June 23, 2014 • Volume 25, No. 08 Transactions Serving the marketplace with news, analysis and business opportunities

AEP spends $4.3 billion in Permian, Utica & Marcellus Baytex Eagle Ford player In the biggest acquisition since its April 2013 launch, Aubrey McClendon’s after closing $2.6 billion deal American Energy Partners announced the $2.5 billion purchase of 63,000 net Baytex’s pursuit of Aurora Oil & acres and wells producing 16,000 boepd net on the southeast edge of the Midland Gas has come to a satisfactory conclusion Basin from privately held Enduring Resources LLC. Concurrently, for the Calgary-based company with the AEP announced acquisitions totaling $1.75 billion in its core southern successful closing of Utica play and a new southern Marcellus operational area from East its $2.6 billion (A$2.8 . Resources Inc. and an unnamed AEP pulls trigger on $2.5 billion billion) acquisition private company. Permian deal adding a third core area. of the Eagle Ford producer. The final The Enduring assets primarily in bid accepted by shareholders on May Reagan and Irion Cos., Texas mark AEP’s Permian entry, adding a third regional leg 21 at the company’s annual meeting in to its initial Appalachian focus and the Mid-Continent position it announced earlier this year focused on the Woodford/Mississippi Lime combo play in north-central Gains prized position under Marathon in Eagle Ford's Sugarkane field. Oklahoma. Encap Investments-backed Enduring engaged Jefferies in a corporate sale effort earlier this year, and media reports citing unnamed sources in early May Perth, Western Australia was 13% higher reported the firm was in talks with AEP. Continues On Pg 15 than the initial $2.3 billion bid and was ENXP buys multi-pay East Texas assets for $715 million approved with around 88% of votes supporting the deal. Kayne Anderson portfolio company Treadstone Energy Partners has agreed to sell The purchase price includes the its Fort Trinidad field properties in East Texas to privately held Energy & Exploration assumption of $670 million in net debt Partners Inc. (ENXP) for $715 million. The assets cover 18,300 net acres (22,900 gross, in addition to an equity component. The 100% operated) in Houston and Madison Cos. within the Buda-Rose play, which stock portion represents a 60% premium targets stacked Lower Cretaceous pay in the Buda, Georgetown, Edwards and Glen to the Australian company’s closing Rose formations. ENXP estimates current net production at 8,430 boepd (82% price the day before the initial takeover oil) and proved reserves at 32.8 MMboe. Adds substantial drilling inventory bid was launched. Continues On Pg 4 The acquisition lies on trend with and via Treadstone’s Buda-Rose position. just east of ENXP’s Buda Rose position FEATURED DEALS where the Fort Worth-based company recently completed its Sundance-1 vertical targeting the Buda-Rose in Madison Co. and said it is encouraged by oil and gas SOUTH TEXAS EAGLE FORD NONOP volumes produced thus far. Upon closing expected in July ENXP will have 72,000 net 5-Producers; 2-Wells Currently WOC. acres and ~10,000 boepd in East Texas, with most of the acreage covered by 3D seismic. MCMULLEN COUNTY ENXP plans to continue Treadstone’s development program on the acquired assets, VOLATILE OIL WINDOW currently consisting of three drilling rigs and two workover rigs. Continues On Pg 13 Eagle Ford Oil Play. >7,000 Ft. Laterals PP 15-PUDs On ~1,370 Gross Acres. ~8% NonOperated WI; 75% Lease NRI Parsley posts $385 million in pre-IPO Permian buys Apr ‘14 Prod: 2,411 BOPD & 2.6 MMCFD ~160 In public filings ahead of its May 29 public debut, Permian driller Parsley April Net Prod: 135 BOPD & 147 MCFD BOED Energy revealed a number of deals bulking up holdings in its sole operating region. April 2014 Net Cash Flow: ~$375,000/Mn New IP’s: ~1,550 BOPD (~1,650 BOED) At YE13 the Austin-based company paid Merit Management Partners $80 million Most Recent Wells March 2014 (>90% Oil) for non-op interests in wells and acreage it already operated in Upton Co., Texas, CONTACT FOR UPDATE adding 640 net acres to its portfolio. The company paid various parties an additional PP 3917DV $12.3 million during Q2 for incremental Biggest buys from Pacer for $165 million working interests in its DJ BASIN SALE PACKAGE & OGX Resources for $128 million. 41-Active; 5-SWD; ~9,700-Net Acres. operated wells. COLORADO & NEBRASKA The biggest acquisition occurred May 1 when Parsley closed a $165.3 D & J Sands, Morrow & Marmaton. PP million deal with Pacer Energy Ltd. to acquire 2,000 net acres (2,240 gross) and Majority of Acreage Currently HBP. seven wells (90% WI) within its Midland Basin operational core. The Pacer assets Reservoir Depths: 4,200-7,620 Ft. (TD) 160 have April net production of 861 boepd and estimated proved reserves of 8.1 MMboe 100% OPERATED WI; ~83% NRI BOPD Net Production: 131 BOPD (45% oil, 19% proved developed). Following the IPO Parsley modified the terms Net Operating Income: ~$140,000/Mn of and exercised an option acquired in April from Midland-based OGX Resources, Est. Vertical Well Cost: ~$1.5MM/Well picking up 4,640 acres (100% WI) with minimal associated production for $127.6 PP 5199DV million at the June 4 closing. Continues On Pg 17 All Standard Disclaimers & Seller Rights Apply. Transactions 2 June 23, 2014 A&D News A&D Briefs Stratex branches out into Kansas & Utah with Richfield buy • Permian pure player Arabella Richfield Oil & Gas is being acquired by Stratex Oil & Gas Holdings in an all-stock Exploration (formerly Lone Oak deal that will see the currently Eagle Ford-focused buyer add oil producing properties in Acquisition Corp) announced it has sold Kansas as well as development assets in Utah and Wyoming. The Kansas assets flowed the 350 net acre (640 gross) Johnson 44 lease in Loving Co., Texas for $2.1 net volumes of 23 bopd during Q1. Occupying 2,010 net acres (2,110 gross) on the million, generating a 61% net profit for Central Kansas Uplift, they provide an inventory of 57 identified drilling locations and the company. It additionally sold the 28 recompletion opportunities in the Arbuckle formation as well as unbooked Mississippi Weatherby lease consisting of 310 net Lime locations. $21 million deal diversifies assets of acres (640 gross) in Pecos Co. for $704,000 Farther west, Stratex is getting previously Eagle Ford-focused firm. or a net profit of 33%. The acreage was 1,980 net acres (2,310 gross) on sold to allow the company to focus on its the Utah-Wyoming Overthrust and 12,530 net acres (33,270 gross) on the Central core acreage in the southern Delaware Utah Overthrust. None of the Utah acreage contributes to Richfield’s YE13 reserves, Basin targeting the Wolfbone. which total 1.4 MMboe proved (87% oil) plus 2.6 MMboe probable. Consideration • Phoenix-based Core Resource consists of 1.009 Stratex shares per Richfield share, which based on Richfield’s $0.345 Management has acquired an interest prior-day closing price yields a deal value Utah potential in Navajo sand, Mancos in producing wells in Pottawatomie Co., shale & deeper Mississipian zones. of $20.8 million. Oklahoma from Nitro Petroleum. The In mid-April Stratex and JV partner company focuses on buying stakes in Eagle Ford Energy agreed to farm out 50% WI in the 2,630-acre Matthews lease existing production with established targeting conventional oil in Zavala Co., Texas to Quadrant Resources. In return, operators in Texas and the Southwest. Quadrant will fund the drilling of three wells and the reworking of five. Interim CEO James Clark noted that the company was pleased to expand Sundance doubles Eagle Ford acreage & exits DJ Basin its producing asset base and believes In a pair of transactions announced the same day, Australia-based onshore US that its developing relationship producer Sundance Energy is shedding its remaining DJ Basin holdings for $116 with Nitro may prove synergistic for million while adding to its Eagle Ford footprint for $43.4 million. The deals are in both companies. line with the company’s strategic policy of reinvesting capital in its core Eagle Ford and Mississippi Lime/ Sundance's Eagle Ford buy adds 115 Sign Up Today! Woodford projects. locations on top of existing 180 locations. In South Texas, Sundance is getting 5,500 net acres (9,200 gross) in Dimmit Co. prospective for the Eagle Ford and 5,500 net acres (18,000 gross) in northern Maverick Co. targeting the Georgetown formation. The purchase adds 200 boepd of production and 115 drilling locations (60% WI) to boost its Eagle Ford inventory to 295 locations (66% WI) on 19,500 net acres. The company also received an option to boost its working interest by 40% in Dimmit Co. and 20% in Maverick County. Closing is expected by the end of July. Latest Capital News Sundance will pay $33 million cash up front and an estimated $10.4 million drilling `` Apollo seeks petro-nirvana with carry on four Eagle Ford wells. Managing director Eric McCrady told Bloomberg that Zenergy, other deals the company plans to acquire up to $200 Sundance looking to buy another `` Diamondback comes back to million in additional Eagle Ford acreage $200 million in Eagle Ford via small deals. public markets with Viper in tow via leases, small deals and potentially larger buys. “A lot of companies are running a lot of rigs in the Eagle Ford, and people `` Matador ramps capex 30% are very focused on drilling the acreage positions they have,” McCrady said. “So that targeting Permian & Haynesville has resulted in a little less competition for smaller deals.” `` Oilpatch leverage on the rise as Concurrently, Sundance agreed to sell its remaining DJ Basin assets to a private lenders compete equity-backed driller focused on the play. The assets sold consist of 5,100 net acres at Wattenberg field and 4,000 in three northern Niobrara projects (Twister, Bull Canyon `` Eclipse comes out of box swinging and Silo) with Q1 production of 567 boepd and YE13 proved reserves of 4.7 MMboe with heavily increased IPO (54% oil) at YE13. Closing is expected by the end of August. Call Now For A Free Trial! To access PLS' virtual library of news drill Want more news? Drill www.plsx.com www.plsx.com/news Not a client? Call PLS! 713-650-1212

Find more on the A&D arena at To learn more about PLS, call 713-650-1212 Volume 25, No. 08 3 A&D A&D Briefs A&D News • Calgary-based Dixie Energy Trust Ares buys South Texas player BlackBrush added 390 net acres (980 gross) of The private equity arm of publicly traded global investment firmAres Management undeveloped land in the Maple Branch is acquiring BlackBrush Oil & Gas from EIG Management Co. and Tailwater Capital. prospect in Lowndes Co., The San Antonio-based company is a South Texas pure player with holdings of more than Mississippi during Q1, 160,000 net acres (360,000 gross) and 300 operated wells across the region. bringing its total holdings The company targets a number of formations in South Texas. It holds a total to 6,100 net acres (15,300 gross) as of of 65,000 gross acres targeting the Eagle Ford in Karnes Co. and in what it terms the end of the quarter. Dixie plans to the “Pearsall Area” of the shale play. The company additionally targets the Pearsall, Buda, horizontally drill and then frac the Lewis and Sanders sands. Olmos and San Miguel across Frio, LaSalle, Dimmit and Maverick Counties. • First Colombia Gold announced BlackBrush will continue to be led by co-founder Scott Martin, who founded it is looking to acquire one to three US the company with Phil Mezey in 2004 with backing from HM Capital. The two also oil and gas projects or businesses during helped start Flatrock Energy Partners in 2000. Closing is expected in Q3. 2014, with an eye towards generating near-term cash flow. The company’s Apollo buys into Halcón’s Tuscaloosa position for $150 million strategic plan involves building itself Highlighting the wide-ranging ways private equity firms are looking to profit from into an international natural resources oil and gas assets, Apollo Global Management has agreed to pay $150 million to company with interests in energy and acquire 150,000 preferred shares of HK TMS, a new wholly owned Halcón Resources mining. First Columbia plans to announce sub that will hold all of the E&P firm’s Tuscaloosa shale assets in Louisiana and its initial oil and gas acquisition during Q3. Mississippi. Besides the preferred shares—which will pay quarterly • Mobius Resources (formerly Zodiac cash dividends equivalent to 8% annually—Apollo will receive a 4.0% Exploration) has sold 4,290 net acres ORRI (reducible to 2.0% under certain circumstances) in 75 net wells to be drilled and in California’s San Joaquin Basin for $2.5 completed on the Tuscaloosa acreage. million to an undisclosed seller while Apollo buys a royalty position of 4.0% Apollo has an option to acquire up on next 75 wells to be drilled. retaining an overriding royalty interest in to an additional 250,000 preferred shares the land of up to 2%. The sold acreage under the same terms, including the acquisition of ORRIs in 125 more wells. represented around 6% of the company’s Halcón is running a new two-rig program in the Tuscaloosa, where it has built up California holdings. Mobius is in advanced a 314,000-net-acre position. Of that total 241,000 net acres are in what it considers the discussions with other buyers about the early-stage play’s eastern core of southwest Mississippi (Wilkinson and Amite Cos.) sale of a portion of or all of its remaining and southeast Louisiana’s “Florida Parishes” (primarily West Feliciana, East Feliciana, California holdings, consisting of almost St. Helena and Tangipahoa). It expects to spud 10-12 operated wells during 2014. 70,000 net acres in the San Joaquin Basin. Separately, Apollo is providing $700 million in backing to Zenergy LLC, a • Paradigm Oil and Gas has acquired interests ranging 70-95% and operatorship partnership formed by Zenergy Inc. for the acquisition and development of upstream of 50 wells located on a combined and midstream assets in the Mid-Continent and Ark-La-Tex regions as well as other 4,000 acres of leases in the Permian parts of Texas. Zenergy Inc. is putting up $55 million for the partnership. Basin and Eagle Ford from Magnum Founded in 1980, Zenergy has a track record that includes building three Bakken Oilfield Services, Bitter Creek businesses with more than 300,000 net acres, 250 horizontal wells and over 450 miles Petroleum and Blackjack of gathering pipeline. Zenergy sold the last of these assets to Oasis Petroleum last Services. Over 20 of the September as part of a $1.45 billion multi-party deal. acquired wells are producing, which will bring total producing wells in the primarily Apollo gets piece of Halcón’s 314,000-net-acre TMS Holdings services oriented company’s portfolio to 25. The company has six of the wells Mississipp i already incorporated into its portfolio, with plans to add another 10 by the end of July. HK E. TMS Acreage 241,090 net acres

Increase deal HK W. TMS Acreage flow & business 72,657 net acres opportunities. Louisiana Subscribe to PLS! For available options, e-mail [email protected] TMS Core Area Outline HK Lease Area

