The Lower Spraberry are northeast of Anadarko’s Boomrang wells average 1,030 boe/d (79% oil) with D&C costs of $5.0 million. and Nansen fields. Three blocks in the The company highlighted some current wells on the acreage. The Shaffrath 26 Central Gulf are in Walker Ridge about 3 1H Wolfcamp A well achieved a peak 30-day IP of 211 boe/d (88% oil) per 1,000 miles east of the Julia discovery. Locations ft of lateral. This well sports a 4,675-ft lateral. A notable Second Bone Spring well, of the remaining 40 blocks are unknown. Neal Lethco 18 1H, delivered a peak 24-hour IP of 233 boe/d (91% oil) per 1,000 ■■ International Western Petroleum ft of lateral. This well features a 4,713-ft lateral. plans to drill on new leasehold in King December 31, 2014 • Volume 25, No. 18 County, Texas. The company acquired 350 However, Diamondback is eyeing more capital- Transactions Serving the marketplace with news, analysis and business opportunities acres with 3D seismic data and has the efficient 8,000-ft laterals. Repsol strikes, snapping up Talisman for $13 billion Whiting seals buyout of Capitalizing on falling oil prices to gain a substantial upstream foothold in North Bakken peer Kodiak America, Repsol has struck a deal to acquire Talisman Energy for $13 billion. The There is one less publicly listed purchase price consists of $8.00/share (C$9.33/share) in cash plus the Calgary company’s Bakken producer following the closing option to lease up to 800 adjoining acres. $4.7 billion debt. Unanimously approved by both companies’ boards, the deal will of Whiting Petroleum’s acquisition The company updated 2017 guidance 25% at boost Repsol’s pro forma 2014 production by 76% to over 4.08 Bcfed immediately and of rival Kodiak Oil & Gas. significantly expand its explorationA&D portfolio. The combinedTransactions company will have a presence The deal created a combined in more than 50 countries with Bids $8.00/share after Talisman company with a market cap 27,000 employees. tagged a low of $3.46/share. north of $6.0 billion based on the stock CEO Ross Ramsey said his company Cash-rich Repsol had price the day before closing. Whiting midpoint based on the acquisition. It now expects been gearing up for a strategic upstream acquisition, building up a $12 billion-plus war now has the highest Bakken/Three Forks chest this spring through the divestment of its equity in Argentine explorer YPF, a $5.0 billion settlement with Argentina over the 2012 seizure of a 51% stake in YPF, and the Creates largest producer in Bakken with Q3 output of 125,000 boepd. Diamondbacksale to Shell of its Latin America-focused LNG business. At thebuys time, Repsol said it out believes there are up to eight PUDs on was shopping for companies or assets within the OECD with development potential, production at a pro forma 125,000 boepd to produce 64,000-73,000 boe/d on capex of scale, extra growth capacity and above 8% return on capital. Continues On Pg 12 for Q3, squeaking by long-time leader Oxy in talks to buy private Permian driller Three Rivers Continental Resource's 121,600 boepd. BrighamCash-rich after receiving $6.0 billionResources in the spin-off of its California business, for The deal $2.4B. also increased Whiting’s Occidental Petroleum is looking to supercharge its core Permian growth engine Bakken/Three Forks inventory by the leasehold. He said the company would by pursuing privately held Three Rivers Operating Co. II LLC. Industry sources 158% to 3,460 net drilling locations $700-900 million. contacted by PLS have estimated values in the $1.20-1.35 billion for the deal. A across 855,000 net acres. YE14 proved Bloomberg story citing an unnamed source said the companies are discussing a price reserves for the combined company total below $20,000/acre—implying a value below $1.75 billion based on Three Rivers’ 780 MMboe (83% crude, 7% NGLs), 82,000 net acres at YE13 plus 5,400 net up 29% compared to Whiting and drill a 7,200-ft pilot hole to determine if PLS sources value deal for Riverstone- Kodiak’s YE13 sum. Cont'd On Pg 17 acres picked up this summer. backed company at $1.20-1.35 billion. Austin, Texas-based Three FEATURED DEALS Rivers II launched in August 2012 with the acquisition of 15,000 net acres and 1,900 boepd in the Midland Basin from Meritage Energy. Backed by Riverstone EAST TEXAS SALE PACKAGE Chevron to focus 2017 US capex on PermianHoldings, the company at YE13 touted 25,000 Basin net acres in the Midland Basin, 22,000 12-Active Wells. 3-SWD. ~3,700 Acres. there is an opportunity to drill horizontally. in the southern Delaware Basin and 5,000 in the Central Basin Platform representing a BUNA WEST & SILSBEE FIELDS drilling inventory exceeding 1,800 locations (average 90% WI) targeting the Wolfcamp, HARDIN & JASPER COUNTIES PP Cline and Wolfberry combo play. Continues On Pg 11 Wilcox Sands 10,000 Ft.-15,000 Ft. Additional Drilling Locations Identified Chevron has been tightening its spending focus to shorter-cycle, high-return58-100% Operated WI; projects~73 Lease NRI 191 Southwestern buys more Marcellus/Utica for $394 million Gross Production: 77 BOPD & 888 MCFD BOED ■■ The BLM’s Colorado office Also closes $5.4 billion initial acquisition from Chesapeake Net Production: 44 BOPD & 530 MCFD June 2014 Cash Flow: ~$156,600/Mn Statoil is selling a 5.8% stake in its Marcellus and Utica JV assets in northern PDP PV10: $4,826,000 West Virginia and southern Pennsylvania to new partner Southwestern Energy for BIDS DUE BY JANUARY 15, 2015 in the low-price environment and looks to continue that trend$394 million andin retaining 2017.~23% WI. Having also closed Of its $5.4 billion purchasethe of PP company’s2351DV Chesapeake’s 67.5% WI, Southwestern’s newly acquired interests will rise to 73.3% generated $1.59 million on the sale of WI, representing 443,000 net acres. KERN CO., CA PROPERTY Gets additional 30,000 net acres & The Statoil deal adds ~18,000-Contiguous Net Acres. 29 MMcfed from Statoil interest. BEER NOSE FIELD incremental October Bloemer Tight Sandstone Objective. PP net production of 29 MMcfed and 30,000 net acres targeting the Marcellus, Utica Estimated Depth: 10,000-15,000 Ft. planned $19.8 billion capital plan, which includes spending ofand Upper $4.7 Devonian for Southwestern. billion Statoil had a preferential by right to buyaffiliates, Also Monterey, Belridge, Gibson, Oceanic, US 28 parcels totaling 19,095 acres at its Chesapeake’s stake when that company’s deal with Southwestern was announced Santos, Tumey & Kreyenhagen Potential. 100% OPERATED WI; ~77% NRI in October, but chose not to exercise it. Including these properties and others in the TIGHT Gross Production: 36 BOPD & 57 MCFD SAND play, Statoil retains a strong Marcellus position covering ~570,000 net acres with Net Production:27 BOPD & 44 MCFD pro forma Q3 net production of 759 MMcfed. 6-Mn Avg. Net Cash Flow: ~$28,800/Mn upstream will see $5.7 billion. Shale and tight projects The Statoil deal is expected to willclose in 1Q15 and bewill be financed allocated from PP 5217DV $2.5 quarterly lease sale. Chevron. paid the Southwestern’s revolver. Continues On Pg 15 billion, the majority of which will be spent in the Permian Basin. TheAll Standard Disclaimerscompany & Seller Rights Apply. highest price per acre—$260 per acre for plans to ramp up to 10 rigs from eight in Q3 by YE16. Overall company 80 acres in Garfield County. spending is expected to be down 15% from 2016—the fourth consecutive year of cuts ■■ Gulfport grew production 11% “Our spending for 2017 targets shorter-cycle time, high-return investments and sequentially to 713 MMcfe/d as it brought completing major projects under construction. In fact, over 70 percent of our planned 15.8 net operated wells and 3.9 net non- upstream investment program is expected to generate production within two years,” operated wells online. The company was said Chairman and CEO John Watson.” running four rigs in the play at the end Chevron holds 1.5 million net acres in the Delaware and Midland Basins with of the quarter but was planning to start reserves of 9 Bboe. Since 2015 the company has lowered development costs 30% and up its fifth and sixth horizontal rigs in direct lease operating expenses by 45%. November and December. Find more on the E&P arena at To learn more about PLS, call 713-650-1212 Volume 27, No. 18 5E&P Drilling & Production Permian ■■ Legacy Reserves offered an update to Resolute tests first Wolfcamp downspacing at Mustang its “DrillCo” with private equity firmTPG Resolute Energy is performing its first 80-acre spacing test in its Mustang area this Special Situation Partners that was struck quarter in an effort to validate its 300-well Reeves County Wolfcamp A/B inventory. in September 2015. The company has This testing could add 64 Wolfcamp A locations. The company said it is also watching drilled and completed 13 horizontal wells: nearby peers test the Wolfcamp X/Y and the deeper Wolfcamp C six in Lea County, New Mexico; six in and D. Altogether, Resolute sees potential for 632 wells. Howard County, Texas; and one in Reagan At its Appaloosa acreage, where laterals average 10,000 ft, the company is seeing County, Texas. The company is running its best returns. The 30-day peak rates average 2,605 two rigs, which it started up in September boe/d, and well EURs exceed 2.3 MMboe. This Regional Oil & Gas Intelligence November 11, 2015 after a six-month drilling PERMIAN SCOUT translates to IRRs of 100% with PV-10 of more than Serving the local market with drilling activity, permits & deals for sale Volume 03, No. 22 Two Pioneer Sale Ranch wells surpass 2,100 boe/d Regional Activity (State Data) Pioneer Natural Resources’ Sale and turn a three-well horizontal pad to (10/07/15 to 11/06/15) hiatus. Legacy said another Ranch 23B #2H and 21C #3H had rates of production to 135 days in the Wolfcamp/ $16.6 million. At Mustang, where laterals average Compls Permits 2,825 boe/d and 2,144 boe/d, respectively, Spraberry, and it has cut its average drilling West Texas (RRC 7C)Permian32 52 targeting theScout Spraberry with the use of gasDec. time by seven days 16 per well. The company West Texas (RRC 8) 78 165 turned 33 horizontals Q3 Wolfcamp wells avg. 1,900 boe/d, to production in West Texas (RRC 8A) 12 22 EURs 15% above 1 MMboe curve. eight wells would come Southeast New Mexico 17 83 the Spraberry and lift. The wells averaged 2,484 bo/d and Wolfcamp during Q3, with 28 Wolfcamp 7,500 ft, peak 30-day rates average 1,499 boe/d with Most Active Operators by Permits 2,068 Mcf/d (2,828 boe/d, 88% oil) and B and two Wolfcamp A wells averaging ➊ XTO Energy 26 were drilled with laterals averaging 8,742 peak production rates of 1,900 boe/d (78% 180➋ Pioneer Permits;Natural Res 22 ft in Martin 116 County’s Spraberry Completions; field. oil). The Wolfcamp wells are tracking online late this year or early next year. The ➌ Apache Corp 15 Pioneer reported that it has shortened EURs of more than 15% above a type its average total time to drill, complete curve of 1 MMboe. Continues On Pg 3 EURs of 1.8 MMboe. Wells deliver IRRs of more Permits by Formation (by Last Scout) Parsley reports records, 1,638 boe/d Spraberry well 226Formation Rigs11/11 10/28 10/14Running. Spraberry 103 124 95 An Upton County completion by wells Parsley completed in Q3 averaged 30- company has otherwise been engaged Wolfcamp 88 64 46 Parsley Energy flowed at a rate of 1,395 day rates of 1,167 boe/d, also a company than 45% with PV-10 of more than $7.3 million. Bone Spring 46 37 41 bo/d and 1,457 Mcf/d (1,638 boe/d, 85% record. Those wells had average lateral San Andres 11 8 7 oil) at full flow, according to lengths of 6,962 ft. Glorieta-Yeso 9 5 2 Texas state data. The Shauna Clear Fork 6 4 2 9-16B #4415H was drilled Wolfcamp B well had a company- record 30-day IP rate of 1,504 boe/d. in recompletions and workovers in East Delaware 5 5 6 in Spraberry field with a 7,195-ft lateral Brushy Canyon 3 – – and fracked with 13,096,749 lb sand and Parsley’s Ringo 10-7-4214H Wolfcamp Devonian 3 3 6 331,206 bbl frac fluid. A well, which was drilled as part of a two- Other Formations 48 89 81 The company reported that one of its well pad in Reagan County, set a Permian TOTAL 322 339 286 Wolfcamp B wells, the Taylor 45-33-4404H, Basin record for the fastest lateral drilled. Sources: NMOCD & TXRRC Texas and in the Permian. set a company record with its 30-day IP rate The well’s 7,128-ft lateral was drilled in Energen increases proppant with 30%Active uplift Rigs Running (Baker Hughes) 231 of 1,504in boe/d on a 9,802-ft Delaware lateral. The nine 41 hours. Continues On Pg 3 Pioneer’s Northern Spraberry/Wolfcamp Performance Deals For Sale ■■ The Texas Railroad Commission fell 33 horizontal wells placed on production during Q3 PERMIAN BASIN PROJECT – Majority were Wolfcamp B and Wolfcamp A wells 11 Producers. 2,200 Net Acres. (85% HBP) Early production results from these wells are on average tracking >15% above a 1 MMBOE EUR type curve Energen’s first two wells completed with its Generationo 3 design in theEDDY CO., NM Delaware

Q3 Wolfcamp B Average (28 Wells) Updated Q3 Wolfcamp A Average (2 Wells) Updated YESO HORIZONTAL PLAY PP ~8,400’ Average Perforated Lateral Length End Oct ~8,700’ Average Perforated Lateral Length End Oct ) ) 2,000 2,000 3 New Yeso Horizontal Wells Producing. Avg. 87% Operated WI; 67% NRI (BOEPD 331 wells short of its 2016 goal to plug 875 (BOEPD 1,000 1,000 Recent Hz Yeso wells IP: 200 BOPD/Well

500 1 MMBOE 500 1 MMBOE 3-Month Avg. Cash Flow: ~$246,000/Mn Basin are tracking more than 30% above the 2.0 MMboe type 800curve MBOE for800 MBOE a 10,000-ft- Production Production OFFERS DUE NOVEMBER 11, 2015 Average 24-hr peak rate: Average 24-hr peak rate:

Daily Daily ~1,900 BOEPD ~1,800 BOEPD PP 4146DV 78% oil content 84% oil content 100 100 orphan wells in the state. The commission 0306090 0306090 IRION CO., TX PROJECT Days On Production Days On Production 2,000-Gross/Net Acres lateral well. The Checkers St. 54-12-21 701H targets the Wolfcamp B MIDLAND in BASIN - STACKED Reeves PAYS – Remaining wells placed on production in Q3 Acreage Is Contiguous and HBP. 2 Wolfcamp D wells with average 24-hour peak rate of ~1,600 BOEPD L o Horizontal Wolfcamp A, B & C and Cline spent $8.5 million to plug 544 this year, o 1 Lower Spraberry Shale well that has not yet reached its 24-hour peak production rate Offset By Devon and Broad Oak Energy. – 19 wells (17 Wolfcamp B &2 Wolfcamp A) benefited from Pioneer’s completion optimization program 100% OPERATED WI; 75% NRI County and recorded a peak 24-houro Program IP includes optimizing of stage length, clusters2,384 per stage, fluid volumes and proppant concentrationsboe/d L 1071 (61% oil) o Early results from 26 completion-optimization wells placed on production during Q2 and Q3 are encouraging No Commission. Call 713-650-1212

