November 2, 2016 Petro Scout www.plsx.com E&P Serving the US upstream industry with information, analysis & prospects for sale Volume 27, No. 16 Oasis raises EURs for Wild Basin Bakken/Three Forks RSP drills best Wolfcamp A, Oasis Petroleum raised its EURs for both the Bakken and Three Forks at its expands into Delaware Wild Basin operating area in McKenzie County, North Dakota. A new, higher- RSP Permian completed its best intensity completion design has driven up well performance in the company’s Wolfcamp A well to date during Q3. The highest-performing area. Bakken wells now have a type curve of Kemmer 4217 WA is also the company’s 1.55 MMboe, up from 1.2 MMboe, and Three Forks wells are now westernmost Wolfcamp A expected to recover 1.2 MMboe each, up producer, indicating a potential from 1.0 MMboe. Bakken EUR raised to 1.55 MMboe, Three Forks to 1.2 MMboe. increase to RSP’s inventory The upward revisions are based on in that interval on the outskirts of its a slickwater completion design using 4 million lb of sand. Data that led to the type acreage. The well delivered a 30-day curve changes at Wild Basin included 30-day IPs of 1,912 boe/d for the Bakken and IP of 254 boe/d per 1,000 ft of lateral 1,490 boe/d for the Three Forks. Comparatively, the company’s IP-30s for its core area, which extends beyond Wild Basin, were 1,305 boe/d for the Bakken and 1,085 Kemmer well yields 254 boe/d per 1,000 ft with ~5,000-ft lateral. boe/d for the Three Forks as of August. Chairman and CEO Thomas Nusz said his team continues to test completion (4,960-ft lateral), which marks the designs further. Continues On Pg 22 company’s strongest performance on a Chesapeake sees Powder River, Oswego as growth drivers per-lateral-foot basis. As the Chesapeake Energy story transitions to an operational narrative from its The Kemmer was completed with balance sheet focus, the company shared at its recent Analyst Day that it is targeting the company’s latest vintage design— 5-15% production growth through 2020. The presentation focused on the potential of which uses more than 1,900 lb per foot Chesapeake’s assets to deliver on that goal. A changing mindset has led of proppant, 14 per clusters per stage the company to think of its operating areas in a new way with stacked- and diverter agents—in western Midland pay value. Two areas in particular—the Midcontinent’s Oswego and County, Texas. The well has a short the Powder River Basin—were touted as production history, but it came online at a growth drivers. Chesapeake looking to up production higher rate than RSP’s Woody well, which by 5-15% through 2020. This year’s drilling pause allowed sits on the border of Midland and Glasscock Chesapeake to square its balance sheet and make some technical strides that EVP Frank counties and was completed using Patterson said changed their definition of “core” through longer laterals and larger fracs. an older design. Continues On Pg 4 “We’ve stepped back and rebuilt the basins that we’re operating in from a geological perspective,” he said. Patterson added that the company is no longer looking at horizons DEALS FOR SALE but at basins as a whole. Continues On Pg 8 WEST TEXAS BARNETT PROSPECTS 42,000-Gross Acres. 35,000-Net Acres. SM Energy rapidly builds Midland Basin scale BARNETT & WOODFORD SHALE SM Energy began 2016 with renewed interest in the Midland Basin and has ended PECOS & TERRELL CO. DV it by increasing its acreage by more than 3.5 times and growing its drilling locations 100% OPERATED WI; 75% NRI by more than five times. The company is keenly focused on developing Tier 1 wells at Barnett OOIP: 43 MMBO/Section STACKED Barnett OGIP: 133 BCF/Section PAY two core operating areas: its legacy Sweetie Peck area in Upton and Midland counties Woodford OOIP: 27 MMBO/Section and its new Howard County position built over the last two months in two acquisitions Woodford OGIP: 116 BCF/Section totaling 62,283 net acres. Budgeting Or Looking To Raise $60MM+ At SM’s legacy Sweetie Growing acreage 3.5x & drilling DV 5694 locations more than 5x. Peck acreage in northern Upton and southern Midland counties, Texas, the company expects to produce a WESTERN LOUISIANA MINERALS 100+ Producing Wells. ~273,000-NMA. net 7,500 boe/d by YE16, which would be a 50% improvement upon YE15’s 5,000 MULTIPLE COUNTIES M boe/d. Last year’s wells were good, too. A JP Morgan study noted that SM’s Sweetie Haynesville Shale, Austin Chalk, Cotton Peck wells delivered the best 90-day cumulative rates in the basin, outperforming the Valley, TMS, Hackberry, Wilcox, Yegua, average peer by 97% and its nearest peer by 26% in 2015. EVP Herbert Vogel credited Smackover, Hosston & Glen Rose completion improvements for this year’s performance. SM has completed 21 wells on NonOperated WI Available HAYNESVILLE the acreage so far this year, with nine of those in Q3. Current Cash Flow: $250,000/Month CONTACT AGENT FOR MORE INFO Vogel added that the company has bolted on acreage to increase Sweetie Peck M 2067PP lateral lengths. Continues On Pg 6 All Standard Disclaimers & Seller Rights Apply. PetroScout 2 November 2, 2016 South Texas Drilling & Production Sanchez to direct more capital to Cotulla next year ■■ At Project Icewine on Alaska’s Sanchez Energy has been focused on delineating its Catarina acreage in Dimmit North Slope, 88 Energy says 2D data County, Texas, this year, but well performance and realized efficiencies at the company’s mapped 20 conventional leads in the Cotulla area to the north will lead to increased D&C capex in the area next year. CEO Tony Brookian sequence with five to be Sanchez said the nine wells that came online in the Hausser area delivered 30- prioritized. The company estimates a day IP rates 10-15% above the company’s 367,000 boe three-stream type curve. gross 758 MMbo of prospective mean With well costs as low as $2.8 million, the wells are yielding almost 85% returns recoverable oil over the five: at current strip. Sanchez allocated $40-50 million of its total $250-300 million Alpha (118 MMbo), Bravo (273 in capex to the area this year. MMbo), Golf (128 MMbo), At Catarina, Sanchez reports that its CEO: Cotulla wells delivering ~85% India (129 MMbo) and Juliet (110 returns at current strip. four-well E33 pad in the south-central area MMbo). Alpha is situated on the eastern is still tracking 20-30% over the 1.1 MMboe type curve at 120 days. This pad is a northern side of the 271,000-acre project near step-out of the south-central area and includes the company’s best Catarina well to date. the Trans-Alaska pipeline. 88 Energy The group’s 30-day IPs ranged 1,600-1,900 boe/d. said recent discoveries such as Caelus’ This year’s work focused on the improvements in the Catarina area in addition to 2.5 Bbo in the Brookian submarine fan delineation. Sanchez said the company was testing a new generation of completion design complex underscore the undiscovered employing tighter clusters and increased fluid and proppant in the Upper and Middle Eagle potential of the North Slope. Ford. With performance improvements, western Catarina wells are yielding returns more ■■ Apache is partnering with the than 50%. Well costs at Catarina are also as low as $2.8 million but average $3.0 million. University of Texas at Arlington to This is a 25% YOY savings. examine the water quality at Alpine As for 2017 Catarina plans, Sanchez said the Regional Oil & Gas Intelligence November 5, 2015 High. Researcher Kevin Schug told

SOUTH TEXAS SCOUT the Fort Worth Star- company was turning away from its south-central Serving the local market with drilling activity, permits & deals for sale Volume 03, No. 15 Sanchez’s Catarina development continues to outperform Regional Activity (State Data) For the third consecutive quarter, wells online. The 106,000-net-acre (10/13/15 to 11/02/15) Sanchez Energy’s Catarina project development area on the border of Telegram that the focus to appraise the northern extent of the central Compls Permits has been the driving force behind its Dimmit and Webb counties, Texas, has South Texas (RRC 1) South60 73 Eagle Ford Texas production. Strong Scoutbeen the focus of Sanchez’s operations South Texas (RRC 2) 39 83 well rates and accelerated Efficiencies continued to help South Texas (RRC 3) 2 13 development resulting from shave down well costs. faster drilling times contributed to lower company approached UTA and is South Texas (RRC 4) 8 37 costs. The company’s results from the since it was acquired from Shell for $639 acreage. Sanchez will also be testing the new- Most Active Operators by Permits south central Catarina showed 30-day IP million in 2Q14. At the end of Q3, the ➊ Marathon Oil 20 rates of ~1,350 boe/d. company had 264 producing Catarina Follow➋ Pioneer Natural Resources Sanchez’s15 Sanchez ran three operated development rigs wells and 18 awaiting completion. generation completion design on Lower Eagle Ford ➌ EP Energy E&P 13 at Catarina during Q3 to bring 27 Continues On Pg 3 donating to the study, although the Permits by Formation (by Last Scout) SM’s Eagle Ford downspacing tests show promise Eagle Ford wells performed above type drilling inventory. Wells have been drilled Formation 11/05 10/15 09/24 at Cotulla incurve for2017. SM Energy in Q3, raising the in five of the nine planned pilot tests, with Eagle Ford 143 205 151 company’s production in the shale 3% the remainder slated for 2016. amount is undisclosed. Schug’s team Wilcox 8 2 5 sequentially and 31% YOY The initial test consisted of 14 wells wells at both Catarina and Cotulla. Austin Chalk 6 14 8 Buda 4 5 11 to 134,500 boe/d—more on the gas-weighted eastern portion of Frio 3 1 – than 75% of SM’s total SM’s acreage, downspaced to 450 ft production for the quarter across all plays Vicksburg 3 2 – Q3 Eagle Ford production of 134,500 Barnsdall Sand 2 3 2 and despite a decline in non-op Eagle Ford boe/d accounts for 75% of SM’s total. will work directly with Apache and its Olmos 1 1 3 production. SM also reported successes in 41-A & 98-A Cons 1 3 – proving up additional drilling inventory instead of its standard 625-ft spacing. Other Formations 35 52 59 with downspacing tests. Test 1 now has 130 days of sales and Western TOTAL 206 288 239 The company drilled multi-well pilot during Q3 reached a peak gas rate of Sources: TXRRC tests to determine downspacing potential 105 MMcf/d or 7.5 MMcf/d per well. processes to develop a baseline analysis Active Rigs Running (Baker Hughes) 96 and to add the Upper Eagle Ford to its Continues On Pg 5

Sanchez’s Catarina Overview Deals For Sale Western Catarina (~43,000 net acres) DUVAL CO., TX PROPERTY of surface and groundwater at the new • Early results support stacked pay development in three 3-Active Wells. Eagle Ford benches; Upper, Middle, & Lower Eagle Ford Eastern Ultra Petroleum adds rigs at Pinedale field Catarina SOUTH TEXAS PP Well performance currently exceeding high end • Central Producing From Pettus & Yegua Y-21. Catarina type curve through first year of development Western Catarina 100% OPERATED WI Available. Catarina • Parally developed; Excellent offset operator results Net Production: ~170-210 MCFD ~200 discovery. Concerns by residents in Total Reserves: ~34 MBO & 22 BCF MCFD

Ultra Petroleum has already added a Pinedale rig inCentral Q4 Catarina (~26,000 net acresand) plans to addCONTACT SELLER anotherFOR MORE INFO • Early results in South-Central Catarina in line with the PP 5404RE strongest to date in the asset: 30-Day IP Rates of Acreage, Inventory & Operational Update nearly 1,350 BOE/D WANTED: EAGLE FORD PROJECTS Total Net Acres Expected further future development in South-Central ~106,000 NonOperated WI Investor. • Average Working Interest 100% Balmorhea have already been raised region in 2016 Average Net Revenue Interest 75% SOUTH TEXAS • Exploraon area; full 3D seismic coverage; inversion Planned Well Spacing (Acres) 75 – 100 International Petroleum Firm Wants To-- W in the next few weeks, bringing rig count to four in the field. The Net Idecompany,ntified Drilling Locations 1,250 - 1,650 which is processing in progress Gross Wells On Production 238 --Participate as NonOperated WI Partner. Awaiting / Undergoing Completions 27 Seeking Experienced Operators In Play. Eastern Catarina (~37,000 net acres) LEF Well Economics Budget of ~$10-$40 Million. NONOP • Early results ~50% above exisng wells in Eastern Catarina Oil or Liquids-Rich. regarding the potential effect of Apache’s EURs (MBoe) 600 – 700