For general inquiries, e-mail [email protected] Source: Halcón June 9 Presentation via PLS docFinder www.plsx.com/finder Transactions 4 June 23, 2014 A&D News A&D Briefs Chaparral sells non-core assets for $249 million • Dallas-based secondary recovery RKI E&P, Ram Energy and Scout Energy have all purchased assets from company Petron Energy II signed an Chaparral Energy as the Mid-Continent-focused company works its way through agreement to purchase the Garrett a five-property sales package in the Permian Basin, North Texas, Ark-La-Tex and Lease in Creek Co., Oklahoma from an individual seller. The lease has onshore Gulf Coast. In the biggest of the deals, Chaparral received $125 million from existing wells the company is planning RKI for Delaware Basin assets with net production of 1,800 boepd (41% liquids) in recompletion work on, including the prime areas of horizontal Bone Spring and Garrett-3 targeting the Mississippian Wolfcamp development. 4 sales down, Chaparral still shopping 200 boepd (42% liquids) on Gulf Coast. which the company believes has On the Central Basin Platform components similar to successful straddling the Texas-New Mexico border, Chaparral sold Ram its 600 boepd (72% wells offsetting the lease. Vertical liquids) and substantial acreage targeting the Abo play in Yoakom Co., Texas for $48 Mississippian wells in the area have million. Ram also bought the ArkLaTex assets which produce 1,000 boepd (24% posted IP rates of 30-100 bopd. liquids) and target the Eagle Ford and Woodbine. The sales were rounded out by Scout’s • Australian-based Pryme Energy $25 million purchase of Fort Worth Basin assets flowing 200 boepd (81% liquids). is selling its interest in the Turner Bayou Closings project in Avoyelles Parish, Louisiana to an undisclosed publicly traded Energy XXI closes $2.3 billion buy of GOM shelf peer EPL US company, but is retaining Following the successful completion of its $2.3 billion acquisition of EPL Oil & a right to participate in future Gas, Energy XXI says it is now the largest publicly traded independent operator on Turner wells at 5% WI. The project covers the Gulf of Mexico shelf. Consideration included $1.02 billion cash, 23 million EXXI 8,400 net acres (20,300 gross) with common shares and the assumption of $805 million in EPL net debt. EXXI now has average net production of 19 bopd from 93 million shares outstanding (102 million fully diluted). 30% NRI in two wells and 46% NRI in a Operating 10 of the largest oil fields on the shelf, the combined company third well. YE13 reserves totaled 479,000 has current production of 62,000 boepd (73% oil) and proved plus probable boe proved plus 324,000 probable. The reserves of 343 MMboe. “We are focused on merging the two portfolios and project has 6,760 net acres (16,940 gross) high-grading our drilling inventory,” said CEO John Schiller. “Our capital expenditures of undeveloped acreage prospective for will focus on low-risk development drilling in the fields the Austin Chalk and Tuscaloosa shale. where we have enjoyed the most success. Combined, we • Relentless Production & Development is shopping for operated currently are operating nine rigs and continue to de-risk ProspectCentre May 8 working interests in onshore Gulf our drilling schedule, staying focused on execution by Coast assets with current production. establishing repeatable and predictable programs that will Energy XXI flows oil at West The assets should have shallow sands allow oil growth in our core properties.” Delta in the GOM. producing at above 7,000 ft and need to have oil flowing, although the Baytex Eagle Ford player after closing deal Continued From Pg 1 company will consider assets with a mix Baytex is launching its Eagle Ford debut by getting a 22,200-net-acre contiguous of oil and gas. position (80,200 gross, 97% HBP) in prolific Sugarkane field in Karnes, Live Oak • Silver Creek Oil & Gas is farming and Atascosa Cos. with Q1 net production of 28,671 boepd (44% oil, 37% NGLs into a 17,900-acre Woodford project and condensate). Based on Baytex’s internal estimates of Aurora’s reserves, the area held by PostRock Energy in acquisition added 2P reserves of 166.6 MMboe as of YE13. Sugarkane is well- central Oklahoma delineated with infrastructure in place, which Baytex believes will facilitate low- for an operated 70% risk production growth. In 2014 alone Aurora expects its output from the field to stake. The deal is intended to facilitate jump 43% YOY. horizontal drilling with completion of Upper Eagle Ford & Austin Chalk . the first two wells targeted by year’s end. On a pro forma provide upside in Sugerkane. basis, Baytex’s total production increases The deal includes a 3,800-net-acre swap to 88,000 boepd, with a production weighting of 51% heavy oil, 35% light oil and liquids and the purchase by Silver Creek of 1,150 and 14% natural gas (previously 75% heavy oil, 14% light oil and liquids and 11% net acres for $466,000 cash or $405/acre. natural gas). Upside could come from improved completion techniques and downspacing That sale implies a value of $5.1 million opportunities in addition to horizontal drilling in the Austin Chalk and upper Eagle Ford. for Wilver Creek’s JV stake, assuming The assets are operated by Marathon Oil. the same price per acre. Separately, Additionally the deal will give Baytex exposure to the emerging Eaglebine trend PostRock in a filing announced the $1.8 where Aurora has been acquiring acreage to de-risk its profile. At YE13 the company million purchase of incremental interests in Woodford assets purchased last fall. had acquired 14,000 net acres (15,000 gross, 91% operated) in the play.

Find more on the A&D arena at To learn more about PLS, call 713-650-1212 Volume 25, No. 08 5 A&D What’s on the Market Briefs What's on the Market • Fort Worth-based Double Eagle Rio Oil & Gas may sell out of Midland & Delaware Basins Development retained PLS to market Permian-focused Quantum Energy Partners portfolio company Rio Oil & Gas operated leases in the Permian Basin and LLC is considering the sale of its assets in the Midland and Delaware Basins and has Eagle Ford. On offer in West Texas is an hired CIBC Griffis & Small to help market the acreage. Launched in July 2013, the 1,800-acre package in Crane and Ector company has built up a 17,437-net-acre Permian position of which 85% is Cos. (100% WI) with a recently reduced ask operated and 69% HBP. Most price, offset by Sheridan, Conoco, Citation 638 horizontal locations in Midland of the remaining acreage can and Henry operations (PLS Listing No. Basin with laterals of 7,500-10,000 ft. be held with vertical Wolfberry drilling L 1061). Also for sale are 560 net acres (680 gross) in south-central Sterling Co. while horizontally developing the Wolfcamp A, B and D (Cline) and Lower Spraberry (DV 2092L). The South Texas lease covers in the Midland Basin and the Second and Third Bone Spring in the Delaware Basin. 202 acres (100% WI) in Atascosa Co. with In the Midland Basin, Rio holds 13,060 net acres in Glasscock, Midland, Upton, and offset activity byPioneer, Marathon Reagan Cos., Texas with 2,500 boepd of current production (78% oil and NGLs) and 12.6 and EOG (L 2413DV). To learn more MMboe of proved reserves. The western portion of the Midland Basin assets is adjacent to contact Richard Martin (817-312-1508, Wolfcamp B development activity with IP rates exceeding 2,500 boepd. The company’s [email protected]). Deleware Basin assets cover 4,381 net acres in Lea and Eddy Cos., New Mexico and • Baron Energy Inc. is offering for sale Loving Co., Texas with output of 530 boepd (80% oil and NGLs) and 7.4 MMboe proved. its Shaffer leases in North Texas, which hold three active oil producers flowing 35-40 HighMount for sale with low-decline output of 129 MMcfed bopd and 15 PUD locations on over 600 acres Diversified energy, insurance and hotel conglomerate Loews Corp. is pursuing (100% WI, 75% NRI, 100% HBP). Located in strategic alternatives including a potential sale for its upstream subsidiary HighMount Taylor Co., the contiguous acreage targets E&P with help from Barclays and RBC Richardson Barr. HighMount is active the Flippen sand at 2,900-3,000 ft. EURs of primarily in the Sonora gas field of West Texas where it produces 114.5 40,000-70,000 boe are projected at D&C MMcfed out of a company-wide total of 128.7 MMcfed (2% oil, 25% costs of $260,000. To learn more, check out NGLs). This low-decline field primarily in Schleicher and Sutton Cos. PLS Listing No. PP 5329DV. also accounts for 467,000 net acres out of Highmount’s 585,000 net acres overall • First Exploration Ltd. is looking to (636,000 gross, 99% operated) and the sell its 9,140-acre Eastern Shelf prospect $3.0-5.0 million Wolfcamp/Leonard vast majority of its 1.14 Tcfe in total (100% WI, 80.5% NRI) targeting the Strawn well costs; 320,000 boe offset EURs. proved reserves (94% PDP). at 5,200 ft and the Caddo Lime at 5,700 ft in North Texas. The King and Knox Cos. Besides Sonara, HighMount holds 41,000 net acres targeting the Wolfcamp and leases include continuous drilling clauses. Leonard along the Schleicher/Crockett Co. border with 10.2 MMcfed of production. D&C costs are estimated at $675,000. See In addition, the company has 70,000 net acres and 4.0 MMcfed in the Mississippi Lime PLS Listing No. DV 5509L to learn more. and Woodford in Garfield, Noble, Pawnee and Payne Cos., Oklahoma plus 7,000 net • A non-op stakeholder is marketing acres targeting the Marmaton in Ellis Co., Okla. and Lipscomb Co., Texas. its interest in a Hilcorp-operated Proposals are due July 22 with a preference for a single cash transaction, but the property in South Texas with current company will consider separate offers for the Permian and Mid-Con assets. To learn production of 3.45 MMcfed (1% oil, more contact the brokers or check out PLS Listing No. PP 5269CO. 46% WI) from 32 producing wells plus recompletion and re-entry potential. Bids sought for whole firm or separate Permian & Mid-Con packages Located in Webb and Zapata Cos., the Overview of Assets Net WI / Production Potential Drilling Operated 2,540-acre property targets the Perdido, Package Acres NRI MMcfed Locations % Marmaton Reklaw, Wilcox and Lobo formations. See Permian Package Woodford PLS Listing No. PP 3229DV or contact Sonora 446,0009 9 / 83 114.55,000 100 Wolfcamp / Leonard 41,000 74 / 56 10.2 1,500 100 Oklahoma City Simon Energy Associates to learn more. Mid-Con Package Woodord 70,000 59 / 49 4.0110093 Marmaton6,855 70 / 56 - 60 100

Total 564,000 92 / 76 128.7 7,60099 Want more HighMount headquarters HighMount office Production and Revenue by Commodity Leonard / HighMount acreage news? Drill Net Production of Revenue by Wolfcamp www.plsx.com 129 MMcfepd Commodity Sonor a NGLs Houston Find these stories and more, 24/7/365 NGLs (HQ) 25% 29% Sonora Oil Gas Gas in the PLS online publication archive 2% 73% 52% Oil 713-650-1212 19%

For general inquiries, e-mail [email protected] Source: Barclays/RBC marketing brochure Transactions 6 June 23, 2014 What's on the Market What’s on the Market Briefs Illinois Basin oil package offers 280 bopd plus upside • Millennial Energy has hired Core Minerals Management II LLC is marketing an Illinois Basin oil package PLS to market its non-op Eagle Ford with current net production of 280 bopd from 90 operated and 10 non-op wells plus interests at Eagleville field. Located multiple drilling and behind-pipe opportunities. The wells are located on a 7,900-net- within the volatile oil window in northeast McMullen acre leasehold (10,000 gross) at the juncture of Indiana, Illinois and Kentucky. The Co., Texas, the acreage is 73% HBP with the remainder 73% HBP Core Minerals generating net Sundance Energy-operated assets expiring no sooner than 4Q14. cash flow of $680,000/month. consist of 8% WI in five producing Net operating cash flow for the past horizontals, two waiting on completion 12 months has averaged $680,000/month. Production is tied to optimized facilities and 13 PUD locations on leases that are appropriately sized for secondary recovery operations, providing additional carrying 75% NRI. April net production upside potential. of 160 boepd (85% oil) is expected Contact Meagher Energy Advisors or request PLS Listing No. PP 3119DV to to yield monthly net cash flow of learn more about this package. Offers care due July 16. $375,000. Bids are due July 1 for this package, viewable at PLS Listing Hunt’s ArkLaTex exit offers long-life gas & low-risk upside No. PP 3917DV or by contacting Looking to focus its operations on resource plays (particularly the Bakken, Eagle Ross Benoche (713-600-0154, Ford and Marcellus) and continued overseas expansion, Hunt Oil Co. is looking to [email protected]). divest its entire legacy asset base in East Texas and North Louisiana. The properties • Cambridge Production Inc. for sale provide low-decline proved reserves of 172 Bcfe of which seeks a farm-in partner for its 2,560- 40% is PDP and more than half is within the primarily operated acre Alamocitos Ranch project East Haynesville field in Claiborne Parish. Additional assets target the Gray sand targeting Missourian carbonate and in central Webster Parish’s Cotton Valley field (operated by XTO), the Haynesville Granite Wash potential in the western sand in northern Webster Parish (operated by Marathon and XTO) and the James Texas Panhandle’s Dalhart Basin. The Lime in Henderson and Anderson Cos. prospect in Oldham Co. consists of 18 MMcfed with 10-75 bbl/MMcf & (operated by Hunt). four leases with expiration dates in immediate positive free cash flow. Current net production of 18 MMcfed December 2014, March 2015 and (33% liquids) provides a 12-year PDP reserve life index with immediate positive December 2015 each with a one-year extension available. Extensive 3D free cash flow. In addition, 23 recompletion opportunities and 142 identified drilling seismic and offset well control data locations provide meaningful low-risk upside, with additional horizontal development are available. To learn more see PLS opportunities available. Hunt also owns Cotton Valley and James Lime midstream Listing No. DV 3108FO. infrastructure, creating premium price realizations and third-party revenue. • Petrogulf is offering a non-op Initial proposals are due July 15 to marketing agent RBC Richardson Barr. For package of 1,675 net acres in Mountrail, more information see PLS Listing No. PP 3238DV. Dunn, McKenzie and Stark Cotton Valley/Bossier gas & acreage available for sale or JV Cos., North Dakota with Shreveport, Louisiana-based private E&P firmO’Brien Energy is seeking a buyer seven producing Bakken/ or JV partner for operated gas producing properties with substantial undeveloped Three Forks wells and 18 permitted potential in the prolific Cotton Valley/Bossier trend of East Texas. The assets have drilling locations. The existing net production of 37.5 MMcfd (100% dry gas) from 39 vertical wells with proved wells generate net production of 76 bopd. To find out more, seePLS developed reserves of 46 Bcf, yielding an exceptionally long 33-year Listing No. PP 3104DV. reserve life index. F&D costs under $1.50/Mcf; recent • PostRock Energy has The 28,500-net-acre net cash flow of $4.3 million/month. engaged Robert W. Baird to leasehold (29,800 gross) in Robertson sell its West Virginia oil and gas assets and Limestone Cos. is 76% HBP and holds 132 horizontal locations targeting the consisting of 32,100 net acres (23,200 Cotton Valley plus 274 targeting the Bossier. Uphole secondary targets include the undeveloped) with April production Upper Cotton Valley, Travis Peak, Pettet and Rodessa. Probable plus possible reserves of 1.7 MMcfed (12% oil) from 407 exceed 1.5 Tcf. wells (76% WI) and YE13 proved Infrastructure is in place to quickly scale up horizontal development, including reserves of 10.2 Bcfe. proprietary 3D seismic over the entire leasehold, well control data and over 200 MMcfd of takeaway capacity. Included in the offer is certain midstream infrastructure owned with 100% WI. Get Metrics. To learn more and make an offer by the July 11 bid date, contact Citigroup or Learn how at www.plsx.com/ma request PLS Listing No. PP 3308DV.