Source: Pioneer Natural Resources November 03, 2015 via PLS docFinder (www.plsx.com/finder) All Standard Disclaimers & Rights Apply. and it is targeting 1,000 for next year on and peak 30-day rate of 2,072 boe/d (58% oil). The Razorback a budget of $14.4 million. The RRC says NW 33-77 604H targets the Wolfcamp A in Loving County and delivered a peak 24- the cost per well is expected to drop from hour IP of 3,111 boe/d (27% oil) and peak 20-day rate of 2,549 boe/d (26% oil). the current $15,700. The orphan well Generation 3 employs 1,800-2,400 lb per foot of proppant, 200-ft stage spacing, 40 backlog is currently 9,000 in the state. bbl per foot of fluid and 33-ft cluster spacing. The previous design utilized 1,330 lb per ■■ Lucas Energy CEO Anthony Schnur foot of proppant, 260-ft stage spacing, 39 bbl per foot of fluid and 65-ft cluster spacing. said in the company’s 2Q17 release that it The company released its 2017 guidance. It will spend $700-800 million to run intends to develop an initial 40 locations five to seven horizontal rigs in the Midland and Delaware basins and work down its in Oklahoma’s Hunton formation over the YE16 DUC count. Energen expects 2017 production will grow sequentially, with the next two years. The company entered the 4Q17 exit rate up more than 40% from 4Q16. Estimates do not include uplift from play in late summer when it closed on the wells completed with Generation 3. Further out, the company said it expects to produce acquisition of 10,000 net acres in Lincoln, close to 100,000 boe/d in 2019. Production averaged 55,400 boe/d in Q3. Logan and Payne counties. A proposed name change to Camber Energy was defeated by shareholders at an Aug. 23 Energen’s Early Generation 3 Wells Show Improvement meeting but may be re-submitted at the 150 Ø Cumulative production uplift at 30 days for Checkers 701H next annual meeting in March 2017. and 20 days for Razorback 604H in excess of 30% ■■ Maryland is considered more likely Checkers 701H Razorback 604H to extend its fracking moratorium in the upcoming legislative session rather than institute an all-out ban. The Washington 100 Post reports that Sen. Joan Carter Conway, who chairs an environmental affairs committee, is expected to resist efforts to push through a bill banning the practice. 50 Even Sen. Robert Zirkin, who has said he Ø Production and type curves normalized to 10,000’ would sponsor such a bill, said he would Ø Production normalized for operational downtime

settle for a moratorium, the Post reports. Cumulative Production (MBOE) Ø Day 0 = first oil The current two-year moratorium has Ø EUR Product Mix of Curves (3-stream) § Oil: 59% NGL: 17% Gas: 24% been in place since 2015 while regulations 0 are drafted and is up in October. Some 0 10 20 30 40 50 60 70 80 90 Days western Maryland counties such as Garrett and Allegany are in the gas-rich Marcellus. Source: Energen Nov. 4 Presentation via PLS docFinder www.plsx.com/finder For general inquiries, email [email protected] Access PLS’ archive for previous E&P news PetroScout 6 December 16, 2016 Permian Parsley’s D&C design boosts Devon’s Leonard inventory up 20% on stacked spacing test rates in Southern Delaware Devon Energy increased its risked Leonard shale drilling inventory in southeast Parsley Energy’s first two-well New Mexico as a result of a successful stacked spacing test. The Thistle pilot wells pad on its Trees Ranch acreage in Pecos averaged a robust 1,800 boe/d (75% oil) over their first 30 days with minimal interference. County is benefitting from larger fracks. The pilot tested 400-ft vertical spacing between two wells in the B and C intervals The Trees State 65-36-4307H in Lea County. The wells sport 7,000-ft laterals and were drilled and and Trees State 65-64-4307H completed for $6.0 million averaged a peak 30-day IP rate each. Wells not associated with the pilot Pilot tests 400-ft vertical spacing; two of 1,517 boe/d (75% oil) with 7,800-ft wells avg. 1,800 boe/d. have trended as low as $5.0 million. laterals. These wells were pumped with Based on these strong results, Devon is increasing its risked Leonard well count 60% more sand than the first Trees State nearly 20% to 950 locations. However, this conservative estimate assumes only six Pumped 60% more sand at Trees wells per surface section. Ultimately, the company aims to drill up to eight wells in Ranch with 2.5x uplift. each of three Leonard intervals. It estimates 1,100 ft of gross pay in the play across the A, B and C landing zones. Devon holds 60,000 net surface acres but has exposure well, which sports a shorter lateral at to 160,000 net effective acres with three zones. The company estimates more than 1.0 4,561 ft. COO Matthew Gallagher said, Bboe of recoverable resource in the play. “These two newer wells were completed In May, Devon began discussing the Leonard as becoming competitive with its Bone with about 70% longer laterals yet are Spring program. The three wells driving that discussion averaged 1,900 boe/d over 30 days. producing at a rate close to 2.5x as high Wells illustrate quality of SM's new Midland Basin assets as the first well at the same well age.” SM Energy, which has spent the latter half of 2016 rapidly building Midland Basin COO Gallagher said he expects big scale, revealed that recent new wells on acreage acquired in Howard and Martin counties production boost in Delaware. have delivered outstanding results. Targeting the Wolfcamp A, the Blissard 20-29 1H Gallagher added that the first Trees delivered a 30-day IP of 1,775 boe/d (91% oil) in southeastern Martin County near the State well flowed more than 100,000 boe Howard County border. over its first 180 days. “This is almost 30% The well is trending Wolfcamp A well in Martin County delivers IP-30 of 1,775 boe/d. more than would be implied by the 1.0 in line with another high MMboe type curve scaled to that length. performer that EVP Herbert Vogel pointed to in October to highlight the quality of With results like these, once we get rolling the new assets. The Ogre 47-2 A #1 posted an IP-30 of 1,640 boe/d. Notably, the Ogre on our minerals in the Delaware, we well featured an optimized completion and a 7,700-ft lateral. Completion and lateral expect a big boost to production growth information for the Blissard well is not known. and margin expansion.” A newer set of wells on the Tackleberry pad in Howard County show strong Across the county line in Reeves performance, too. The pad recorded a 12-day IP of 3,726 boe/d and a peak rate of County, Parsley drilled its first well. While 4,860 boe/d. These wells target the Wolfcamp A and B and the Lower Spraberry. Their Lincoln 4-1-4307H hasn’t reached a peak completion and lateral data aren’t known either. 30-day rate, it achieved a peak 24-hour rate Noble adds Delaware inventory ahead of development mode Geosteered 1st well in Reeves County Noble Energy boosted its inventory by 150 locations through a 7,200-net-acre bolt- with IP over 2,000 boe/d. on acquisition in Reeves County, Texas, ahead of 2017 development mode. Operationally, of 2,292 boe/d. Lincoln’s lateral is 6,890 the move will allow the company to lengthen laterals and increase working interest in ft. The company previously completed the 325 existing locations. Noble Ranger C4-7-4309H, which was drilled now has 1,825 locations in Gains 150 locations in bolt-on, easing analyst concerns of light inventory. by a predecessor and eclipsed 1,500 boe/d the sub-basin. The acquisition before declining. Its lateral is 5,079 ft. helped to ease investor concern that Noble had a light Delaware inventory and was “While (Ranger) has reformed really well, moving at a cautious pace, according to Wells Fargo. This deal—combined with a third we were anxious to drill a well that we rig being added in Reeves County—begins to address those concerns, the bank said. could geosphere in our preferred target in Noble recently raised its Wolfcamp A type curve to 1.2 MMboe from 700,000 boe the Upper Wolfcamp,” Gallagher said. for a 7,500-ft lateral based on the use of 2,000 lb per foot of proppant and a transition to slickwater from hybrid fluid. In early 2017, results are expected from an even newer completion design testing up to 5,000 lb per ft. Further out in 2017, Noble plans to bring www.plsx.com a seven-well pad online testing multiple zones. The pad will have two wells each in the Third Bone Spring and Lower Wolfcamp A and three wells in the Upper Wolfcamp A. Call to advertise! This is expected online in 4Q17. Overall in 2017, Noble will bring 35 wells online. For options, call 713-650-1212.

Find more on the E&P arena at To learn more about PLS, call 713-650-1212 Volume 27, No. 18 7 E&P Permian Bakken Midland Basin Wolfcamp Marathon Oil returns to drilling Bakken in Q4 play holds 20 Bbo While Marathon Oil’s capex is largely focused on holding acreage and delineating Midland Basin players can confidently the Oklahoma resource plays, the company notes that recent high performance in the gear up for 2017 with the confirmation that Bakken will see the North Dakota play compete for capital. The company returned to they operate in the largest shale oil play Bakken drilling during Q4 with one rig on the strength of wells at West and East Myrmidon. in the US. The USGS recently performed CEO Lee Tillman said of recent Bakken CEO: Bakken will compete head-to- its first assessment of the Wolfcamp by head with best of portfolio. well performance, “We have basically Largest shale oil assessment by USGS, driven more inventory into what we would call Tier 1 and competing for capital allocation nearly triples Bakken/Three Forks. by these changes in well productivity...kudos to the Bakken team. I think they have used itself and estimated the formation holds this down cycle to really put themselves in a much more competitive stance.” undiscovered, technically recoverable The standout Clarks Creek pad in New East Myrmidon wells average McKenzie County this summer and mean resources of 20 Bbo, 16 Tcf and 1.6 2,308 boe/d over first 30 days. Bbbl of liquids. This new unconventional Maggie pad in Mountrail County in Q3 oil Wolfcamp estimate is almost three compete head-to-head with the best of the company’s portfolio, Tillman said. times that of the USGS’ 2013 assessment The four Clarks Creek wells delivered an average 30-day IP of more than 2,500 of the Bakken/Three Forks, becoming the boe/d. They were completed in West Myrmidon with 12-18 million lb of proppant and largest by the agency to date. are currently performing well above their 750,000 boe type curve. Walter Guidroz, program coordinator Marathon followed Clarks Creek with the Maggie wells across the river Marathon has reduced production for the USGS’ Energy Resources expense per boe 20% YOY. Program, noted that updated assessments in East Myrmidon. The three wells such as this for the Wolfcamp reflect averaged 2,308 boe/d. The strongest well was Rufus, which flowed 2,635 boe/d changing industry practices to horizontal (80% oil) over 30 days. It targeted the Three Forks first bench. The other two wells— drilling and fracking technology. Hannah and Maggie—flowed over 2,100 boe/d (80% oil), targeting the first-bench Three Forks and the Middle Bakken, respectively. Proppant load at East Myrmidon Wolfcamp formation also holds 16 Tcf was 6-15 million lb. The three Maggie wells are and 1.6 Bbbl of liquids. outperforming the 610,000 boe type curve for Regional Oil & Gas Intelligence November 3, 2015 BAKKEN SCOUT East Myrmidon. Serving the local market with drilling activity, permits & deals for sale Volume 02, No. 14 “The fact that this is the largest Statoil long lateral flows at 3,486 boe/d from the Bakken Regional Activity (State Data) International player Statoil flowed a flowed at 2,369 bo/d and 2,735 Mcf/d (2,825 (10/08/15 to 10/29/15) long-lateral Bakken well at 3,071 bo/d and boe/d, 84% oil) and the #7H has a 10,313-ft Compls Permits 2,489 Mcf/d (3,486 boe/d, 88% oil). The lateral targeting the Bakken, flowing 2,285 assessment of continuous oil we have Well costs in the basin are $5.9 million, which North Dakota Bakken25 136 Heen 26-35 Scout #7H was drilled with a 9,604 Dec. ft bo/d and 2,508 Mcf/d14 (2,703 boe/d, 85% oil). lateral in Todd field in Williams South Dakota – – County, North Dakota. Has 330,000 net acres in the play along with gathering system. Montana – 2 Two other Statoil completions Most Active Operators by Permits in Williams County, the Smith Farm 23-14 Statoil’s Bakken assets include includes new completion designs. Marathon ➊ #6TFH and #7H, are also long laterals drilled 330,000 net acres with an extensive ever done just goes to show that, even EOG Resources 32 in Cow Creek field. The #6TFH targets the gathering system for transportation and ➋ 181Continental Permits; Resources 21 Three Forks19 with a 10,560-ftCompletions; lateral and resource marketing. Continues On Pg 3 ➌ QEP Energy 12 SM reports efficiency gains despite delaying completions Permits by Formation (by Last Scout) in areas that have produced billions of said it has reduced its production expense In the Bakken/Three Forks, SM with cemented liners are driving 20-30% Formation 11/03 10/13 09/22 Energy production increased 27% YOY increases in recoveries per well. 32 Rigs Running.in Q3 but dropped 7% sequentially to SM has been adding Bakken resources M Bakken 12 16 9 Three Forks B2 10 3 1 22,200 boe/d (85% oil) as the company to its Three Forks inventory, and nine Three Forks B1 7 9 13 increased its completion backlog to 47 Middle Bakken wells are per boe 20% YOY. wells. The company reported that it has performing above its Three barrels of oil, there is still the potential to Bakken 3 7 7 Three Forks B3 2 2 1 Forks type curve. Two Drilling times down by 11% & costs additional recently completed wells could Cut Bank 1 – – down 20-25% vs. 2014. Duperow 1 – – extend SM’s Divide County Bakken Three Forks B4 1 – – reduced drilling times to 15-21 days— footprint farther south. find billions more,” Guidroz said. More Other Formations 101 78 111 down by 11% vs. 2014—and has drilled The company also recently announced TOTAL 138 115 142 several Divide County wells in fewer the opening of a new office in Williston, Sources: MBOGC, NDIC & SDDNR than 10 days. Overall costs are down 20- North Dakota that SM calls a “tangible 25% vs. 2014. Furthermore, enhanced indication” of its commitment to growing Active Rigs Running (Baker Hughes) 63 than 3,000 horizontal wells have been completions including plug-and-perf its North Dakota operations. Marathon’s Bakken Begins to Compete for TopCapital 20 Statoil Williston Basin Completions (01/15/15 - 09/25/15) Deals For Sale County Operator Well Name Field Reservoir TD boe/d Oil % MUSSELSHELL CO., MT ACREAGE McKenzie Statoil Johnston 7-6 #4H Banks Bakken 22,420 5,129 75% 77,413-Gross & 52,200-Net Acres. Mountrail Statoil Bures 20-29 #5H Alger Bakken 20,610 4,354 85% CENTRAL MONTANA UPLIFT L drilled into the Midland’s Wolfcamp, MISSISSIPPIAN HEATH OIL PLAY Mountrail Statoil Bures 20-29 #6TFH Alger Three Forks 20,646 4,047 86% Williams Statoil Judy 22-15 #5H East Fork Three Forks 20,720 3,894 86% Proposed Depths: 3,600-9,675 Ft. HEATH Williams Statoil Hawkeye 16-21 #3H Todd Bakken 21,281 3,884 89% 100% OPERATED WI FOR SALE SHALE McKenzie Statoil Maston 34-27 #5TFH Banks Three Forks 20,775 3,791 76% Offset Production: ~100 BOPD Mountrail Statoil Bures 20-29 #3H Alger Bakken 20,254 3,759 86% L 3185DV according to the agency. Williams Statoil East Fork 32-29 XE #1H East Fork Bakken 19,985 3,726 87% Williams Statoil Folvag 5-8 XE #1H Stony Creek Bakken 20,765 3,686 87% SHERIDAN CO., MT PROSPECTS Williams Statoil Heen 26-35 #7H Todd Bakken 20,310 3,486 88% 10-Potential Wells. 3-Prospects. Williams Statoil Irgens 27-34 #5H East Fork Bakken 20,350 3,399 82% WILLISTON BASIN DV Williams Statoil Irgens 27-34 #3H East Fork Three Forks 10,830 3,295 83% MULTIPAY PROSPECTS Williams Statoil Judy 22-15 #3H East Fork Three Forks 20,990 3,260 85% Red River. 11,300 Ft. McKenzie Statoil Maston 34-27 #6H Banks Bakken 21,415 3,143 71% Mission Canyon & Others. 7,500 Ft. Williams Statoil East Fork 32-29 #6TFH East Fork Three Forks 10,699 3,065 87% 60% OPERATED WI; 48% NRI MULTIPAY Williams Statoil Field Trust 7-6 #4H Todd Bakken 20,442 2,893 90% Expected IP (Red River): 375 BOPD Wolfcamp A, Upper Wolfcamp B hold Williams Statoil Smith Farm 23-14 #6TFH Cow Creek Three Forks 21,235 2,825 84% Well Reserve: 300 MBOE/Well Williams Statoil Folvag 5-8 #6TFH Stony Creek Three Forks 20,824 2,774 88% DV 3851 Williams Statoil Smith Farm 23-14 #7H Cow Creek Bakken 20,925 2,703 85% No Commission. Call 713-650-1212 Williams Statoil Folvag 5-8 #5H Stony Creek Bakken 20,820 2,656 87% All Standard Disclaimers & Rights Apply. most undiscovered oil at 5.8 Bbo each. Source: North Dakota Industrial Commission The USGS broke down the formation into six assessment units: Wolfcamp A, Upper Wolfcamp B, Lower Wolfcamp B, Wolfcamp C, Wolfcamp D and Northern Wolfcamp (northernmost Wolfcamp area encompassing parts of Lubbock, Crosby, Lynn, Garza, Borden, Dawson, Scurry, Gaines, Hockley and Terry counties). The Wolfcamp A and Upper Wolfcamp B in the core of the play hold the most undiscovered resource with a calculated mean of 5.8 Bbo each. These are followed by the Wolfcamp D on the Eastern Shelf with 4.9 Bbo. Source: Marathon Oil Nov. 2 Presentation via PLS docFinder www.plsx.com/finder