• Substanal number of potenal Lower Eagle Ford D&C Costs ($MM) $4.5 W 5023DV currently working on a reorganization plan, has been one of the mostF&D Cost ($ / Bactiveoe) $8.57 – $10.00 recently in drilling locaons IRR @ $60 / Bbl & $3.75 / Mcf 35%+ No Commission. Call 713-650-1212 the Western region. It drilled 21 wells during Q3 and broughtSource: Sanchez Energy October 05, 201550 via PLS docFinder online. (www.plsx.com/finder) TheAll Standard Disclaimers drilling & Rights Apply. operations. Schug said his team would activity was down only slightly from Q2’s 25 wells drilled, but the company brought be there to work with Apache and not a lot more wells online—Q2 saw 18 come online. IPs during the quarter against its program. averaged 8.1 MMcfe/d, which is slightly below Q2’s 8.6 MMcfe/d average. ■■ Carrizo Oil & Gas added 80 net Ultra is drilling and completing wells for $2.6 million at Pinedale, which derisked Lower Eagle Ford drilling is a 9% YOY decrease. The company’s wells are currently expected to deliver a 54% locations through an acreage pickup return at those well costs with 4.5 Bcfe EUR. Ultra produces from the Lance and from Sanchez Energy Mesaverde formations at Pinedale. Its capex this year is $295 million. to bring its total count to 1,100 net locations. The Synergy sees slow Q3, but output up 22% YOY operated 15,000 net bolt-on acres in Synergy Resources saw a production decline in Q3—output was down 10% LaSalle, Frio and McMullen counties YOY—but that was expected because completions on the 14-well Fagerberg pad just expand Carrizo’s existing position recently finished. However, for the nine months ending Sept. 30, Synergy saw a 22% by 15%. CEO Chip Johnson said the YOY production increase with 11,133 boe/d. So far this year, the company’s LOE is contiguous nature will allow for the $4.90, which is down 6% from the same period last year. drilling of longer laterals from Carrizo’s The company is running two rigs at its Evans pad in Weld County, current leasehold. The company Colorado, drilling 13 long laterals (10,000 ft) and nine extended-reach laterals currently only develops the Lower Eagle (12,000 ft). Seven of the wells are left to be drilled. These wells will be completed late Ford, but upside exists for stagger- this year into 1H17. In September, Synergy said it would drill 102 wells in 2017, which stack and infill development as well as is nearly double this year’s 55. D&C spending will more than double in 2017 as the additional zones. The acreage carries no company plans to spend $260-300 million versus this year’s $115 million. drilling requirements currently. Find more on the E&P arena at To learn more about PLS, call 713-650-1212 Volume 27, No. 16 3 E&P Early Q3 releases seeing Ark-La-Tex reports of better wells SWN returns to Fayetteville to drill play’s best wells yet As PetroScout hits the press, E&P Southwestern Energy awakened operational activity in the Fayetteville, which companies’ Q3 earnings releases are hasn’t seen a single rig since December when the company shuttered operations in the just starting to roll out. Early releases play, during Q3. CEO Bill Way said his team spent its company-wide drilling pause have shown operational improvements, during H1 learning and planning. What resulted was an “extremely successful” return especially in the Ark- to drilling, he said. IN THIS La-Tex region, where ISSUE In the Fayetteville, Southwestern delivered the highest IPs the Southwestern Energy play has seen. Six wells were brought online with an average IP rate of 6.7 MMcf/d. and Range Resources are drilling some Experimenting with proppant volumes has borne fruit. The company is testing two of the best wells in their respective plays. times the amount historically used in the Fayetteville, and the results show. The next- Southwestern returned to the Fayetteville best quarter was 1Q16, during which the company placed nine wells online yielding (page 3), and Range is improving on an average 6.6 MMcf/d. During Q2, six Memorial Resource Development’s wells came online at 5.9 MMcf/d. Nine wells in Q3 average 6.6 MMcfe/d in Fayetteville shale. momentum in Terryville field (page 3). These are significant increases from Chesapeake hasn’t released its Q3 2014-2015, when Southwestern’s IPs in the play averaged 4.2-4.8 MMcf/d. Lateral results yet, but it has held an Analyst length has also played a role, increasing roughly 1,000 ft to 6,870 ft on average in Day during which it touted the virtues 2Q16. Fourth-quarter activity will include placing 22 wells online. of formerly overlooked plays such as Southwestern said it is also testing the Moorefield shale underlying the Fayetteville. the Powder River Basin and the Oswego. The company brought one of these wells online to an IP rate of 6.2 MMcf/d, operations The company expects both to propel oil SVP Jack Bergeron said. The well’s lateral is 7,300 ft, and its EUR is more than 4 growth through 2020 (page 1). Bcf. Bergeron said the well’s results continue the encouraging Moorefield results that the company began to see in 2015 from seven wells. Sanchez Energy to send more capital Regional Oil & Gas Intelligence November 12, 2015 to Cotulla in 2017. Those averaged 7.2 MMcf/d from 6,950-ft laterals, ARK-LA-TEX SCOUT and their EURs are over 5 Bcf. Serving the local market with drilling activity, permits & deals for sale Volume 03, No. 14 EXCO zeroes in on Shelby as it continues to outperform Regional Activity (State Data) After ceasing its North Louisiana up 30% sequentially and 108% YOY. (10/19/15 to 11/09/15) Another theme this issue touches drilling program earlier this year, EXCO Results YTD from EXCO’s Shelby have Bergeron said the Moorefield’s potential along Compls Permits Resources is narrowing its outperformed the company’s type curves, Arkansas 16 ArkLaTex8 focus on the Shelby area of Scoutwhich predict EURs per 1,000 lateral ft of East Texas. The company North Louisiana – 45 Frac design using 2,700 lb/ft of says its Haynesville and Bossier gas wells East Texas (RRC 5) 1 12 proppant yields high East Texas results. at Shelby are generating superior returns upon is the continued trend of growth East Texas (RRC 6) 15 24 with increased proppant in the Fayetteville may help thanks to advanced completion methods. 1.5 Bcf for the Haynesville and 1.3 Bcf for Most Active Operators by Permits During Q3, EXCO ran three rigs and the Bossier. EXCO’s optimized completions ➊ Cavalcade Operating 23 drilled five operated horizontals (four use more than 2,700 lb/ft of proppant. It has Find➋ Chesapeake out what9 Haynesville and oneother Bossier) at Shelby. alsooperators been drilling average laterals of more via acquisition. We’ve seen this primarily ➌ EXCO Operating 6 East Texas production was 52 MMcfe/d— than 7,000 ft this year. Continues On Pg 3 lower breakevens enough that the play can compete Permits by Formation (by Last Scout) Comstock’s Haynesville completions exceeding estimates Enhanced completion designs have laterals and increased stimulation in its Formation 11/12 10/22 10/01 are doing indriven IPthis rates for Comstock region. Resources’ completion designs. The Haynesville wells Haynesville 17 24 11 Haynesville wells above its 15.6 Bcf type it drilled this year have average laterals of Cotton Valley 10 10 8 in the Permian Basin and some in the curve, causing a 119% jump in Haynesville 7,280 ft. The company Fayetteville 5 7 6 with Appalachia for Southwestern. production over two quarters. Comstock’s also saw a 9 MMcf/d gain Travis Peak 5 3 4 Barnett 4 2 1 in production from older offset wells after Haynesville production up 119% using a new refrac system that works from Shallow 4 – – YTD to an average of 105 MMcf/d. Pettit 2 2 – the wellbore out into the reservoir. Eastern region, and now the Bakken can Rodessa 2 1 2 Q3 production from the Haynesville In addition, Comstock reduced its Blossom 1 1 – averaged 105 MMcf/d, up from 77 MMcf/d Haynesville D&C costs to $9.3 million per Other Formations 39 29 125 in Q2 and 46 MMcf/d in Q1. well, down from the $11.3 million cost for TOTAL 89 79 157 Comstock’s first eight Haynesville its first Haynesville well. It has also reduced Source: TXRRC, SONRIS & AOGC wells had average IP rates of 24 MMcf/d. its drilling time from 30 days in Q1 to 23 be added to that list. Oasis expanded its Active Rigs Running (Baker Hughes) 55 The company says it is using longer days at present. Continues On Pg 12 Range already improving Terryville operations EXCO Lengthens Laterals and Reduces Costs Deals For Sale

East Texas Lateral Length And Days To Drill East Texas D&C Cost Per Lateral Foot 10-15E; ; Days 10-15E; $/ LEON CO., TX PROSPECT 226-Acres. 2-Potential Wells. core drilling inventory in the Williston 8,000 Days to drill 70 59 7,000 WOODBINE SAND/OSR HALLIDAY 60 DV 54 52 6,000 47 Woodbine Sand Objective. <7,000 Ft. Range Resources hasn’t wasted time integrating Memorial46 50 Resource 5,000 Subsurface Geology Data Available 40

4,000

30 Up to 25% NonOp WI; 75% NRI 7,500 3,011 WOOD- 3,000 6,520 2,870

5,090 20 2,193 Expected IP: 700 BOPD + 5.0 MMCFD BINE 2,000 4,717 4,675 1,910 1,383 10 Est Well Reserves: 500+ MBO/Well Basin, where it has just increased Bakken 1,000