Find more on the A&D arena at To learn more about PLS, call 713-650-1212 Volume 25, No. 08 7 A&D What’s on the Market Briefs What's on the Market • RedBird Royalties has retained ERG selling long-life Casmalia oil property in California PLS to market a non-producing PLS has been retained by ERG Resources to market an operated lease producing package of 6,000 net acres (53,500 shallow Monterey oil at Casmalia field in Santa Barbara Co., California. Assets for sale gross) across Texas, Oklahoma, include 27 active vertical wells with current net output of 88 bopd and four saltwater Louisiana and Alabama. Offset by disposal wells on 572 acres operators such as BHP Wells originally drilled by Chevron & (100% WI, 100% HBP). Billiton, BP, Chesapeake others & have low decline. Originally developed and XTO, these assets have by Chevron and others, these wells maintain low-decline production dating back to development potential in the Barnett, Atoka Wash, Granite Wash, Cotton the 1980s. Since acquiring the lease in 2011 ERG has stabilized output by rebuilding Valley and other formations with the facilities and returning wells to production. Upside includes eight Monterey deep rights HBP. To learn more check development locations adjacent to existing wells as well as cyclic steaming and out PLS Listing No. L 5711DV or steamflood opportunities. Proved reserves total 910,000 bbl (49% PDP). contact Brian Green (713-600-0119, To find out more about this opportunity, check out PLS Listing No. PP 5392DV [email protected]). or contact Brian Green (713-600-0119, [email protected]). • PPC Operating Co. has retained EnergyNet to market an operated Midstates rumored to solicit corporate takeover bids Permian waterflood property in Lea Co., Houston-based Midstates Petroleum is reportedly on the hunt for potential buyers. New Mexico with 36 active producers The company is working with Goldman Sachs and Morgan Stanley to solicit takeover and 31 active injection wells. Located offers according to a Bloomberg article citing unnamed sources. It has a ~$500 million within the Rhodes Yates oil field, the market cap, $1.7 billion in long-term debt, Q1 production of 29,000 boepd (46% oil, assets are producing 111 boepd (91% 21% NGLs) and YE13 proved reserves of 111 MMboe. oil) with 90-96% working interest and In March Midstates announced that president and CEO John infill drilling opportunities. Bids are A. Crum would step down so it could “pursue new leadership and strategic direction.” due June 26 for this package. For more Board member Peter J. Hill was appointed to these positions on an interim basis. info see PLS Listing No. PP 5025DV. Crum grabbed the reins in March 2011 and took the company public a year later. He • Ogden E&P is offering a non- also oversaw the transition from a South Louisiana conventional oil producer on to a op 27.5% WI in 880 acres (20.6% horizontal Mid-Continent driller. NRI) targeting three Smackover Midstates entered the Mississippi 2012 IPO heralded move from South oil prospects at Huxford field in Louisiana to Mid-Con unconventionals. Lime with the $650 million acquisition of Escambia Co., Alabama. The three Eagle Energy in August 2012 and has nearly tripled production there to 20,000 boepd well locations have projected dry-hole costs of $1.6 million and completion with more than 900 locations remaining. The company bought into the Cleveland and costs of $1.3 million for depths of Marmaton via a $620 million acquisition from Panther Energy and partners in April 14,600 ft. The wells are expected to 2013 and is flowing 8,400 boepd there with more than 700 locations remaining. It still IP at 500 bopd and yield EURs of over maintains a strong South Louisiana presence producing 4,200 boepd. 1.0 MMbbl. To learn more, see PLS Midstates currently has a 33% public float with the rest owned by PE firms Listing No. DV 2402. Riverstone (31%) and First Reserve (27%) along with company insiders (8%). • Saratoga Resources has commenced a marketing effort to Midstates Petroleum operational overview find a farm-in partner for its 620-acre Q1 2014 Avg Daily Producon 29,004 Boe/d Goldeneye prospect at Grand Mississippian Lime 68 million Boe proved reserves Oil (% Total) 13,417 Boe/d (46%) 94,400 acres Bay field in Plaquemines NGL (% Total)5,912 Boe/d (21%) Parish, Louisiana (100% WI). Proved Reserves Proforma @ 12/31/13 111 million BOE The company intends to drill the Oil (% Total) 44.6 million Boe (40%) prospect this year, targeting over Anadarko NGL (% Total) 23.9 million Boe (22%) 37 million Boe proved reserves 1.0 MMboe of prospective resources 119,700 acres Proved PV-10 Proforma @ 12/31/13 $1.7 B said plus upside potential in the 25 2014 Producon Guidance 32,000 – 35,000 Boe/d through 30 sands supported by offset 2014 Capex/EBITDA Guidance $500mm - $550mm production and shows. 2014 LOE/Boe Guidance $7.00 - $7.50 / Boe Recent Accomplishments Gulf Coast • Achieved Adjusted EBITDA of $111mm in 1Q’14 6 million Boe proved reserves • 2014 Capex/EBITDA Guidance of $500 - $550mm Redbird Royalties - 50,800 acres • April daily producon grew to 32,500 Boe/d L 5711DV • Reduced Cash Operang Expenses by 3% Q on Q Find more headlines at www.plsx.com/news • Increased liquidity to ~$200mm; sufficient liquidity to fund program through 2015 For general inquiries, e-mail [email protected] Source: Midstates June 3 Presentation via PLS docFinder www.plsx.com/finder Transactions 8 June 23, 2014 What's on the Market ARKANSAS San Juan Niobrara leasehold with multi-pay potential offered Privately held DJ Simmons is offering an operated 50% WI in its 120,000-acre ARKANSAS NONOPERATED & ORRI position targeting the San Juan Basin extension of the Niobrara in Sandoval Co., 700-Producers; >85-WOC; 5-Counties CLEBURNE, FAULKNER, CONWAY, New Mexico. Along with nine identified prospects targeting the naturally fractured -- VAN BUREN AND POPE COUNTIES PP Niobrara, the leasehold has Dakota, Entrada, Aqua Zarca/Glorieta and Pennsylvanian FAYETTEVILLE SHALE potential at depths of 4,000-10,000 ft. NonOperated WI & Overrides Available NONOP/ The Farmington, New Mexico-based company is forecasting initial oil Operated by SEECO, XTO & BHP ORRI rates of 500-1,000 bopd and over 100 MMbbl of potential reserves with dry- Monthly Cash Flow (Gross): $35,000/Mn DATA ROOM AVAILABLE hole costs of $2.25 million and completed-well costs of $3.0 million. To learn more, PP 5097RR check out PLS Listing No. DV 3273L. EAST TEXAS Elk looks to sell off Wyoming EOR portfolio Hoping to capitalize on increased market interest in Wyoming CO2-flood operations, EAST TEXAS SALE PACKAGE 6-Producers. 3-Injection. 900+ Acres. Elk Petroleum has engaged Meagher Energy Advisors to help sell all of its assets in CAMP & WOOD COUNTIES the state. Up for sale are Elk’s 35% WI in the Denbury-operated Grieve CO2-flood NEWSOME UNIT PP project and 100% WI in the Grieve oil pipeline, Niobrara rights on 2,900 acres at Lower Pittsburg Sand / Upper Grieve and the Ash Creek chemical EOR project. Marketing will begin in late June -- Travis Peak at about 8,000 Ft. 100% OPERATED WI AVAILABLE 124 with bids due in early August. Elk to focus on recent Nebraska DJ Gross Production: 124 BOPD BOPD Elk’s Grieve stake provides Basin buy, where CO2 flood also planned. Net Cash Flow: >$300,000/Month 6.5 MMbbl of proved plus Total Proved Reserves: 560 MBO probable oil with first oil slated for 2016; Ash Creek holds 2.0-3.0 MMbbl of2C Net Proved PV10 Reserves: $20,000,000 contingent oil. Over $60 million gross has already been spent at Grieve out of a projected OFFERS DUE BY 3RD QUARTER 2014 PP 4027DV initial capital cost of $100 million. Progress to date includes the injection of 11.5 Bcf of CO2 and 3.5 MMbbl of water, construction of water and CO2 supply infrastructure, and EAST TEXAS SALE PACKAGE treatment of most wells in the field to make them corrosion resistant. Reservoir pressure 67-Gas; 4-Oil; 16-SI; ~5,800-Net Acres. has responded to CO2 injection as anticipated, substantially de-risking the project. ALL WELLS IN RUSK COUNTY Meanwhile at Ash Creek the company has spent $5.0 million to date on workovers, OAK HILL and MINDEN FIELDS PP Rights through Cotton Valley Sands. flowlines, injection facilities and technical studies of the field’s chemical EOR potential. Additional Unquantified Upside in -- Behind-Pipe Upper Cotton Valley Sands. ~96% OPERATED WI; ~75% NRI ~2.7 Current Net Sales: ~2.7 MMCFED MMCFED Long PDP Reserve Life Index of 13 Years Net Cashflow: ~$246,000/Month Avg. EUR of 6.2 BCFE for 7-PUDs Total Proved Reserves: 44.3 BCFE Net Proved PV10 of $118,697,000 SALE PENDING PP 5311DV

EAST TEXAS SALE PACKAGE 39-Vertical Producers; ~28,500 Net Acres. ROBERTSON & LIMESTONE CO. BOSSIER / COTTON VALLEY DRY GAS PP >400 Horizontal Development Locations Upside in Upper Cotton Valley, Travis -- Peak, Pettet and Rodessa Targets 3-D Seismic Data and Well Control ~98% OPERATED WI; ~74% NRI Net Production: ~37.5 MMCFD ~37.5 Gross Production: ~50 MMCFD MMCFD Feb 2014 Net Cash Flow: $4,300,000/Mn Total Net Proved Reserves: 605 BCF Net Proved PV10 of $530,000,000 IMMEDIATE UPSIDE Gathering Infrastructure in Place CA Required to Access Virtual Data Room PP 3308DV

To learn more about PLS, call 713-650-1212 Volume 25, No. 08 9A&D

EAST TEXAS ALABAMA SOUTH LOUISIANA LEON COUNTY, TEXAS OVERRIDE ALABAMA SALE PACKAGE SOUTH LOUISIANA PROPERTY 46-Leases. 3,000-Net Leased Acres. >20 Active Producers; ~35,000 Unit Acres. 6-Total Wells. 5-Shut-In. 1-Disposal. EAGLE FORD SHALE & WOODBINE RR ONSHORE GULF COAST CALCASIEU PARISH PP 124-Net Royalty Acres. NEW DRILL OPPORTUNITIES PP VINTON OIL FIELD OVERRIDING ROYALTY FOR SALE ORRI Smackover Dolomite, Norphlet Sandstone, Depth: 4,000 Ft. (TD) CALL Non-Producing Override. & Volatile Oil/Retrograde Condensate Gas. 100% OPERATED WI FOR SALE TODAY RR 3947L Reservoir Depths of 17,850-18,500 Ft. Estimated IP: 50 BOPD ~90% OPERATED WI; ~75% NRI 4,800 PP 3541 RUSK CO., TX PROPERTY Net Production: 4,800 BOED BOED 4-Active Wells; Leases are HBP. Net Cash Flow: ~$6,250,000/Month SOUTH TEXAS OAK HILL FIELD Future Net Sales Volumes: 23.6 MMBOE BEHIND PIPE OPPORTUNITIES PP Future Net Sales PV10 of $391,000,000 ATASCOSA CO., TX PROPERTY Pettet & Taylor Production. OFFERS DUE BY JUNE 30, 2014 Salt Water Disposal. Additional Upside in Gloyd, Young, -- 20 PP 5185DV SOUTH TEXAS FACILITY Pettet, Travis Peak & Cotton Valley. MCFD SEEKING JV PARTNER SWD 90% OPERATED WI; ~65% NRI MISSISSIPPI 50-60% WORKING INTEREST AVAILABLE Gross: ~1 BOPD, 20 MCFD, 3 BWPD Current Permitted Inj Rate: 15,000 BPD PP 6019DV LINCOLN CO., MS PROPERTY Potential Capacity: 30,000+ Bbl/Day SWD 1-Active. 160-Acre Unit. Investment: $600,000 - $750,000 MULTISTATE ARK-LA-TEX LOWER TUSCALOOSA Projected Revenue: >$200,000/Month Lower Tuscaloosa. 10,900 Ft. PP SWD 1426 MULTISTATE ARK-LA-TEX SALE PKG OPERATED WI AVAILABLE 60,000+ Well Penetrations in North LA Production: 11 BOPD & 85 BWPD TMS DIMMIT CO., TEXAS OVERRIDE SALE EAST TEXAS & NORTH LOUISIANA Recoverable Reserves: 1.1 MMBO 52-Producers; 8-Permits; ~29,500-Acres HZ DEVELOPMENT OPPORTUNITIES PP PP 4026FO HEART OF EAGLE FORD SHALE Cotton Valley, James Lime, Pettit, OIL & CONDENSATE WINDOWS RR Hosston, Haynesville and Smackover MULTISTATE GULF COAST Potential for Other Horizons: Low-Risk Upside Potential -- Buda, Olmos, Pearsall, etc. >20 Recompletions; >140-Drill Locations GULF COAST SALE PACKAGE Active Development Since 2011 OPERATED & NonOperated WI Available 18 26-Producers. >11,000-Gross Acres. ~1.0% OVERRIDE FOR SALE ORRI Net Production: 18 MMCFED (67% Gas) MMCFED TEXAS & LOUISIANA DEEP INVENTORY OF LOCATIONS June 2014 Cash Flow: ~$3,100,000/Mn HIGH IMPACT DRILL OPPORTUNITIES PP Monthly Cash Flow: ~$232,252/Month PDP Net Reserves: 80 BCFE LA: Berry Lake, Kent Bayou/Little Big Horn, RR 3976PP Total Net Proved Reserves: 170 BCFE Live Oak, Murphy Lake & Ridge West Fields OFFERS DUE BY JULY 15, 2014 TX: Buna West, Silsbee & Nine Mile Point. EAGLE FORD ROYALTY PP 3238DV Significant Non-Producing Pay Detected. 5-Active Wells; ~1,235-Gross Acres. 20-100% WI AVAILABLE; 15-83% NRI LIVE OAK COUNTY NORTH LOUISIANA Net Production: 611 BOED (26-Wells) 611 HORIZONTAL EAGLE FORD (Liquids Rich) RR OPERATED & NonOperated Wells BOED 26 Active Permits Offsetting Position CENTRAL LOUISIANA PROPERTY Net Cash Flow: ~$315,000/Month --Operator Has 7 Permits Due East 3-Austin Chalk Wells. 8,339-Net Acres. Proved: 2.1 MMBO, 25 BCF & 733 MBBLs Unitized Leasehold - 4 Units AVOYELLES PARISH Net Proved PV10 Reserves: $114,800,000 ~2.0% ROYALTY INTEREST FOR SALE WILCOX FOUR-WAY CLOSURE PP PDP: 142 MBO, 1.9 BCF & 86 MBBLs Recent Production: >1,000 BOED 19 Austin Chalk Development. PUD: 1.7 MMBO, 12 BCF & 125 MBBLs Net Production: 11 BOPD & 46 MCFD BOED Tuscaloosa Marine Shale Potential. NUTECH GENERATED PROPRIETARY Current Cash Flow: ~$44,000/Month 80 Square Miles of Proprietary Seismic 29 PP 4226DV MAJOR OIL COMPANY OPERATOR OPERATED WI AVAILABLE BOPD Gross EURs: ~500 MBOE/Well Gross Production: 88 BOPD TEXAS & LOUISIANA PROPERTIES POTENTIAL FOR 8 ADDITIONAL WELLS Net Production: 29 BOPD 3-Active Wells. 35-ShutIn. 2-SWD. RR 3897PP PP 3885DV TX - HARDIN, LIBERTY & JACKSON LA - CALCASIEU PARISH PP GONZALES CO., TX PROPERTY CENTRAL LOUISIANA SALE PACKAGE Deep Rights in Jackson County. 2-Vertical Producers. 1-SI. ~2,400-Acres. ~192,000-Gross Acres Across 4-Parishes. Significant ShutIn Rework Upside. AUSTIN CHALK PRODUCTION AUSTIN CHALK & WILCOX TRENDS Potential Stacked Targets 3,000-12,000 Ft. IMMEDIATE UPSIDE PP CONTIGUOUS ACREAGE IN 3 FIELDS PP HIGH OPERATED WI & NRI AVAILABLE Eagle Ford, Austin Chalk, Edwards, Austin Chalk & Upper Wilcox SEEKING OUTRIGHT SALE OR JV PACKAGE -- Carrizo, Olmos, Buda & Pearsall. Two New Successful Productive Wells. Producer Purchased Minerals in LA. 7-Horizontal Eagle Ford Locations. 137 Upside in Saratoga Chalk & Stacked Wilcox. ~2,400 Low Risk for Development 3-D Seismic Available For Review. BOED OPERATED WI; Some w/ 100% NRI BOED PP 8011DV 100% OPERATED WI; 75% NRI Net Production: ~2,400 BOED Gross Prod: 120 BOPD & 101 MCFD Est Net Resources of Up to 180 MMBOE Net Income (2013): >$80,000/Month PP 3911L More listings at plsx.com/listings PP 4178DV