For general inquiries, email [email protected] Access PLS’ archive for previous E&P news PetroScout 8 December 16, 2016 South Texas Bakken Penn Virginia’s slickwater completions yields record rates Enerplus increases drilling Penn Virginia, which recently completed restructuring, revealed that its three-well inventory 40% in M. Bakken Hawg Hunter pad is its best-performing Eagle Ford pad to date. The wells delivered Enerplus is planning for higher- an average 24-hour IP of 3,844 boe/d and 30-day rate of 1,861 boe/d. The company density wells in the Middle Bakken at Fort completed these wells using its most recent slickwater completion design with 500,000 Berthold, increasing from four to six per lb of sand per stage and 28 stages per well, or 14 million lb of sand. drilling spacing unit in that zone. It will The Hawg Hunter pad not, however, increase its Three Forks Hawg Hunter pad averages IP-24 of may have been the star, but density assumptions. 3,844 boe/d, IP-30 of 1,861 boe/d. the company’s switch to slickwater from The density pilot hybrid completions in 3Q15 has improved wells across the board. Penn Virginia reports tested two Middle Bakken wells spaced that 18 wells in the Lower Eagle Ford averaged 24-hour IPs 2,083 boe/d and 30-day at 500 ft and offset 700 ft by one Three IPs of 1,066 boe/d through February 2016. The wells averaged 21 stages and 92% Forks well. Early results outperformed oil. During 3Q15, the company’s average 24-hour type curve expectations. This increase IP was 1,501 boe/d and 30-day rate was 790 boe/d. Regional Oil & Gas Intelligence November 5, 2015 results in average density of 10 wells per SOUTH TEXAS SCOUT Penn Virginia has resumed its Eagle Ford Serving the local market with drilling activity, permits & deals for sale Volume 03, No. 15 Sanchez’s Catarina development continues to outperform drilling spacing unit for a total of 550 gross Regional Activity (State Data) For the third consecutive quarter, wells online. The 106,000-net-acre (10/13/15 to 11/02/15) Sanchez Energy’s Catarina project development area on the border of Compls Permits has been the driving force behind its Dimmit and Webb counties, Texas, has program with one rig drilling four wells by year’s end. South Texas (RRC 1) 60 73 Eagle Ford production. Strong been the focus of Sanchez’s operations South Texas (RRC 2) 39 83 well rates and accelerated remaining drilling locations (465 net)—a South Texas Scout EfficienciesDec. continued 16 to help South Texas (RRC 3) 2 13 development resulting from shave down well costs. South Texas (RRC 4) 8 37 faster drilling times contributed to lower costs. The company’s results from the since it was acquired from Shell for $639 Most Active Operators by Permits south central Catarina showed 30-day IP million in 2Q14. At the end of Q3, the In 2017, the company plans to drill 16-19 net wells ➊ Marathon Oil 20 rates of ~1,350 boe/d. company had 264 producing Catarina 40% increase from previous estimates. ➋ Pioneer Natural Resources 15 Sanchez ran three operated rigs wells and 18 awaiting completion. 139➌ EP Energy Permits; E&P 13 at Catarina 74 during Q3Completions; to bring 27 Continues On Pg 3 and bring 13-16 online. The company anticipates 10- Permits by Formation (by Last Scout) SM’s Eagle Ford downspacing tests show promise Eagle Ford wells performed above type drilling inventory. Wells have been drilled 11/05 10/15 09/24 The company will drill 20 locations Formation curve for SM Energy in Q3, raising the in five of the nine planned pilot tests, with 45Eagle FordRigs143 205 Running.151 company’s production in the shale 3% the remainder slated for 2016. Wilcox 8 2 5 sequentially and 31% YOY The initial test consisted of 14 wells Austin Chalk 6 14 8 to 134,500 boe/d—more on the gas-weighted eastern portion of 15% production growth from 3Q16 to 4Q17. Buda 4 5 11 Frio 3 1 – than 75% of SM’s total SM’s acreage, downspaced to 450 ft in 2016, and the remaining locations production for the quarter across all plays Vicksburg 3 2 – Q3 Eagle Ford production of 134,500 Barnsdall Sand 2 3 2 and despite a decline in non-op Eagle Ford boe/d accounts for 75% of SM’s total. Olmos 1 1 3 production. SM also reported successes in 41-A & 98-A Cons 1 3 – proving up additional drilling inventory instead of its standard 625-ft spacing. Other Formations 35 52 59 with downspacing tests. Test 1 now has 130 days of sales and represent 16 years of drilling inventory TOTAL 206 288 239 The company drilled multi-well pilot during Q3 reached a peak gas rate of South Texas Sources: TXRRC tests to determine downspacing potential 105 MMcf/d or 7.5 MMcf/d per well. Active Rigs Running (Baker Hughes) 96 and to add the Upper Eagle Ford to its Continues On Pg 5

Sanchez’s Catarina Overview Deals For Sale assuming an annual two-rig program. Western Catarina (~43,000 net acres) DUVAL CO., TX PROPERTY • Early results support stacked pay development in three 3-Active Wells. Eagle Ford benches; Upper, Middle, & Lower Eagle Ford Eastern Catarina SOUTH TEXAS PP Well performance currently exceeding high end • Central Producing From Pettus & Yegua Y-21. Sanchez gets high oil cuts in Western CatarinaCatarina type curve through first year of development Wester n Catarina 100% OPERATED WI Available. Capex will be $400 million with 70% Catarina • Parally developed; Excellent offset operator results Net Production: ~170-210 MCFD ~200 Total Reserves: ~34 MBO & 22 BCF MCFD

Central Catarina (~26,000 net acres) CONTACT SELLER FOR MORE INFO • Early results in South-Central Catarina in line with the PP 5404RE strongest to date in the asset: 30-Day IP Rates of Sanchez Energy brought two stacked development pads onlineAcreage, Inventory & Operatioinnal Update its Western slated for the basin. A second rig is being nearly 1,350 BOE/D WANTED: EAGLE FORD PROJECTS Total Net Acres Expected further future development in South-Central ~106,000 • Average Working Interest 100% NonOperated WI Investor. region in 2016 Average Net Revenue Interest 75% SOUTH TEXAS • Exploraon area; full 3D seismic coverage; inversion Planned Well Spacing (Acres) 75 – 100 International Petroleum Firm Wants To-- W Net Identified Drilling Locations 1,250 - 1,650 processing in progress Gross Wells On Production 238 --Participate as NonOperated WI Partner. Catarina acreage during Q3 that have delivered significantly higher oil Awaiting yields—250/ Undergoing Completions 27 Seeking Experienced Operators Inbbl Play. per added in January, and more density tests Eastern Catarina (~37,000 net acres) LEF Well Economics Budget of ~$10-$40 Million. NONOP • Early results ~50% above exisng wells in Eastern Catarina Oil or Liquids-Rich. EURs (MBoe) 600 – 700

• Substanal number of potenal Lower Eagle Ford D&C Costs ($MM) $4.5 W 5023DV F&D Cost ($ / Boe) $8.57 – $10.00 drilling locaons IRR @ $60 / Bbl & $3.75 / Mcf 35%+ No Commission. Call 713-650-1212

MMcf. The results help to confirm the company’s stagger and stack developmentAll Standard Disclaimers & Rightsplan Apply. of Source: Sanchez Energy October 05, 2015 via PLS docFinder (www.plsx.com/finder) are being planned in 2017. three Eagle Ford zones. COO Christopher Heinson said the pads, targeting the Middle and Gulf of Mexico Upper Eagle Ford, are tracking Sanchez’s western step-out type curve of 630,000 boe (35% oil), which is the highest Talos starts up Tornado oil cut type curve in Catarina. Two stacked pads track with 630,000 boe (35% oil) step-out type curve. prospect well in GC 281 Sanchez said ~200 additional Upper Talos Energy has started production Eagle Ford locations are now derisked at Western Catarina, more than doubling original at its Tornado prospect in Green Canyon estimates to over 350 locations. Sanchez has now transitioned to stacked pad development. Block 281 in late October. The GC 281 T-9 The western area delivers Sanchez’s second-highest returns behind Central well exceeded 20,000 boe/d (85% oil) over Catarina with wellhead economics over 50% at current strip, Heinson said. a two-week test period, but the company During Q4, Sanchez wrapped up drilling in south-central Catarina and moved to said it will flow the well at 13,000- Western Catarina to drill two additional stacked Upper/Middle Eagle Ford pads, adding 16,000 boe/d until it drills and completes six wells in the upper interval. “The step-out development wells in Western and Central a second well. The well is in 2,735 ft of Catarina are important because they push the western Upper Eagle Ford boundary water. Production is flowing to the Helix further east and the middle Eagle Ford further north, increasing inventory on our two Producer I FPSO in Block 237. highest-return in fairways,” Heinson said. Talos, which purchased Phoenix More than doubles Upper Eagle Ford The company has also drilled the location estimates to over 350. field from Helix in 2012, encountered vertical pilot hole of a four-well pad to more than 400 ft of true vertical pay in appraise the north-central area of the ranch, which indicated presence of both the Upper and the Pliocene sand in May and booked Middle Eagle Ford. The Middle Eagle Ford wells were completed, and results are expected reserves of 100 MMboe. Talos operates in Q4. The Upper Eagle Ford wells won’t be tested immediately, but Heinson said the well and owns 50% and is partnered with Deep log confirmed continuity of the zone from Western Catarina into the central acreage. Gulf Energy and Sojitz Energy Venture. In addition to step-out drilling, Sanchez also experimented with incrementally improving its completion design with encouraging results. Heinson said the company Regional Oil & Gas Intelligence October 30, 2015

has tested fluid changes on a few single wells with EUR uplift ranging 10-40% and SOUTHEASTERN SCOUT Serving the local market with drilling activity, permits & deals for sale Volume 78, No. 14 without increase to well costs. During Q4, Sanchez has begun to pump significantly Chevron finds 1,800-ft hydrocarbon column at Anchor (State Data) Regional ActivitySoutheastern The deepwater Anchor Scoutoil discovery in Dec.Chevron has used9 hubs to develop (10/01/15 to 10/27/15) the Lower Tertiary Wilcox trend may be other large GOM fields including the Compls Permits capable of supporting a hub development, nearby Jack/St. Malo project, which is larger and tighter space jobs, Heinson said, with results expected late in the quarter. Alabama – 5 according to Chevron. An initial appraisal also in the Lower Tertiary Wilcox trend. Mississippi – 23 well found 694 ft of net oil pay. 95 Permits; 46 TheCompletions; results confirm a Wilcox Partner says Anchor could be one of South Louisiana – 6 largest Lower Tertiary Wilcox finds yet. Sanchez expects to focus on South-Central Catarina area in 2017 along with its Southeast TX (RRC 3) 12 34 hydrocarbon column of at least 1,800 ft reservoirs at Anchor (55% WI) The supermajor holds 55% WI in Anchor Gulf of Mexico – 29 35 Rigs Running.and indicate that the reservoirs are well with partners Cobalt International Most Active Operators by Permits developed. Additional delineation wells Energy (20%), Samson Energy (12.5%) Cotulla area. Heinson said RORs in both are greater than 80% at current strip. ➊ BP E&P 6 and technical studies are planned to fully and Venari Resources (12.5%). ➋ Chevron 6 appraise the Gulf of Mexico discovery. Continues On Pg 3 ➌ Oak Grove Resources 5 BHP continues Shenzi drilling after hitting hydrocarbons Find more on the E&P arena at PermitsTo by learn Formation (by moreLast Scout) Nearly about five months afterPLS, the first call of spudded the713-650-1212 second one, which kicked off Formation 10/30 10/09 09/17 two offshore sidetracks—the Shenzi at 13,340 ft, in mid-August. Eagle Ford 6 12 10 North-ST1—came up dry, BHP Billiton The field’s total 3Q15 production was Pottsville 6 – 1 reported it has encountered was 3.28 MMboe according to BHP’s Wilcox 6 7 7 hydrocarbons with the second. Q3 operational update. Four months L Cretaceous 3 – – The company is drilling ahead Tuscaloosa 3 17 22 with the more promising Shenzi North-ST2 Sidetrack kicked off at 13,340 ft; Yegua 3 2 2 dry hole at 22,500 ft. Austin Chalk 2 – 2 in Green Canyon Block 609 in the Gulf of Cotton Valley 2 1 4 Mexico 122 miles south of New Orleans. into development, the field reached peak Buda 1 3 7 BHP began sidetracking an exploration production of 149,500 bo/d. In May, the Other Formations 65 74 80 TOTAL 97 116 135 well in June at Shenzi, its flagship project company reported production of 95,000 Sources: AOGB, BOEM, MSOGB, SONRIS & TXRRC in the deepwater Gulf, kicking off the bo/d and facility utilization of 80%. first sidetrack at 22,500 ft. The company Continues On Pg 3 Active Rigs Running (Baker Hughes) 74

GOM Top Operators -Number of Permits (YTD 2015) Deals For Sale 100 Gulf Of Mexico EAGLE FORD EAST PROPERTY Permits 90 3-Active. 11,262-Net Acres 76% HBP 89 AGUILA VADO, GIDDINGS & 80 85 --SOUTHERN BAY FIELDS PP BHP Billiton Brazos, Burleson, Lee, Bastrop & • BHP’s SB-201 at 70 77 73 --Fayette Cos., TX Shenzi was the Mostly Op WI; Varying NRI EAGLE 60 64 Gross Prod: 210 BOPD & 105 MCFD FORD first well to come 40 Hz Locations Exist - More If JV (660’) online after 2010 50 PP 5320DV GOM moratorium. ermits P 40 FAYETTE CO., TX PROSPECT 15+ Potential Wells. 2,500-Acres. Chevron 30 UPPER TEXAS GULF COAST • Chevron leads GLEN ROSE TREND DV 20 development of Glen Rose ‘’D’’ Zone. 12,500 Ft. the GOM’s Lower 17 100% OPERATED WI; 75% NRI GLEN 10 Expected IP: 250 BOPD & 435 MCFD ROSE Tertiary Wilcox Well Reserves: 250 MBO & 625 MMCF trend. 0 Anadarko Arena BHP BP Chevron Shell DV 2441 Oshore No Commission. Call 713-650-1212 Source: PLS Research All Standard Disclaimers & Rights Apply. Volume 27, No. 18 9E&P Gulf of Mexico Hummer discovery well flows 19.88 MMcf/d off Louisiana Anadarko adds firepower Petsec Energy released results from the production test of the Castex Offshore- operated Hummer discovery well in federal waters offshore Louisiana. The Main Pass onshore Continued From Pg 1 270 #3 well averaged a restricted 19.88 MMcf/d and 396 bbl/d of condensate over Offshore, the company announced the 48-hour flowback period. The gas rate reached a maximum of that its Warrior (65% WI) exploration well 20.5 MMcf/d. The well was perforated from 14,100 ft to 14,186 ft in Green Canyon encountered more than MD and 14,058 ft to 14,144 TVD in the Miocene sand. 210 net ft of oil pay in multiple Petsec said production will begin from the Hummer project in mid-2017. Originally high-quality Miocene reservoirs. drilled in late 2015 but suspended until a jacket was installed this fall, the discovery Consistent with its strategy this well is in 215 ft of water about 50 miles offshore Venice, Louisiana. The operator will year, Warrior will be tied back now install production facilities on the jacket, lay flow lines and connect to pipelines. to its Marco Polo platform in K2 field. Petsec, which holds 12.5% WI, identified the project with 3D seismic in 2010. Hummer Anadarko’s Warrior partners are Ecopetrol covers blocks 270, 273 and 274. Well logs indicated additional potential reservoirs. (20%) and Mitsubishi Corporation Although those won’t be tested at this time, the company said peak rates from those Exploration (15%). intervals can top 25 MMcf/d and 1,000 bbl/d of condensate. Encounters more than 210 net ft of oil Stone encounters leak at Amethyst, weighing options for well pay in Miocene at Warrior. Stone Energy, which filed for Chapter 11 protection this week, recently returned In Sigsbee Escarpment at the Phobos to its shut-in Amethyst well in Mississippi Canyon Block 26 for technical evaluation. (100% WI) appraisal well, Anadarko also The company began acid stimulation and intermittently flowed the well at 10-15 hit oil pay. The company encountered over MMcf/d. It then shut it in to record pressure and found that pressure 90 net ft in a Pliocene reservoir similar communication existed to nearby Lucius. Andarko said this between production Looking for partners at Rampart, Derbio and Lamprey prospects. secondary accumulation was present in tubing and casing strings that resulted the discovery well and may be tied back to from a suspected tubing leak. The company is weighing options for bringing the well the Lucius spar. The company continues to back online but is not certain it can or that a sidetrack would be economic. At YE15, drill in pursuit of the primary Wilcox target. Amethyst’s proved reserves were 79 Bcfe. “The successes to date at Warrior and The company said it still expects to resume platform drilling operations at Pompano Phobos further demonstrate the value of (100% WI) in early 2017. Three additional wells are to be drilled, each flowing 500- our assets in the deepwater Gulf of Mexico 1,500 boe/d. As for tiebacks to Pompano, the company said it was looking to reduce its working interest in both the Rampart and Derbio prospects in Mississippi Canyon Hits 90 net ft in Pliocene at Phobos, before commencing drilling in either. Stone is also looking for a partner at Lamprey. will continue to target Wilcox. and our tieback strategy. It also illustrates BOEM cuts off Arctic to drilling, will offer 10 Gulf sales why we have tremendous confidence in The Beaufort and Chukchi seas are off limits to drillers under BOEM’s 2017-2022 the potential of our ‘3 Ds’—the Deepwater, Outer Continental Shelf leasing program, but one auction in Cook Inlet in 2021 will be Delaware and DJ—to drive growth and offered. The program will also hold 10 auctions in the Gulf of Mexico. Interior Secretary value for many years to come,” Walker said. Sally Jewell said that declining industry interest was a factor in the department’s Arctic In Green Canyon at Heidelberg field, decision and that the program wanted to offer lease sales in places with the highest the company’s fifth production well resource potential but encountered more than 150 net ft of oil pay lowest risks to drilling. One lease sale in Cook Inlet will take place in 2021. so far. This well has defined the northern The announcement contradicted extend of the field. It is expected to come support for Arctic drilling that had been voiced earlier this fall by Obama administration online in early 2017. members. Preliminary versions had lease sales slated for the Beaufort Sea in 2020 and The Freeport deal added three the Chukchi Sea in 2022. Whether companies would have bid on blocks is unknown operated deepwater GOM facilities to given industry trends—Shell relinquished all but one lease in the Chukchi Sea this Anadarko’s portfolio, bringing its total spring—but some pointed to the program’s blow to the Alaskan economy and domestic to 10. Walker said the company’s large energy security. The Arctic Coalition, which includes members such as IPAA, called number of floating production facilities the decision a “kick in the gut.” The Trump administration could overturn the program. offers competitive advantage to leverage That effort, however, could be long and challenging given legally required public the infrastructure into attractive new comment periods and environmental reviews. investment opportunities. He added that In the Gulf, the administration changed its traditional approach of one separate sales hub-and-spoke opportunities can generate each year in the Western and Central Gulf and periodic sales in the Eastern Gulf. Instead, RORs greater than 50% at today’s prices. the program will offer two annual lease sales for the entire GOM not under moratorium.