0 0 DV 2619 Development’s North Louisiana assets. The company brought10 11 12 14 16Current Upper10 11 12 14 Curren t Red wells at East Texas Drilling Cost Per Foot East Texas Proppant Per Lateral Foot NAVARRO CO., TX PROSPECT 10-15E; $/ 10-15E; lbs/ 6,500-Acres. 6-Potential Wells. type curves by 30% and Three Forks EAST TEXAS BASIN DV Obj 1: Smackover. 8,700 Ft. Terryville field on production during Q3. During the quarter, Range broughtObj 2: Norphlett.one 9,000 Ft. of the 100% OPERATED WI; 75% NRI EAST 360 2,700 Expected IP(Smackover): 12 MMCFD TX 348 316 270 Est Net Rsrvs: 400 MBO + 20 BCF/Well 201 1,400 950 DV 2583 by 20% (page 1). 800 850 field’s top wells online, set a drilling-time record and improved10 11 12 14 Curren t formation10 11 12 14 Current targeting.No Commission. Call 713-650-1212 Source: EXCO Resources October 28, 2015 via PLS docFinder (www.plsx.com/finder) All Standard Disclaimers & Rights Apply. Other expansions include RSP One recent well delivered one of the field’s best rates, posting a 30-day Permian buying Silver Hill to become a average of 27 MMcfe/d, or 4.7 MMcfe/d per 1,000 feet. That’s 68% higher Delaware Basin operator (page 1) and SM than the average for Terryville. “We believe this is a real testament to both the Energy rapidly growing in the Midland team and the quality of rock in Terryville and clearly illustrates there is more potential Basin (page 1). SM has now grown its to be unlocked as we develop the Upper Red along with the stacked pay opportunities,” drilling locations more than five times said EVP and COO Ray Walker. Memorial’s best IP-30 is 36.4 MMcfe/d from the since this summer. Bellevue Timber 16 9HC-1. In South Texas, Sanchez Energy Range also set a record for spud Well posts one of field’s best 30-day rates at 27 MMcfe/d. likes what it sees at Cotulla and plans to rig release in the field during the to redirect some energy there in 2017 quarter. Two wells were drilled in 30 days; Terryville’s YTD average is 40 days. The after spending in 2016 largely focused company credited the 25% improvement to more aggressive drillbits and high-speed, on its Catarina acreage (page 2). In the high-differential motors. Bakken, Whiting reports that its “super The company also said its experience in targeting can increase recovery. The completions” are performing in line with field’s previous target interval was 100-125 ft, but Range has brought that down to 1.5 MMboe EUR (page 22). 20-40 ft by targeting the best porosity. New wells are staying within that range for the Get more Regionals! entire 7,500-ft lateral. Range is also testing three extensions of Terryville. www.plsx.com/regionals During Q4, Range will turn nine wells to sales: six in the Marcellus and three in or call 713-650-1212 North Louisiana. Over 2016, Range expects 99 Marcellus/Utica wells to be turned to sales and 42 wells in North Louisiana. For general inquiries, email [email protected] Access PLS’ archive for previous E&P news PetroScout 4 November 2, 2016 Permian Drilling & Production RSP expands into Delaware Continued From Pg 1 ■■ Clayton Williams became a Woody (4,954-ft lateral) recovered only 196 boe/d over its first 30 days, but it has Permian pure-play with the sale of its shown strong performance and has pulled away from the 1 MMboe peer type curve. Giddings field assets in East Texas. The The latest completion design is also yielding better results at the company’s Cross Bar company said it will reinject proceeds Ranch density pilot along the border of Martin and Howard counties. RSP has completed from the sale into its Delaware Basin six wells altogether at 500-ft spacing in the Lower Spraberry. The last three were development program, completed in August with the latest design and are outperforming the original three wells, where it is running which used an older completion design. one rig. Ten wells are RSP said the Cross Bar RSP's most recent completion design expected to be drilled in Reeves County, outperforming in LS density test. Ranch results strongly support Texas, this year with seven placed on the pairing of higher-density fracs with downspaced wells. The company production by YE16. Clayton Williams also reports density pilots at Spanish Trail and Johnson Ranch show the potential for raised capex in August from $36 million simultaneous development of three landing zones within the Lower Spraberry in some to $105 million. areas if the wells are staggered. So far in 2016, RSP said its wells are performing ■■ Hess continues to lower its 25% above the internal type curve and that includes wells testing higher density, D&C costs in the Bakken. For Q3, the downspacing and alternate landing zones. company’s average operated well cost RSP plans to take the technical lessons it has learned in the Midland Basin west to $4.7 million, down 2.1% from Q2’s the Delaware Basin, where it just gained 41,000 highly contiguous net acres straddling average and down 11% YOY. The Loving and Winkler counties in its $2.4 billion buy of Silver Hill Energy Partners. The savings are in spite of latter company has established horizontal the company’s move to Considers Wolfcamp XY best of new production from seven zones: the Brushy a 50-stage completion Silver Hill inventory. Canyon, Avalon, Second and Third Bone design from its previous 35 stages. COO Spring, Wolfcamp XY, Lower Wolfcamp A and Wolfcamp B. Altogether, the zones Greg Hill said last quarter that he expects form a 4,500-ft-thick overpressured hydrocarbon column. Only Cimarex is producing 30-day IP rates of over 1,000 boe/d with from more zones at eight total, according to RSP. 7% EUR uplift per well with the new The acreage is so good that RSP has already ranked five of its new Delaware design. During the quarter, Hess brought intervals among its top 10. COO Zane Arrott touted Silver Hill’s rock quality, with 22 wells online. EURs up to 1.0 MMboe and single-well IRRs over 70% at current strip. “These assets ■■ Kansas Resource Development will compete for capital on Day 1,” Arrott said. subsidiary S&B Operating will take The company believes the Wolfcamp XY is the best of its new inventory with over operatorship of certain leases in EURs of 900,000 boe to 1.2 MMboe and IRRs over 70%, which is on par with RSP’s which Viking Investments Group holds best Wolfcamp A and XY in the Midland. The difference is RSP’s Midland wells interests in through subsidiary Mid- produce from 7,500-ft laterals, whereas the company’s assumptions for Silver Hill’s Con Petroleum in Miami and Franklin Wolfcamp XY are based on only 4,500-ft laterals—leaving significant room to run. counties, Kansas. As of Sept. 1, S&B was operator for Viking’s A. Wilson (100% WI), L. Wilson (92% WI) and Elam/Hahn RSP: Silver Hill’s Shorter Laterals Compete with Longer Midland (58% WI) leases. The company will • Silver Hill short lateral well performance competes with and in some cases exceeds Midland basin long lateral well performance also operate the ABC, Terbrock, Renner • Potenal for upli in upfront deliverability and increasing ulmate recoveries from drilling longer laterals Upper Wolfcamp Cumulave Producon (Boe) Bone Spring / Lower Spraberry Cumulave Producon (Boe) and Griffin leases (95-100% WI) as 600,000 600,000 of Nov. 1. The leases produce from the Cherokee formation. 500,000 500,000 ■■ Lilis Energy is drilling its first 400,000 400,000 well in the Delaware after entering

300,000 300,000 the basin in June when it merged with Brushy Resources. The operator, 200,000 200,000 which had previously been focused on

100,000 100,000 the DJ Basin, said it was drilling the 6,000-ft lateral of the Bison #1H in - - 060120 180240 300360 420480 540600 660720 780 060120 180240 300360 420480 540600 660720 780 Winkler County. Upon completion, the Days (1) Days Midland Peer 1 MMBoe Type Curve Midland Peer 1 MMBoe Type Curve(1) Silver Hill 4,500' Upper Wolfcamp A (XY) Silver Hill 4,500' Bone Spring company will move the rig to drill the RSP 7,500' Avg. Glasscock Upper Wolfcamp RSP 7,500' Core County Lower Spraberry Type Curve (2) Silver Hill 7,500' Upper Wolfcamp A (XY) Silver Hill 7,500' Bone Spring (2) Grizzly #1H. Both are Wolfcamp wells. Source: Management esmates. (1)Based on peer public filings. (2)Normalized to 7,500’ based on rao of lateral lengths. In addition, Lilis has bolted on 500 net Source: RSP Permian Oct. 13 Presentation via PLS docFinder www.plsx.com/finder acres in the county. Find more on the E&P arena at To learn more about PLS, call 713-650-1212 Volume 27, No. 16 5 E&P Permian EP Energy’s Wolfcamp oil volumes up 37% sequentially QEP tests Spraberry in Texas, EP Energy devoted the lion’s share of its Q3 activity to the Wolfcamp, which the Three Forks in North Dakota company considers home to its highest-quality drilling inventory. EP spent $81 million of $146 million in capex in the play and completed 13 wells (out of 30 company-wide). QEP said its first density tests Better-than-expected oil volumes drove a production above guidance. targeting the Spraberry at the western EP produced 9,300 bo/d from the Wolfcamp in Q3, up 37% sequentially edge of Martin County, Texas, were and roughly flat to 3Q15’s yielding rates in line with or better than oil volumes despite reduced activity. Completed 13 Wolfcamp wells, which nearby parent wells. The are beating 600,000 boe EUR. Wolfcamp production was up 5% company is evaluating 10 YOY and 26% sequentially, largely because the company’s 2016 wells continue to wells per 1-mile spacing unit, and it has outperform its 600,000 boe type curve. One rig is drilling the Wolfcamp, and EP has completed eight wells with a peak 24- deployed two completion crews there. The company estimates 2,687 of its 3,264 hour IP of 1,291 boe/d. It is currently Wolfcamp locations are economic under $40/bbl. By YE16, EP will have increased drilling the final two wells of that pilot. laterals by 10% compared with 2015 and reduced costs 13% to $4.6 million per well. As expected, QEP is moving two of its In the Eagle Ford, EP returned a drilling rig in October. Base-optimization projects rigs from the County Line acreage to its have led to better decline rates throughout the play. Completion activity, however, new Mustang Springs acreage to the east remains down significantly with only 10 wells completed in Q3 vs. 24 in 3Q15. EP in Martin County. also has one rig running at Altamont in the Uinta Basin, where it says it is seeing good Eight density tests average 1,291 boe/d, results from a ramped-up recompletion program. as good as parents. QEP completed a modest nine wells Diamondback eyes 30% output growth in 2017 in the Williston Basin in Q3, mostly at Diamondback Energy expects to grow production more than 30% in 2017, according the quarter’s end. One second-bench to the company’s preliminary forecast. The year’s development plan includes completion Three Forks well reached a peak 24- of 90-120 wells, up from this year’s 65-70, and spending 48% more than expected 2016 hour rate of 2,871 boe/d at South capex. A sixth rig will be added in the new year as well. Antelope in McKenzie County, North “Diamondback’s continued strong well performance and Dakota. At Fort Berthold, the three increased completion cadence during the third quarter reflects our ability to turn our growth wells completed during Q3 used a more engine back on into a rising commodity price after reducing completion activity in early modern completion design than previous 2016,” said CEO Travis Stice, adding that his company will be able to do so within cash flow. wells and are flowing in line with updated The Permian player began 2016 cautiously, running three rigs in the Midland expectations. Their average peak 24-hour Basin, anticipating relatively flat production of 34,000-38,000 boe/d, intending to rate was 1,380 boe/d. The wells were spend only $280-375 million and expecting to complete 50-70 wells. The year played completed in 49 stages using sliding out a bit differently with stronger-than-expected well performance and an entrance sleeve and 1,000 lb of proppant per lateral into the Delaware Basin. The company will add a fifth rig soon and has raised 2016 foot. The company is running one rig in production guidance to 41,000-42,000 boe/d and capex to $350-425 million. It also the Williston at Fort Berthold. expects to complete at least 15 more wells than it had originally planned. QEP’s completion count for Q3 Well costs will range $5.0-5.5 million on a 7,500-ft lateral in the Midland with best was highest at Pinedale field in Sublette costs coming in below $5.0 million. A leading-edge 10,000-ft lateral in the Midland County, Wyoming. The company is below $6.0 million. Delaware wells will cost $6.0-7.0 million. The average lateral brought 34 wells online. Eight are being length will be 8,500 ft. drilled there, and six await completion. PLS Home docFinder M&A PetroWire Learn More Help About Us Contact Us Register According to state data, one of the Log In or Sign Up Now! company’s recent wells at Pinedale flowed over 10.0 MMcf/d, the best rate since QEP began drilling a newly plus view latest docFinder alert recent ˅ saved ˅ view table view slides acquired 4,785 acres. The rate was also Advanced Search... Results: 1,180,865 Slides / 39,297 Documents twice the company’s average in the field. Acquistions & Divestitures : Prospects & Geology : Capital Markets : Midstream & Infrastructure : Data & Graphics : Save time sourcing Transactions Details (10,678) Key Wells & Discoveries (42,772) Financial Results (154,179) Gas Gathering (17,817) Type Curve (8,900) Deal Metrics (7,735) Science & Technology (12,642) Financial Predictions (23,323) Crude Gathering (11,045) Decline Curve (4,632) Well Log(s) (8,387) Capital Expenditures (76,043) Pipelines & Facilities (55,075) Well Bore Design (8,093) Regional Oil & Gas Intelligence November 11, 2015 Portfolio & Operations : critical data Cross Section / Stratigraphy (17,643) F&D Costs / RRC (13,599) Equipment (17,739) Table (115,015)

Areas of Operations (87,898) Reservoir Characteristics (20,232) Stock Data (55,530) Bar Chart (154,420) Field or Formations (95,855) Pricing & Hedging : Drilling Costs (20,344) Rates of Return (23,111) Pie Chart (36,691) Reserves (125,659) Hedging Positions (15,334) PERMIAN SCOUT Core Sample(s) (1,309) Operating Costs (LOE) (19,337) Other Chart (80,932)