For listing inquiries, e-mail [email protected] Access PLS’ for featured deals for sale Transactions 10 June 23, 2014 What’s on the Market Briefs • North Petroleum Inc. is offering SOUTH TEXAS SOUTH TEXAS an operated 87% WI in a 400-acre SOUTH TEXAS EAGLE FORD SOUTH TEXAS PROPERTY prospect in Matagorda Co., Texas. 7-Wells. 9,260-Net Mineral Acre Option. 3-Wells. ~120-Acres. Primarily targeting two Miocene WEBB, MAVERICK & DIMMIT CO. LIVE OAK COUNTY locations on a salt dome flank at 6,400 BRISCO RANCH FIELD PP MOUNT LUCAS FIELD PP ft, the prospect also has potential for Chupadera Ranch, Cage Ranch Block A&B Frio (2,500’ Sand). 2,500 Ft. Maverick Basin Multiple Stacked Pays. 100% OPERATED WI; 77% NRI NET stacked pay at 5,000-6,500 ft. It is Eagle Ford, Glen Rose, Georgetown, Gross Production: 11 BOPD 9 BOPD located within a productive fault block -- Austin Chalk, Pearsall & Buda etc. Low Decline, Long Life. and covered by 3D seismic. Dry hole ~7.0% NonOperated WI in 7 Wells. OBO/ Net Cash Flow: $21,000/Month costs are estimated at $575,000 and 7.167% & 9.375% MINERAL INTEREST EF PP 3749 completion costs at $225,000 to access Cash Flow (Chupadera): $50,000/Month potential reserves of 34 Bcfe (91% gas). Future Well EUR: 600 MBOE/Well SOUTH TEXAS SALE PACKAGE NonOperated WI & Option To Lease. See PLS Listing No. DV 3159. 4-Active NonOp Wells. 1,018-Acres. PP 3079L DIMMIT & LA SALLE COUNTIES • Scepter Exploration LLC is EAGLE FORD SHALE PRODUCTION PP offering an operated 25% WI (18.75% SOUTH TEXAS NONOPERATED PKG Additional Potential in Olmos, San Miguel, NRI) in a prospect in Jackson Co., 58-PDP. 6-PDNP. 92-PUD. >10,000-Acres. -- Austin Chalk, Buda & Edwards. Texas targeting the Frio sand and LA SALLE & FRIO COUNTIES Numerous Drilling Opportunities 135 other stacked targets at 5,000-7,250 EAGLE FORD OIL WINDOW PP 30% NonOperated WI; 22.5% NRI BOED Eagle Ford, Pearsall & Buda Production. Net Production: ~135 BOED (58% Oil) ft. Located on 116 acres in the Ganado Lateral Lengths: ~3,300 to ~7,500 Ft. Net Cash Flow: ~$271,000/Month West oil field, the prospect has 2D 18-Drill Locations Scheduled in 2014 PP 3502DV seismic and well control data indicating 1-Rig Drilling Program thru Mid-2015 initial oil rates of 80 bopd. To learn more ~15% NonOperated WI; ~11% NRI 910 WILLACY CO., TX SALE PACKAGE check out PLS Listing No. DV 5394. Est Net Sales (April 2014): 910 BOED BOED 17-Active; 6-Inj; 14-ShutIn; 1,720-Acres. • Australia-based Sun Resources Operated by Cheyenne Petroleum Co. WILLAMAR FIELD Est PDP Net Cash Flow: $1,500,000/Mn is offering an operated 50-100% WI SIGNIFICANT UPSIDE PP Total Proved Reserves: 11 MMBOE Frio and Miocene Production. for sale or farm-in at a 10,000-net- Net Proved PV10 Rsrvs: $156,500,000 Multiple Pays from 5,000-8,000 Ft. acre project targeting the PP 4206DV Recompletions & Drilling Opportunities. Woodbine, Eaglebine and 3-D Seismic Interpretation Available. Buda at 6,000-6,300 ft. SOUTH TEXAS NONOPERATED PKG ~91% OPERATED WI; 68% NRI Located in Leon Co., Texas, the assets 32-Producing Wells; ~2,543-Acres. Gross Prod: 196 BOPD & 310 MCFD 168 WEBB & ZAPATA COUNTIES Net Production: 133 BOPD & 210 MCFD BOED have dry hole costs of $2.5 million and PP Perdido, Reklaw, Wilcox & Lobo. Net Operating Cash Flow: $323,000/Mn completed well costs of $6.5 million Recompletion & Re-Entry Potential 3,400 Total Proved Reserves: 773 MBOE with expected Woodbine IPs of 250 Up to 46% NonOperated WI; ~32% NRI MCFD Net Proved PV10 of $18,900,000 bopd and EURs exceeding 250,000 bbl Production: 8 BOPD & 3,400 MCFD PDP Reserves: 578 MBOE plus additional Buda pay. To learn more, Net Operating Income: $15,930/Month PDP PV10 of $13,800,000 check out PLS Listing No. DV 3169L. PP 3229DV SALE PENDING PP 2781DV Separately, Sun Resources acquired SOUTH TEXAS PROJECT 5,014 net acres targeting the Austin 10-Active (4-Hz Buda); 55,700 Net Acres. SOUTHEAST TEXAS Chalk and Eagle Ford in Bastrop Co. from FRIO, DIMMIT, ZAVALA & LA SALLE Ursa Resources Group. EAGLE FORD, BUDA & AUSTIN CHALK PP HARDIN CO., TEXAS PROPERTY • TGC Acquisition Fund is selling >100 Locations Eagle Ford & Core Buda. 1-Producer. 3-Shut-In. three non-producing East Texas Horizontal Development Potential from SARATOGA WEST FIELD PP leasehold packages: 2,316 net acres -- Waterflood and Olmos Proved Upside. Depth: 6,000 Ft. (TD) 65-Proved, 126 Upside Locations 6-Zones 100% OPERATED WI FOR SALE 4 BOPD (5,270 gross) in Henderson and Navarro 100% OPERATED WI; ~82% NRI Gross Production: 3-4 BOPD-- Cos., 1,068 net acres (1,626 gross) in Net Production: 2,100 BOED (73% Oil) 2,100 --- & 5 BWPD Freestone and Navarro Cos. and 2,661 Offset 30-Day IP’s: 500-1,000 BOED BOED Possible ShutIn Prod: 10-20 BOPD net acres (4,383 gross) in Limestone 2013 EBITDA of $53,000,000 PP 3543 County. Bids are due July 16. See Proved Reserves: 13 MMBOE PLS Listing No. L 5019DV or contact Net Proved PV10 Reserves: $208,581,000 JACKSON CO., TEXAS PROPERTY Surrounded by Multiple Highly Active Plays EnergyNet for additional information. 8-Total Shut-In Wells; 400-NMA PP PP 5363DV FRANCITAS OIL FIELD Depths: 4,000-10,000 Ft. (TD) MINERAL Mineral Rights Owned. RIGHTS $4.0B in assets sold since 1988. No Commission. List Today! Hire PLS to execute your next 100% OPERATED WI FOR SALE negotiated sale, 713-650-1212 To get started, please call 713-600-0154 PP 3547 or e-mail [email protected]

Find more listings at No commission! List today, call 713-650-1212 Volume 25, No. 08 11 A&D What's on the Market SOUTHEAST TEXAS Northern Midland Basin foothold opportunity for sale JEFFERSON CO., TX PROPERTY Bold Energy II and Sinclair Oil & Gas are marketing operated acreage in the 16-Active Wells. 618-Acres. northern Midland Basin. Located in Borden and Garza Cos., Texas, the leasehold covers SPINDLETOP FIELD Deeper Nodasaria Gas Play. PP 22,300 net acres (29,600 gross) with rights to all depths and at least seven years remaining 30-Additional Drilling Locations. on primary leases. Stacked targets include the Clearfork, Spraberry, Wolfcamp A, B and Numerous Behind Pipe Zones. D (Cline), Strawn and Atoka. The leases average 77.4% NRI. 100% OPERATED WI; 73% NRI Five active producers provide gross March oil flow of 17 bopd with Gross Production: ~155 BOPD ~110 produced water volumes of 165 bpd. Also included are two injectors and Net Production: ~110 BOPD BOPD Net Cash Flow: ~$300,000/Mn one saltwater disposal well permitted for up to 10,000 bpd. Offset operators include Est Net Proved Reserves: 4.1 MMBO Apache, Athlon Energy, Element Petroleum, SM Energy and Tall City Exploration. P+P+P Reserves: 4.77 MMBO & 6.5 BCF To learn more about this opportunity, see PLS Listing No. DV 5463L or contact Net Proved Rsrvs (PV10): $156,000,000 Lantana Energy Advisors, A SunTrust Robinson Humphrey Company. PP 1527DV Conventional Permian oil assets for sale in Andrews County LIBERTY CO., TEXAS PROPERTY Permian-focused Lime Rock portfolio company Capstone Natural Resources 6-ShutIn Wells. PP is selling operated oil properties on the Central Basin Platform via RBC Richardson DAYTON NORTH FIELD Depths: 3,000-6,000 Ft. (TD) Barr. The assets for sale have current net production of 1,710 boepd (98% oil) from 54 100% OPERATED WI FOR SALE SHUT-IN vertical wells occupying 2,120 net acres (2,940 gross, 98% HBP) in three contiguous Estimated ShutIn Prod: 10-20 BOPD blocks located primarily in Andrews Co., Texas. PP 3544 More than two-thirds of that output has been added since the end of 1Q13 via 22 new wells drilled by Capstone’s one-rig program, which is currently LIBERTY CO., TEXAS PROPERTY targeting the San Andres and Glorieta. This drilling program has demonstrated 1-Producer. 3-Shut-In. PP SOUTH LIBERTY OIL FIELD downspacing performance and repeatable development on the acreage. Recent Depth: 4,000 Ft. (TD) 4 standout vertical IP rates include 555 bopd in the Lower Glorieta C, 164 bopd in the 100% OPERATED WI FOR SALE BOPD San Andres and 249 bopd in the Wolfcamp. Offers are requested by July 10. Gross Production: 4 BOPD & 5 BWPD PP 3545 Redbud markets low-decline Arkoma Basin gas properties SOUTHEAST TEXAS PROPERTY In a strategic move that will shift its focus to the Permian Basin, Redbud E&P has 1-Producer. 7-ShutIn. 1-Injection Disposal retained E-Spectrum Advisors to sell the majority of its Arkoma Basin gas properties. HARDIN & POLK COUNTIES PP Located in Haskell, Latimer, LeFlore, McIntosh and Pittsburg Cos., Oklahoma, the VOTAW OIL FIELD Wilcox Formation. 8,500 Ft. 8 assets for sale provide shallow-decline production with very low water volumes. OPERATED WI FOR SALE BOPD April output of 9.7 MMcfed (99% gas, 100% operated) from 477 wells is projected to Gross Production: 6-8 BOPD generate $711,000 of monthly cash flow. Estimated ShutIn Prod: 35 BOPD Founded in 2010, Redbud has built up a 70,500-net-acre Arkoma Basin leasehold PP 3542 (78,600 gross) that is 100% HBP and includes a large inventory of drilling locations SOUTHEAST TEXAS SALE PACKAGE in the Hartshorne coal at 2,000 ft as well as an active recompletion program in the 2-Active. Contiguous 2,684-Acre HBP Unit. Jefferson formation at 3,000 ft. Proved reserves total 82.1 Bcfe (42% PDP). Also GRIMES CO., TEXAS - ZINGARA UNIT included is over 135 miles of gathering pipeline moving both Redbud and third-party POTENTIAL IN OVERLAPPING PLAYS PP gas for monthly net cash flow of $32,000. Glen Rose & Georgetown. 8,500-12,500’ Bids are due July 1. View PLS Listing No. PP 5407DV/G to find out more. On Trend w/ Austin Chalk, Woodbine - ‘’Eaglebine’’, Dexter Sands, Eagle Ford, South Texas conventional gas properties for sale Buda, Edwards, Georgetown & Glen Rose. 80 MDU Resources upstream sub Fidelity E&P is considering the sale of its operated 100% OPERATED WI; 74% NRI MCFD 30-Day IP: 480 BOPD & 380 MCFD Tabasco and Texas Gardens fields in Hidalgo Co., Texas as well as multiple non-op EUR (Woodbine): 285 MBO & 307 MMCF properties in Hidalgo and Starr Counties. The assets near the Mexican border have Drill & Completion Capex: $6,000,000/Well projected June net production of 17.6 MMcfed (36% oil and NGLs, 77% operated) PP 3125DV from 158 wells on 8,240 net acres (10,700 gross, 90% HBP). Growth opportunities include 94 Vicksburg redevelopment sites and TYLER CO., TEXAS PROPERTY 22 PUD drilling locations targeting the deepest strata of the Vicksburg sand at Tabasco. 3-Shut-In Wells. PP HOUSH OIL FIELD Additional stacked-pay opportunities including 24 structural and stratigraphically Depth: 8,800 Ft. (TD) SHUT-IN trapped horizons from the Vicksburg (10,500 ft) up to the shallow Frio (5,500 ft). 100% OPERATED WI FOR SALE Proved reserves total 117.3 Bcfe, of which 48.0 Bcfe is PUD with F&D Estimated ShutIn Prod: 18 BOPD costs of $1.49/Mcfe. PP 3546

For general inquiries, e-mail [email protected] Access PLS’ archive for previous A&D news Transactions 12 June 23, 2014