For general inquiries, email [email protected] Access PLS’ archive for previous E&P news PetroScout 10 December 16, 2016 Western BLM changes regulations Laramie Energy to add a rig in the Piceance Basin for public land planning Laramie Energy will add a rig in the Piceance Basin during 4Q16, according to The BLM updated regulations equity partner Par Pacific Holdings (42.3%). The gas basin had been hit hard by low regarding public-land planning that are prices this year. Garfield is the only county in which rigs are active—two directional nearly 40 years old in a way the agency and one horizontal. Ursa Resources, Caerus Oil and Gas and Terra Energy Partners says will expedite the process and make have each been operating one rig, according to the Grand Junction Daily Sentinel. planning more accessible to the public. As of Oct. 1, only 100 wells had Changes include offering development been spudded or drilled in the county In first 9 mo. of 2016, Garfield Co. had alternatives earlier in the planning lowest new rig count since 1999 at 100 wells. this year, the lowest number since 1999’s process. Bureau Deputy Director Linda 94, according to the Colorado Oil and Gas Commission. In 2015, the count was 173. Lance said the intent is to air potential Garfield’s drilling activity peaked in 2008 at 1,689 wells. The county was the state’s issues early, reducing the potential for leading gas producer until being surpassed by oil-rich Weld County last year. About lawsuits and revisions later. 334 Bcf flowed from Garfield this year. Changes will offer development The Piceance contains the Mancos shale, which alternatives earlier in planning. the USGS said this year holds 66 Tcf of undiscovered, Regional Oil & Gas Intelligence November 17, 2015 WESTERN SCOUT technically recoverable resources. That is an incredible Serving the local market with drilling activity, permits & deals for sale Volume 02, No. 15 However, the fear from industry Chesapeake streamlines in Powder River but reports growth Regional Activity (State Data) Despite scaling back its Powder River ft laterals and 22 frac stages, which is the (10/17/15 to 11/11/15) operations in Wyoming earlier this year, same price as its 2014 wells, but averaged Compls Permits Chesapeake Energy reported a bump in 5,400-ft laterals and 20 frac stages. One groups and some congressional members increase from the agency’s 2003 estimate of 1.4 Tcf. California – 678 sequential production growth thanks to of Chesapeake’s recent completions, the Colorado Western24 147 achieving longer Scout laterals Dec. 7 Nevada – – Saw 5% Q3 production growth from and more frac stages at longer laterals, more frac stages. NW New Mexico 8 5 the same cost as previous Utah 13 26 wells. Chesapeake says its net Powder Barton 32-34-67 USA A 1H, was drilled is that the change will hurt energy Wyoming 1 480 The revision was the second-largest reassessment the River Q3 production averaged ~21,000 with a 9,500-ft lateral targeting the Niobrara. Most Active Operators by Permits boe/d, a 5% increase from Q2. It was turned to production in October with ➊ Aera Energy 185 The company’s YTD completed-well a 24-hour peak rate of 1,500 boe/d (85% ➋ EOG Resources 127 593 Permits;costs average 120 $10.6 million perCompletions; well 5,900 oil). Continues On Pg 3 ➌ Chevron 107 development by making environmental agency had ever made behind the 2011 reassessment of Permits by Formation (by Last Scout) SandRidge adds North Park Niobrara to portfolio An entry into a new play by SandRidge oil). SandRidge says the last six wells Formation 11/17 10/27 10/06 48 Rigs Running.Energy gives the company 136,000 mostly completed on the acreage had average Niobrara 216 83 93 contiguous acres targeting the Niobrara in 30-day rates of 577 boe/d, while previous Codell 157 78 63 north-central Colorado’s Jackson County. asset holder EE3 LLC reported two wells concerns more important and taking Diatomite 155 35 17 84 Tcf in the Marcellus shale of the Appalachian Basin. there with 24-hour Etchegoin & Chanac 119 12 1 EE3 reported two wells with 24-hour peak oil rates above Tulare 96 17 62 peak rates above 1,000 bo/d. Kern River 59 44 23 1,000 bo/d. Lance 53 23 9 The acreage, which is in the North Park According to SandRidge, the North Etchegoin 50 6 15 Basin between the DJ and Sand Wash Park Niobrara has similar geology to that authority away from field offices, Parkman 39 21 42 basins, has been mostly de-risked by 16 found in the DJ with five stacked benches Others 392 353 433 TOTAL 1336 672 758 horizontals producing 1,000 boe/d. at 5,500-9,000 ft, reservoir thickness Gulf of Mexico Sources: CDOC, COGCC, NCMR, NMOCD, The acquisition includes 54 sq mi exceeding 450 ft, more than 55 MMbo/ UDOGM & WOGCC of 3D seismic coverage and estimated section in place and overpressured reservoir Active Rigs Running (Baker Hughes) 73 proved reserves of 27 MMboe (82% exceeding 0.55 psi/ft. Continues On Pg 3 according to the Associated Press.

Recent Chesapeake Completions in Wyoming (05/22/15-10/08/15) Deals For Sale Total County Well Name Reservoir Depth BOPD MCFD EASTERN COLORADO ACREAGE 42,000-Acres Leasehold Position. Wyoming Sen. John Barrasso said BP sanctions $9B Mad Dog expansion Converse BartonContinued Unit #32-34-67 USA A 1H Niobrara 19,480 From1,306 1,296 MORGAN Pg & WASHINGTON 1 - DJ BASIN Converse Rochelle #14-33-69 A 1H Niobrara 14,665 1,223 3,437 CHEROKEE / MARMATON / ATOKA L Typical Shallow Depths of 6,500-7,500 Ft. Converse Combs Ranch #11-33-70 B 5H Niobrara 17,068 581 2,748 100% OPERATED WI; 77.5% NRI Converse Combs Ranch #11-33-70 B 2H Niobrara 18,331 395 2,345 Expected Vertical Well IP: 100 BOED OIL this move would take decision-making Converse Combs Ranch #10-33-70 A 8H Niobrara 20,450 286 2,130 Expected HZ Well IP: 280 BOED PLAY Current capacity is only 80,000 bo/d and 60 MMcf/d. Field-expansion discussionsGross EUR’s: 80 MBOE/Vertical Well Converse Combs Ranch #10-33-70 A 10H Niobrara 19,867 254 2,852 L 8439DV Converse Rochelle #11-33-69 A 1H Niobrara 14,926 1,400 2,953 EASTERN COLORADO PROSPECT Converse Combs #29-33-70 ST D SX 16H Sussex 16,834 1,074 3,015 525-Potential Wells. 42,000-Net Acres. power away from local land managers arose when appraisal drilling increased estimates of MioceneConverse Combs #29-33-70hydrocarbons D SX 12H Sussex 17,102 1,313 3,608 MORGANin & WASHINGTONplace COUNTIES to DJ BASIN Converse Combs #29-33-70 D SX 14H Sussex 17,754 888 2,298 Cherokee, Marmaton, Atoka. 7,000 Ft. DV Converse Combs #29-33-70 D SX 11H Sussex 17,453 845 2,233 100% OPERATED WI; 81.25% NRI DJ Converse Combs Ranch #21-33-70 USA A 4H Niobrara 17,352 1,056 2,714 Well Reserves: 100 MBOE/Well BASIN DV 1740L 4.0 Bbo in 2011 from an initial 1.5 Bboe. About 1 Bbo hasConverse Combs been Ranch #21-33-70 USA A 2H deemedNiobrara 20,058 1,186 2,750 recoverable. No Commission. Call 713-650-1212 Converse Combs Ranch #16-33-70 USA A 5H Niobrara 16,901 820 4,541 All Standard Disclaimers & Rights Apply. Source: WOGCC & PLS Research Some fear move will discourage Mad Dog was discovered in 1998 in Green Canyon, and first production followed in energy development. 2005. Production from the expansion would start in late 2021, three years after the company’s initial start-up target. and has vowed to reverse the move BP (60.5% WI, operator) Mad Dog 2 platform will flow 140,000 when Donald Trump takes office in bo/d from 14 wells. and its field partners—BHP January, according to the AP. The BLM Billiton (23.9%) and Chevron affiliate Union Oil Company of California (15.6%)— administers 28% of the state’s land and shelved the expansion project in 2013 because it was too complex and costly. Costs 65% of its minerals. “Massive landscape- have come down nearly 60% on a simplified, more traditional platform design rather scale plans directed from Washington, than a spar. BP says its current semisub design includes capacity for water injection and DC, are not the answer,” said Barrasso, is expected to be profitable at or below current oil prices, which spiked above $50 after chairman of the Subcommittee on Public OPEC agreed to a production cut. BHP and the Chevron affiliate have yet to make a Lands, Forests and Mining. decision on Mad Dog 2 but are expected to. Director Neil Kornze said the update Current Mad Dog processing capacity “Mad Dog Phase 2 has been one of would make the planning process, which is 80,000 bo/d, 60 MMcf/d. the most anticipated projects in the US currently takes eight years on average, deepwater and underscores our continued commitment to the Gulf of Mexico,” said more streamlined and transparent to Richard Morrison, president of BP’s Gulf of Mexico business. “The project team showed better address challenges. This land-use tremendous discipline and arrived at a far better and more resilient concept that we process generally affects 12 Western expect to generate strong returns for years to come, even in a low oil price environment.” region states and the Dakotas, and it Onshore shale may be cheaper to covers nearly 250 million acres. “The develop, but BP’s Mad Dog decision may Analysts say prices still too low for hope is we are going to shave years off quick Gulf re-entry. signal a return to the Gulf. Some analysts the process, not days,” Lance said. say prices are still too low for a quick re-entry. Quantum Reservoir Impact CEO Nansen Saleri told Reuters that a full return would require sustained prices above $60/ Call today! 713-650-1212 bbl. TPH said it expects Gulf FIDs to pick up the pace. Wood Mackenzie research manager Imran Khan told Reuters, “At the end of the day, these large companies need The Regionals– large projects, and deepwater is going to be where they are going to find these large Visit www.plsx.com to learn more! projects to move their needle.” Find more listings at No commission! List today, call 713-650-1212 Volume 27, No. 18 11 E&P

US Industry Activity as of December 16 Crude Production by State (bo/d) State Rigs Sep-16 Aug-16 Alabama 2 23,000 22,000 30-Day Rig Count & Change (Number, +/- as of Dec. 16, 2016) Alaska 6 452,000 459,000 0 31 Arizona 0 0 0 0 -3 Arkansas 2 14,000 14,000 0 California 6 511,000 513,000 0 18 31 Calif. Offshore 0 15,000 19,000 2 0 18 6 Colorado 27 322,000 323,000 1 0 1 10 4 27 0 Florida 0 5,000 5,000 0 1 -1 0 -1 7 - GOM 22 1,507,000 1,646,000 6 1 -2 0 Hawaii 0 0 0 32 78 2 -1 1 3 2 Idaho 0 0 0 1 Illinois 1 24,000 24,000 316 26 1 1 Indiana 2 5,000 5,000 6 41 -4 Kansas 1 96,000 97,000 -1 22 -1 Kentucky 0 6,000 5,000 Louisiana 26 156,000 151,000 Month/Year 12/16 12/15 12/14 12/13 Michigan 0 16,000 15,000 US Rig Count 637 709 1,875 1,782 Source: Baker Hughes Mississippi 3 58,000 59,000 Missouri 0 0 0 Montana 0 61,000 61,000 US Rig Count by Basin US rig count up 13 this week Nebraska 0 6,000 6,000 % after 27 rig jump last week Nevada 1 1,000 1,000 Basin New Last Chg The US onshore rig count rose 13 New Mexico 32 403,000 395,000 Barnett 3 2 50% rigs to 637 the week ended Dec. 16. New York 0 1,000 1,000 The rig count is down 72 since this North Dakota 31 962,000 974,000 DJ-Niobrara 24 18 33% time last year. Ohio 18 51,000 55,000 Oil rigs rose 12 sequentially to Oklahoma 78 415,000 427,000 Eagle Ford 44 38 16% 510, down 31 YOY, while gas rigs Pennsylvania 31 15,000 16,000 rose by one to 126, down 42 YOY. South Dakota 0 4,000 4,000 Fayetteville 1 1 0% The Permian Basin added 12 oil rigs Tennessee 0 1,000 1,000 and the Eagle Ford added one. The Texas 316 3,163,000 3,157,000 Granite Wash 14 11 27% Cana Woodford dropped three rigs Utah 4 83,000 83,000 while the Mississippian and Bakken Haynesville 27 23 17% Virginia 0 0 0 lost one each. The lone gas rig West Virginia 10 21,000 23,000 Marcellus 40 34 18% addition came in the Haynesville. The GOM has 22 rigs running. This is flat Wyoming 18 185,000 187,000 Mississippian 3 3 0% week-over-week and down two YOY. Total 637 8,582,000 8,748,000

Permian 258 229 13% US National Rig Count Utica 19 19 0% 2,050 $90 1,850 Oil: 510 rigs $75 Williston 31 34 -9% 1,650 Gas: 126 rigs 1,450 Misc: 1 rigs $60 Woodford 38 45 -16% 1,250 $45 1,050 Other 135 131 3% 850 Total: 637 rigs $30 650 Rig Count WTI $15 Grand Total 637 588 8% 450 250 $0 Sources: Baker Hughes Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16

For listing inquiries, email [email protected] Access PLS’ for featured deals for sale PetroScout 12 December 16, 2016

Eastern Scout Southeastern Scout Midcontinent Scout (Last Scout: 09/29/16 to 11/21/16) (Last Scout: 11/15/16 to 12/05/16) (Last Scout: 11/17/16 to 12/02/16)