Production Rates (94,937) Oil & Gas Prices (24,924) Serving the local market with drilling activity, permits & deals for sale Volume 03, No. 22 Seismic Images (12,263) Debt (39,850) Operations Map (63,340) Cumulative Production (15,749) Page Classification : Over 1.5 million slides at your fingertips Valuations / PV (23,035) Plat / Leasehold Map (46,991) Two Pioneer Sale Ranch wells surpass 2,100 boe/d Production Analysis (21,142) Land & Legal : Regional Activity (State Data) PermianPioneer Natural Resources’ Scout Sale and turn a three-well horizontal pad to Summary & Highlights (28,153) (10/07/15 to 11/06/15) Corporate Structure (18,429) Trend Map (20,152) Ranch 23B #2H and 21C #3H had rates of production to 135 days in the Wolfcamp/ Initial Production Rates (24,312) Acreage & Land (57,942) Peer Comparison (20,091) Compls Permits 2,825 boe/d and 2,144 boe/d, respectively, Spraberry, and it has cut its average drilling Isopach / Structure Map (17,935) Partnerships & Agreements (24,987) Timeline : West Texas (RRC 7C) 32 52 targeting the Spraberry with the use of gas time by seven days per well. The company and the answer in seconds. Data Comparison (157,976) West Texas (RRC 8) 78 165 turned 33 horizontals Well Spacing & Laterals (13,678) Historical Data (232,480) Q3 Wolfcamp wells avg. 1,900 boe/d, QEPWest Texas talks (RRC 8A) Woodford12 22 in the Permian, toincreases production in EURs 15% above 1 MMboe curve. www.plsx.com/docFinder Future Plans/Projections (98,338) Southeast New Mexico 17 83 the Spraberry and lift. The wells averaged 2,484 bo/d and Wolfcamp during Q3, with 28 Wolfcamp Most Active Operators by Permits Call 713-650-1212 or email [email protected]. 2,068 Mcf/d (2,828 boe/d, 88% oil) and B and two Wolfcamp A wells averaging rig➊ count.XTO Energy 26 were drilled with laterals averaging 8,742 peak production rates of 1,900 boe/d (78% Company / Organization : Document Date : ➋ Pioneer Natural Res 22 ft in Martin County’s Spraberry field. oil). The Wolfcamp wells are tracking ➌ Apache Corp 15 Pioneer reported that it has shortened EURs of more than 15% above a type Choose Company... € Any Date € its average total time to drill, complete curve of 1 MMboe. Continues On Pg 3 Permits by Formation (by Last Scout) Parsley reports records, 1,638 boe/d Spraberry well For Formationgeneral11/11 10/28 inquiries,10/14 email [email protected] Access PLS’ archive for previous E&P news Spraberry 103 124 95 An Upton County completion by wells Parsley completed in Q3 averaged 30- view table view slides Wolfcamp 88 64 46 Parsley Energy flowed at a rate of 1,395 day rates of 1,167 boe/d, also a company Bone Spring 46 37 41 bo/d and 1,457 Mcf/d (1,638 boe/d, 85% record. Those wells had average lateral San Andres 11 8 7 oil) at full flow, according to lengths of 6,962 ft. Glorieta-Yeso 9 5 2 Texas state data. The Shauna Reset Filters Clear Fork 6 4 2 9-16B #4415H was drilled Wolfcamp B well had a company- record 30-day IP rate of 1,504 boe/d. Delaware 5 5 6 in Spraberry field with a 7,195-ft lateral Getting started with docFinder Brushy Canyon 3 – – and fracked with 13,096,749 lb sand and Parsley’s Ringo 10-7-4214H Wolfcamp Frequently asked questions (FAQ) Devonian 3 3 6 331,206 bbl frac fluid. A well, which was drilled as part of a two- Other Formations 48 89 81 The company reported that one of its well pad in Reagan County, set a Permian Advanced searching TOTAL 322 339 286 Wolfcamp B wells, the Taylor 45-33-4404H, Basin record for the fastest lateral drilled. Sources: NMOCD & TXRRC set a company record with its 30-day IP rate The well’s 7,128-ft lateral was drilled in Additional help Active Rigs Running (Baker Hughes) 231 of 1,504 boe/d on a 9,802-ft lateral. The nine 41 hours. Continues On Pg 3

Pioneer’s Northern Spraberry/Wolfcamp Performance Deals For Sale

33 horizontal wells placed on production during Q3 PERMIAN BASIN PROJECT – Majority were Wolfcamp B and Wolfcamp A wells 11 Producers. 2,200 Net Acres. (85% HBP) Early production results from these wells are on average tracking >15% above a 1 MMBOE EUR type curve o EDDY CO., NM

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

500 1 MMBOE 500 1 MMBOE 3-Month Avg. Cash Flow: ~$246,000/Mn 800 MBOE 800 MBOE Production Production OFFERS DUE NOVEMBER 11, 2015 Average 24-hr peak rate: Average 24-hr peak rate:

Daily Daily ~1,900 BOEPD ~1,800 BOEPD PP 4146DV 78% oil content 84% oil content 100 100 0306090 0306090 IRION CO., TX PROJECT Days On Production Days On Production 2,000-Gross/Net Acres MIDLAND BASIN - STACKED PAYS – Remaining wells placed on production in Q3 Acreage Is Contiguous and HBP. 2 Wolfcamp D wells with average 24-hour peak rate of ~1,600 BOEPD L o Horizontal Wolfcamp A, B & C and Cline o 1 Lower Spraberry Shale well that has not yet reached its 24-hour peak production rate Offset By Devon and Broad Oak Energy. – 19 wells (17 Wolfcamp B &2 Wolfcamp A) benefited from Pioneer’s completion optimization program 100% OPERATED WI; 75% NRI o Program includes optimizing stage length, clusters per stage, fluid volumes and proppant concentrations L 1071 o Early results from 26 completion-optimization wells placed on production during Q2 and Q3 are encouraging No Commission. Call 713-650-1212

Source: Pioneer Natural Resources November 03, 2015 via PLS docFinder (www.plsx.com/finder) All Standard Disclaimers & Rights Apply.

PetroScout 6 November 2, 2016 Permian Permian adds oil output as SM rapidly builds Midland Basin scale Continued From Pg 1 US falls as a whole As of YE15, SM had assumed it could only develop 42% of its wells with laterals The EIA predicts that US oil over 5,000 ft, but Vogel said the company now believes that 95% of the inventory can production will continue its downward be comprised of wells with laterals over 5,000 ft—likely 9,000 ft on average. trend in November, losing 30 bo/d to an To the north of Sweetie average monthly output of 4.43 MMbo/d. Peck, SM is integrating Will run six rigs by early 2017 with The Permian will remain the only oil four in Howard County. its new Howard County region to add production acreage. Vogel told investors that SM had been eyeing the county, an area previously with an expected 30 bo/d overlooked by both his company and peers as not having enough thermal maturity at climb in November to its shallower depth. A closer look, however, showed that the county’s stacked pay, thick 2.01 MMbo/d. The Eagle Ford will lose oil column, shallow depth and associated lower drilling costs paired with derisking 35 bo/d to pump 947,000 bo/d, and the from predecessors and in-place infrastructure created exciting Tier 1 drilling potential. Bakken’s output will decrease by 21 Highlighting the quality of its new Howard County assets, Vogel pointed to the Ogre bo/d to 946,000 bo/d. The Niobrara 47-2 A #1 well, which recorded an IP-30 of 1,640 boe/d. While the well did have an will lose only 3 bo/d to flow 374,000 optimized completion, its lateral is only 7,700 ft, so Vogel sees better potential if those bo/d this month. are lengthened. Another well on its new acreage delivered 1,830 boe/d over its first 14 Despite the overall output decrease, days and climbed to 1,910 boe/d over the last 10 days with 90% oil. Its lateral is 9,700 ft. rigs are more efficient. A Niobrara rig Vogel said that, although it’s early, offset wells on the new acreage are exceeding is expected to generate an additional 27 SM’s pre-acquisition expectations. Oil cuts are among the highest in the basin, too, bo/d in new-well production for a total averaging 80%. This is without the completion upgrades SM sees possible or longer of 1.05 MMbo/d in November. That is laterals. The company is completing three wells in the county currently. followed by additions of 23 bo/d in the Vogel said the company needs to drill Bakken and 16 bo/d in the Eagle Ford. High-return, shallow depth yield only 40 wells over the next three years to Regions seeing rig additions last week attractive Tier 1 returns. hold acreage. SM will target the Lower US oil production expected to be Spraberry and Wolfcamp A and B with upside for Middle Spraberry development. SM 4.43 MMbo/d in November. estimates that a Wolfcamp A well in Howard County, completed with 2,000 lb per ft of proppant and drilled with a 10,000-ft lateral, can deliver $9 million NPV10 versus $2 were the Permian (+11) and the Eagle million from a standard 5,000-ft lateral completed with an industry average 1,370 lb per ft. Ford (+1). The Niobrara lost one oil rig, The company said it will ramp up from four to six rigs in 2017 by the end of and the Bakken remained unchanged. Q1. As for locations, the company’s tally of 734 Oil rig count has risen 40% since it hit this summer has grown to 4,171. SM estimates December 31, 2014 • Volume 25, No. 18 bottom in May at 316. Transactions Serving the marketplace with news, analysis and business opportunities The Permian accounts for nearly half that number equates to 35 years worth of drilling Repsol strikes, snapping up Talisman for $13 billion Whiting seals buyout of Capitalizing on falling oil prices to gain a substantial upstream foothold in North Bakken peer Kodiak America, Repsol has struck a deal to acquire Talisman Energy for $13 billion. The There is one less publicly listed purchase price consists of $8.00/share (C$9.33/share) in cash plus the Calgary company’s Bakken producer following the closing $4.7 billion debt. Unanimously approved by both companies’ boards, the deal will of Whiting Petroleum’s acquisition of the country’s oil-drilling activity with inventory at a six-rig pace or 19 years at an 11-rig boost Repsol’s pro forma 2014 production by 76% to over 4.08 Bcfed immediately and of rival Kodiak Oil & Gas. significantly expand its explorationA&D portfolio. The combinedTransactions company will have a presence The deal created a combined in more than 50 countries with Bids $8.00/share after Talisman company with a market cap 27,000 employees. tagged a low of $3.46/share. north of $6.0 billion based on the stock Cash-rich Repsol had price the day before closing. Whiting 212 rigs working. All told, the US has pace. The company anticipates growing its Midland been gearing up for a strategic upstream acquisition, building up a $12 billion-plus war now has the highest Bakken/Three Forks chest this spring through the divestment of its equity in Argentine explorer YPF, a $5.0 billion settlement with Argentina over the 2012 seizure of a 51% stake in YPF, and the Creates largest producer in Bakken with Q3 output of 125,000 boepd. SMsale to Shell buying of its Latin America-focused LNG Midland business. At the time, Repsol said it Basin was shopping for companies or assets within the OECD with development potential, production at a pro forma 125,000 boepd 441 oil rigs operating. The basin keeps Basin production four-fold over the next two years scale, extra growth capacity and above 8% return on capital. Continues On Pg 12 for Q3, squeaking by long-time leader Oxy in talks to buy private Permian driller Three Rivers Continental Resource's 121,600 boepd. assetsCash-rich after receiving from $6.0 billion in the QStarspin-off of its California business,for The$1.6B. deal also increased Whiting’s Occidental Petroleum is looking to supercharge its core Permian growth engine Bakken/Three Forks inventory by 158% to 3,460 net drilling locations adding production despite overall US by pursuing privately held Three Rivers Operating Co. II LLC. Industry sources to a net ~42,000 boe/d. across 855,000 net acres. YE14 proved contacted by PLS have estimated values in the $1.20-1.35 billion for the deal. A Bloomberg story citing an unnamed source said the companies are discussing a price reserves for the combined company total below $20,000/acre—implying a value below $1.75 billion based on Three Rivers’ 780 MMboe (83% crude, 7% NGLs), 82,000 net acres at YE13 plus 5,400 net up 29% compared to Whiting and PLS sources value deal for Riverstone- Kodiak’s YE13 sum. Cont'd On Pg 17 production being down 13% YOY. “The acres picked up this summer. backed company at $1.20-1.35 billion. Austin, Texas-based Three FEATURED DEALS Rivers II launched in August 2012 with the acquisition of 15,000 net acres and 1,900 boepd in the Midland Basin from Meritage Energy. Backed by Riverstone EAST TEXAS SALE PACKAGE Holdings, the company at YE13 touted 25,000 net acres in the Midland Basin, 22,000 12-Active Wells. 3-SWD. ~3,700 Acres. Permian is going to be the ground zero in the southern Delaware Basin and 5,000 in the Central Basin Platform representing a BUNA WEST & SILSBEE FIELDS drilling inventory exceeding 1,800 locations (average 90% WI) targeting the Wolfcamp, HARDIN & JASPER COUNTIES PP Cline and Wolfberry combo play. Continues On Pg 11 Wilcox Sands 10,000 Ft.-15,000 Ft. Additional Drilling Locations Identified 58-100% Operated WI; ~73 Lease NRI 191 SM Energy Grows Midland Locations by MoreSouthwestern buysthan more Marcellus/Utica Five for $394 million TimesGross Production: 77 BOPD & 888 MCFD BOED of the U.S. unconventional oil business,” Also closes $5.4 billion initial acquisition from Chesapeake Net Production: 44 BOPD & 530 MCFD June 2014 Cash Flow: ~$156,600/Mn Statoil is selling a 5.8% stake in its Marcellus and Utica JV assets in northern PDP PV10: $4,826,000 West Virginia and southern Pennsylvania to new partner Southwestern Energy for BIDS DUE BY JANUARY 15, 2015 $394 million and retaining ~23% WI. Having also closed its $5.4 billion purchase of PP 2351DV Sweetie Peck Rock OilChesapeake’s 67.5% WI, Southwestern’sQStar newly acquired interests will rise to 73.3% Credit Suisse analyst Robert Santangelo WI, representing 443,000 net acres. KERN CO., CA PROPERTY Gets additional 30,000 net acres & The Statoil deal adds ~18,000-Contiguous Net Acres. 29 MMcfed from Statoil interest. BEER NOSE FIELD incremental October Bloemer Tight Sandstone Objective. PP net production of 29 MMcfed and 30,000 net acres targeting the Marcellus, Utica Estimated Depth: 10,000-15,000 Ft. (16,440 (~25,000and Upper Devonian(~36,000 for Southwestern. Statoil had a preferential right to buy AlsoTotal Monterey, Belridge, Gibson, Oceanic, told Bloomberg. “And that, I think, Chesapeake’s stake when that company’s deal with Southwestern was announced Santos, Tumey & Kreyenhagen Potential. 100% OPERATED WI; ~77% NRI in October, but chose not to exercise it. Including these properties and others in the TIGHT Gross Production: 36 BOPD & 57 MCFD SAND play, Statoil retains a strong Marcellus position covering ~570,000 net acres with Net Production:27 BOPD & 44 MCFD net acres) net acres)pro forma Q3 net productionnet of 759 MMcfed.acres) 6-Mn Avg. Net Cash Flow: ~$28,800/Mn The Statoil deal is expected to close in 1Q15 and will be financed from PP 5217DV is here to stay.” Southwestern’s revolver. Continues On Pg 15 Previously Disclosed/Risked All Standard Disclaimers & Seller Rights Apply. Lower & Middle Spraberry 199 145 208 552 Wolfcamp A & B 152 64 270 486 Subtotal 351 209 478 1,038 Let PLS Sell Additional Lower & Middle Spraberry 158 529 920 1,607 Your Deal! Wolfcamp A & B 125 503 798 1,426 Hire us! Call 713-650-1212! Wolfcamp C & D 100 0 0 100 Subtotal 383 1,032 1,718 3,133 Total 734 1,241 2,196 4,171 Source: SM Energy Oct. 18 Presentation via PLS docFinder www.plsx.com/finder