PERMIAN / NEW MEXICO PERMIAN / WEST TEXAS PERMIAN / WEST TEXAS EDDY CO., NM MINERALS FOR SALE CROCKETT CO., TX PROPERTY MIDLAND BASIN SALE PACKAGE 2-Producers; 2-Permitted; 160-Acres. 6,335-Acres. (~3,700-Acres All Rights) 937-Producers; 54,600-Net Acres EDDY COUNTY RR PERMIAN BASIN - WEST TEXAS MARTIN, HOWARD, GLASSCOCK, -- Horizontal Delaware, 1st & 2nd Bone -- UPSIDE POTENTIAL PP MIDLAND, ECTOR, UPTON & DAWSON PP Springs (Horizontal), Wolfcamp & Morrow. 324 San Andres Recomplete/Infill Drilling All Vertical Wells Completed in Wolfberry 1.3% OVERRIDING ROYALTY FOR SALE BOED Grayburg, Queen, Seven Rivers and -- Upside in Horizontal Wolfcamp A, B & C, Jan. 2014 Prod: 256 BOPD & 410 MCFD -- Yates Uphole Recompletions. 68 -- Horizontal Cline & Spraberry. Net Operating Income: $10,500/Month 100% OPERATED WI; 78% NRI BOPD Laterals are Planned at 5,000’ or 7,000’ RR 69843M Gross Production: 68 BOPD ~82% OPERATED WI; 63% NRI Net Income: ~$87,000/Month Net Production: 18,350 BOED (64% Oil) 18,350 LEA CO., NEW MEXICO PROPERTY PP 3918DV HEART OF WOLFCAMP OIL PLAY BOED 1-Well; 80-Acres. Net Operating Cash Flow: $29,800,000/Mn PERMIAN BASIN. WEST BLINEBRY FIELD PP RUNNELS CO., TX SUB PACKAGE 5,000’ Lateral EUR: ~500 MBOE/Well Blinebry Formation. 5,340 Ft. 1-PDP; 5 PUDs; 221-Acres. 7,500’ Lateral EUR: ~600 MBOE/Well Recompletion & Drilling Potential DRILLING EASTERN SHELF - PERMIAN BASIN Total Proved Reserves: 72.7 MMBOE 100% OPERATED WI; 87.5% NRI UPSIDE IMMEDIATE UPSIDE PP Total Net Proved PV10 of $949,000,000 Gross Production: ~1 BOPD & 10 MCFD Palo Pinto & Jennings Sand. PDP Net PV10 Reserves: $776,000,000 PP 4203DV Serratt & Capps Lime & Gardner Potential PP 3972DV Offset Well Control & Porosity Survey. LEA CO., NEW MEXICO PROPERTY 100% OPERATED WI; 75% NRI PALO WEST TEXAS PERMITS FOR SALE 6-Producers; 2-Inj; 3-PDNP; +/-800 Acres. Net Production (8/8): ~19.5 BOED PINTO Commercial Disposal Permits (SWD) PERMIAN BASIN Avg Net Revenue (8/8): >$40,000/Mn PERMIAN BASIN Siluro-Devonian Production. PP Palo Pinto Total PDP: ~18 MBOE 4 DIFFERENT LOCATIONS SWD Upside in ReEntry. Palo Pinto PUD Reserves: ~18 MBOE/Well Borden Co.: 20,000 BPD / 15-Acres Proprietary 3-D Seismic Data Palo Pinto DHC: $150,000; Compl: $120,000 Dawson Co.: 25,000 BPD / 10-Acres 98% OPERATED WI; ~80% NRI 212 Jennings Sand Rsrvs: ~24 MBOE/Well Howard Co.: 30,000 BPD / 12-Acres Gross Prod: 197 BOPD & 90 MCFD BOED PP 4224DV Mitchell Co.: 20,000 BPD / 10-Acres SWD Additional Producer Activated in May ‘14 100% SWD PERMITS AVAILABLE PERMIT Net Cash Flow: ~$379,000/Month WEST TEXAS WATERFLOOD High Market Demand Area for SWD. PP 3106DV 19-Active. 16-Inj. 3-Water. ~1,360 Acres. FOR IMMEDIATE SALE OR LEASE ECTOR COUNTY SWD 3849 LEA CO., NM WELL PACKAGE PERMIAN BASIN PP 36-Active Wells. 31-Active Injection Wells Queen Sand Waterflood Unit. WEST TEXAS SALE PACKAGE PERMIAN BASIN 55% OPERATED WI; ~41% NRI QUEEN 64-Vertical Wells. 5,445-Net Acres. Wells In Active Waterflood Pool. PP Gross Prod: 70 BOPD & 2,538 BWPD SAND GLASSCOCK & HOWARD CO. Infill Drilling Opportunities Additional WI is Available MIDLAND BASIN - STACKED PAYS PP Varying OPERATED WI & NRI. Net Revenue: $22,600/Month Horizontal Wolfcamp A, B & C and Cline -- Avg Comb Prod:101 BOPD & 59 MCFPD 101 PP 5499WF Development, Lengths of 7,500-10,000 Ft. Avg Comb Net Income: $147,109/Mn BOPD Acreage Is Contiguous and HBP. BIDS ARE DUE BY JUNE 26, 2014 PERMIAN SWD PERMIT & ROYALTY 100% OPERATED WI; 78% NRI PP 5025DV Active SWD w/ Additional Permit. Projected Net Production: ~600 BOED ~600 REAGAN COUNTY, TEXAS Est OOIP: 100-215 MMBOE/Section BOED LEA CO., NM WELL PACKAGE ‘’HEART’’ OF WOLFCAMP SHALE SWD Total Proved Reserves: 67.2 MMBOE 19-Active Wells. Permit Capacity: 30,000 BPD Net Proved PV10 Rsrvs: $679,000,000 PERMIAN BASIN 100% SWD PERMIT & ROYALTY SALE Vertical PDP Reserves: 1.1 MMBOE Jalmat Field PP High Injection Volumes: ~28,000 BPD WOLF- Horizontal PUD Reserves: 65.8 MMBOE Varying OPERATED WI & NRI. First Class ‘’MLP’’ Operator & Facility CAMP PP 5086DV Avg Comb Prod: 40 BOPD & 5.0 MCFD 40 Net Cash Flow: $45,000/Month Avg Comb Net Income: $47,436/Month BOPD Notable Operators within 30-Mile Radius: WEST TEXAS OVERRIDE SALE BIDS ARE DUE BY JUNE 26, 2014 -- Pioneer, Devon, Apache & Others. 12,000-Net Acres. PP 5044 SWD 4064RR SCURRY, HOWARD & MITCHELL CO. RR PERMIAN BASIN - CLINE SHALE WARD CO., TX PROPERTY Non-Producing Acreage. ORRI 4-Active Producers. 1-SWD. 480-Acres. 1.0% OVERRIDE ROYALTY FOR SALE No Commissions PERMIAN BASIN Cost Free ORRI CONTIGUOUS LEASEHOLD PP RR 2197M Get Listed! Cherry Canyon & Bell Canyon Production. For over 20 years, PLS has been the Additional New Drill Potential. ~19 central access point for buyers & sellers. 100% OPERATED WI; 80-87.5% NRI BOED For more information on listing, e-mail Gross Production: 8.0 BOPD & 64 MCFD Find it now! Net Income: ~$24,483/Month [email protected] PP 4154DV Learn how at plsx.com/finder

Find more listings at No commission! List today, call 713-650-1212 Volume 25, No. 08 13 A&D A&D News KKR adding Mississippi assets for $73 million Furthering the trend of PE firms buying producing properties, global investment firm Kohlberg Kravis Roberts is paying Penn Virginia $72.7 million for producing gas wells in southern Mississippi’s Selma Chalk. Where Prospects Concentrated among the Baxterville, Gwinville and Maxie gas & Properties Are fields, Q1 net production averaged 11.9 MMcfd from 570 wells. The Product. Well decline rates are shallow and as of YE13 net proved reserves were booked at 85.3 Bcf (69% PDP). The 28,000 net Gaining slow decline , producing Buyers, Sellers & Capital acres contain upside from low-risk offset properties in the Selma Chalk. Providers! Come Join Us For potential in addition to recent success 10 Prospect & Property Expos! re-fracking wells. While development of the Selma Chalk has historically consisted Imagine a day with a thousand buyers of vertical wells, recent efforts have focused on horizontal drilling and nearly 100 & sellers under one roof! Dealmakers horizontal Selma Chalk locations have been identified for development. is the perfect event to catch up on In focusing on gas-weighted assets with shallow decline rates KKR is joining current plays and network with who’s fellow PE firmTPG Capital, who plunked down $1.8 billion for Encana’s Jonah field active in the industry. conventional gas assets earlier this year. KKR will pay cash for Penn Virginia’s assets TAKE A BOOTH & GET IT SOLD! and closing is anticipated in July.

ENXP buys multi-pay East Texas assets Continued From Pg 1 “Combining the Treadstone Fort Trinidad asset with ours merges a top-tier producing asset with an outstanding seasoned technical team,” said ENXP chief Hunt Pettit, adding, “We expect to expand production significantly as we deploy a multi-rig NETWORK & CONFERENCE drilling program across the entire asset to develop all prospective horizons and fully exploit our entire position.” Deal ramps ENXP’s East Texas According to Treadstone’s production six-fold to 10,000 boepd. marketing presentation, the development program is self-funding with IRRs exceeding 100%. Treadstone has been developing its position primarily using vertical wellbores with multi-zone BUY A PASS AND BUY A DEAL! completions, primarily targeting the Buda and Georgetown with a few completions in the Glen Rose. It began drilling on multi-well pads in January, targeting a 2014 exit rate of 12,500 boepd and a November 2015 peak of 18,000 boepd. The assets currently hold 36 net producing wells, 136 PUD drilling locations based on 80-acre spacing and up to 250 Buda-Rose drilling locations based on 40-acre spacing. Also included in the 10 ONE-DAY EXPOS acquisition are 30 sq mi of 3D seismic and three saltwater disposal wells. The leases are owned with an average 89.6% WI and carry an average royalty burden of 16.6%. Dallas Thurs Jan 16 According to Treadstone’s website Fort Trinidad is one of two current operational areas for the company, formed in 2011 by Frank McCorkle, Key Sanford and Gene Roberts. Wed Feb 26 Midland The other is Alabama Ferry field, located to the northwest primarily in Leon County. Denver Wed Apr 16 Calgary Mon May 05 Top five US upstream deals in this issue Houston Wed May 14 Value Dallas Wed Jul 23 Date Buyer Seller ($MM) Type Location Houston Wed Oct 01 American Energy Enduring Calgary Wed Oct 08 6/9/14 Partners Resources $2,500 Property Permian Midland Tue Oct 28 6/9/14 American Energy East Resources; $1,750 Property Eastern Denver Mon Nov 03 Partners Undisclosed 6/16/14 Energy & Exploration Treadstone $715 Property Multi Region Sign up now! Call 713-650-1212 Partners Energy Partners In Canada 403-294-1906 Apollo Global Halcón 6/9/14 Management Resources $150 Royalty Gulf Coast www.plsx.com/dealmakers 5/23/14 Undisclosed Sundance Energy $116 Property Rockies