Permits Compls Permits Compls Permits Compls State/Region (Number/change) State/Region (Number/change) State/Region (Number/change) Illinois 24/- -/- Alabama 3/- -/- Nebraska 6/1 -/- Indiana 14/7 14/8 Mississippi 43/18 1/2 Kansas 42/-8 59/-5 Kentucky 8/3 -/- South Louisiana 12/2 34/8 Oklahoma 76/8 44/-5 Michigan 3/-2 -/- Southeast TX (RRC 3) 17/-14 11/-1 North Texas (RRC 5) -/- -/- New York 5/3 -/- Gulf of Mexico 20/-3 -/- North Texas (RRC 7B) 14/-5 11/5 Ohio 54/-20 -/- New Permits by Formation North Texas (RRC 9) 14/-6 12/-8 108/20 -/- Pennsylvania Formation 12/09 11/18 10/27 TX Panhandle (RRC 10) 7/5 4/-4 Tennessee -/-6 -/- Selma 7 - - New Permits by Formation West Virginia 25/-22 3/-71 Eutaw 6 3 5 Formation 12/07 11/22 11/09 New Permits by Formation Wilcox 5 4 5 Mississippian 14 14 23 Formation 11/30 11/08 10/18 Miocene CALL 3 - - Bartlesville 11 8 2 713-650-1212 Utica-Point Pleasant 35 29 19 Smackover FOR YOUR 3 1 7 Squirrel 9 6 31 Ft. Payne 14 1 3 SAMPLE Frio 2 2 2 Woodford 8 7 5 Big Injun 7 1 - Heidelberg 2 1 - Sycamore, WDFD & 7 2 - Marcellus 7 28 6 Hunton Clinton 6 22 14 Woodbine 2 - 3 Cleveland 6 1 5 Warsaw 5 - 6 Tuscaloosa 1 9 2 Ex Chester & MSSPN 6 6 2 Huron 4 - - Others 64 72 65 Knox 4 9 9 Meramec & MSSPN 6 - - Pocahontas 3 - - TOTAL 95 92 89 Arbuckle 5 10 6 Others 156 168 157 Top Counties by New Permits Others 87 110 102 TOTAL 241 258 214 County State Perm. BHI Rigs TOTAL 159 164 176 Top Counties by New Permits Amite MS 16 - Top Counties by New Permits County State Perm. BHI Rigs Clarke MS 7 - County State Perm. BHI Rigs Susquehanna PA 20 2 Madison MS 7 - Kingfisher OK 20 15 Greene PA 18 7 Mississippi Canyon GOM 6 9 Grady OK 9 12 Washington PA 16 9 Top Operators by New Permits KS 7 - Belmont OH 15 9 Woodson Operator 12/09 11/18 10/27 Stephens OK 7 2 Top Operators by New Permits Encana O&G 16 7 - Top Operators by New Permits Operator 11/30 11/08 10/18 Aegis Operating 7 - - Pete's Pumping & Operator 12/07 11/22 11/09 EQT Production 36 3 21 Well Svc 7 - - Continental Resources 10 3 9 SWN Production 23 28 12 Shell 7 6 6 Marathon Oil 10 3 2 Campbell Energy 11 3 21 Cargill Inc 5 - - Midstates Petroleum 6 1 - Hilcorp Energy 11 1 - Chevron 4 3 3 Range Resources 10 15 5 Jones Energy 5 - 5 Top Counties by Rig Count Top Counties by Rig Count Top Counties by Rig Count County State 12/09 11/11 10/21 County State 11/25 11/04 10/14 County State 12/02 11/18 11/04 Mississippi GOM 9 8 8 Belmont OH 9 5 5 Canyon Kingfisher OK 15 13 11 Washington PA 9 10 10 Green Canyon GOM 5 6 7 Blaine OK 15 17 17 Greene PA 7 5 4 Matagorda RRC 3 2 - - Grady OK 12 13 14 Monroe OH 4 4 4 Walker Ridge GOM 2 2 2 Canadian OK 6 3 3 Tyler WV 4 4 4 SOUTHEASTERN 35 35 39 Dewey OK 5 6 6 EASTERN 61 55 53 Sources: BHI, AOGB, BOEM, MSOGB, SONRIS, MIDCONTINENT 99 95 92 Sources: BHI, DNR IL, DNR IN, KYEEC, MI & TX RRC Sources: BHI, KS KCC, NOGCC, OK OCC & TX MDEQ, NYSDEC, ODNR, PADEP, TDEC & WVDEP RRC

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Ark-La-Tex Scout Permian Basin Scout (Last Scout: 11/04/16 to 11/29/16) (Last Scout: 11/03/16 to 12/09/16) Drilling & Permit Data Viisit:sit: wwwwww.p.plsx.clsx.coom/regionalm/regionals Permits Compls Permits Compls State/Region (Number/change) State/Region (Number/change) Arkansas 10/-5 31/9 West Texas (RRC 7C) 26/16 18/7 Eastern Scout tracks the Marcellus, Utica and other North Louisiana 34/7 9/-9 West Texas (RRC 8) 166/37 85/29 legaclegacy plaays.ys. East Texas (RRC 5) 2/-2 3/1 West Texas (RRC 8A) 46/25 8/-10 East Texas (RRC 6) 20/5 7/-12 SE New Mexico 21/1 9/-22 New Permits by Formation New Permits by Formation Formation 12/02 11/10 10/24 Formation 12/16 12/01 11/17 Southeastern Scout 98 47 129 tracks the Tuscaloosa Shale and legacy Haynesville 19 16 19 Spraberry cconventionalonventional playsplays. Cotton Valley 11 5 4 Wolfcamp 59 56 71 Nacatoch 8 - - San Andres 14 4 4 Wilcox 6 2 4 Bone Spring 11 11 16 Moorefield 4 1 - Clear Fork 7 - 10 CALL 4 4 9 Pettit 713-650-1212 3 4 3 Wolfbone MidContinent Scout Travis Peak FOR YOUR 2 4 4 Canyon 3 3 1 tracks the Mississippian, Granite Wash, SAMPLE Woodoodfordford anandd ootherther plplaayyss. Fayetteville 1 11 - Delaware 3 1 5 Woodbine 1 1 1 Wichita Albany 3 - 3 Others 11 17 45 Others 57 54 57 TOTAL 66 61 80 TOTAL 259 180 305 Top Counties by New Permits Top Counties by New Permits Ark-La-Tex Scout tracks Fayetteville, Haynesville and County State Perm. BHI Rigs County State Perm. BHI Rigs otherother traditionaltraditional ETETX playplayss.. DeSoto NLA 10 8 Martin RRC 8 36 21 Caddo NLA 9 2 Midland RRC 8 22 30 LaSalle NLA 7 - Reeves RRC 8 22 38 San Augustine RRC 6 6 2 Lea SENM 20 18 Panola RRC 6 5 2 Howard RRC 8 19 16 Permian Scout tracks the Permian Basin and other Top Operators by New Permits Top Operators by New Permits new and legag cyyp plays.y Operator 12/02 11/10 10/24 Operator 12/16 12/01 11/17 Bayou State Oil 8 - - Kinder Morgan 26 1 9 Indigo Minerals LLC 8 7 3 QEP Energy 21 - 3 Apache Corp 14 6 8 Cavalcade Operating 6 - - South Texas Scout Tanos Exploration 6 1 3 Pioneer Natural Res 11 11 20 tracks the Eagle Ford and other new aandnd lelegagaccyy playplayss.. SEECO 5 12 - XTO Energy 11 12 15 Top Counties by Rig Count Top Counties by Rig Count County State 12/02 11/11 10/21 County State 11/25 11/11 10/28 RRC 8 38 5 28 DeSoto NLA 8 6 6 Reeves Midland RRC 8 30 31 32 Bakken Scout Red River NLA 4 4 4 tracks Bakken, Three Forks and other Loving RRC 8 23 17 18 new and legacy plays. RRC 5 3 4 3 Robertson Martin RRC 8 21 22 22 Lincoln NLA 3 4 2 Lea SENM 18 15 18 ARK-LA-TEX 39 38 35 244 226 216

Sources: TXRRC, SONRIS, BHI & AOGC Sources: BHI, NMOCD & TXRRC Western Scout tracks Niobrara, Four Corners and Western US plays. Want more? Visit www.plsx.com Subscribe Now! Find these stories & more, 24/7/365 in the PLS online publication archive. Call 713-650-1212

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South Texas Scout Bakken Scout Western Scout (Last Scout: 10/31/16 to 11/17/16) (Last Scout: 11/17/16 to 12/08/16) (Last Scout: 11/05/16 to 11/29/16)

Permits Compls Permits Compls Permits Compls State/Region (Number/change) State/Region (Number/change) State/Region (Number/change) South Texas (RRC 1) 61/-12 34/-38 Montana 7/-3 -/- California 170/-19 -/- South Texas (RRC 2) 58/16 28/7 North Dakota 174/8 19/-6 Colorado 198/32 60/35 South Texas (RRC 3) 5/-1 -/-4 South Dakota -/-1 -/- Nevada -/- -/- South Texas (RRC 4) 15/-5 12/-15 New Permits by Formation NW New Mexico -/-1 4/-1 New Permits by Formation Formation 12/13 11/21 11/01 Utah 7/3 12/12 M Bakken 25 25 26 Wyoming 218/-200 44/25 Formation 11/28 11/04 10/13 Three Forks 22 13 15 New Permits by Formation Eagle Ford 82 103 88 Three Forks B1 22 20 17 Austin Chalk 13 8 1 Bakken 19 20 29 Formation 12/07 11/15 10/25 41-A & 98-A Cons 8 - - Pronghorn 4 - - Niobrara 169 260 263 Pettus 2 - - Dakota 3 1 2 83 19 37 Frio 1 2 1 Three Forks B2 2 4 11 Williams Fork Georgetown 1 - - Bowes 1 - 2 Diatomite 43 4 14 Olmos 1 - - Wayne 1 - - Lance 37 28 31 Others 82 94 89 Wilcox 1 - 4 Codell 32 80 160 1 1 - TOTAL 181 177 191 Woodbine Kern River 21 32 13 Others 29 27 28 Top Counties by New Permits Parkman 18 14 20 TOTAL 139 141 122 County State Perm. BHI Rigs Tulare 13 34 16 Top Counties by New Permits Dunn ND 46 8 CALL Turner 13 58 34 County State Perm. BHI Rigs McKenzie 713-650-1212 ND 41 15 FOR YOUR Others 164 249 286 Karnes RRC 2 10 36 Williams SAMPLE ND 40 4 TOTAL 593 778 874 Dimmit RRC 1 4 16 Mountrail ND 31 2 Jackson RRC 2 1 12 Billings ND 8 - Top Counties by New Permits La Salle RRC 1 8 10 Top Operators by New Permits County State Perm. BHI Rigs Top Operators by New Permits Operator 12/13 11/21 11/01 Kern CA 94 3 Weld CO 91 17 Operator 11/28 11/04 10/13 Oasis Petroleum 20 11 6 Garfield CO 87 3 Marathon Oil 18 21 21 Burlington Resources 14 18 5 Converse WY 78 6 EOG Resources 14 13 18 Hess Corp 14 10 1 Campbell WY 53 2 Hilcorp Energy 11 4 4 XTO Energy 14 - 11 Chesapeake 10 10 3 Crescent Point Energy 13 - - Top Operators by New Permits Encana O&G 9 - 8 Top Counties by Rig Count Operator 12/07 11/15 10/25 Top Counties by Rig Count County State 12/09 11/18 10/28 Wave Petroleum 57 24 11 Caerus Piceance LLC 56 19 - County State 11/25 11/04 10/07 McKenzie ND 15 14 11 Chevron 52 75 60 Karnes RRC 2 10 7 6 Dunn ND 8 10 10 Anschutz Oil 41 - 43 La Salle RRC 1 8 9 8 Williams ND 4 5 5 EOG Resources 36 31 32 Webb RRC 4 6 5 4 Mountrail ND 2 2 3 Dimmit RRC 1 4 4 3 BAKKEN 32 34 35 Top Counties by Rig Count McMullen RRC 1 3 2 5 Sources: BHI, MBOGC, NDIC & SDDNR County State 12/02 11/11 10/21 DeWitt RRC 2 3 3 3 Weld CO 17 15 17 SOUTH TEXAS 45 42 40 Converse WY 6 4 4 Sources: TX RRC & BHI Call today! 713-650-1212 Sublette WY 6 8 7 Kern CA 3 3 3 The Regionals– Garfield CO 3 3 3 A unique platform that reaches WESTERN 48 46 48 WANT MORE NEGOTIATED local operators and oilfield service DEALS FROM PLS? Sources: BHI, COGCC, DOGGR, NDOM NV, companies. Visit www.plsx.com NMOCD, UDOGM & WOGCC Visit www.plsx.com/deals

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ARKANSAS MULTISTATE GULF COAST SOUTH TEXAS SOUTH ARKANSAS PROSPECT TEXAS & LOUISIANA SALE PACKAGE JACKSON CO., TX PROSPECT >30,000-Acres. 24-Producing Wells. ~4,231-Net Acres. 80-Acres. SMACKOVER DV PROLIFIC NORTH MILTON FIELD PP SWAN LAKE FIELD DV Recent Oil Field Discovery. STACKED PAY OPPORTUNITY LOWER FRIO OIL Target Depths: 4,700 Ft. - 5,700 Ft. SMACKOVER Wilcox Sands. 9,800-15,000 Ft. Primary Obj: Frio At 8,700’ Sand 40 Acre Spacing Per Well. Numerous Recompletion Candidates 3D Seismic & Subsurface Geology SEEKING DRILLING PARTNER CALL -- in Wilcox L-2, L-4, L-5, L-7 & L-8 Sands 3.3 100% WI AVAILABLE; 74% NRI Potential Cumulative Prod: 3.0 BBO PLS FOR Upside in Opossum & Pinehurst Fields MMCFED Estimated Production: 120 BOPD FRIO 50% OF PROSPECT HAS BEEN SOLD INFO 100% OPERATED WI; 81.2% NRI Potential Reserves: 316 MBO & 833 MMCF DV 2164 May 2016 Net Production: 3.3 MMCFED G&G, Land & Seismic: $80,000 Total Proved Reserves: 20,625 MMCFE Drilling: $600,000; Compl: $400,000 EAST TEXAS Net Proved PV10 Value: $18,122,000 CONTACT SELLER FOR MORE INFO PP 1891DV DV 1343 HENDERSON CO., TX PROSPECT 1,018-Gross Acres. 783-Net Acres. SOUTH LOUISIANA STARR CO., TX RECOMPLETION EAST TEXAS BASIN DV Recompletion Opportunity. DV Rodessa, James Lime & Travis Peak. POINT COUPEE PH., LA PROSPECT TEXAS GULF COAST 100% OPERATED WI FOR SALE RODESSA 1-Shut-In Well. Acreage HBP. Target Depth 3,700 Ft. RECOMPLETE Leases Can Deliver 78%-81.33% NRI. TUSCALOOSA GAS SAND TREND DV 100% OPERATED WI; 70% NRI DV 8733L FALSE RIVER FIELD BIDS DUE DEC 30, 2016 NO Target Depth: 19,450 Ft. - 19,900 Ft. DV 1921RE COMMISSIONS NORTH LOUISIANA Lease Can Deliver 75% NRI TUSCALOOSA Sidetrack Previous Prod: 4,000 MCFD ZAVALA CO., TX PROSPECT NORTH LOUISIANA PROSPECT Resource Potential: ~100 BCF 3-Potential Wells. 220-Acres. 4-Prospects. 1,950-Gross Acres. 1,800-Net Acres. DHC: $6,558,000; Compl: $1,809,000 SOUTH TEXAS DV DESOTO & SABINE PARISHES DV DV 1892RE Anacacho Lime At 1,600 Ft. HAYNESVILLE SHALE San Miguel Sand At 1,570 Ft. Targets: Haynesville, Bossier & Cotton SOUTH TEXAS Olmos & Escondido Potential Valley Formations HAYNESVILLE 60% OPERATED WI; 75% NRI SAN Leasehold Can Deliver 75% NRI BEE CO., TX SALE PACKAGE Expected IP Rates: 200 MCFD MIGUEL Primary Lease Term Expiration 2017-2018 37-Total Wells. 4,230-Gross Acres. Est Well Reserves: 200+ MMCF DV 5864 HEARD RANCH FIELD PP Est Project Reserves: 600+ MMCF 25-Active Wells. 1-SWD. DHC: $108,000/Well; Compl: $82,000/Well ALABAMA Producing From Multiple Stacked Frio Sands DV 2483 14 Behind Pipe Opportunities. CENTRAL ALABAMA CBM ASSETS ~76-89% OPERATED WI; ~56-66% NRI FRIO SOUTHEAST TEXAS >80,000-Net Acres (100% HBP). Dec 2016 Proj’d Net Prod: 2 BOPD & BLACK WARRIOR & CAHABA BASINS PP 1,500 MCFD DEALS JASPER CO., TX PROPERTY Multiple Counties. Net Reserves: 3.1 BCFE FOR 1-Producing Well. 60-Acres. SALE Producing From 2,000 Ft. - 4,000 Ft. Depth Behind Pipe Net Reserves: 2.1 BCFE GULF COAST PP >350 Quantified Drilling Locations. PP 1443DV Producing From Y-8 Sand. Includes Meaningful ORRI Position. 18,500 Multiple Payzones Behind Pipe. 65-100% OPERATED WI; 50-87.5% NRI MCFD BROOKS CO., TX MINERALS Leases Are Surface To 7,710 Ft. 30 Recent Net Production: 18,500 MCFD 4,572-Net Mineral Acres. 100% OPERATED WI; 73% NRI BOPD Forecasted 2017 Cash Flow: $1,000,000/Mn QUEEN CITY GAS PLAY M Avg Gross Production: ~30 BOPD AGENT WANTS OFFERS JAN 12, 2016 Oakville, Frio/Vicksburg, Jackson, Yegua Avg Lease Operations: ~$4,000/Mn PP 2806DV & Queen City Through Cook Mountain PP 1213DV 47.5% MINERAL INTEREST AVAILABLE QUEEN MULTISTATE GULF COAST CONTACT SELLER FOR UPDATE CITY MATAGORDA CO., TX PROSPECT M 1861AU 5-Potential Wells. 884-Acres. CERTIFIED PETROLEUM GEOLOGIST GULF COAST BASIN DV Screening Prospects/Properties For Acquirers CALHOUN CO., TX PROSPECT 7 Objectives In Frio/Tex-Miss Formations SOUTHEAST TX & SOUTH LA JOB 3-5 Potential Wells. Open Acreage. Target Depths: 9,500 Ft. - 16,000 Ft. -- Trinity University, SWTSU SOUTH TEXAS GULF COAST DV 3D Seismic, Subsurface Geology & -- B.A. In Remote Sensing SCREENS Miocene Sands At 3,000 Ft. - 4,500 Ft. Geophysics Data Available GULF 38 Yrs Seismic Acquisition, Data -- PROSPECTS 3D Seismic, Subsurface Geology & 75% NonOperated WI AVAILABLE COAST Processing, 2D & 3S Seismic Interpretation. -- Geophysics Data Available MIOCENE Est Well Reserves: 840 MBO & 15.4 BCF Consultant: SCA & Knowledge Reservoir 85% OPERATED WI; 75% NRI Est Project Rsrvs: 4.2 MMBO & 77.32 BCF Clients: ExxonMobil To Small Operators Est Net Well Reserves: 375 MBO/Well DV 2260 -- & Mineral Interest Owners Est Net Project Reserves: 1,500 MBO Member Of HGS, SIPES, AAPG & SPE DHC:$ 425,000; Compl: $475,000 More listings at plsx.com/listings JOB 2601W DV 1928