Find more on the E&P arena at To learn more about PLS, call 713-650-1212 Volume 27, No. 16 7 E&P Midcontinent ARKANSAS Newfield’s STACK wells drive record output in Q3 LAFAYETTE CO., AR PROSPECT Newfield Exploration’s Raptor-X spacing pilot in western Kingfisher County, 6-Potential Wells. 640-Acres. Oklahoma, continues to show strong performance. The four-well pad showed only SMACKOVER TREND a small decline between its 90-day and 120-day rates—1,098 boe/d (78% liquids) Obj 1: Smackover At 10,000 Ft. DV 50% OPERATED WI; 75% NRI versus 1,054 boe/d (77% liquids). The wells target the Upper Expected IP Rates: 200 BOPD SMACKOVER Meramec on 880-ft spacing. Laterals on the Raptor pad are super Est Well Reserves: 500+ MBO extended length, or SXL, which means 10,000 ft. The pilot wells Est Project Reserves: 3.1 MMBO CALL were stronger at 90 days than Newfield’s DHC: $1,350,000; Compl: $750,000 Raptor-X spacing pilot averages PLS FOR 2015 wells. The company had 42 wells CONTACT SELLER FOR MORE INFO INFO 1,054 boe/d at 120 days. DV 5778 average 960 boe/d over 90 days in 2015. A more recent standout well is the Castonguay SXL in eastern Blaine County, SOUTH ARKANSAS PROSPECT Okla. That well recorded a 24-hour IP of 1,843 boe/d (89% liquids), which slightly >30,000-Acres. improves upon a pair of fellow Kingfisher County SXL wells that averaged 1,830 SMACKOVER boe/d (88% liquids) in Q2. Last quarter, Newfield raised its type curve 15% for Recent Oil Field Discovery. DV Target Depths: - these STACK wells to 1.1 MMboe. Its current completion design utilizes 2,100 -- 4,700 Ft. - 5,700 Ft. lb of proppant. 40 Acre Spacing Per Well. SMACKOVER Newfield produces 93,402 boe/d in Newfield is riding high on the Anadarko Basin, up 12% sequentially. SEEKING DRILLING PARTNER strength of its Anadarko Basin assets, Potential Cumulative Prod: 3.0 BBO CONTACT SELLER FOR MORE INFO which set a production record in Q3 by flowing 93,402 boe/d. That output is up DV 2164 12% sequentially and 38% YOY. “Including today, we raised production guidance each quarter throughout the year and we expect to beat our original 2016 production EAST TEXAS guidance (excluding acquisitions) by approximately 3.5 MMBOE, or 7% over our beginning of the year Regional Oil & Gas Intelligence November 18, 2015 ANDERSON CO., TX PROSPECT MIDCONTINENT SCOUT forecast,” chairman Lee Boothby said. Serving the local market with drilling activity, permits & deals for sale Volume 03, No. 22 Continental bullish on STACK, SCOOP performance ~26,500-Gross Acres. Regional Activity (State Data) The stars of Continental Resources’ that are three times higher than wells in (11/02/15 to 11/13/15) Q3 production were the company’s normally pressured windows. The Ludwig The company estimates it will spend $750 Compls Permits STACK and SCOOP wells, according to 1-22-15XH had a rate of 2,782 boe/d NebraskaMidcontinent– 1 its most recent operational Scout update. (76% oil),Oct. while the Ladd 1-8-5XH26 came EAST TEXAS Kansas 28 75 Continental completed its second Oklahoma 6 64 and third STACK wells during the Over-pressured STACK has 3x higher rates than normal-pressure window. North Texas (RRC 5) – 1 quarter and is drilling or completing four North Texas (RRC 7B) 5 28 more. The company says its acreage in the in at 2,181 boe/d (79% oil). Continental million in capex this year because it plans to add North Texas (RRC 9) 13 30 Targets: Wilcox, Queen City/ - TX Panhandle (RRC 10) 4 8 trend will “compete head-to-head” with its says 95% of its STACK acreage is in the DV SCOOP development, which the company over-pressured window. Through YE15, Most Active Operators by Permits says continues to show strong results. the company will operate 2-3 rigs and Tapstone➊ Altavista Energy 16 drills top Mississippian ➋ Owens Petroleum 8 Continental’s wells completed in the spud an additional 2-3 wells there. -- Reklaw & an unspecified number of rigs in the Anadarko ➌ Enervest Operating 6 over-pressured STACK have 90-day rates Continues On Pg 5 LimePermits by Formation well. (by Last Scout) Chesapeake’s Oklahoma long laterals include record 9,395 ft Formation 11/18 11/04 10/21 During Q3, Chesapeake Energy drilled completed. The company’s multi-section a company record lateral length of 9,395 ft extended laterals that it is drilling in the Carrizo Formations Squirrel 31 46 38 WILCOX on its JJJ 23-25-11 1H well, which was in Mississippian Lime save ~$1.4 million Basin at the end of the year. Mississippian 21 23 34 Arbuckle 8 15 15 the completion stages as of the release of per well, a 27% decrease in D&C costs Bartlesville 8 17 6 the company’s quarterly operations update. compared to two separate standard laterals. Barnett 7 5 3 Net production from the Mississippian Multi-lateral wells & multi-section ACREAGE FOR SALE Woodford 7 14 5 Lime stayed relatively flat at an average of extended laterals drilled in Miss. Lime. Cleveland 3 4 6 31,000 boe/d during Q3, a 1% sequential Granite Wash 3 6 2 Marble Falls 3 4 4 That quarter also saw the first multi- decrease. Chesapeake says its YTD Other Formations 116 147 104 lateral well drilled by Chesapeake in the completed wells average laterals of 4,500 ft Drill & Completion Costs: $250,000 TOTAL 207 281 217 Mississippian Lime, the Wilber 26-27-11 and nine frac stages at a cost of $2.8 million Sources: TXRRC, OCC, KGS & NOGCC 1H, which has dual laterals of 4,653 ft vs. its 2014 averages of 4,450 ft and nine frac Gastar agrees to 60-well development ActiveJV Rigs Running (Bakerin Hughes) 114 STACKand 4,556 ft and is also being presently stages at $3 million. Continues On Pg 5 DV 5808 Continental STACK Position Deals For Sale

EXCELLENT POSITION IN PLAY • ~146,300 NET ACRES OKLAHOMA & KANSAS • ~95% IN OVER-PRESSURE- D ~11,000-Net Acres. (100% HBP) Gastar Exploration expedited its delineation efforts WIND OW in Oklahoma’s STACKWOODS CO., OK & BARBER CO., KS by • ~90% LIQUIDS-RICH Ladd 1-8-5XH •~60% HBP Marks 1-9-4XH 21 Active Wells. 3 Horizontal. PP OPERATED & NONOP WI FOR SALE OUTSTANDING MERAMEC Ludwig 1-22-15XH Gross Prod:69 BOPD & 2.2 MMCFD RESULTS • 2,782 BOEPD, 2,100 PSI FCP Total Proved: 111 MBO, 4.6 BCF, & -- 2.3 (LUDWIG) --& 160 MBC NGL MMCFED HENDERSON CO., TX PROSPECT striking a “DrillCo” with an unnamed global investor. The company•2,181 BOEPD, 2,000 PSI FCP will drill 60 wells in its SELLER IS REVIEWING OFFERS (LADD) • 994 BOEPD, 625 PSI FCP PP 5989DV (MARKS) • 73% TO 79% OIL NORTH TEXAS PROSPECTS 1,018-Gross Acres. 783-Net Acres. 2-Prospects. Up to 500 Acres. core Kingfisher County operating area targeting the Meramec3 WELLS DRILLING ANDand Osage. TheFT. WORTH18,000 BASIN AREA DV net 1 WELL WOC Over- Normally- Proven Shallow Oil Potential Pressured Pressured Oil Pay Objectives At 1,000’ - 5,000’ CURRENT PLANS THROUGH Industry Over-pressured Industry Over-pressured Generator Will Participate Up To 25% WI YEAR END 2 mi. lateral 1 mi. lateral EAST TEXAS BASIN Industry Normally- Industry Normally- Nearby Field Cum’s : 80 MBO-18 MMBO • 2-3 OPERATED DRILLING RIGS pressured 2 mi. lateral pressured 1 mi. lateral DV CLR Drilling Rigs CLR Hz Meramec Wells DV 5259 • 2-3 ADDITIONAL WELLS TO SPUD Industry Drilling Rigs CLR Planned Wells 2015 acres are currently undeveloped. The company didn’t attach a value CLRto Leasehold the drilling program. No Commission. Call 713-650-1212 Rodessa, James Lime - Source: Continental Resources November 04, 2015 via PLS docFinder (www.plsx.com/finder) All Standard Disclaimers & Rights Apply. -- & Travis Peak. RODESSA CEO J. Russell Porter said his team is already five wells into the program. 100% OPERATED WI FOR SALE The assets will be DrillCo will target Meramec, Osage Leases Can Deliver 78%-81.33% NRI. developed in three 20-well formations in Kingfisher County. DV 8733L tranches. For the first, Gastar and its partner have agreed to drill 18 Meramec and two Osage wells. The investor NORTH LOUISIANA will choose the locations of the second tranche, and the third-tranche locations will NORTH LOUISIANA PROSPECT be mutually agreed upon by both parties. Unnamed investor to fund 90% of The investor will fund 90% of 25+ Potential Wells. 3,500 -15,000-Acres. Gastar’s WI to earn 20% initially. JACKSON, LINCOLN & OUACHITA PH. Gastar’s working interest to earn an TERRYVILLE BASIN 80% WI in each new well. Once the investor reaches an aggregate 15% IRR on its Obj 1: Basal Cotton Valley At 11,700 Ft DV. investment, its interest will fall to 40%, and Gastar’s will climb to 60%. At 20% IRR, Obj 2: Bossier At 13,000 Ft. the investor’s stake falls again to 10% with Gastar’s increasing to 90%. Gastar and 100% WI AVAILABLE; 75% NRI TUSCALOOSA Expected IP Rates: 30+ MMCFD the investor have the option to expand the drilling program from an initial 60 wells. Est Well Reserves: 100 MBO & 25 BCF Porter said the JV reflects the quality of Gastar’s acreage. The program, he said, Est Project Rsrvs: 25-75 MMBO & 1-5TCF will also help Gastar to develop future offset locations. Gastar plans to continue DHC: $7,500,000; Compl: $2,500,000 drilling and completing wells separately from the program as well. CONTACT SELLER FOR MORE INFO DV 5777 Information. Transactions. Advisory. Call 713-650-1212