*Based on deals with values disclosed. Call For Trial! For general inquiries, e-mail [email protected] Source: PLS Derrick Global M&A Database www.plsx.com/ma Transactions 14 June 23, 2014 A&D News PERMIAN / WEST TEXAS NORTH TEXAS PE-backed Tall City plans ahead for eventual sale WEST TEXAS PROJECT JOHNSON CO., TX PROPERTY Privately held Permian pure player 10 Wells. 5,840 Gross Net Acres. 2-Active (1-NonOp); 1,019-Acres. DAWSON & MARTIN COUNTIES PP BARNETT SHALE PP Tall City Exploration is eyeing a 2015 PERMIAN BASIN Additional New Drilling Potential. exit of its position as part of its initial Vertical Wolfberry & Horizontal Wolfcamp 55 100% OPERATED WI; 79% NRI strategy. Shortly after forming in 2012, 100% OPERATED WI; 75% NRI BOED Gross Production: 408 MCFD 408 the company garnered a $200 million Net Production: 55 BOED 49% NonOperated WI Available in 1-Well MCFD Net Cash Flow: $40,000/Month Monthly Net Income: ~$11,425/Month capital commitment from Denham PP 2293 PP 5291DV Capital and has received a total equity investment of $300 million from the KANSAS NORTH TEXAS PROPERTY energy-focused PE firm. 2-Producers. 1-SI. ~18,000-Net Acres. KANSAS SALE PACKAGE JACK, YOUNG - Formed in 2012, Tall City is backed by 11-Wells (4-HZ); 1-SWD; ~40,000 Acres -- & PALO PINTO CO. PP Denham Capital. TREGO, GRAHAM & ELLIS CO. Caddo, Marble Falls & Mississippian. Marmaton Pawnee Horizontal Play PP 3-D Seismic Available for Review 52 The company has built a portfolio Middle Pennsylvanian Aged Marmaton. OPERATED WI FOR SALE BOED consisting of 92,000 net acres (109,000 Additional Upside in Lansing/Kansas City Gross Prod: 14 BOPD & 225 MCFD gross) primarily in Howard, Borden and 3 Net PUD Horizontal Pawnee Locations PP 4359DV 50% OPERATED WI in Vert. Lansing Well ~40 Reagan Cos., Texas. Tall City assembled ~22% NonOperated WI in other 10 Wells BOPD NORTH TEXAS PROPERTY unproven, low cost acreage believed to Gross Production: ~200 BOPD 2-Wells; 550-Gross & 510-Net Acres. hold potential based upon information from Net Production: ~40 BOPD THROCKMORTON COUNTY historic drilling logs and modern seismic. Net PDP PV10 of $1,930,000 DOLLIE ADAMS FIELD PP Tall City drilled wells to derisk the acreage Current D&C Costs: ~$3,200,000 Caddo Lower. 4,800 Ft. PP 3801DV Upside in Strawn, Caddo & Miss Zones. and prove the viability of development. So Completed March 2008 CADDO far the company has drilled 15 horizontals MICHIGAN 100% OPERATED WI; 75% NRI and currently has nine wells producing net Gross Production: 8 BOPD & 22 MCFD 2,143 boepd (83% oil). SOUTHERN MICHIGAN PROJECT Monthly Cash Flow: $17,000/Month 47-Active; 26-PUD; 6-PROB; 6-POSS PP 5151DV A&D Briefs JACKSON, CALHOUN, HILLSDALE, -- AND LENAWEE COUNTIES PP NORTH TEXAS PROPERTY • Tennessee-based Southern Energy Trenton/Black River Formations. 9-Wells; 320-Net & Gross Acres. Group has acquired 20% WI in three leases Target Depths: 3,000-4,500 Ft. THROCKMORTON COUNTY in Guadalupe Co., Texas. The AJ & NJ Carter OPERATED & NonOp WI; High NRI Flippen/Fry Sand Production. 580-800 Ft. PP leases are re-stimulation and secondary Gross Production: ~3,890 BOED ~2,500 Property Comprised of 2-Leases. recovery projects in the Luling-Branyon oil Net Production: ~2,500 BOED BOED 2-Wells Awaiting Completion. SHALLOW field with a combined 41 wells targeting 3.9 Avg Net Cash Flow: >$3,800,000/Month 83-100% OPERATED WI; 66-81.25% NRI Total Proved Reserves: 7.1 MMBOE Gross Production: 8.5 BOPD & 90 BWPD MMbbl of estimated recoverable reserves Net Proved PV10 Rsrvs: $321,700,000 Cash Flow: $17,500/Month in the Eagle Ford, Austin Chalk and Buda. Future Development Funded -- PP 5153DV The company is also getting a stake in the --- w Cash Flow Warnicke-Joslin lease in the same field PP 4181DV NORTH TEXAS PROPERTY with a total of four wells. The company 3-Producers; 15-PUD; >600 HBP Acres. now holds interests in 90 wells in the area. MULTISTATE MIDCONTINENT TAYLOR COUNTY • Torchlight Energy Resources has CONTIGUOUS ACREAGE PP MIDCONTINENT PROPERTY Flippen Sand. 2,900-3,000 Ft. acquired additional Oklahoma assets 4-Wells 126,000-Net Contiguous Acres. 15-PUDs Located on 10-Acre Spacing including acreage and increased working KS - CHAUTAUQUA, COWLEY, & ELK Three Leases; All Depth Rights interests in producing wells for $4.3 million. OK - PAWNEE COUNTY PP 100% OPERATED WI; 75% NRI 40 The Plano-based company added 5% WI in Current Horizontal Production. Production: 35-40 BOPD BOPD two AMIs bringing the total to 30% WI and Marmaton, Mississippian, Woodford-- New Wells Expected IP’s: 40-60+ BOPD Well EUR: 40-70 MBO/Well 2.7% WI in a third AMI bringing its total to --& Cherokee Sand Potential. 3-D & 2-D Seismic Defined. MULTIPAY Drill & Completion Cost: $260,000/Well 18% WI. It additionally increased its stakes 100% OPERATED WI; ~80% NRI PP 5329DV in 10 producing wells, two wells awaiting Net Production: 60 BOPD completion and four wells slated for drilling Recompletion & New Drill Potential. or stimulation. The Husky Ventures- Majority Of Leases Extend Thru H2 2018. BUYER SEEKING ASSETS? operated AMIs target the Hunton with Existing Infrastructure In Place. PP 5196DV PLACE A WANTED AD! well EURs of 250,000-400,000 boe and For details call Ross Benoche, 713-600-0154 7-12 month payouts. Find more listings at No commission! List today, call 713-650-1212 Volume 25, No. 08 15 A&D A&D News NORTH TEXAS AEP spends in Permian, Utica & Marcellus Continued From Pg 1 NORTH TEXAS SALE PACKAGE PLS research using DrillingInfo shows that as of February Enduring had gross ~10,600-Acres. >630-Opportunities. operated production of 6,640 boepd (79% oil) from 44 primarily Wolfcamp wells in DENTON, TARRANT & WISE CO. FORT WORTH BASIN PP Reagan Co., two in Irion Co. and one in Crockett County. Twenty-three of those wells Core of the Prolific Barnett Shale. have come online since YE12, resulting in a substantial jump in production. Denver- Upside in Development & Infill Drilling, based Enduring also holds acreage in Utah’s Uinta Basin targeting thick Wasatch and -- Vertical & Horizontal Refracs, and Mesa Verde pay according to its website; AEP has not indicated that these assets are -- Additional Upper Barnett Locations part of its acquisition. ~88% OPERATED WI; ~66% NRI ~60 Plans 6-8 Permian rigs by YE15 to drill Net Production: ~60 MMCFED MMCFED AEP plans to increase 2,500 Permian wells in next decade. Long-Life, Low-Decline Production. its new Permian position PDP Reserves: ~177 BCFE with additional acquisitions over time. It also plans to boost Enduring’s four-rig Net Proved PDP PV10: ~$235,000,000 operated development program to six to eight rigs by YE15 to drill up to 2,500 new Related Infrastructure in Place. PP 4145DV wells (70% WI) over the next decade. Boosting Utica & entering southern Marcellus for $1.75 billion— NORTH TEXAS SALE PACKAGE Queuing up its seventh major acquisition in the southern Utica, AEP bought 19-Producers; 28,900 Net Acres. MONTAGUE & CLAY COUNTIES 27,000 net acres with net production of 40 MMcfed (6,700 boepd) in Monroe Co., BARNETT OIL COMBO PLAY PP Ohio from East Resources and an unnamed private company. This deal follows Utica Measured Depth: ~11,000’ (TVD 7,500’) acquisitions over the past year from EnerVest, RHDK Oil & Gas, Shell, Hess, Target Lateral Lengths: 3,500 Ft. Paloma Partners and ExxonMobil, increasing the company’s leasehold in the play Infill Drill Potential +/-400 Barnett Locations Five (5) Wells Completed in 2013 to 280,000 net acres. AEP said it has invested over $3.5 billion in the play to date ~98% OPERATED WI; ~77% NRI Utica buys to date from EnerVest, and plans to drill 2,600 wells (60% WI) Net Production: 575 BOED (62% Liquids) 575 RHDK, Shell, Hess, Paloma & Exxon. on its acreage in the next several years. Most Recent Well Averaging 190 BOED BOED In addition, AEP is acquiring 48,000 IMMEDIATE UPSIDE net acres and 135 MMcfed (22,500 boepd) in the West Virginia part of the Marcellus from Total Proved Reserves: 41 MMBOE Net Proved PV10 Rsrvs: $241,000,000 East and the private firm. Located in Doddridge, Harrison, Marion, Tyler and Wetzel Total 3P Reserves: 78 MMBOE Cos., these are AEP’s first assets in the southern part of the play and create a foundation Net 3P PV10 Reserves: $363,000,000 from which the company plans to build a larger leasehold position. In addition, AEP Includes ~19 Miles of Gathering System plans to drill 410 wells (87% WI) in the southern Marcellus over the next several years. PP 5312DV The combined Utica and Marcellus First step into West Virginia Marcellus NORTH TEXAS SALE PACKAGE acquisitions total $1.75 billion and both follows buys in Pennsylvania. 157-Producers; >5,300-Acres (All HBP) are expected to close by mid-August. WICHITA COUNTY The sellers are currently developing their Utica and Marcellus acreage using two rigs, HEART OF PROLIFIC K-M-A FIELD PP which AEP intends to boost to four to six by YE15. East Resources is controlled >20 Stacked Pay Zones <5,000 Ft. by billionaire Terrence Pegula, who has apparently been rebuilding the company’s 780+ Drilling Locations (150 Proved) ~100% OPERATED WI; 77% NRI portfolio since selling its Marcellus-focused asset base to Shell for $4.7 billion in 2010. Although the current deal marks Net Production: 315 BOED 315 East Resources sold Marcellus assets Projected >1,600 BOED w/ Development BOED to Shell for $4.7 billion in 2010. AEP’s West Virginia Marcellus debut, Net Operating Cash Flow: ~$845,000/Mn the company has reportedly built up a Total Proved Reserves: 1,595 MBOE Net Proved PV10 Reserves: $46,000,000 sizeable position farther north in the under-explored south-central Pennsylvania All Operating Infrastructure in Place. part of the play. Back in February it was soliciting a 50% partner to help develop PP 5181DV a 50,000-acre block and jointly acquire new acreage, according to an Upstream article. That acreage is located in Huntingdon Co., far from the active Marcellus NORTH TEXAS SALE PACKAGE fairway and within an area believed to be an extension of the shale formation’s 4,175-Gross Acres; 4,140-Net Acres. dry-gas window. MONTAGUE, CLAY, JOHNSON & WISE BARNETT SHALE POTENTIAL PP AEP took its first step outside Appalachia in February, signing deals to acquire 120,000 Caddo Conglomerates Production. net acres and 6,000 boepd in north-central Oklahoma Detailed Well Logs & Reserve Analysis. Regional Intelligence & Business Opportunities June 21, 2014 with Kayne Anderson-backed Calyx Energy and Calyx PERMIAN OILSCOUT Serving the local market with drilling activity, permits & multiple listings Volume 02, No. 10 Majority OPERATED WI; 75%+ NRI 75 AEP enters Permian Basin with $2.5 billion buy Caza ups proved reserves in Regional Activity (May 30, 2014 to June 16, 2014) Aubrey McClendon’s American Energy According to research by PLS, as of the Bone Spring Partners splashed out $2.5 billion to buy February Enduring produced 6,641 Boepd Permian and Gulf Coast operator Caza Energy II; Liberty Energy (managed by Boston-based Compls Permits the Permian assets of PE-backed Enduring gross (79% oil) from 45 wells, the majority Oil & Gas continues to find its stride in West Texas (RRC 7C) 6 136 Resources. Located mostly in Reagan and of which are in Reagan Co., where it also the Bone Spring and has boosted its proved West Texas (RRC 8) 8 355 Irion Cos., TX, the assets cover 63,000 net acres has two completions. Nearly 60% of its reserves in the play by 13% to 4,215 Net Production: 75 BOPD (90% Oil) BOPD prospective primarily for the Wolfcamp. AEP wells came online in 2013. MBoe, a 3,727 MBoe increase from YE13. West Texas (RRC 8A) 6 103 plans to increase operated drilling activity on AEP is also forming a The bump in reserves was due Southeast New Mexico 2 59 the acreage from four (4) rigs currently to six midstream company that to recent well successes and to eight rigs by the end of 2015. The purchase will focus on natural gas gathering and interests in 21 wells producing Most Active Operators by Permits Old Ironsides Energy) and Truevine Operating. The marks AEP’s entrance into the Permian Basin processing systems and long haul pipelines from the Bone Spring. The company also ➊ Apache Corp Permian56 where it plans to drill 2,500 gross (1,750 net)Oil in the Permian, Scout Marcellus, Utica and tallied 2P reserves at 18.0 MMBoe and 3P Total Proved Reserves: 6.4 MMBO ➋ Occidental 53 wells over the next decade. Woodford. at 35.6 MMBoe. Recently, Caza added the Gramma Ridge ➌ Pioneer Natural Res 25 EOG & FIML drilling Wolfcamp in Irion Co. 27 #1H well to its list of “excellent” Bone Active Rigs Running 545 In Irion Co., TX EOG Resources topped and 288 Mcfd, or 346 Boepd (86% oil) Spring results, with the well IPing a peak Permits by Formation completions with its University Lucy after being drilled to 8,795 feet MD. FIML rate of 830 Bopd and 4.63 MMcfd, or 1,602 Boepd (51% oil) from the 3rd Bone Spring Formation 06/20 06/07 05/23 #101H well with an IP of 1,096 Bopd and recently filed a permit for itsMustang Draw Oklahoma assets target the Woodford/Mississippi Lime interval in Lea Co., NM. Most new wells Net Proved PV10 of $96,000,000 Spraberry 224 217 270 1,574 Mcfd, or 1,358 Boepd (81% oil) after #1HA well in Irion Co., at a proposed depth drilled in the Bone Spring have exceeded an Wolfcamp 110 84 109 being flow tested on an open choke with 430 of 10,000 ft targeting the Spraberry. psi FTP. The well was drilled to 15,040 ft Apache Corp. filed 18 permits in Irion IP rate 1,000 Boepd and Caza expects similar San Andres 37 18 24 MD in Lin field targeting the Wolfcamp. Co., with the majority (12) going toward its results from its next well in Gramma Ridge. TrackBone Spring 46 permits28 23 & completions Also operating in Irion Co., Denver- Scott Sugg West Unit in Lin field. Devon “As we continue to drill development wells Clear Fork 19 15 30 based independent FIML Natural Energy filed eight permits in the county, in the play, we anticipate our 1P reserves will Abo Reef 14 – 1 Resources completed two wells targeting all for wells at its Cortes site in the Lin continue to increase as we prove up probable CA Required to View Data Room. Wolfbone 13 9 8 and possible reserves,” said CEO Mike Ford. in a combo area that AEP is calling the “Central Northern the Spraberry. The Pecan A #3039H well field at proposed depths of 9,000 ft. Delaware 9 5 6 was drilled to 8,689 ft MD and flow tested Consolidated 7 19 20 at 198 Bopd and 481 Mcfd, or 278 Boepd Deals For Sale onOther Formations AEP’s174 150 351 new assets.Callon well IPs 648 Boepd (71% oil). The company’s second well, Spraberry in Upton Co. Total 653 545 842 the Tepee Draw #3044D, IP’d at 298 Bopd Permian pure player Callon Petroleum PECOS CO., TX PROJECT GROWING HORIZONTAL BASE completed the Neal #344H well in Upton ~17,500 Net Acres P DELAWARE BASIN P 3760DV Callon’s Growing Horizontal Inventory in the Permian Co., TX. The well tested at 607 Bopd and LIQUIDS-RICH BONE SPRING L Oklahoma Woodford” or “CNOW” play. Existing Additional 2014 248 Mcfd, or 648 Boepd (94% SOLID WOLFCAMP PROSPECTS Target PDP Locations Plans oil) on gas lift. The well was Delaware, Brushy Canyon, Avalon Shale drilled to 16,515 ft MD targeting Detrital Penn Shale, Atoka, and Middle Spraberry - - 28 the Spraberry. The company filed a permit Deep Woodford Possible MULTIPAY 100% OPERATED WI; 75% NRI Jo-Mill - - 86 for another well in Upton Co., the Topaz Reserve Estimates: 200-400 MBO/Well #1H, at a proposed depth of 8,400 ft. Lower Spraberry - - 108 L 7147DV Callon formerly only had operations in Wolfcamp A 2 102 the Gulf of Mexico, but began to switch its WEST TEXAS SALE PACKAGE operations to the Permian in 2009, ultimately 64-Vertical Wells. 5,445-Net Acres. Upper/Middle Wolfcamp B 19 86 making the transformation complete in GLASSCOCK & HOWARD CO. Lower Wolfcamp B 10 55 2013. The company exited 2013 with MIDLAND BASIN - STACKED PAYS PP Wolfcamp C - - 60 Horizontal Wolfcamp A, B & C and Cline -- Permian production of over 3,500 Boepd Development, Lengths of 7,500-10,000 Ft. Cline - - 60 (80% oil), a 120% increase over 2012 Acreage Is Contiguous and HBP. For general inquiries, e-mail [email protected] Access PLS’ archive for previousnumbers. Callon expanded from A&Dtwo fields 100% OPERATED WI; 78%news NRI TOTAL 31 585 in the Permian in 2013 to four in 2014, with Projected Net Production: ~600 BOED ~600 a focused on horizontal development. The Est OOIP: 100-215 MMBOE/Section BOED Mississippi-based company operates 100% Total Proved Reserves: 67.2 MMBOE • Over 240 locations in three currently producing WC zones Net Proved PV10 Rsrvs: $679,000,000 of its Permian acreage, which includes a • Staggered lateral development from pads commenced Horizontal PUD Reserves: 65.8 MMBOE 15-year inventory of horizontal drilling PP 5086DV locations based on its current two-rig Source: Callon Petroleum May 21, 2014 via PLS docFinder www.plsx.com/finder horizontal drilling program. All Standard Disclaimers & Rights Apply. Transactions 16 June 23, 2014

NORTH TEXAS PANHANDLE TEXAS OHIO SHACKELFORD CO., TX PROPERTY TEXAS PANHANDLE NONOPERATED OHIO DISPOSAL PERMIT FOR SALE 6-Active Wells. 1-New Drilled. 320-Acres. 7-Active Wells; ~100 Net Acres. SWD Facility and a 48-Acre Lease. SHALLOW OIL DEVELOPMENT CLEVELAND FORMATION PORTAGE COUNTY Frye, Tannehill & Hope Sand Upside. PP PUDs Scheduled To Drill Late 2014 PP UTICA / MARCELLUS SHALE SWD Proposed Depths: 500-800 Ft. ~10% NonOperated WI; ~75% Lease NRI Newburg Formation Injection Interval Multiple Drill Sites Identified. DEVELOPMENT Net Production: ~10 BOPD & 115 MCFD -- from 4,200 Ft. to 4,500 Ft. 100% OPERATED WI; 75% NRI Net Cash Flow: ~$30,000/Month NONOP High Market Demand Area for SWD. SWD Net Production: ~5.0 BOPD Cleveland EUR: 440 MBOE/Well 100% SWD PERMIT FOR SALE PERMIT Significant Drilling Upside Potential. Gross D&C Cost: $3,100,000/Well Surrounded by 255 New Drilling Permits PP 8057DV PP 5070DV SWD 3161 OKLAHOMA TEXAS PANHANDLE PROJECT PENNSYLVANIA 4-Producers. 1-Injection. 9-ShutIn. ARKOMA BASIN SALE PACKAGE GRAY COUNTY - MERCER CO., PA ROYALTY ~80,000 Gross & ~70,500 Net Acres. HOOVER FIELD 278-NMA. 193-Acres HBP Producing. HASKELL, LATIMER, LEFLORE, -- 2,360-Gross Acres. 4-Contiguous Units. PP SANDY CREEK TOWNSHIP RR MCINTOSH & PITTSBURG CO., OK PP Chase, Granite Wash & Ellenberger. Leased by Gas Acquisitions 12.5% ORRI Hartshorne Coal at ~2,000 Ft. Multiple Intervals, Behind Pipe Potential. 167 Leased by Halcon 18% Royalty ROYALTY Jefferson Formation at ~3,500 Ft. 100% OPERATED WI; 80.8% NRI MCFD 5-Years Primary Term Active Jefferson Recompletion Program Gross Production: 167 MCFD 2-Properties Sold Together. ~85% OPERATED WI; ~67% NRI 9.7 Net Cash Flow: $8,410/Month RR 4078PP Gross Production: 15.7 MMCFED MMCFED PP 2273DV Net Operating Cash Flow: ~$743,000/Mn COLORADO Total Proved Reserves: 82.1 BCFE TEXAS PANHANDLE SALE PACKAGE Net Proved PV10 of $52,300,000 9-Producers; 8-Leases; 3,759-Net Acres. LARIMER CO., CO PROPERTY >135 Miles of Gathering Systems HEMPHILL & OCHILTREE COUNTIES 18-Producers. 4,689-Acre Unit Midstream Net Cash Flow: ~$32,000/Mn MULTIPLE STACKED PAYS PP WELLINGTON OIL FIELD PP 5407DV/G Cleveland, Granite Wash & Douglas Zones Muddy Sandstone Production. 4,250-5,100’ PP >20 Horizontal Drilling Locations. Niobrara, Dakota, Lyons & Basement. HUGHES CO., OK PROPERTY All Surrounded by Offset Production. 180,000 Acre Ft Reservoir in -- 174-Wells. 2-PDNP. 100-PUDs. 75-99% OPERATED WI; ~77.5% NRI 491 -- 3,500 Ft. Structure Closure ARKOMA BASIN - MOSTLY HBP PP Net Production (March 2014): 491 BOED BOED 100% OPERATED WI; 75% NRI 55 23,415-Gross & 1,110-Net Acres. Production Revenue is ~84% Oil Gross Production: 50-55 BOPD BOPD WOODFORD SHALE 880 Net Operating Cash Flow: ~$1,000,000/Mn Seeking Capital for Muddy EOR ~1-9% NonOperated WI; 80% Lease NRI MCFD Total Proved Reserves: 3.6 MMBOE Gross Cash Flow: $125,000-$150,000/Mn Net Cash Flow: $71,000/Month Net Proved PV10 Reserves: $45,500,000 OOIP: >120 MMBO - Recovery <7% PP 4148DV PP 5310DV OUTRIGHT SALE WILL BE CONSIDERED PP 3337DV LEFLORE CO., OK PROPERTY MULTISTATE APPALACHIAN 6-Operated Wells. ~3,500-Gross Acres. SAN MIGUEL CO., CO PROPERTY OFFSET TO POTATO HILLS APPALACHIAN BASIN PACKAGE 3-Wells. 8-PUDs. 610-Net Acres. PROLIFIC ARKOMA BASIN PP 247-Wells (89-NonOp); 150-Drill Locations. COCKLEBUR DRAW 19-Offset Drilling Opportunities Identified. OHIO, PENNSYLVANIA & NEW YORK Cutler Honaker. 7,000 Ft. PP All Rights - Including Deep Arbuckle. CONVENTIONAL PRODUCTION PP Hermosa. 9,500 Ft. Gathering System/Compression/Pipeline. Behind Pipe Opportunities Uphole Potential. Operated Gas Wells, Leases, Prospects. 293 Majority of Wells Recently Drilled. 50% OPERATED WI; 40% NRI 400 100% OPERATED WI; 75% NRI BCF Identified Improvements in Existing Wells ~1.64 Gross Production: 800 MCFD MCFD Estimated Gas In Place: 293 BCF OPERATED & NonOperated WI Available MMCFED Net Production: 400 MCFD Net Proved Rsrvs (PV10): $43,500,000 Gross Production: ~2.15 MMCFED 8 PUD’s w/ Possible 3.0 BCF Per Well. $1,500,000 Quickly Establishes More Vols. Net Production: ~1.64 MMCFED PP 2668DV PP 3825DV BURKS FINAL OFFERS DUE ON APRIL 10, 2014 PP 5099DV WASHINGTON CO., CO PROJECT OSAGE CO., OK WELL PACKAGE 13-Wells. (8-Oil. 2-Gas. 3-Injection.) 25-Total (10-Active; 9-PDNP; 6-SWD) PRODUCTION & LEASEHOLD MISSISSIPPIAN LIME Increase deal DJ BASIN - RUSH WILLADEL FIELD PP 45,000-Acre Tribal Concession -- PP J-Sand, Niobrara & Lakota. -- with 14,000-Acres Leased. flow & business Deeper Potential in Cherokee & Osage. 48 Sq. Mi. 3-D Seismic w/ Interpretation 888 OPERATED WI; 85-87.5% NRI 152 100% OPERATED WI; 80% NRI MCFD opportunities. Net Production: 152 BOED BOED Gross Prod: ~30 BOPD & ~888 MCFD Subscribe to PLS! For available options, High Water Cut w/ Low Decline Rate. Net Cash Flow: $71,496/Month e-mail [email protected] Net Cash Flow: ~$324,000/Month PP 3631 PP 4269DV