For listing inquiries, email [email protected] Access PLS’ for featured deals for sale PetroScout 16 December 16, 2016 Western Drilling & Production Extraction completions show 20-50% improvement in EURs ■■ US Oil Sands will postpone start- Extraction Oil & Gas reports that enhanced completions in the DJ Basin are up of its PR Spring oil sands project in yielding 20-50% uplift in EUR. The company determined enhanced completions Utah until it has closed $7.5 million in are most effective in low-GOR areas of the Niobrara, and it has already begun a financing it needs to wrap up 48-well program to test the design in its Windsor area. Extraction the project. Only 35 of 996 said it will also test one Codell enhanced completion based on total commissioning steps strong performance in that formation by remain. They involve introduction of other operators. Tests proppant over 1,500 lb per foot; liquids and solids into the system and laterals average 6,000 ft. CEO Mark Erickson said that his are costly. The company hopes to bring company had intended to incrementally test enhanced completions, but that it has employees back for first oil in 2017. The become clear a full transition to the newer design is needed. Proppant load is over project is initially expected to produce 1,500 lb per foot. Laterals average 6,000 ft. The current Niobrara type curve for a 2,000 bo/d while a second phase will 1.5-mile well with standard completion target up to 10,000 bo/d. 85% of 2017 completions will be is 569,000 boe. enhanced; exit rate to double YOY. People & Companies The company expects that 85% of ■■ ExxonMobil Production Company its 2017 completions will be enhanced, leading to a production ramp-up in 2H17. President Tom Walters will retire after Extraction expects to exit 2017 at 65,000-70,000 boe/d—double 2016’s exit rate. 38 years of service. Walters will be The company also anticipates 2018 production to be up 75% from 2017’s average replaced by Neil Duffin, who is currently 48,000-54,000 boe/d. president of ExxonMobil Development A third drilling rig will be added in 1Q17 rather than mid-year as previously Company. Duffin was also elected to be planned. The company plans to drill 185-190 wells, complete 190-195 and bring VP of the corporation. The development 145-150 online. Its operated D&C capex will be $675-77 million in 2017. company’s VP, Liam Mallon, will move Alaska into the president role. All changes are Alaska will make well and seismic data public effective Jan. 1. ■■ Chesapeake Energy named E&P companies will soon be able to access certain well and seismic data related Gloria R. Boyland to the board of to Alaska oil fields. The Department of Natural Resources is releasing data collected directors, effective Nov. 30. Boyland in relation to its oil development tax credit program in an effort to attract new E&P will serve on the Audit companies to the state. The goal is to level the playing field for smaller players Committee and stand for to compete with industry majors and re-election at the annual spur activity. Aim is to spur interest in Alaska O&G development by smaller companies. shareholders meeting May 19. She is The release of seismic data in currently corporate VP of operations and particular is new—a 2003 rule under the tax credit program requires a 10-year waiting service support for FedEx. In a separate period before that data can become public. Well data can be released after two years. board move, Kimberly K. Querrey has “This expands the database for all resigned from the board because of Seismic data coming out for first time players rather than the information after 10-year waiting period. other commitments. being concentrated in the hands of a few companies that have been here a long time,” said Paul Decker, a petroleum geologist with the Alaska Division of Oil and Gas, told Alaska Dispatch News. The first data www.plsx.com coming out will cover two dozen projects, the newspaper reports. The data will go to Geologic Materials Center in Anchorage, Decker told ADN. Public data valuable as seismic is too expensive to shoot for some. One company told the paper it was interested in seeing seismic that was shot south of the North Slope village of Nuiqsut by Fairweather Geophysical and Veritas DGC. Anchorage-based Great Bear Petroleum operates 570,000 acres in the area, which is just south of prolific Prudhoe Chesapeake GO Bay and Kuparuk fields, and has spent $150 million shooting its own seismic but not in that specific area. CCO Pat Galvin said it was too expensive and isolated. Last PLS provides clients with research, insight & transaction opportunities… year, the company and new partner Otto Energy said they were pursuing a three- well program on the North Slope. 24|7|365 Source information at www.plsx.com Information. Transactions. Advisory. Call 713-650-1212

Find more on the E&P arena at To learn more about PLS, call 713-650-1212 Volume 27, No. 18 17 E&P Gulf of Mexico & Alaska Project Updates Database wire.plsx.com

Date Location Abstract Exploration & Production Drilling has commenced at the field of BlueCrest's first new development well. It expects to complete the well and put it on stream towards the end of 1Q17. BlueCrest plans to drill as many as 5 wells at Dec. 11 Cook Inlet the field, 2 as laterals from existing wells and the others as directional wells targeting the reservoir at about 7,000 ft depth, then drilling horizontally to tot. 24,000 ft MD. Green Canyon- The $9B EPIC contract for Mad Dog Phase 2 will likely go forward as soon as BP’s partners approve Dec. 9 Mad Dog the field's expansion. Mississippi Stone initiated acid stimulation work and intermittently flowed the Amethyst well during Nov. 2016 Dec. 5 Canyon-Ameythst at a rate of 10–15 MMcfd, while observing and evaluating the well's performance. Permitting remains on track for completion well ahead of the scheduled spud date for Icewine-2 in Dec. 2 North Slope late 1Q17. Final processing of the Icewine 2D vibroseis data acquired by 88 Energy during 1H16 was successfully completed in November. ConocoPhillips intends to resume drilling at its 1H NEWS viscous oil development at Kuparuk Nov. 25 Kuparuk in 2018. Greater Mooses ConocoPhillips will start up Greater Mooses Tooth 2 in 2020 and will cost an estimated $1B to put into Nov. 25 Tooth production. However, the permitting process could push back the date of first oil. According to the operator, theproject features a more cost-effective well design, which requires Dec. 15 Walker Ridge- fewer materials and lowers installation costs; this is expected to deliver up to $ B in reduced Stones well costs once all the producers are completed. General Information ExxonMobil abandoned a portion of the Julia-105 well after formation fluids entered the wellbore. Dec. 7 Walker Ridge-Julia The well has been stabilized. Mississippi Canyon- Dec. 7 Thunder Horse Regulators are investigating a 175 bbl leak of drilling fluid. There was no impact on production. Hess has sued Schlumberger over faulty valves resulting in lost production, expensive repairs and Dec. 2 Mississippi Canyon- project delays. The valves have cost at least $115MM, not counting production. I will take 125 days to fix Tubular Bells the problem. Aliso Canyon- Agencies expect to complete their safety review in early 2017, preventing SoCalGas from injecting Dec. 1 California gas into the Los Angeles storage facility. Lease Sales California Gov. Jerry Brown is urging Obama to permanently ban O&G leasing off the state's coast. Dec. 13 Pacific The state's coast was excluded from the 2017-2022 Outer Continental Shelf leasing plan. An area of 40,300 sq mi on the Outer Continental Shelf off western Alaska, known as the “Northern Dec. 9 Alaska Bering Sea Climate Resilience Area”, has been created by President Obama and will be excluded from future lease sales. BOEM has awarded all 24 leases on tracts covering 138,240 acres to high bidders who participated in Nov. 18 Central GOM LS 248. The highest bid accepted was $1.12MM submitted by ExxonMobil for East Breaks 590. BHP Billiton Petroleum (Deepwater) submitted 12 of the 24 bids. Share Changes Mitsui Oil Exploration reached agreement with Shell to acquire 20% WI of Shell's Kaikias and Circius Dec. 9 Mississippi Canyon 100% owned assets through MOEX North America. Kaikias Field lies in MC-768, MC-811, MC-812 767 blocks, while Circius Field lies in MC-767 Block. Walker Ridge-St. Petrobras is close to selling its 25% WI. The ultra-deepwater field is one of 5 projects excluded from a Dec. 9 Malo court-ordered freeze on Petrobras asset sales due to the advanced stage of negotiations. Contracts Desoto Canyon- Subsea Integration Alliance announced industry’s first deepwater integrated subsea EPCIC multi- Dec. 5 Dalmatian phase boosting system award. Mississippi Jacobs Engineering Group has been awarded a contract from Shell for its Vito host project. Jacobs Nov. 29 Canyon-Vito is delivering a FEED package and detailed engineering for platform topsides. See more at wire.petrowire.com Email [email protected] to begin your trial!

For general inquiries, email [email protected] Access PLS’ archive for previous E&P news PetroScout 18 December 16, 2016 People & Companies Exxon CEO Tillerson chosen West Texas Resources moves from acquisitions into operating as Secretary of State West Texas Resources, which was founded in 2010 and has been acquiring mineral ExxonMobil Chairman and CEO and lease interests since, is now an operating E&P company. The Frisco, Texas-based Rex Tillerson has been tapped to lead company formed WTXR Operating (WTXR), a wholly owned subsidiary that will the US State Department in the coming operate its Texas wells. WTXR will begin operating West Texas’ several leases in Trump administration. The industry South Texas and one lease in East Texas. veteran entered the The operated Dora Hastings lease in Will operate South Texas lease, which interview process holds Austin Chalk upside. South Texas was acquired from a private later than other candidates, including independent Dec. 1. The 178 acres in Wilson County currently has two wells producing former NYC mayor Rudy Giuliani from the Poth B formation, but it features upside in several plugged and abandoned and former Massachusetts governor Austin Chalk wells. The East Texas lease (25% WI) is in Gregg County. Mitt Romney, but quickly won the The company also owns mineral interests in more than 37,000 acres in Montana president-elect’s approval. Trump touted and the Dakotas; minority stakes in a central Texas oil well in Eastland County, Stansell Tillerson’s “tenacity, broad experience field in Floyd County, and Wolfcamp mineral acreage; and a Louisiana project.Lucas and deep understanding of geopolitics,” Energy founder William Sawyer recently joined the company as president, CEO and noting his experience in managing a a board member. Former president and CEO J.D. Kerr continues to serve as CFO and global enterprise. a board member, the company said in an SEC filing. Tillerson’s appointment to Secretary of State faces Senate approval. The Eastern supermajor operates in more than 50 Cabot to drill 70 net wells in Marcellus & Eagle Ford in 2017 countries, which has given Tillerson Cabot Oil & Gas released its initial 2017 outlook, which includes anticipated 5-10% relationships with many foreign leaders. production growth on E&P spending of $575 million. The company will spend 79% of Tudor Pickering Holt & Co. pointed its capex in the Marcellus and out: “a global oil and gas executive 21% in the Eagle Ford. In the Capex set at $575MM; will complete should have a pretty good idea about how 50 net Marcellus wells, 25 net EF. Marcellus, Cabot expects to the world works.” drill 55 net wells and complete 50 net wells. In the Eagle Ford, it will drill 15 net wells and Exxon announced that Darren Woods complete 25. Laterals will average 8,000 ft for Marcellus wells and 9,000 ft in the Eagle Ford. will succeed Tillerson as chairman and Cabot said $225 million of its capex will be CEO of the company. Woods is currently slated to hold production flat from its YE16 exit Regional Oil & Gas Intelligence November 10, 2015 Exxon’s president and has been with the EASTERN SCOUT rate. During Q4, the company expects to produce Serving the local market with drilling activity, permits & deals for sale Volume 02, No. 15 company since 1992. EQT encouraged by ongoing deep Utica results Regional Activity (State Data) Just a few months after bringing its per 1,000 ft of lateral for the Scotts Run (10/05/15 to 11/04/15) record-breaking dry gas Utica well online, well. The company says that at present, the Compls Permits EQT Corp. is banking on the play as a well is flowing into the sales pipeline at a 1.65-1.73 MMcf/d; 8,500-9,000 bbl/d crude oil and Illinois – 23 potential paradigm shifter. choke-restricted rate of 30 MMcf/d. Indiana Eastern– 9 The company Scout has suspended Nov. 30 Kentucky – 31 drilling outside of its core Well tested at 72.9 MMcf/d flowing to New York – 2 sales at choke-restricted 30 MMcf/d. Ohio – 78 area in southwestern Pennsylvania and Pennsylvania – 166 West Virginia to switch its focus to wells “A year ago, it would have been hard condensate; and 1,000-1,050 bbl/d of NGLs. The Tennessee – 4 with the highest returns. to imagine a more prolific play than the West Virginia 51 53 Back in July, EQT tested the Scotts Run Marcellus. However, if the deep Utica works, Most Active Operators by Permits #591340 in Greene County, Pennsylvania, it is likely to be larger than the Marcellus over ■■ Murphy Oil’s board of directors have 241➊ EQT ProductionPermits;27 at a 24-hour 17 rate of 72.9 MMcf/d.Completions; Reservoir time,” CEO David Porges said on EQT’s Q3 ➋ SWN Production 24 modeling suggests an EUR of 4.3-5.9 Bcf earnings call. Continues On Pg 14 remainder of capex will be used for incremental ➌ Titusville O&G 20 Permits by Formation (by Last Scout) Gulfport cutting back on eastern Ohio production In its Q3 results update, Gulfport The company drilled 15 Utica wells in elected Eugene T. Coleman and Michael 61Formation Rigs11/10 10/20 Running.09/28 Energy announced it is cutting 100 Q3 and began production on 16 more, and Marcellus 25 27 32 MMcf/d, or ~15%, of its Utica shale it dropped drilling costs 5-8%. Last month, Clinton 19 20 17 production in Ohio until early 2016. The Gulfport entered into a Utica shale JV growth that would yield 15-25% growth in 2018. Utica/Point Pleasant 18 48 31 Knox GP 17 16 4 company hopes gas prices will rise and with Rice Energy for a dry gas gathering Point Pleasant 17 24 11 says it will save $500,000/well by not system. The project, in K. McFadyen as EVPs of the corporation. St Louis 10 4 2 fracking this winter. which Gulfport has a Trenton 9 4 2 25% stake to Rice’s 75%, Will no longer be adding a fifth rig Warsaw 6 3 4 includes the system with a capacity of more Aux Vases 4 3 2 to Utica; will continue running four. Other Formations 241 260 237 than 1.76 Bcf/d and more than 165 miles TOTAL 366 409 342 Gulfport says it has scrapped its plans of pipelines with multiple connections Coleman will oversee What the Analysts Are Saying About E&P Source: Illinois DNR, Indiana DNR, KYDOG, to add a fifth rig to its Utica program to interstate lines, 50,000 horsepower of NYSDEC, ODNR, PADEP, TDEC & WVDEP and will instead continue to run four. A compression for gathering and delivery, Active Rigs Running (Baker Hughes) 68 fracking crew will also be idled. and a fresh water distribution system. Dry Gas Utica - Top Wells Deals For Sale offshore and McFayden Peak Rate Peak Rate Lateral Well Name County Operator (MMcfe/d) (boe/d) Length Stages MERCER CO., OH PROSPECT 10,000-Contiguous Acres. Devon Energy (DVN; $47.31-Dec. 7; Neutral; PT: $39)Scotts Run Greene, PA EQT 72.9 12,150 3,221 N/A SHALLOW TRENTON DV HISTORICAL OIL PLAY Claysville Sportsman 11H Washington, PA RRC 59.0 9,833 5,420 N/A onshore. They currently Shallow Trenton Blanket. 1,100 Ft. Stewart Winland 1300U Tyler, WV MHR 46.5 7,750 5,289 22 100% OPERATED WI AVAILABLE TERMS NEGOTIABLE TRENTON Leonard downspacing success yields inventory expansionBigfoot #9H Belmont, OH RICE and41.7 6,948 bodes6,957 40 CONTACT LEASEwell OWNER FOR INFO for DV 3012L Yontz 1H Monroe, OH AR 38.9 6,483 5,115 N/A serve in those roles for subsidiary Murphy WESTERN PA MARCELLUS LEASE Blake U-7H Marshall, WV GST 36.8 6,133 6,617 N/A 417-Acres. Stalder #3UH Monroe, OH MHR 32.5 5,417 5,050 20 EXCO NOT RENEWING L peers: Results from DVN’s Thistle spacing pilot in SW Lea County, NM (testingARMSTRONG COUNTY 400-ft. Rubel 1H Monroe, OH AR 31.1 5,183 6,554 N/A Available Due to Vertical Pugh Clause. Includes Burkett & Utica Shale. MARCELLUS/ Exploration & Production. McFayden Rubel 2H(2) Monroe, OH AR 30.9 5,150 6,571 N/A GROUND FLOOR OPPORTUNITY UTICA NRI And Terms Are Negotiable. Irons #4H Belmont, OH GPOR 30.3 5,050 6,629 23 L 6947 vertical spacing between the Leonard B/C intervals) clocked in at a strong 1,800No Commission. Call 713–650–1212boepd AVERAGE 42.1 7,010 5,742 26.25 All Standard Disclaimers & Rights Apply. Source: Magnum Hunter Resources October 15, 2015 via PLS docFinder (www.plsx.com/finder) is also president of Murphy’s Canadian (75% oil); this lends enough comfort to increase DVN’s Leonard inventory subsidiary. Additionally, Elisabeth W. by 20% to 950 risked gross locations (predicated on 6 wells/section), Keller has been elected to the board. which could itself prove conservative given ongoing downspacing efforts aimed at ■■ PDC Energy appointed David ultimately testing up to 24 wells/section across the Leonard A, B, and C. We like DVN’s Honeyfield as CFO and SVP, effective expanding high-quality Delaware inventory, which should serve as a material growth Dec. 19. Honeyfield’s most recent driver going forward (FY17 ramp calls for 10 rigs by YE vs. 3 currently); additionally position was VP and CFO for Jonah we see positive implications for nearby players with exposure including CXO, EOG, Energy, which primarily operates in MTDR, OXY, WPX. —Seaport Global Securities Jonah field in Sublette County, Wyoming. He has also been CFO at SM Energy and CAO and controller at Cimarex. Increase deal flow & business opportunities. Honeyfield replacesGysle Shellum, who Subscribe to PLS! For available options, e-mail [email protected] retired this year.