For general inquiries, email [email protected] Access PLS’ archive for previous E&P news PetroScout 8 November 2, 2016 Midcontinent Vitruvian posts its best Chesapeake sees growth drivers Continued From Pg 1 Woodford well yet Patterson called the Midcontinent “the basin that keeps giving” as the Vitruvian II recently drilled its best company looks to develop new plays within it. He said Chesapeake was kicking Woodford well. The Anita Fowler 1-27- into development mode in the oily Oswego, calling the formation a bridge to the 26H in Grady County, Oklahoma, company’s oil-production growth. Within a year, Chesapeake increased recorded an IP of 20.0 MMcfe/d, well deliverability 140% from initial type curves while reducing costs which nearly doubles the company’s 19% as it employed two completion design changes. Now with a third previous best rate of 13.6 MMcfe/d. design change, the company is seeing single-well returns of 170%, and it estimates Anita Fowler sports a 6,500-ft lateral it has 100 locations at that ROR and 300 and was completed using 8.9 million total locations. Oswego wells deliver 170% from lb of proppant and 270,000 bbl of fluid. initial type curve. “I wish we could find about 30 of Private equity partner FIG Tree Capital these … maybe they’re out there,” Patterson said. Two rigs will target the formation reported that the well averaged 17.92 in 2017. Completed well cost is $3.0 million. The company’s EUR for an Oswego MMcfe/d over its 53 days. well is 393,000 boe with a 30-day IP Vitruvian also recently completed two Wedge play in northwest Oklahoma average of 717 boe/d (70% oil). Laterals other Woodford wells in Grady County. holds 500 locations with 50% ROR. average 4,800 ft. The Brag #2-35X02H and #3-35X02H Another Midcon growth driver will be what Chesapeake calls “The Wedge” play, (10,000-ft laterals) averaged 13.3 which is a 150-mile fairway in northwest Oklahoma containing six oil-rich stacked MMcf/d. Proppant load was 13.0 million reservoirs already under industry development. Patterson explained that this slice of lb with 500,000 bbl fluid. The company stacked pay is downdip of the Mississippian Lime, where the Woodford sits down in began drilling Woodford horizontals in the gas-condensate window and expulses oil throughout the Hunton below and the the SCOOP in 2013. At YE15, it was Meramec and Chester above. producing more than 25,000 boe/d. Chesapeake holds 870,000 net acres Sussex sandstone to be targeted in Powder River Basin in 2017. within the Wedge, and it will ramp up Chesapeake sees growth development after the Oswego declines. It envisions running up to 10 rigs targeting drivers Continued From Pg 8 the Mississippian Lime and Wedge through 2020. The Wedge contains 500 locations Patterson noted that Chesapeake is with 50% ROR, Chesapeake said. the only operator on 307,000 contiguous Similarly to the Midcon, Chesapeake’s evolving mindset has made it reconsider the acres in the basin’s hotspot of southern Powder River Basin. This emergent growth driver contains 2,600 risked locations for the Converse County, Wyoming, the potential operator within eight stacked formations that create a “vertical mile of opportunity”: Teapot, of which he likened to Wattenberg field. Parkman, Surrey, Sussex, Niobrara, Turner, Frontier and Mowry. Continues On Pg 8 The area has higher pressure and is deeper to the northern part of the county, which Chesapeake Touts Midcon Assets as Growth Drivers is more actively drilled. Patterson said the Sussex sandstone THE OSWEGO TRANSFORMATION will be developed first. The 200-location UNLOCKING VALUE THROUGH RAPID OPTIMIZATION zone has the most favorable economics with RORs of 50-70%. Chesapeake will (1) Increasing Performance Decreasing Costs Transformational Returns actively target the formation in 2017. 60 $6 300% o b ) m

( 19% reduction Assumed EURs are 825,000 boe to 1.35 n mm o i t 40 200%

c $4

u MMboe with 53% oil cut. R d Type Curve o r

Type Curve RO Capex ($ P

As for the Niobrara, Patterson ll e 20

v $2 100% i t a l

u pointed to the company’s one test well, tal We m u 0 To C) 0% 0255075100 $0 the Barton, which peaked at 1,600 boe/d Type Curve Gen 1 Completion CHK Gen 2 Completion CHK Gen 3 Completion (85% oil). “We think that’s proof of concept that longer laterals, bigger fracs change the dynamics of this play and Well deliverability Total well capex Single-well returns increased by reduced by across the play of we will be working that concept as we go forward,” Patterson said. Niobrara 140% 19% 170% development won’t be immediate, but 100 locations at 170% ROR and 200 upside locations the company estimates 580 undrilled (1) Price deck: $3/mcf and $60/bbl flat locations. EURs for the Turner are estimated at 880,000 boe (54% oil) with Source: Chesapeake Energy Oct. 20 Presentation via PLS docFinder www.plsx.com/finder wells delivering 45% ROR. Find more on the E&P arena at To learn more about PLS, call 713-650-1212 Volume 27, No. 16 9 E&P

US Industry Activity as of October 28 Crude Production by State (bo/d) State Rigs Aug-16 Jul-16 30-Day Rig Count & Change (Number, +/- as of Oct. 28, 2016) Alabama 0 22,000 22,000 Alaska 10 459,000 438,000 0 35 Arizona 0 0 0 0 5 Arkansas 1 14,000 14,000 0 California 6 512,000 513,000 0 17 27 Calif. Offshore 0 18,000 18,000 4 0 14 3 0 1 10 Colorado 17 323,000 321,000 17 -1 0 Florida 0 5,000 5,000 0 1 1 -2 GOM 21 1,649,000 1,561,000 6 0 0 0 Hawaii 0 0 0 32 73 1 3 3 0 3 0 Idaho 0 0 0 255 26 1 -1 Illinois 1 24,000 22,000 10 9 5 Indiana 1 5,000 5,000 2 21 Kansas 0 97,000 97,000 -1 Kentucky 2 6,000 6,000 Month/Year Oct-16 Oct-15 Oct-14 Oct-13 Louisiana 26 152,000 153,000 US Rig Count 557 775 1,929 1,742 Michigan 0 16,000 16,000 Source: Baker Hughes Mississippi 3 59,000 59,000 Missouri 0 0 0 US Rig Count by Basin US sees first rig decline Montana 0 61,000 62,000 Nebraska 0 6,000 6,000 % in 18 weeks Nevada 1 1,000 1,000 Operator New Last Chg The US oil patch saw its first rig New Mexico 32 395,000 391,000 Barnett 3 3 0% decline in 18 weeks last week, falling two rigs to 441 oil rigs running. New York 0 1,000 1,000 North Dakota 35 975,000 1,027,000 DJ-Niobrara 15 16 -6% The decrease wasn’t in the Permian, which maintained 212 oil rigs and Ohio 14 55,000 64,000 Eagle Ford 33 35 -6% accounts for nearly half of the Oklahoma 73 421,000 418,000 country’s oil-drilling activity. Overall Pennsylvania 27 16,000 15,000 Fayetteville 1 1 - rig count, however, climbed by four South Dakota 0 4,000 4,000 to 557 thanks to a gain of six gas Tennessee 0 1,000 1,000 Granite Wash 10 10 0% rigs. Three rigs went to work in the Texas 255 3,156,000 3,163,000 Haynesville, two in the Marcellus and Haynesville 20 14 43% Utah 5 83,000 80,000 one in the Cana Woodford. Overall, Virginia 0 0 0 Marcellus 36 32 13% the US is down 218 rigs from this West Virginia 10 23,000 24,000 time last year, but it has gained 153 Wyoming 17 185,000 190,000 Mississippian 2 3 -33% rigs from its low of 404 in late May. Total 557 8,744,000 8,697,000

Other 130 123 6% US National Rig Count Permian 212 203 4% 2,050 $105 1,850 Oil: 441 rigs $90 Utica 15 15 0% 1,650 Gas: 114 rigs 1,450 Total: 557 rigs $75 Williston 35 30 17% 1,250 Misc: 2 rigs $60 1,050 $45 Woodford 45 39 15% 850 $30 650 Grand Total 557 524 6% 450 $15 250 $0 Sources: Baker Hughes Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

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Eastern Scout Southeastern Scout Midcontinent Scout (Last Scout: 08/30/16 to 10/12/16) (Last Scout: 09/27/16 to 10/21/16) (Last Scout: 10/07/16 to 10/21/16)

Permits Compls Permits Compls Permits Compls State/Region (Number/change) State/Region (Number/change) State/Region (Number/change) Illinois 33/19 -/- Alabama 8/7 -/- Nebraska 3/-3 -/- Indiana 4/-3 -/- Mississippi 30/-42 9/9 Kansas 69/27 34/-23 Kentucky 10/-5 -/- South Louisiana 3/-3 30/- Oklahoma 69/24 18/-56 Michigan 5/-17 -/- Southeast TX (RRC 3) 24/-11 16/4 North Texas (RRC 5) 2/2 -/- New York -/-3 -/- Gulf of Mexico 24/- -/- North Texas (RRC 7B) 11/1 8/5 Ohio 72/37 -/- North Texas (RRC 9) 10/-6 8/-2 Pennsylvania 62/-30 -/- New Permits by Formation TX Panhandle (RRC 10) 10/-9 3/-3 Tennessee 5/4 -/- Formation 10/27 10/6 9/15 West Virginia 23/-34 4/-5 Smackover 7 1 7 New Permits by Formation New Permits by Formation Eutaw 5 36 2 Formation 10/26 10/12 9/28 CALL Formation 10/18 9/27 9/7 Wilcox 713-650-1212 5 10 2 Mississippian 24 18 29 FOR YOUR Utica-Point Pleasant 19 9 18 Eagle Ford SAMPLE 4 - - Arbuckle 12 7 13 Point Pleasant 15 6 17 Woodbine 3 3 7 Squirrel 12 4 25 Clinton 14 10 8 Austin Chalk 2 - 1 Cleveland 7 3 5 Berea 10 6 15 Cotton Valley 2 - 3 Bartlesville 5 4 - Aux Vases 9 1 3 Rodessa 2 - - Ex Chester & Miss 5 1 4 Knox 9 10 6 Sparta 2 1 - Miss & Woodford 5 3 1 Trenton 8 - 2 Marcellus 6 33 19 Others 57 87 71 Cattleman 4 - 2 Warsaw 6 1 5 TOTAL 89 138 93 Lansing Kansas City 4 - 2 Others 118 170 143 Others 96 98 129 Top Counties by New Permits TOTAL 214 246 236 TOTAL 174 138 210 County State Perm. BHI Rigs Top Counties by New Permits Top Counties by New Permits Mississippi Canyon GOM 9 8 County State Perm. BHI Rigs Green Canyon GOM 7 7 County State Perm. BHI Rigs Washington PA 18 10 Jones MS 5 1 Kingfisher OK 13 12 Monroe OH 17 4 Wayne MS 5 - Anderson KS 7 - Susquehanna PA 14 3 Payne OK 7 1 Top Operators by New Permits Guernsey OH 10 - Miami KS 6 - Hamilton IL 9 - Operator 10/27 10/6 9/15 Woodson KS 6 - Belmont OH 9 5 Block T Petroleum 11 - - Top Operators by New Permits Top Operators by New Permits Shell 6 4 4 Operator 10/26 10/12 9/28 Operator 10/18 9/27 9/7 Mosbacher Energy 4 - - Devon Energy 5 2 7 Campbell Energy 21 - 2 Anadarko E&P 3 3 3 RJ Enterprises 5 - 10 EQT Production 21 17 16 BP America 3 3 1 White Star Petroleum 5 2 - SWN Production 12 11 18 3 4 5 Carrizo LLC 9 - - Chevron Top Counties by Rig Count Top Counties by Rig Count Top Counties by Rig Count County State 10/21 10/7 9/23 County State 10/14 9/23 9/2 County State 10/21 9/30 9/9 Blaine OK 15 12 11 OK 12 12 13 Washington PA 10 7 6 Mississippi Canyon GOM 8 4 5 Kingfisher Belmont OH 5 5 5 Green Canyon GOM 7 7 6 Grady OK 12 8 9 Dewey OK 7 6 5 Monroe OH 4 4 4 Garden Banks GOM 2 2 2 Canadian OK 5 9 7 Greene PA 4 4 4 Walker Ridge GOM 2 2 1 Tyler WV 4 4 4 Lipscomb RRC 10 4 4 3 SOUTHEASTERN 39 40 38 EASTERN 53 48 45 MIDCONTINENT 89 87 82 Sources: BHI, AOGB, BOEM, MSOGB, SONRIS & Sources: BHI, DNR IL, DNR IN, KYEEC, MI MDEQ, TX RRC Sources: BHI, KS KCC, NOGCC, OK OCC & TX RRC NYSDEC, ODNR, PADEP, TDEC & WVDEP