Find more listings at No commission! List today, call 713-650-1212 Volume 25, No. 08 17 A&D People & Company Briefs A&D News • Vince Miller has joined Denbury Sabine & Forest merger sails on despite brief rumor Resources as a corporate planning The merger between privately held Sabine Oil & Gas and publicly traded engineer after serving as a group leader Forest Oil Corp. hit a brief bout of turbulence when a rumor emerged that an $850 for business development in Encana’s million commitment for the bridge loan had been delayed. However Sabine quickly Plano, Texas office. put out a press release clarifying that the commitment was still in place. The facility • Evercore hired Randy Crath is being underwritten 50-50 by Barclays and Wells Fargo with plans to as senior managing director for the bring five more banks into the syndicate at 10% each. Investment Banking division’s oil The combined companies’ pro forma 2014 output is 345 MMcfed with and gas group. He will focus on A&D advisory services, particularly for proved reserves that totaled 1.46 Tcfe (71% gas) at YE13. Combined holdings will international E&P assets. Crath joins consist of 207,000 net acres in East Texas along with 65,000 net acres in the Eagle Ford. from Scotia Waterous where he was a managing director. Parsley posts $385 million in Permian buys Continued From Pg 1 • ExxonMobil’s board has These acquisitions boost Parsley’s leasehold to 94,000 net acres (133,000 gross) elected Jack P. Williams and Darren W. in the Midland Basin and 22,300 net acres (24,710 gross) in the Delaware Basin. Woods as SVPs and members of the Parsley has identified 3,580 vertical drilling locations across its Midland Basin management committee. holdings, representing an inventory of 22 years at current drilling rates. Upside comes • FIML Natural Resources LLC has from the company’s horizontal drilling program targeting the Spraberry, Wolfcamp, changed its name to Discovery Natural Cline and Atoka. Resources LLC. Discovery is a private Pro forma 22,400 acres, 12,850 boepd Parsley was founded in & 54 MMboe proved (54% oil, 43% PD). E&P firm based in Denver and operating 2008 by CEO Bryan Sheffield, in Texas, Kansas, Utah and Colorado. son of Pioneer Natural Resources chief Scott Sheffield and a former operations tech • Rosewood Resources Inc. has for Pioneer’s Spraberry assets. Other Pioneer alumni in senior management include promoted Nathan Mayer to the position operations VP Paul Treadwell, COO Matt Gallagher of president. Mayer joined the company and land VP Mike Hinson. in 2013 as the VP of engineering. In its recently completed IPO Parsley raised net • Michael Marziani has been named proceeds of $737.9 million on shares priced at $18.50, Next CapitalMarkets CFO of Permian-focused Tall City above the expected range of $15-18/share. Proceeds Exploration. He was previously a Parsley raises $740 million will be used to buy out preferred shareholders, pay down principal at Houston-based investment in upsized IPO. debt, finance further acquisitions and fund development. bank Greenhill & Co. • Three Forks Inc. appointed Terrence Manning as president and CEO. He succeeds Chuck Pollard who is retiring Contact from executive positions but will remain Stuart Rexrode a board member. Manning brings over (281) 376-0111 Ext 305 33 years of oil and gas experience, most [email protected] recently as a senior upstream technical The Unique Capital Partner for Small Producers advisor to numerous industry clients. • Travis Peak Resources hired Greg BlueRock is like you, and we want to be your partner. We provide more capital Balash as an acquisitions and reservoir than banks, our deal structure is non-recourse, and our approach is a lower cost engineer. Balash joins the Austin-based alternative to selling down working interest equity. This combination is unique to firm fromScotia Waterous where he BlueRock and provides clients with the ability to retain significantly more upside served as an associate director. in their projects. Our passion is helping small producers grow. Let us help you. • Tudor, Pickering, Holt & Co. hired Paul Perea as managing director and general counsel. He previously • Investment size between $1MM & $20MM served as a partner with Baker • Non-Recourse Botts specializing in M&A, securities • Client retains upside & control of project offerings and general corporate and • No 3rd party engineering report required securities matters. • No personal, corporate guarantees or • Permian-focused Victory Energy board seats required Corp. has appointed Fred Smith as CFO • Investment team made up of engineers, and controller following the retirement geologists & financial professionals of current controller Luther Poehlmann. For general inquiries, e-mail [email protected] Transactions 18 June 23, 2014

COLORADO WYOMING WYOMING NIOBRARA SUB PACKAGE CAMPBELL CO., WY PROPERTY WYOMING MINERALS & ROYALTIES 53 New Wells Permitted; >27,000 Acres. 13-Producers. 11-Injection. ~5,900-Acres. 1,549-Net Acres. (1,249-Net Unleased) DJ BASIN COLORADO POWDER RIVER BASIN CONVERSE CO. - NIOBRARA SHALE WATTENBERG FIELD PP BARBER AND DEAD HORSE CREEK PP POWDER RIVER BASIN - MULTIZONE RR Niobrara / Codell Light Oil Play. Parkman, Sussex, Turner & Muddy Niobrara Shale & Teapot Sandstone. >25 Net Horizontal Locations Will be Muti-Zone HZ Development Potential. Upside in Mowry Shale, Parkman, Turner, -- Developed on Existing Land Base Upside in Teapot, Frontier, Mowry, -- Shannon/Sussex and Muddy/Dakota. NIOBRARA NonOperated WI & Royalty Interest Avail -- Dakota, Lakota & Minnelusa. 49 MINERALS & ROYALTIES FOR SALE Total Production: 160 BOED ~99% OPERATED WI; 86% NRI BOPD Offset Producer IP: 1,000+ BOED Potential Peak Production: 2,600 BOED 160 Net Production: 49 BOPD RR 3322M Net Operating Income: ~$230,000/Month BOED Net Cash Flow: $78,271/Month Total Proved Reserves: 663 MBOE PDP PV10 Reserves: $4,271,000 WYOMING SALE PACKAGE Net Proved PV10: $15,100,000 PP 4518DV ~100 Producers; ~68,000 Net Acres. PP 5544RR/DV CAMPBELL, CONVERSE & JOHNSON CENTRAL WYOMING PROJECT POWDER RIVER BASIN PP MULTISTATE ROCKIES 2-Proposed Wells. 18,500-Net Acres. Multiple Stacked Pay Potential. NATRONA & CONVERSE COUNTIES Parkman, Sussex, Shannon, Niobrara, -- WILLISTON BASIN NONOP PACKAGE POWDER RIVER BASIN PP Frontier, Turner, Mowry, Muddy & Dakota >550 Horizontal Wells. ~20,000 Net Acres Frontier & Dakota. 6,500 Ft. 40% OPERATED WI AVAILABLE ~1,470 NORTH DAKOTA & MONTANA 3-D Seismic & Subsurface Geology Net Production: ~1,470 BOED (82% Oil) BOED BAKKEN / THREE FORKS PP 50% OPERATED WI; 80% NRI Total Proved Reserves: 22 MMBOE Over 900 Bakken Locations and Gross Production: 38 BOPD 23 Net Proved PV10 of $298,000,000 -- 800 Three Forks Drilling Opportunities Net Production: 23 BOPD BOPD Active Horizontal Development in the Area NonOperated WI For Sale 1,560 Estimated (Frontier) Reserves: 100 MBO PP 5132DV Net Production (May 2014): 1,560 BOED BOED Estimated (Dakota) Reserves: 200 MBO FINAL OFFERS DUE LATE JUNE 2014 DHC: $1,140,000; Compl: $425,000 CALIFORNIA PP 5929DV PP 1660DV CALIFORNIA SALE PACKAGE NORTH DAKOTA CONVERSE CO., WY PROPERTY 27-Producers; 4-SWD; 572-HBP Acres. 60-Wells. 3-Oil. 1-SWD. 2-ShutIn. SANTA BARBARA COUNTY NORTH DAKOTA NONOPERATED PKG SOUTH GLENROCK ‘’C’’ UNIT CASMALIA FIELD PP 7-Producers; 12-DSU; 1,675 Total NMA 4,700-Gross & 4,500-Net Acres PP Primarily Monterey Formation. PROVEN BAKKEN / THREE FORKS PP Lower Muddy Formation. 5,700 Ft. IMMEDIATE UPSIDE Mountrail, Dunn, McKenzie & Stark Co. 99.5% Operated WI; 77.6% NRI 8 PUDS Targeting Monterey Reservoir 18 Bakken/Three Forks Wells Permitted 76 Net Production: ~10 BOPD 10 Stable Long Term Production, Low Decline. ~4.6% to ~8% NonOperated WI For Sale BOPD Net Cash Flow: $10,000-$20,000/Month BOPD 100% OPERATED WI; 86-99% NRI 82 Gross Production: 2,000+ BOPD Est Total Reserves: 5.0 MMBO 3-Mn Avg Gross Production: ~100 BOPD BOED Net Production: 76 BOPD --(Based on Engineering Study) 3-Mn Avg. Net Production: ~92 BOPD PP 3104DV PP 8965 March 2014 Cash Flow: ~$135,000/Month Total Proved Reserves: 910 MBOE UTAH HOT SPRINGS CO., WY PROPERTY Net Proved PV10: $16,600,000 3-Active Wells. 1-Inj. 1,758-Acres. Cyclic Steaming & Steamflooding Upside UTAH GAS FIELD PROJECT CENTENNIAL FIELD PP 5392DV 4-Wells. 2-ShutIn. 13-PUD. 13,000-Acres. 20 Additional Locations Available. PP UNDERDEVELOPED GAS FIELD Obj 1: Phosphorra. 1,650 Ft. KERN CO., CALIFORNIA PROPERTY Cretaceous Sandstones. 2,500-7,500 Ft. PP Obj 2: Madison. 2,500 Ft. 15-Active; 3-TA’d; 1-SWD; >2,000-Acres. Upside in Coal and Shale Targets. Discovered in 1992 w/ 1 Water Supply Well. 14 NORTH WEST LOST HILLS FIELD OPERATED or NonOp WI; 80% NRI 100% OPERATED WI; 76-80% NRI BOPD IMMEDIATE UPSIDE PP ACQUIRE GAS FIELD 13,000 ACRES Gross Prod: 18 BOPD & 137 BWPD Antelope (Monterey Shale); 3,300-4,300’ Well EUR: 5.5 BCF/Well CRETACEOUS Net Production: 14 BOPD Etchgoing Sand; Depth: ~2,300 Ft. Total Field Potential: 400+ BCF Cash Flow: $33,600/Month Upside in Deepening 2 Etchgoing Wells Completed Well Cost: $1,500,000 Recoverable Reserves: 2.0 MMBO Great Horizontal Well Potential. PP 4199DV PP 1265DV 100% OPERATED WI; ~82% NRI ~25 Gross Production: ~25 BOPD BOPD Potential for 50 BOPD After Upgrades www.plsx.com/deals Net Monthly Cash Flow: ~$45,000/Mn Selling made simple! Total Proved Reserves: 390 MBO Net Proved PV10 of $8,400,000 Since 1988, PLS has helped sellers market operated assets, non-op working interest, 3P Reserves: 747 MBO & 1.6 BCF conventional prospects, unconventional acreage plays, royalties and midstream assets. -- Plus 250 MBO Shallow Waterflood NEGOTIATED SALE Hire PLS to execute your next negotiated sale, call 713-650-1212 PP 3839DV