Find more on the E&P arena at To learn more about PLS, call 713-650-1212 Volume 27, No. 18 19 E&P What the Analysts Are Saying SOUTHEAST TEXAS BP (BP.LN £4.65-Dec. 2; Hold) TEXAS GULF COAST ASSET SALE BP sanctions Mad Dog phase II as widely expected: We expect pace of FIDs to 62-Producing Wells. 4,393-Net Acres. accelerate over the coming months. The project details are largely as expected, with HARRIS, LIBERTY & HARDIN COUNTIES PP capex of $9B ($15/boe development cost) versus more recent estimates of <$10B, a Goose Creek, Cleveland & Saratoga Miocene & Frio Sands Production 310 huge reduction from the original $22B and taking the break-even to <$50/bbl (likely 100% OPERATED WI; 81% NRI BOED helped by BP’s tax loss position post-Macondo). It will develop 600mmbbl and Avg Net Sales Production: 310 BOPD have a capacity of 140kbbl/d, with first production not until end-2021 from 14 wells. Avg Net Cash Flow: $242,601/Month Partners: Chevron (15.6%) and BHP (23.9%) are yet to take FID but we fully expect Net 1P Reserves: 3.2 MMBOE them to do so. —Tudor, Pickering, Holt & Co. Net P1 PV10: $35,000,000 PP 2312DV Energen (EGN; $50.66-Nov. 7; Buy; PT: $70) Energen Corp. (EGN) had signaled production growth in the high teens for 2017 in early WHARTON CO., TX PROSPECT 80-Acres. September and we were pleasantly surprised by what the company had to say this quarter. SOUTHEAST TEXAS DV The company laid out an even more robust production growth target Frio Sands Primary Objective of 20%, not just for 2017, but well into 2019. EGN has layered on Shallow Miocene Secondary Objective more hedges for 2017. With plenty of cash on hand and improving economics from both Target Depth: 5,950 Feet FRIO the Midland and Delaware Basin, EGN is well positioned to weather large swings in crude Up To 85% WI AVAILABLE; 75.8% NRI Potential Reserves: 140 MBO & 320 MMCF prices and execute this growth plan. Energen has emerged from this down turn as a DHC: $350,000; Compl: $380,000 cash rich, low debt and high growth Permian pure play, we look forward to seeing even DV 1573 better wells in 2017 and we reiterate our Buy rating on EGN. —Wunderlich MULTISTATE PERMIAN Gastar (GST; $1.03-Nov. 4; Buy; PT: $1.75) The recently announced Development Agreement (DA) and non-core asset sale gives TEXAS & NEW MEXICO PROPERTY GST more flexibility to prove out its core STACK acreage, andwe remain excited about 41-Wellbores. 1,987-Net Acres. the play’s potential for the company. Our $1.75 price target represents a 20% discount PERMIAN & DELAWARE BASIN Multiple Counties. PP to a ~$2.20 NAV. The company brought on production its first operated Osage well, the Devonian, Wolfcamp & San Andres McGee 29 1-H, and its first operated Oswego well, the Tomahawk 7-1H. The McGee Numerous Behind Pipe Zones 100 and Tomahawk wells were drilled and completed for an attractive ~$4.4M and $2.7M, Avg 75% OPERATED WI; 54% NRI BOED respectively. We hope to get results on these two wells no later than early next year. We Est Oct 2016 Net Prod: 100 BOED are especially excited about the potential for the Oswego; at its analyst day on October 20, Net P+P Reserves: 7.7 MMBOE Net P+P PV9: $114,277,000 2016, Chesapeake Energy highlighted the play, including a slide with six Oswego wells in PP 2172DV Kingfisher County with an average 30-day IP rate of 1,182 Boe/d, an assumed development cost per well of $3.0M, and an EUR per well of 400 MBoe (83% liquids). —Canaccord WEST TEXAS MINERALS & ROYALTIES 33-Producing Wells. 35-Producing Units. Oasis Petroleum (OAS; $11.35-Nov. 9; Buy; PT: $14) DELAWARE BASIN M Resuming Growth – Upgrading to Buy. Oasis articulated its drilling plans and 2,195-NMA. 4,348-Net Royalty Acres. disclosed production exit rates for 2016, 2017 and 2018. In addition to resuming growth, 2nd & 3rd Bone Spring & Wolfcamp A & B the company is strengthening its margins by drilling more productive Avalon, Leonard, Brushy Canyon & -- Wolfcamp C & D Potential wells at lower costs. The crude price differential is shrinking and this 1,137 Locations Identified. ROYALTY really helps the top line. The Wild Basin processing plant began operation in October, Avg 24.3% Lease Royalty Available impacting both gas volume and realized price positively. Under our oil price assumption August Net Cash Flow: $147,804/Month of $55/bbl in 2017 and $60/bbl in 2018, OAS should be mostly self-funding. Better still, PDP Reserves: 151 MBOE PDP PV10: $3,076,000 the Debt-to-EBITDA ratio should gradually decline to ~3.1x in 2017 and 2.3x in 2018. CONTACT AGENT FOR UPDATE With cost escalation expected for 2018, OAS is well shielded as the company owns its M 2258RR own frac crew. We are upgrading OAS from Hold to Buy. —Wunderlich Parsley Energy (PE; $33.17-Nov. 4; Overweight; PT: $42) PE continues to lead the Permian peer group in balance-sheet adjusted production No Commissions growth (31% CAGR form 2015-2017), versus group average of 13%. Shares of PE Get Listed! have been the best performer year to date, up ~80% versus the Permian peer average up For over 25 years, PLS has been the around 50%. We expect shares of PE to continue to outperform as the market preference central access point for buyers & sellers. for growth persists. PE is successfully delineating its Midland Basin acreage, resulting in For more information on listing, e-mail inventory upside, and experiencing strong results in the Delaware Basin. We are increasing [email protected] our PT from $42/sh from $40/sh as a 13% higher 2018 production forecast more than offsets a $5/bbl reduction to our 2018 oil price forecast to $65/bbl. —Barclays For general inquiries, email [email protected] Access PLS’ archive for previous E&P news PetroScout 20 December 16, 2016

MULTISTATE PERMIAN PERMIAN / WEST TEXAS PERMIAN / WEST TEXAS WEST TEXAS MINERALS FOR SALE RUNNELS CO., TX SALE PACKAGE MIDLAND BASIN 2,402-Wells. 4,756-NMA(100% HBP). 16-Producers. 1-SWD. 2-WIW. 3-WSW. 11-Producing Wells. ~9,250-Net Acres. MIDLAND BASIN PERMIAN BASIN PP MIDLAND, MARTIN, HOWARD & PP 2,000+ Ft. Of Gross Interval Across The M Morris Sand & Capps Lime Production GLASSCOCK CO., TX Spraberry & Wolfcamp Horizons 15 Locations Remaining. Middle & Lower Spraberry & Wolfcamp 80 Horizontal Rigs Running. Excellent Water Flood Potential. PERMIAN A, B, C & D Intervals ~1,700 89 Outstanding Permits. ~150 OPERATIONS NEGOTIABLE ~50% Of Acreage Is Held By Production BOED Avg 18% ROYALTY INTEREST BOED 100% WORKING INTEREST; 75% NRI Current Net Prod: ~1,700 BOED (71% Oil) Net Production: ~150 BOED Gross Production: 100 BOPD, 180 MCFD Offset IP30 Rates: >1,000 BOED Net Cash Flow: $116,667/Month -- & 31 BWPD Proj’d 2017 Net Cash Flow: $1,208,333/Mn NO EURs: >1 MMBOE/Well PP 1923DV COMMISSIONS PDP PV10: ~$60,000,000 Top PP 2380DV CONTACT AGENT FOR UPDATE TOM GREEN & IRION CO., TX ASSETS M 5565RR 114-Producers. 22,000+ Net Acres. MIDLAND BASIN SALE PACKAGE PERMIAN BASIN EASTERN SHELF ~2,560-Gross Acres. WEST TEXAS PROPERTY SALE STACKED PAY UPSIDE PP MIDLAND & MARTIN COUNTIES DV ~100-Vertical Wells. 8,318-Net Acres. Canyon, Cisco, San Andres & Ellenberger Horizontal Drilling Program. MIDLAND BASIN Clear Fork, Wolfcamp, Strawn & Cline Targets: Wolfcamp A, Upper & Lower GLASSCOCK & REAGAN COUNTIES PP >500 Vertical PUD Locations. Wolfcamp B WOLFCAMP Spraberry/Dean Production Low Risk Development Program ~860 40-45 Gross Drilling Locations Lower Spraberry, Wolfcamp A, B, & C 470 OPERATED WI FOR SALE BOED ~100% OPERATED WI; Avg ~78% NRI CALL Acreage Is Held By Production. BOED Projected Dec 2016 Net Prod: 810 BOED Potential Recoverable: 75 BBOE PLS FOR 400+ Locations Identified. Average Net Cash Flow LTM: ~$500,000/Mn NPV10: $5,000,000/Well INFO OPERATED WI AVAILABLE DEALS Projected Net Cash Flow: $650,000/Mn DV 1830 Current Production: 470 BOED FOR Gathering & Infrastructures in Place AGENT WANTS OFFERS DEC 19, 2016 SALE PP 2068DV MIDLAND BASIN SALE PACKAGE PP 1843DV 90-Producing Wells. 10,487-Net Acres. ANDREWS CO., TX LEASEHOLD DAWSON, MARTIN & ANDREWS CO., TX PP PERMIAN / WEST TEXAS 560-Net Acres. Middle & Lower Spraberry, Wolfcamp PERMIAN BASIN L -- A & B Shale Targets CROCKETT CO., TX ACREAGE Multiple Sections - Including Sec 16, 745 Drilling Locations Identified. ~1,240 5,400-Net Acres. Blk A-30, et al. Avg 75% OPERATED WI; 75% NRI BOED MIDLAND BASIN L NonProducing Leasehold w/ Potential in SAN October 2016 Net Production: 1,239 BOED Objectives Include Wolfcamp, Spraberry, San Andres, Clearfork, & Wichita Albany. ANDRES Total EUR: 2,755 MBOE Canyon, & Clear Fork Formation. 100% OPERATED WI FOR SALE PP 1782DV Additional Resource Potential. WOLFCAMP All Offers Are Being Considered. 100% OPERATED WI; 75% NRI L 5889 REEVES & PECOS CO., TX MINERALS Area Operators Actively Permitting. 9,569-Net Mineral Acres. CALL AGENT FOR MORE DETAILS CULBERSON CO., TX MINERALS WEST TEXAS - ALPINE HIGH AREA M L 1103DV 1-Producing Well. ~419-Net Mineral Acres. Woodford, Barnett, Penn, Wolfcamp WEST TEXAS M & Bone Spring Horiztonal Potential WEST IRION CO., TX OPERATED ASSETS Producing From Wolfcamp Formation ~31% MINERAL INTEREST AVAILABLE TEXAS 2-Active Wells. ~2,900-Gross/Net Acres. Avalon Shale, Bone Spring, Wolfcamp X/Y, Avg Net Income: $26,500/Month LIN FIELD - WEST TEXAS PP Wolfcamp A, B, D & Cline HZ Objectives WOLF- CONTACT SELLER FOR UPDATE Wolfcamp B Production ~86% MINERAL INTEREST AVAILABLE CAMP M 1753 Ellenburger, Wolfcamp B, C & A Upside Net Production: 17 BOPD & 266 MCFD ~300 HZ Wolfcamp Well Drilled In Area. Gross Prod: 105 BOPD & 1,645 MCFD REEVES CO., TX PROPERTY 6 Sq. Miles Of Proprietary 3D Seismic ~230 Avg Net Income: $26,500/Month ~4,100-Net Acres. 100% OPERATED WI; ~77-82% NRI BOED M 1348PP SOUTHERN DELAWARE BASIN PP Forecast Dec 2016 Net Prod: ~231 BOED Horizontal Drilling. Est. Dec 2016 Net Cash Flow: ~$166,000/Mn DELAWARE BASIN SALE PACKAGE 2nd & 3rd Bone Spring, Wolfcamp A, B & C 450 BBL Frac Pit - 4 Water Supply Wells. 5-Producing Wells. 20,462-Net Acres. 143 Horizontal Locations Identified. ~1,000 AGENT WANTS OFFERS DECEMBER 2016 REEVES & WARD COUNTY, TEXAS PP Avg ~86-99% OPERATED WI AVAILABLE BOED PP 1588DV Avalon, Upper Wolfcamp A & B Targets Net Production: ~1,000 BOED Lower Wolfcamp B & 2nd Bone Spring AGENT WANTS OFFERS DEC 19, 2016 760 Drilling Locations Identified. ~2,175 PP 1937DV Find more listings at www.plsx.com/listings 3-Operated Rigs Running. BOED Avg 83% OPERATED WI; 75% NRI NO COMMISSION. October 2016 Net Production: 2,176 BOED BUYER SEEKING ASSETS? Total EUR: 2,061 MBOE (Wolfcamp A) LIST TODAY! Total EUR: 2,034 MBOE (Wolfcamp B) PLACE A WANTED AD! To get started, email [email protected] PP 1781DV Call Ross Benoche, 713-600-0154