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Ark-La-Tex Scout Permian Basin Scout (Last Scout: 09/27/16 to 10/17/16) (Last Scout: 10/06/16 to 10/28/16) Drilling & Permit Data Viisit:sit: wwwwww.p.plsx.clsx.coom/regionalm/regionals Permits Compls Permits Compls State/Region (Number/change) State/Region (Number/change) Arkansas -/-13 23/-13 West Texas (RRC 7C) 36/-12 11/-9 Eastern Scout tracks the Marcellus, Utica and other North Louisiana 49/-1 26/14 West Texas (RRC 8) 216/15 84/42 legaclegacy plaplayyss. East Texas (RRC 5) 9/2 1/-1 West Texas (RRC 8A) 76/26 14/10 East Texas (RRC 6) 22/6 19/5 SE New Mexico 38/21 21/-2 New Permits by Formation New Permits by Formation Formation 10/24 9/29 9/9 Formation 11/2 10/19 10/4 Southeastern Scout tracks the Tuscaloosa Shale and legacy Haynesville 19 13 11 Spraberry 107 121 85 cconventionalonventional playsplays. Cotton Valley 4 3 2 Wolfcamp 128 66 68 Travis Peak 4 8 5 Bone Spring 19 8 22 Wilcox 4 17 13 Area 10 - - Barnett 3 - 1 Clear Fork 10 13 15 CALL 6 5 12 Jurassic 713-650-1212 3 - - Wolfbone MidContinent Scout FOR YOUR San Andres 5 12 14 tracks the Mississippian, Granite Wash, Pettit SAMPLE 3 1 6 Woodoodfordford anandd ootherther plplaayyss. Rodessa 2 - 2 Strawn 3 23 19 Hosston 1 1 - Fusselman 2 - - Others 37 43 26 Others 76 68 83 TOTAL 80 86 66 TOTAL 366 316 318 Top Counties by New Permits Top Counties by New Permits Ark-La-Tex Scout tracks Fayetteville, Haynesville and County State Perm. BHI Rigs County State Perm. BHI Rigs ototherher traditionaltraditional ETETX plplaayyss. Vernon NLA 23 - Yoakum RRC 8A 45 2 DeSoto NLA 19 6 Loving RRC 8 44 17 Panola RRC 6 6 - Reeves RRC 8 38 25 Caddo NLA 3 1 Midland RRC 8 34 33 Eddy SENM 23 14 Permian Scout Anderson RRC 6 3 - tracks the Permian Basin and other Titus RRC 6 3 - Top Operators by New Permits new and legacg ypy playys. Top Operators by New Permits Operator 11/2 10/19 10/4 Operator 10/24 9/29 9/9 Occidental 74 35 42 JESCO Envt'l 23 - - Pioneer Natural Res 34 27 6 Comstock O&G 10 7 - Chevron 24 10 6 South Texas Scout Diamondback E&P 14 1 9 tracks the Eagle Ford and other new XTO Energy 6 3 6 aandnd lelegagaccyy pplalayyss. Chesapeake 5 3 1 EOG Resources 13 6 7 Valence Operating 4 - 1 RKI E&P 13 - - Top Counties by Rig Count Top Counties by Rig Count County State 10/28 10/14 9/30 County State 10/21 9/23 9/2 Bakken Scout DeSoto NLA 6 5 5 Midland RRC 8 33 34 31 tracks Bakken, Three Forks and other Red River NLA 4 2 2 Reeves RRC 8 25 23 24 new and legacy plays. Robertson RRC 5 3 3 2 Martin RRC 8 21 20 17 Henderson RRC 5 3 4 2 Loving RRC 8 17 14 15 SENM 17 17 20 ARK-LA-TEX 35 29 28 Lea PERMIAN 210 199 198 Sources: BHI, AOGC, SONRIS & TX RRC Western Scout Sources: BHI, NMOCD & TX RRC tracks Niobrara, Four Corners and Western US plays.

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South Texas Scout Bakken Scout Western Scout (Last Scout: 09/19/16 to 10/10/16) (Last Scout: 10/04/16 to 10/27/16) (Last Scout: 09/24/16 to 10/19/16)

Permits Compls Permits Compls Permits Compls State/Region (Number/change) State/Region (Number/change) State/Region (Number/change) South Texas (RRC 1) 42/-27 59/20 Montana 10/1 2/1 California 165/-7 -/- South Texas (RRC 2) 59/12 44/15 North Dakota 181/40 35/6 Colorado 258/34 26/5 South Dakota -/- -/- South Texas (RRC 3) 2/-10 -/-5 Nevada 1/1 -/- South Texas (RRC 4) 19/1 14/-13 New Permits by Formation NW New Mexico 1/- -/-3 New Permits by Formation Formation 11/1 10/11 9/20 Utah 8/-30 5/4 Bakken 29 27 6 Wyoming 441/129 23/-5 Formation 10/13 9/23 9/2 M Bakken 26 19 14 Eagle Ford 88 98 81 Three Forks B1 17 12 13 New Permits by Formation Wilcox 4 1 1 Three Forks 15 14 5 Formation 10/25 10/4 9/13 Three Forks B2 11 2 1 Lobo 2 1 - Niobrara 263 228 193 Yegua 2 1 - Bowes 2 - 1 Dakota 2 1 - Codell 160 65 78 Austin Chalk 1 3 4 Duperow 2 - - Iles 70 22 - 1 1 2 Buda Madison 2 - 2 Williams Fork 37 64 - Catahoula 1 - - Others 85 75 102 Turner 34 51 45 Frio 1 1 - TOTAL 191 150 144 Frontier 31 17 45 Stillwell 1 - - Top Counties by New Permits Lance 31 6 2 21 40 39 Others Parkman 20 23 42 County State Perm. BHI Rigs TOTAL 122 146 127 Temblor 20 9 2 McKenzie ND 89 11 Top Counties by New Permits Others 208 262 214 Dunn CALL ND 31 10 County State Perm. BHI Rigs 713-650-1212 TOTAL 874 747 621 Mountrail FOR YOUR ND 28 3 Karnes RRC 2 34 6 Williams SAMPLE ND 19 5 Top Counties by New Permits La Salle RRC 1 18 8 Divide ND 6 2 County State Perm. BHI Rigs DeWitt RRC 2 8 3 Top Operators by New Permits Laramie WY 221 - Webb RRC 4 8 4 Converse WY 139 4 Operator 11/1 10/11 9/20 Top Operators by New Permits Weld CO 128 17 Continental Resources 47 6 2 Garfield CO 111 3 Operator 10/13 9/23 9/2 EOG Resources 24 14 1 Kern CA 79 3 Marathon Oil 21 14 10 XTO Energy 11 20 3 EOG Resources 18 22 15 Whiting O&G 10 4 12 Top Operators by New Permits HRC Operating 9 4 14 Carrizo LLC 14 7 2 Operator 10/25 10/4 9/13 Petro-Hunt LLC 9 4 2 Burlington Resources 8 9 2 Longs Peak Resources 97 - - Encana O&G 8 2 1 Top Counties by Rig Count Samson Exploration 91 61 87 Texas American Resources 6 2 4 County State 10/28 10/7 9/16 Chevron 60 99 15 Top Counties by Rig Count McKenzie ND 11 10 12 Anadarko E&P 49 125 80 Encana O&G 47 - - County State 10/7 9/23 9/2 Dunn ND 10 11 7 Williams ND 5 3 2 La Salle RRC 1 8 7 6 Top Counties by Rig Count Mountrail ND 3 3 3 County State 10/21 9/30 9/9 Karnes RRC 2 6 6 8 BAKKEN 35 30 27 McMullen RRC 1 5 3 3 Weld CO 17 15 14 Sources: BHI, MBOGC, NDIC & SDDENR Sublette WY 7 6 6 Webb RRC 4 4 5 5 Converse WY 4 3 3 SOUTH TEXAS 40 45 45 Garfield CO 3 3 3 Sources: TX RRC & BHI Call today! 713-650-1212 Kern CA 3 3 3 Uintah UT 3 2 2 The Regionals– WESTERN 48 45 43 A unique platform that reaches Sources: BHI, COGCC, DOGGR, NDOM NV, WANT MORE NEGOTIATED local operators and oilfield service NMOCD, UDOGM & WOGCC DEALS FROM PLS? companies. Visit www.plsx.com Visit www.plsx.com/deals

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MISSISSIPPI SOUTH LOUISIANA SOUTH TEXAS LINCOLN CO., MS PROSPECT BEAUREGARD PH., LA PROSPECT CALHOUN CO., TX PROSPECT 6+ Potential Wells. 400-Acres. 1-Prospect. 760-Acres. 3-5 Potential Wells. Open Acreage. LOWER TUSCALOOSA GULF COAST BASIN SOUTH TEXAS GULF COAST Obj 1: Tuscaloosa At 10,800 Ft. DV Multiple Cockfield/Yegua Sands. 8,200 Ft. DV Miocene Sands At 3,000 Ft. - 4,500 Ft. DV 24% OPERATED WI; 75% NRI 3D Seismic, Subsurface Geology 3D Seismic, Subsurface Geology & Expected IP Rates: 150 BOPD TUSCALOOSA -- and Geophysics Data Available. -- Geophysics Data Available Est Well Reserves: 250-900 MBO 50% OPERATED WI; 75% NRI 85% OPERATED WI; 75% NRI MIOCENE Est Project Reserves: 2.4 MMBO Expected IP Rate: 250 BOPD YEGUA Est Net Well Reserves: 375 MBO/Well DHC: $925,000; Comple: $450,000 Est Well Reserves: 350 MBO Est Net Project Reserves: 1,500 MBO DV 5776 Est Project Reserves: 4.0 MMBO DHC:$ 425,000; Compl: $475,000 DHC: $892,000; Completion: $701,000 DV 1928 MADISON CO., MS PROSPECT CONTACT SELLER FOR MORE INFO 3-Potential Wells. 2-40 Acre Units. DV 2145 GONZALES CO., TX ASSETS EAST FLORA FIELD 1-Producing Well. 4,543-Net Acres. Obj 1: Wash Fred Sand At 7,550 Ft. DV CALCASIEU PH., LA PROSPECT EAGLE FORD OIL WINDOW Obj 2: Mooringsport Sands. 8,400-8,900 Ft. 1-Potential Well. 240-Acres. Target Depths: 8,000 Ft. - 9,000 Ft. PP Leases Can Deliver 75% NRI WASH GULF COAST ONSHORE BASIN Includes all Depths. Potential Production: 100 BOPD FRED Nodosaria at 8,100 Ft. (Updip Hackerry) DV 123 Additional Locations Identified. Potential Reserves: 1.6 MMBO 3D Reprocessed Seismic, Subsurface 100% OPERATED WI; 76.25% NRI ~100 CONTACT SELLER FOR MORE INFO -- Geology & Geophysics Data Available Current Net Production: ~100 BOPD BOPD DV 5942RE 80% NonOperated WI; 73% NRI Current Gross Production: ~130 BOPD NO Expected IP Rate: 290 BOPD NODOSARIA Total Reserves: 59.8 MMBO CALL MISSISSIPPI PROSPECT COMMISSIONS Est Well Reserves: 320 MBO/Well Total PV10: $732,479,000 PLS FOR 1-Proposed Well. 434-Net Acres. DHC: $833,000; Completed: $643,000 CONTACT AGENT FOR UPDATE INFO CLARKE COUNTY CONTACT SELLER FOR MORE INFO PP 5863DV Targets: Cotton Valley & Hosston. 8,000 Ft. DV DV 2340 3D Seismic Data. GONZALES CO., TX PROSPECTS Leases Can Deliver ~78.25% NRI LIVINGSTON PH., LA PROSPECT ~581-Gross/Net Contiguous Acres. Est Reserve Potential: 720 MBO (Tusc) 122,000-Acres. EAGLE FORD OIL Est Reserve Potential: 465 MBO (Hosston) GULF WILCOX & TUSCALOOSA DV EAGLEVILLE FIELD - ALL DEPTHS DV Est Reserve Potential: 1.1 MMBO (Cotton) COAST Targets: Miocene & Frio. 5,000’-11,500’ 8-Total Horizontal EF Well Locations. Total Reserve Potential: 2.6 MMBO HZ Potential: Eagle Ford & Austin Chalk WILCOX 3-Locations Seeking JV Partner. Dry Hole Costs: $1,250,000 250 Sq. Miles Of 3D Seismic Data 5-Locations For Sale. (100% WI) EAGLE CONTACT SELLER FOR MORE INFO 1,200 Miles Of Reprocessed 2D Seismic 100% OPERATED WI & 75% NRI FORD DV 5846 Leases Can Deliver 77.5% NRI Major Offset Operators: EOG & Devon Est Rsrvs: 700-1,300 MBO & 8-33 BCF/Well DEALS Nearby IPs >1,700 BOED DV 5851L FOR Well EUR: ~450 MBOE (90% Oil) SALE MULTISTATE GULF COAST Est D&C Cost/Well: $4,400,000 CERTIFIED PETROLEUM GEOLOGIST LIVINGSTON PH., LA PROSPECT DV 5715 Screening Prospects/Properties For Acquirers 650-Acres. SOUTHEAST TX & SOUTH LA MIOCENE GAS TREND JACKSON CO., TX PROSPECT -- Trinity University, SWTSU JOB Target Depth: 6,000 Feet. DV 2-Proposed Wells. 420-Total Acres. -- B.A. In Remote Sensing 3D Seismic Defined. TEXAS GULF COAST 38 Yrs Seismic Acquisition, Data -- Leases Can Deliver 77.5% NRI MIOCENE BRIGHT FALCON FIELD DV Consultant: SCA & Knowledge Reservoir SCREENS Offset IP: 2 MMCFD Primary Obj: EY Yegua at 9,700 Ft. Software: Kingdom, Petra, Paradise, PROSPECTS CONTACT SELLER FOR MORE INFO 3D Seismic & Subsurface Data Available -- AVO/ Attribute Calibration To Pay DV 5852 50% WI Available; 74% NRI YEGUA Member Of HGS, SIPES, AAPG & SPE Est Prod: 30 BOPD & 2.2 MMCFD/Well JOB 2601W ST. LANDRY PH., LA PROSPECT Potential Reserves: 195 MBO & 15 BCF 1-Proposed Well. 255-Acres. DHC: $1,100,000; Compl: $430,000 TEXAS & LOUISIANA SALE PACKAGE UPPER WILCOX DV 5931 24-Producing Wells. ~4,231-Net Acres. Target: Wilcox A Sand DV PROLIFIC NORTH MILTON FIELD Total Depth: 12,500 Ft. NonPressured STACKED PAY OPPORTUNITY PP 3D Seismic Defined 4-Way Upthrown. GULF No Commissions Wilcox Sands. 9,800-15,000 Ft. SEEKING DRILLING PARTNER COAST 100% OPERATED WI; 81.2% NRI 3.3 Offset Wilcox A Well Cum Prod: 52,775 BO Get Listed! May 2016 Net Production: 3.3 MMCFED MMCFED Est Reserves: 510 MBO For over 25 years, PLS has been the CONTACT SELLER FOR MORE INFO Total Proved Reserves: 20,625 MMCFE central access point for buyers & sellers. Net Proved PV10 Value: $18,122,000 DV 5747 AGENT WANTS OFFERS NOV 11, 2016 For more information on listing, email PP 1891DV Subscribe at plsx.com/subscribe [email protected]