Find more listings at No commission! List today, call 713-650-1212 Volume 25, No. 08 19 A&D A&D News GULF OF MEXICO Magnum tacks on $66 million in Appalachian acreage buys GULF OF MEXICO PROJECT Continuing to bulk up drilling inventory in its core Marcellus and Utica operations, 12-OCS Blocks. Magnum Hunter announced the addition in May of 4,100 net acres (7,230 gross) DEEP WATER PROPERTIES SIGNIFICANT UPSIDE PP from landowners for $4,950/acre or $20.3 million. The acreage is located primarily Seven (7) Fields Producing. in Washington, Noble and Monroe Cos., Ohio and Tyler, Ritchie and Wetzel Three (3) Discoveries/Developments. Cos. West Virginia. Upside via Future Drilling and Workovers. Has acquired over half the acreage In addition Magnum resumed in its $143 million Utica deal with MNW OPERATED & NonOperated WI Available ~3,000 its Utica acquisitions from MNW Net Production: ~3,000 BOED BOED 2012 Operating Income: ~$6,916,667/Mn Energy under an August 2013 deal after the settlement of litigation between the two Well-Respected Operating Partners. companies that had halted the transactions. The latest additions from MNW consist of CA Required to View Data Room 11,130 net acres (12,200 gross) at $4,130/net acre or $45.9 million, bringing the total PP 3116DV acquired thus far under that agreement to 17,000 net acres out of 32,000 anticipated overall. These acquisitions add to 78,600 net acres (83,700 gross) owned in the MULTISTATE & CROSS REGION Marcellus and 105,660 net acres (116,650 gross) in the Utica as of May 12. MULTISTATE SALE PACKAGE The Appalachian additions come as Magnum continues lightening its non-core >600-Wells. ~46,500-Net Acres in 4 Fields. footprint. In April the company announced its exit from Canada via two deals totaling OKLAHOMA & MISSISSIPPI $76.2 million, and during its Q1 earnings call CEO Gary Evans announced an LOI to GRANITE WASH & SELMA CHALK PP sell non-core properties in North Dakota for just under $30 million. S. Clinton, Baxterville, Gwinville & Maxie. Colony Wash Production in OK. In late January Magnum closed the divestment of its last direct Eagle Ford Selma Chalk Horizontal Program in MS. 4,200 holdings to New Standard Energy for $27.5 million ~100% OPERATED WI AVAILABLE BOED in cash and stock. The stock portion of the deal June 13, 2014 • Volume 06, No. 07 InternatIonalDeals Total Production: 4,200 BOED Serving the marketplace with news, analysis and business opportunities makes Magnum New Standard’s largest shareholder Det Norske buys Marathon out of Norway for $2.7 billion Cheung Kong to acquire In order to further accelerate development of its high-margin North American Envestra in $3.43 billion deal resource plays, Marathon Oil has agreed to sell its wholly owned Norwegian sub Envestra is set to be acquired for Low-Risk & Offset Refrac Success Marathon Oil Norge to local offshore explorer Det Norske for US$2.7 billion US$1.01/share (A$1.32/share) or $1.82 including $600 million in net debt. Marathon had announced it was putting its entire billion cash by Hong Kong billionaire North Sea portfolio on the market last December but now plans to retain its assets Li Ka-shing’s Cheung Kong with 17% equity, so it will continue to have an off the UK after failing to receive an Group, a 17.46% stakeholder acceptable bid for them. Shifts North Sea explorer’s profile toward production & triples 2P reserves. in the Australian gas distributor. Combined Reserves Total: 26 MMBOE NextDet Norske InternationalDeals is getting Including Envestra’s debt and working 10 operated and six non-op geographically focused licenses with Q1 production capital deficit, the deal value totals of 70,300 boepd (88% liquids) and projected 2014 output of 60,000 boepd, all tied $3.43 billion. The company’s board has into the Alvheim FPSO. YE13 working-interest proved plus probable reserves total unanimously recommended the deal. indirect interest in the South Texas shale while also 136 MMboe, and Det Norske estimates contingent resources at 24 MMboe with an PP 4164DV additional 80 MMboe of upside potential. The transaction marks a seismic shift toward Beats rival offer from APA Group for the Australian gas distributor. established production for the Norwegian company, whose four producing fields Jette, Atla, Varg and Jotun flowed just 2,900 boepd during Q1. Continues On Pg 4 The Cheung Kong-led consortium Magnum Hunter & Drillsearchbeat out an all-scrip rival offer valued Turkey’s TPAO buys out Total at Shah Deniz for $1.5 billion Confirming recent media reports with a slight twist, Total announced the sale of at ~$0.96/share (A$1.25/share) by APA gaining exposure to the emerging Cooper Basin in Group, Envestra’s top stakeholder at its 10% stake in the Shah Deniz gas field in the Caspian Sea and the associated South Caucasus Pipeline to Turkish state E&P firmTPAO. The US$1.5 billion deal doubles 33% and manager of its gas distribution battleTPAO’s stake to 20%for in BP-operated Ambassador. Shah Deniz, which is currently producing networks. This is not APA’s first failed 1.0 Bcfd plus 55,000 bpd of condensate via its Stage 1 development with exports bid; last summer Envestra rejected as shipped on the South Caucasus line to too low an A$1.07/share offer from the $28 billion Shah Deniz-2 will supply Georgia and Turkey. company, which owns Australia’s largest STRATEGIC ALTERNATIVES PROCESS Western Australia. 1.6 Bcfd to Europe & double condensate. gas infrastructure. Continues On Pg 12 Back in March Total was negotiating a sale of the assets to Turkish state pipeline company Botas according to multiple media sources citing unnamed sources. Botas holds 15% WI FEATURED DEALS in the Trans-Anatolian Pipeline being built across Turkey, which along with the Trans ~6,000 Active Wells; 585,000 Net Acres. Adriatic Pipeline and an expansion of the existing South Caucacus line will carry gas UNITED KINGDOM PROJECT from the recently approved second stage of Shah Deniz into Western Europe. TPAO is Production, Development & Exploration. NORTH SEA. IMMEDIATE UPSIDE also helping develop the Trans-Anatolian Pipeline (5%) along with Aizerbaijan’s state Workover & Drilling Campaigns. PP oil firm Socar (80%). Continues On Pg 7 EOR & Water Injection Projects Underway. OPERATED & NonOperated WI TEXAS & OKLAHOMA ASSETS ~50% WI in Non-Producing Blocks >5,000 Origin buys 40% WI in Poseidon gas project for $750 million Total Net Production: 5,100 BOED BOED Australian explorer Karoon Gas entered a conditional deal to sell local utility -- Increasing by 800 BOED 2014 Origin Energy its 40% WI in two exploration permits off Western Australia for Net Reserves: 16-20 MMBOE (~73% Oil) US$750 million. Permits WA-315-P and WA-398-P in the Browse Basin contain the Net Contingent Resources: 47 MMBOE 2009 Poseidon gas discovery with 7.6 Tcf of high-case net contingent gas plus multiple Net Prospective Resources: 52 MMBOE SIGNIFICANT GROWTH POTENTIAL PP 5288DV large gas prospects. PP Karoon Gas will use proceeds to advance Subject to preemptive rights Kangaroo oil find to development. COMPANY EQUITY STAKE FOR SALE by operator ConocoPhillips 3-Wells (1-Producing); 2-Oil Blocks. (40% WI) and PetroChina (20%) the deal is expected to close in Q3, at which NIGER DELTA REGION NIGERIA time Origin will pay $600 million cash. An additional $75 million each will be Four (4) Subsidiaries Offering Services: CO HZ Woodford, Miss Lime, Marmaton in OK Refining & Petrochemicals, E&P, Gas paid upon final investment decision and first production. A contingent $50 million & Power, and Infrastructure & Services payment will be made if proved plus probable reserves estimated at FID reach Raising $200MM for Asset Development STAKE certain thresholds. Origin will also reimburse all of Karoon’s costs related to the COMPANY SHARES FOR SALE FOR SALE Pharos-1 exploration well currently being drilled on WA-398-P. Options under Current Production: 1,800 BOPD, consideration to monetize Poseidon gas include a stand-alone floating LNG plant or -- Scalable to 6,000 BOPD in 9-Months. Wolfcamp/Leonard in Senora Field, TX. Combined 2P Recoverable: >134 MMBO Continues On Pg 12 SALESpipeline transport to onshore liquefactionMADE facilities in Darwin. SIMPLECO 1690PP 7,600 Horizontal Drilling Locations. All Standard Disclaimers & Seller Rights Apply. Geological Mapping Data. ~92% OPERATED WI; ~76% NRI 129 We turn non-core Avg. Net Production: 129 MMCFED MMCFED Some NonOp WI in HZ Woodford Wells assets into cash! Very Low PDP Decline- Total Net Proved Reserves: 1.1 TCFE Net Proved PV10 of $854,000,000 Preference to Sell to a Single Buyer Bids Considered for Two Packages AGENT WANTS OFFERS JULY 22, 2014 PP 5269CO WANTED WANTED: ONSHORE GULF COAST Seeking Operated Working Interest. CONVENTIONAL OIL ASSETS W Shallow Sands Producing <7,000 Ft. PDP Component Required. WANTED Needs Oil But Will Look If Gas Included. PLS and its affiliates have marketed over $6.0 billion in assets through Looking At All Deal Sizes Fitting Criteria. traditional property brokerage, prospect marketing and midstream asset sale W 5007PP/DV services, specializing in cash flow-driven assets valued between $1.0-$100 million in the U.S. and Canada. www.plsx.com/listings To hire PLS to execute your next negotiated sale, call 713-650-1212 Granite Wash www.plsx.com/divestpro For general inquiries, e-mail [email protected] Transactions 20 June 23, 2014 A&D News JV & Farmout Briefs Noble buys interests in 17 GOM blocks from BP • Lighthouse Petroleum Inc. and BP is selling half of its working interest in 17 deepwater exploration leases in the Rampart du Monde Partners LLC Atwater Valley area of the Gulf of Mexico to Noble Energy, providing it with a total 50% executed a JV deal for the acquisition of WI in 13 leases and 26% WI in four leases. The acquisition bolsters Noble’s portfolio in producing oil and gas properties with high upside potential. The partners are a core operating region with a number of Headline acquisition is 50% stake in moving forward to finance and acquire sizable prospects. 90-350 MMboe Bright oil prospect. their first joint property: a $9.0 million Noble especially singled Gulf Coast project. Additional potential out that it was receiving 50% WI (41% NRI) in the Bright prospect, currently acquisitions are under review. being drilled on Atwater Valley Block 362 at a water depth of 5,600 ft. The initial well is • Logos Resources is farming into an targeting multiple upper and middle Miocene reservoirs and is anticipated to be drilled operated position in 20,000 acres held by to 13,500 ft. The gross unrisked resources range for the prospect is 90-350 MMboe. Merrion Oil & Gas in the southern portion of the San Juan Basin. Specific deal terms W&T buys GOM assets from Woodside for $51 million were not disclosed but Logos will be able Woodside Petroleum has sold its 20% non-op stake in the producing Neptune oil to acquire up to 70% of Merrion’s leasehold. field and associated tension-leg platform in the deepwater Gulf of Mexico to W&T The two New Mexico companies will initially Offshore along with all of its interest in 24 deepwater exploration blocks for $51 focus on the Gallup/Mancos oil play with million. The GOM and Permian-focused buyer paid $51 million cash at the May 20 drilling expected by year’s end. closing and will assume any retirement obligations associated with the assets. • Treaty Energy has agreed to farm The BHP Billiton-operated into Aquinas Energy Resources’ Belle 20% Neptune stake provides 1,660 Wisdom lease in Brazoria Co., Texas. New Neptune field on Atwater Valley boepd net (87% oil) & 1.9 MMboe proved. Blocks 574, 575 and 618 had January net Orleans-based Treaty will fund a four-well production of 1,660 boepd (87% oil) and YE13 reserves of 1.9 MMboe proved (100% drilling program targeting the Marge and proved developed) plus 1.1 MMboe probable. The 24 exploration blocks contain 16 Frio Attic at 4,000-5,000 ft to receive 80% identified prospects including Arcadius in Garden Banks Block 346, just one block south NRI in the wells until payout and 70% NRI of W&T’s producing Power Play field (43.27% WI). Last September Woodside sold its afterward. Historical production suggests 20% WI in the Anadarko-operated Power Play to W&T and an undisclosed company. IP rates of 100 bopd and an eventual “The Neptune field is a great addition to our growing lease recovery of 440,000 bbl. Treaty also June 5, 2014 • Volume 06, No. 06 bought 10 leases flowing 25 bopd from portfolio of quality deepwater assets,” said W&T chief InternatIonalCapItal Serving the marketplace with news, analysis and business opportunities Texas Sands Resources for $1.25 million. Pertamina floats $1.5 billion in new notes into market China’s energy clout a thing Tracy Krohn. “In addition to its substantial oil reserves Indonesian NOC Pertamina returned to the global debt market with $1.5 billion of the future & present principal amount of $US-denominated bonds. The 6.45% bonds due 2044 are the China is slated to become the largest 30-year Asian corporate debt offering in a year, since Pertamina sold a debt world’s largest economy by year’s end, package of $3.25 million that also included 30-year notes. Barclays, Citi and HSBC the World Bank reported in April. It’s were bookrunners. sooner than expected but not Biggest 30-year Asian corporate The May 22 offering offering since Pertamina's last year. a surprise, especially to those and production from multiple sands, it offers near-term was priced at 100 with the watching China’s energy Nextsame coupon and re-offer InternationalCapital yields, staying 25bp from initial price guidance of 6.7%. sector. With the country surpassing the The spread is 303bp over US Treasuries for the same time period. Pertamina did US in economic output is distressing to its roadwork for this issuance, getting out to investor meetings across Asia, London many in the West, but with the EIA noting ABOUT PLS and the US in April as it updated the investment community on its $10 billion note program. The work paid off; even with the coupon on these new bonds 82.5bp higher Growth & energy stockpiling have helped keep oil prices buoyant. exploration upside.” A well is scheduled for H2 in than the ones issued a year ago, the order book escalated to about $6.0 billion or 4x. The company pulled the cord on the issuance after having watched the market for the China’s movement into the world’s Shellright window, with barelysells any competing supply.off 18%Continues On Pg 4 stakelargest net importer of petroleum—ain top Oil India’s $1.0 billion bonds oversubscribed spot long held by the US—the country’s Oil India set off an historic dual-tranche $1.0 billion debt raise—its first ever clout in terms of pricing and the global existing pay sands with longer-term plans targeting the $US-denominated bonds and the largest Reg-S only transaction out of India ever. Citi, flow of energy is something the West has Deutsche Bank, HSBC, Royal Bank of Scotland and Standard Chartered were dealt with for years. Woodsidebookrunners for the deal. for $5.7 billion.The US is importing less due to its shale revolution, but that doesn’t change The A&D Transactions covers news on The state-run E&P issued $500 million principal amount of 3.875% notes due 2019 at 99.847 and $500 million of 5.375% notes due 2024 at 99.527. The China’s ever-increasing demand for energy. spreads on each were 222.5bp over Treasuries for the five-year notes and 272.5bp This demand is playing itself out in untested northern part of the field. over Treasuries on the 2024 notes. Both were on the tight ends of final guidance multiple ways, but first and most noticeably of 225bp and 275bp, both of which came through price. Continues On Pg 12 Largest Reg-S deal to originate in the active asset marketplace with mergers, down from initial guidance of 250bp and India; two tranches attracted over 8X. the 300bp neighborhood, respectively. FEATURED DEALS Oil India’s offering attracted $8.3 billion of orders coming from more than 500 accounts; that’s $4.3 billion on the five year tranche across 342 accounts and $4.0 OFFSHORE KENYA OPPORTUNITY >1,200,000 Acres; Exploration Permit L6 billion from 309 accounts for the 10-year piece. For the five years, Asian investors LAMU BASIN. MAJOR NEW PLAY FAIRWAY divestitures, transaction, analyst comments, took 69% and European investors took the rest. Continues On Pg 6 Miocene Reef Trend Extends into L6 DV Water Depth: ~1,300 Ft. (390 Meters) Russia’s Asian pivot swings $400 billion to the east Multiple Offshore Prospects Identified. OFF- Modern 3-D Seismic Data SHORE petrocap.com | feplp.com One of the single largest agreements in history, the sale of a reported $400 24% Onshore & 60% Offshore Interest billion worth of Russian gas to China, may have far reaching economic and Total P50 Unrisked: >3.0 BBO (or 10 TCF) deals in play and deal metrics. geopolitical consequences worldwide. The deal, expected by anyone who’s been DV 5979FO following the two countries’ discussions for the better part of a decade, will have Gazprom deliver OFFSHORE TUNISIA OPPORTUNITY >3,100,000 Acres Across 3-Permits an aggregate 1.34 Tcf over 30 Gas exports to China to start during 2018 at 122.5 MMcfd. HAMMAMET, BARGOU & NABEUL years starting 2018, or 122.5 MMcfd GULF OF HAMMAMET DV over the life of the contract. While these volumes pale to the 5.7 Tcf Russia sent Emerging Fractured Carbonate Play In addition to the news, the A&D carries to the EU last year, the deal is being called the “Asian pivot” for Moscow as it Permits Underexplored; 5-Wells Since ‘93 builds a new export market and decreases dependence on European customers, Undrilled Clatic & Carbonate Potential OPERATED & NonOperated WI DRILL themselves looking to diversify their own banks of gas suppliers as tensions 30-85% WORKING INTEREST Available READY Capital thatbuild between Russia andPreserves the West. Production Test: 1,290 Bbl Fluid per Day The pivot is obvious and compelling, says Christopher Hill, former US Asst. Up to 3 Wells to be Drilled in Next 18-Mns broker offerings and property listings that Secretary of State for East Asia. “It’s hard to see why it didn’t happen sooner.” Hill Mean Resource(38-Prospects): 5.8 BBOE Total Gross Potential (P90): 884 MMBOE explained, “China doesn’t ask political and human rights questions of its business partners, DV 5078L and Russia doesn’t like to answer them.” Continues On Pg 11 Your IndependenceAll Standard Disclaimers & Seller Rights Apply. are coded alpha-numerically. To obtain additional PLS product details, drill www.plsx.com/publications. We invest as your working interest partner, not your boss. PLS Inc. One Riverway, Ste 2500 We are looking for project and/or Houston, Texas 77056 acquisition investment opportunities 713-650-1212 (Main) with development drilling upside. 713-658-1922 (Facsimile) To obtain additional listing info, contact us If your project needs up to $50 million at 713-650-1212 or [email protected] in capital call us at 214-871-7967. with the listing code. Only clients are able to receive additional information. To become a Dick Rinehart | Doug Evans | John Sears client call 713-650-1212. David Hopson | Alec Neville | Lane Britain © Copyright 2014 by PLS, Inc. Any means of unauthorized reproduction is prohibited by federal law and imposes fines up to $100,000 for violations.