Find more listings at No commission! List today, call 713-650-1212 Volume 27, No. 18 21 E&P What the Analysts Are Saying PERMIAN / WEST TEXAS Noble Energy (NBL; $40.17-Dec. 5; Market Perform) REEVES CO., TX PROPERTY SALE NBL recently announced the acquisition of 7,200 net acres and 2,400 boe/d of net ~10,000-Net Acres. production in Reeves County, TX. The transactions increase NBL’s Delaware net acreage SOUTHERN DELAWARE BASIN PP position by 18% and add approximately 150 additional gross locations to the company's Wolfcamp A/B/C, Bone Spring, Avalon. Attractive Blocked Up Acreage Position. existing inventory. We think the acquisition makes sense given the fact Surrounded By Recent Activity. ~1,600 that the acreage is mostly contiguous to NBL's existing Reeves County >500 Horizontal Drilling Locations. BOED asset, allowing the company to extend lateral lengths and increase working Avg ~80% OPERATED WI AVAILABLE interest in existing locations. Additionally, two of the main concerns from investors and Net Production: ~1,600 BOED NO Street had been the cautious pace of development and relatively light inventory in the PP 1183DV COMMISSIONS Permian. The recent announcement of a 3rd rig in Reeves County has begun to address REEVES CO., TX SALE PACKAGE the issue of pace of development and these transactions help to bolster inventory in the 2-Producers. 9,050-Net Acres on Trend. basin. Overall, we like the actions taken by management throughout the last month, PERMIAN - DELAWARE BASIN PP and believe NBL is well positioned to grow its Delaware asset to a more meaningful Mostly Undeveloped Acreage. percentage of total company production in 2017 and beyond. —Wells Fargo Multiple Proven Wolfcamp Benches. Additional Upside in Bone Spring.. 150 PDC Energy (PDCE; $77.23-Dec. 5; Buy; PT: $85) Potential 350+ Horizontal Wolfcamp Wells BOED Raising Estimates on Updated 2017 Guidance. Guidance update causes us to raise 100% OPERATED WI; 75% NRI Gross Production: 150 BOED our 2017 CFPS estimate 19%, 9% above recent Street consensus. PDCE announced CONTACT SELLER FOR UPDATE updated 2017 production guidance of 82.2-90.4 PP 2112L MBoe/d (43% oil, 36% gas, 21% NGLs), which at the midpoint is 5%/6% above consensus/prior Stifel estimates and implies >40% y/y growth WEST TEXAS ASSETS FOR SALE and >50% y/y oil growth. Guidance is based on a capital budget of $725- $775MM. ~15,040-Net Acres. DELAWARE BASIN L We are raising our 2017 production and capex estimates 6% and 7% to 86.3 MBoe/d WINKLER & WARD COUNTIES and $750MM, respectively. The changes cause us to raise our 2017 EBITDAS/CFPS 2nd Bone Spring To Base Of Atoka Shale estimates 16%/19%. While PDCE is not a pure play, the stock is valued at a 9% Potential Zones: 2nd & 3rd Bone Sping discount to our Permian Basin peer group. We look for this discount to narrow as the & Wolfcamp A & B DELAWARE company delineates its acreage in the basin. —Stifel 3D Seismic Data Available. 100% OPERATED WI AVAILABLE DEALS Ring Energy (REI; $15-Dec. 2; Outperform) Offset IP30: >1,000 BOED FOR Single Lease Ready For Long Lateral Dev. SALE Highly anticipated horizontal test rates are in, and they did not disappoint. L 5984 The Augustus #1H and Tiberius #1H, which have been online for ~45 days, achieved peak test rates of 602 boe/d and 448 boe/d (95% oil). Preliminary 2017 capex of WEST TEXAS LEASEHOLD FOR SALE $70mm is largely in line with our estimate of $67mm, with activity expected to focus on ~10,230-Net Acres on Trend. horizontal development in the Central Basin Platform. Having recently incorporated a LOVING & WINKLER COUNTIES L risked horizontal program into our NAV, our price target moved to $15 and is predicated PERMIAN - DELAWARE BASIN Proven Wolfcamp & Bone Spring Benches on LT oil prices of ~$60/bbl. Assuming a $70/bbl LT oil price, our NAV would move to Potential 400+ Horizontal Wells. WOLFCAMP $20/share. We maintain our Outperform rating and continue to see upside to our price Leases Will Deliver 75-87.5% NRI target stemming from continued operational success in the horizontal program and Mostly Undeveloped Acreage. M&A activities that would expand leasehold in the play.—Iberia L 2011DV Sanchez Energy (SN; $6.77-Nov. 8; Buy; Pt: $9.50) WINKLER CO., TX REACTIVATION Efficient in the EF, focus on Catarina, Cotulla too. Driven by process 27-Wellbores. 670-Gross/Net Acres. improvements and efficiency gains, the average well cost in Q3/16 was $3.0M, down HALLEY FIELD Yates At 2,600 Ft. - 3,000 Ft. RE over 25% Y/Y. Some of the recent pads at Catarina and Cotulla came in below $2.8M/ 10-Wellbores w/Pump Units & 3 -SWD well. In Western Catarina during Q3/16, SN brought online two stack 24-PDNP & 12- PUD Drilling Locations development pads targeting the Middle and Upper EF. Early results are Subsurface & Interpretation Data Available. tracking the western step out type curve of 630 MBoe (35% oil), representing 100% OPERATED WI; 74% NRI PERMIAN Potential Production: 20-40 BOPD/Well the highest oil cut type curve in Catarina. This helps solidify SN’s plan Expected IP PUDs: 60-70 BOPD/Well of a stagger and stack development of the three zones in the northwest portion of Est Net Well Reserves: 60+ MBO/Well Catarina. SN estimates that ~200 Upper EF locations are now further de-risked in Incremental Recovery: 18-36 MBO Western Catarina, bringing the total fairway of the Upper EF to over 350 locations, RE 1385DV more than double original estimates. Recent wells in the Maverick area of Cotulla are outperforming type curves by 10-15%. This area should get some development capital Subscribe at plsx.com/subscribe allocated to it in 2017. —Canaccord

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MULTISTATE MIDCONTINENT OKLAHOMA PANHANDLE TEXAS MIDCONTINENT ASSETS FOR SALE ATOKA CO., OK PROSPECT LIPSCOMB CO., TX PROSPECT 49-Producing Wells. 3-Active Wells. ~15,634-Net Acres. 4,800-Gross/Net Acres. DV TEXAS PANHANDLE & OKLAHOMA PP MIDCONTINENT PP TEXAS PANHANDLE ANADARKO BASIN Big Fork & Polk Creek Production MULTIPLE PAY ZONES MARMATON Producing Formations: Cherokee, Red Upper Polk Creek, Lower Womble, Big Targets: Marmaton, Cleveland, Granite Fork, Morrow, Granite Wash & Cleveland Fork, Stanley & Novaculite Potential MIDCON Wash & Morrow Formations 31 Behind Pipe Opportunities MIDCON No Depth Limitations & Drilling Obligations Leasehold Can Deliver 75% NRI OPERATIONS FOR SALE OPERATED WI FOR SALE DV 5865 Net Potential Reserves: 909 MBO, 10 BCF CONTACT AGENT FOR UPDATE NO COMMISSIONS & 846 MBNGL PP 1903DV ILLINOIS PP 5991DV DEWEY CO., OK PROSPECT ILLINOIS BASIN PROSPECT NORTH TEXAS ~6,500-Net Acres. 2-Units Ready To Drill. ~12,800-Net Mineral Acres. LOWER MISSISSIPPIAN L WAYNE & MARION COUNTIES DV BAYLOR CO., TX PROJECT Vertical Depth: 12,000 Ft. - 14,000 Ft. Vertical Targets: Ordivician & Silurian >33,000-Gross/Net Acres. Highly Fractured Siliceous Reservoir. Hz Targets: Mississippian & Devonian HORIZONTAL CADDO Sweet Spot Defined By Log Correlation. Target Depth 5,000-7,000 Feet ILLINOIS Caddo Limestone Objective. ~5,000 Ft. DV OPERATED WI AVAILABLE OSAGE 100% WORKING INTEREST BASIN Interval Is ~250 Ft Thick. 3D Seismic. Exp Rsrvs: 2 MBO & 10 BCF/Per Mile Lat Est. EUR: 315 MBO Per Well HZ Caddo Not Properly Tested Earlier. DEVELOP AGENT WANTS OFFERS DEC 29, 2016 Horizontal Well Cost: $6,000,000 Additional Potential In Mississippian Lime, L 2342 CONTACT SELLER FOR MORE INFO Canyon Reef, & Strawn Sands. DV 4661 100% OPERATED WI AVAILABLE CALL PLS FOR GRANT CO., OK PROSPECT Offset Vertical Caddo Wells >1.0 MMBO. INFO 8,100-Gross Acres. 7,500-Net Acres. NEW YORK DV 1173PP MIDCONTINENT DV Primary Target: Mississippian Formation NEW YORK MINERAL PACKAGE FISHER CO., TX HZ PROSPECT 97% Of Acreage Held By Production. MISSISSIPPIAN ~947.91-Net Mineral Acres. 10,000-Gross Acres. Leases Can Deliver 75% NRI MULTIPLE COUNTIES M PENNSYLVANIAN SANDS DV CONTACT SELLER FOR MORE INFO Allegany, Cattaraugus, Chautauqua, -- 78-Total Locations Identified. DV 5866 Erie, Genesee, Ontario & Wyoming Co. FOR Initial Drill & Complete 3 Wells. Leased & Unleased. SALE 70% Working Interest Available; 75% NRI PENN OKLAHOMA MINERALS FOR SALE MINERALS FOR SALE Net EUR: 11.7+ MMBOE SANDS ~201-Total Net Mineral Acres. M 3651 D&C Per Well: $2,064,245 GRADY, ATOKA, LOGAN, PAYNE M DV 1922 & LINCOLN COUNTIES OHIO Acreage Varies County to County. GRAYSON CO., TX PROSPECT Minerals Are Leased at 3/16 Royalty. BELMONT CO., OH MINERALS ~5,000-Net Mineral Acres. MINERALS FOR SALE MINERALS +/-315-Net Mineral Acres. 3-Leases. M MIDCONTINENT DV CONTACT SELLER FOR MORE INFO SOMERSET TOWNSHIP Offsetting Horizontal Viola Production. M 5444 APPALCHIAN BASIN MINERALS Operations Available & Very Favorable NRI Royalty Rate: 12.5-30% 75% WORKING INTEREST AVAILABLE VIOLA OKLAHOMA NONOP SALE PACKAGE 5-Yr Primary Lease Term. DEALS Drilling AFE: $4,000,000 FOR 268-Producing Wells. 16,750-Net Acres. CONTACT SELLER FOR MORE INFO SALE DV 1367 SCOOP & STACK PLAYS PP M 1392 Multiple Counties. NORTH TEXAS SALE PACKAGE Producing From: STACK, SCOOP, PENNSYLVANIA 158-Producing Wells. 82,000-Net Acres Merge & Arkoma Formations ~2,300 FORT WORTH BASIN PP 59-Total Rigs Running. BOED CAMERON CO., PA MINERALS JACK & PALO PINTO COUNTIES NonOperated WI AVAILABLE +/-1,593-Gross/Net Mineral Acres. Marble Falls & Barnett Production Current Net Production: ~2,300 BOED GIBSON TOWNSHIP M Contiguous Acreage Held By Production. CONTACT AGENT FOR UPDATE APPALACHIA BASIN 99% OPERATED WI; 78% NRI 3,600 PP 2993DV MINERALS FOR SALE MINERALS Net Production: 3,600 BOED BOED CONTACT SELLER FOR MORE INFO 15% Oil, 40% NGL & 45% Gas STACK EXTENSION PROSPECT M 1308 Net Cash Flow: $825,000/Month 3,890-Net Acres. 20-Sections. AGENT WANTS OFFERS MID FEB 2017 NORTHEAST STACK L PENNSYLVANIA BANKRUPTCY PP 2187DV GARFIELD CO., OKLAHOMA +/-5,602-Net Mineral Acres. Full Ownership Report In Each Section CAMBRIA & CLEARFIELD COUNTIES DV -- A Lease Was Taken. STACK +/-1,750-Acres Held By Production. BANKRUPTCY Call 713-650-1212 or go online Leases Can Deliver 81.25% NRI AUCTION DATE FEBRUARY 28, 2017 www.plsx.com/listings CONTACT LAND MANAGER FOR INFO DV 1905AU+ L 1973

Find more listings at No commission! List today, call 713-650-1212 Volume 27, No. 18 23 E&P

PENNSYLVANIA NORTH DAKOTA CALIFORNIA WASHINGTON CO., PA MINERALS NORTH DAKOTA PROSPECTS SACRAMENTO BASIN PROSPECT +/-10-Gross/Net Mineral Acres ~47,673-Total Acres. >450,000-Net Acres. CECIL SMITH TOWNSHIP M SLOPE, BOWMAN, ADAMS, RENVILLE, DV GLENN, COLUSA, SUTTER & BUTTE DV APPALACHIA BASIN MOUNTRAIL, GOLDEN VALLEY, COUNTY, CALIFORNIA Lessee: Range Resources MINERALS WILLIAMS, BILLINGS & MCKENZIE COS. Multi-Stacked Pay Potential Royalty Rate: 17% WILLISTON BASIN OPERATED Target Depths: 5,000-15,000 Ft. SACRAMENTO CONTACT SELLER FOR MORE INFO CALL Multiple Production Zone Targets. Subsurface Geology, Geophysics, PLS FOR M 1325 INFO 100% OPERATED WI FOR SALE -- Geochemistry, 2D & 3D Seismic Data Will Sell Leases Individually. OPERATIONS NEGOTIABLE CONTACT SELLER FOR INFO NO P50 Prospective Resource: >2 TCF WASHINGTON CO., PA MINERALS COMMISSIONS 3-Units. +/-124-Gross/Net Mineral Acres. DV 1917 DHC: $1,000-3,000; Compl: $100-2,000 NORTH & SOUTH STRABANE M DV 2730 APPALACHIA BASIN UTAH Spud In 2016. VENTURA CO., CA PROSPECT Lessee: Range Resources MINERALS PARADOX BASIN UTAH PROSPECT >100,000-Net Acres. Royalty Rate: 17.5% 8,080-State Acres. 50-Potential Wells. VENTURA BASIN DV 5-Yr Primary Lease Term. 3-Yr Extension. GRAND & SAN JUAN COUNTIES DV Multi-Stacked Pay Conventional Reservoirs CONTACT SELLER FOR MORE INFO CANE CREEK ANTICLINE Target Depths: 5,000-15,000 Feet M 1347 Cane Creek. 6,000 Ft. TVD 2D Seismic, Subsurface Geology, Leadville. 8,000 Ft. TVD -- Geophysics & Geochemistry Data VENTURA WEST VIRGINIA 3D Seismic & Subsurface Geology Data. OPERATIONS NEGOTIABLE 70% OPERATED WI; 80% NRI CANE P50 Prospective Reserves: >100 MMBOE MARION CO., WV MINERALS Est Well (Cane Creek) IP: 1,500 BOPD CREEK DHC: $1,000-7,000; Compl: $100-1,000 +/-71-Gross/Net Mineral Acres. Est Well (Leadville) IP: 250 BOPD DV 2729 UNION DISTRICT M Well Rsrvs: 480-1,200 MBO & 500 MMCF APPALACHIA BASIN Est Net PV10: $32,000,000/Well @ $50 Oil NEVADA Acreage Held By Production. Shallow Target Dry Hole: $1,000,000 Lessee: Kellex MINERALS CONTACT SR GEOLOGIST FOR INFO WHITE PINE CO., NV PROSPECT Royalty Rate: 12.5% DV 4011 10-15 Potential Wells. 12,710-Acres. CONTACT SELLER FOR MORE INFO DEVONIAN DOLOMITE DV M 1365 Devonian Dolomite, Chainman Miss Lime WYOMING & Pilot Dolomite Objectives DEVONIAN MULTISTATE ROCKIES Target Depth: 8,300 Feet CAMPBELL CO., WY LEASEHOLD 2D Seismic Data Available DEALS 1-Well. ~660-Gross & Net Acres. Leases Can Deliver 75-80% NRI FOR DJ BASIN ASSETS FOR SALE SALE 428-Total Wells. 67,496-Net Acres. POWDER RIVER BASIN L Drilling & Completion Cost: $1,900,000 LARAMIE CO., WY & WELD CO., CO PP All Depths Below 2,500 Ft. DV 1733 Niobrara, Codell, D & J Sands Production Frontier, Mowry, Niobrara, Parkman & 96% Of Leases Are Held By Production. Shannon Potential POWDER MULTISTATE GULF COAST >2,000 Gross Undeveloped Locations. 1,200 Acreage Is Held By Production. RIVER Avg 74% Working Interest; Avg 80% NRI BOED Leases Can Deliver 81% NRI WESTERN LOUISIANA MINERALS Current Net Prod: 1,200 BOED (48% Oil) CONTACT AGENT FOR UPDATE 100+ Producing Wells. ~273,000-NMA. PDP PV10: ~$42,000,0000 L 1381PP MULTIPLE COUNTIES M CONTACT AGENT FOR UPDATE 2-Wells Drilling. 2-Wells In Completion. PP 2702DV CAMPBELL CO., WY PROSPECT Haynesville Shale, Austin Chalk, Cotton 160-Net/Gross Acres. Valley, TMS, Hackberry, Wilcox, Yegua, NORTH DAKOTA POWDER RIVER BASIN DV Smackover, Hosston & Glen Rose Obj 1: Turner. 8,000 Ft. 3D & 2D Seismic Data Available. HAYNESVILLE BURKE CO., ND PROSPECT Obj 2: Mowry. 9,000 Ft. MOWRY NonOperated WI Available 100+ Potential Wells. 22,300-Acres. 100% OPERATED WI; 82% NRI Current Cash Flow: $250,000/Month MIDALE & NESSON DV CONTACT SELLER FOR MORE INFO Operators: Chesapeake, GEP Haynesville, Target Depths: 5,950 Ft. - 6,010 Ft. DV 5215 EXCO, Vine, Indigo, Will-Drill, Tri-C & More Recompletion & Lateral Drill-Out Options CONTACT AGENT FOR MORE INFO Subsurface Geologic Data Available WYOMING PROSPECT M 2067PP 22.5% Working Interest; 18% NRI ~19,986-Net Mineral Acres. Expected IP: 350 BOPD MIDALE PARK & WASHAKIE COUNTIES DV Est Well Reserves: 300 MBO/ Well BIG HORN BASIN No Commissions Est Project Reserves: 18 MMBO & 66 BCF Targets: Powder River & Frontier BIG DHC: $1,300,000; Compl: $1,600,000 Target Depth 7,000-11,000 Feet HORN Get Listed! CONTACT SELLER FOR MORE INFO Est EUR: 330 MBO Per Well BASIN For more information on listing, e-mail DV 1663 CONTACT SELLER FOR MORE INFO [email protected] DV 4626

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