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SOUTH TEXAS SOUTH TEXAS SOUTHEAST TEXAS JIM HOGG CO., TX PROSPECT SOUTH TEXAS PROSPECT MATAGORDA CO., TX PROSPECT 40-Potential Wells. 1,423-Acres. 200-Total Acres. 2-Potential Wells. 420-Acres. ONSHORE SOUTH TEXAS KARNES & WILSON COUNTIES SOUTH TEXAS GULF COAST Government Wells A At 3,500 Ft. DV EAGLE FORD SHALE DV PALACIOS FIELD DV Loma Novia/Pettus At 4,100 Ft. Obj: Austin Chalk At 12,700 Ft. E-2 & E-3 At 8,600 Ft. Frio Sands 50% Working Interest; 75% NRI AUSTIN B-1 & B-2 At 7,800 Ft. PALACIOS 65% OPERATED WI; 75% NRI DHC: $907,000; Compl: $1,618,000 CHALK 35% NonOperated WI; 74% NRI FIELD Expected IP Rate: 2-3 MMCFD (Gov) LOMA CONTACT SELLER FOR MORE INFO Expected IP Rate: 3 MMCFD (E-2) Expected IP Rate: 100-150 BOPD (Loma) NOVIA DV 2023 Expected IP Rate: 1 MMCFD (B-1) DEALS Est Net Rsrvs: 88 MBO & 720 MMCF/Well Est Well Reserves: 9 BCF/Well FOR Est Net Project Rsrvs: 16 MMBO & 18 BCF SOUTHEAST TEXAS CONTACT SELLER FOR MORE INFO SALE Total Net PV10: $500,000,000 DV 1713 DHC: $255,000; Compl: $360,000 NO EAST TEXAS MINERALS FOR LEASE COMMISSIONS DV 2192 32,700-Gross Mineral Acres. 23,100-NMA. TEXAS GULF COAST ASSET SALE TRINITY & POLK COUNTIES 62-Producing Wells. 4,393-Net Acres. JIM WELLS CO., TX PROSPECT Primary Objectives: Austin Chalk & L HARRIS, LIBERTY & HARDIN COUNTIES 1-Potential Well. 234-Acres. Woodbine Formations AUSTIN Goose Creek, Cleveland & Saratoga PP GULF COAST BASIN DV MINERALS FOR LEASE CHALK Miocene & Frio Sands Production Nine Frio Sands At 6,000 Ft. CONTACT SELLER FOR MORE INFO 100% OPERATED WI; 81% NRI 310 35% NonOperated WI; 75% NRI FRIO L 3001 Avg Net Cash Flow: $242,601/Month BOED Est Well Reserves: 470 MBO & 1.9 BCF Net 1P Reserves: 3.2 MMBOE DHC: $382,000; Compl: $169,000 FORT BEND CO., TX PROSPECT AGENT WANTS OFFERS NOV 9, 2016 DV 1967 1-Potential Well. ~91-Acres. 2-Prospects. PP 2312DV GULF COAST BASIN SOUTH TEXAS CONVENTIONAL PKG Frio Sand At 3,500 Ft. DV SOUTHEAST TEXAS ACREAGE SALE ~85,000-Gross Acres (100% HBP) Miocene Sand At 2,700 Ft. 8,213-Net Acres. WILCOX & LOBO Subsurface Geologic Data Available LEE, FAYETTE & WASHINGTON COS. 128 Behind-Pipe Opportunities. PP 100% OPERATED WI; 72.5% NRI LOWER EAGLE FORD LANDING L 26 Low-Cost Infill Drilling Locations. Expected IP Rates: 50-100 BO FRIO 64 Possible Laterals In The Eagle Ford Avg 8.1% NonOperated WI; Avg. 61% NRI Est Well Reserves: 75 MBO/Well SAND 225-Net Acres Held By Production EAGLE Forcasted 2016 PDP Prod: 17.2 MMCFED Est Project Reserves: 150 MBO 100% OPERATED WI; 75% NRI FORD FTM Cash Flow (PDP Only): $6,500,000 WILCOX DHC: $375,000; Completed: $110,000 CONTACT AGENT FOR UPDATE Proved Reserves: 239 MBO & ~85 BCF DEALS CONTACT SELLER FOR MORE INFO FOR L 5720DV CONTACT AGENT FOR UPDATE DV 2482 SALE PP 1592DV MATAGORDA CO., TX PROSPECT VAL VERDE CO., TX PROSPECT 7-Total Wells. 3-Total Wells. 80-Acres. FRIO SANDS SOUTHWEST TEXAS Obj 1: Lewis Sand (2 PUD Wells) Enhanced Oil Recovery Prospect DV DV Obj 2: Savage, F-3 & F-4 (5-Potential Wells) Extreme Shallow Oil At 450 Ft. Target Depth: 10,850 Ft. The industry’s 1-New Discovery Well. 2 Re-Entered Wells. 100% OPERATED WI; 72.5% NRI FRIO 170-Acre Option. SOUTH only global Potential PUD Rsrvs: 624 MBO & 4.6 MMCF 100% OPERATED WI; 75% NRI TEXAS Drilling: $1,800,000; Compl: $570,000 multiple 11-14 MMBO In Place Per 640 Acres CONTACT SELLER FOR MORE INFO CONTACT SELLER FOR MORE INFO DV 5665 listing service DV 2661 PLS runs the oil and gas industry’s ZAVALA CO., TX PROSPECT MATAGORDA CO., TX PROSPECT 5-Potential Wells. 884-Acres. 3-Potential Wells. 220-Acres. 4-Prospects. premier multiple listing service. GULF COAST BASIN SOUTH TEXAS 7 Objectives In Frio/Tex-Miss Formations In 1987, PLS became the first listing Anacacho Lime At 1,600 Ft. DV DV Target Depths: 9,500 Ft. - 16,000 Ft. San Miguel Sand At 1,570 Ft. service to specifically cater to the oil 3D Seismic, Subsurface Geology & GULF Olmos & Escondido Potential and gas industry. Subscribers can 2D Seismic & Subsurface Geology Data Geophysics Data Available COAST 60% OPERATED WI; 75% NRI NonOperated WI AVAILABLE access a customizable list of asset Est Well Reserves: 840 MBO & 15.4 BCF Expected IP Rates: 200 MCFD SAN types based upon their unique Est Project Rsrvs: 4.2 MMBO & 77.32 BCF Est Well Reserves: 200+ MMCF MIGUEL DV 2260 acquisition criteria. Est Project Reserves: 600+ MMCF DHC: $108,000/Well; Compl: $82,000/Well CONTACT SELLER FOR MORE INFO More listings at plsx.com/listings www.plsx.com/listings DV 2483 Find more listings at No commission! List today, call 713-650-1212 Volume 27, No. 16 15 E&P

MULTISTATE PERMIAN MULTISTATE PERMIAN PERMIAN / WEST TEXAS MIDLAND BASIN PROPERTIES WEST TEXAS ASSETS FOR SALE RUNNELS CO., TX PROSPECT 33-Vertical Wells. 2,520-Net Acres (HBP) 55-Total Wells. 6,665-Net Acres. 208-Acres On Trend. REAGAN & MIDLAND CO., TEXAS ANDREWS & GAINES COUNTIES MIDLAND BASIN - EASTERN SHELF Lower Spraberry, Wolfcamp A & B PP NORTHWESTERN MIDLAND BASIN PP Objective 1: Gardner Sand At 4,500 Ft. DV Upside in Upper & Lower Spraberry, Targets: Queen, Grayburg, Clearfork, 100% OPERATED WI; 80% NRI -- and Wolfcamp A, B, C & D Spraberry, Wolfcamp, Strawn & Atoka Expected IP: 50 BOPD On Trend & MIDLAND Infield Development 80-100 Locations Acreage Is 100% Held By Production. ~290 Close In To Current Production. BASIN OPERATED WI AVAILABLE 175 85% OPERATED WI; 66% NRI BOED CONTACT SELLER FOR MORE INFO Net Production: 175 BOED BOED Est Oct 2016 Net Prod: ~288 BOED DV 5810 40-50% IRR Across Leasehold Est Sept 2016 Cash Flow: ~$159,000/Mn PDP Reserves: 419 MBOE PDP PV10: ~$9,400,000 RUNNELS CO., TX SALE PACKAGE Total Resource Potential: 23.4 MMBOE Vertical Drill & Compl: $1,400,000 17-Producers. 1-SWD. 1-WIW. 1-WSW. PDP PV10: $2,700,000 CONTACT SELLER FOR UPDATE PERMIAN BASIN Total PV10: $175,400,000 PP 2013DV Morris Sand & Capps Lime Production PP AGENT WANTS OFFERS NOV 8, 2016 15 Locations Remaining. PP 2091DV WEST TEXAS MINERALS FOR SALE Excellent Water Flood Potential. 2,402-Wells. 4,756-NMA(100% HBP). OPERATIONS NEGOTIABLE MULTISTATE PERMIAN MIDLAND BASIN 100% WORKING INTEREST; 75% NRI PERMIAN 2,000+ Ft. Of Gross Interval Across The M Gross Production: 110 BOPD, 205 MCFD MIDLAND BASIN SALE PACKAGE Spraberry & Wolfcamp Horizons -- & 16 BWPD DEALS 47-Wells. 14,591-Net Acres (~95% HBP). 80 Horizontal Rigs Running. ~150 CONTACT SELLER FOR MORE INFO FOR HOWARD, GLASSCOCK, REAGAN 89 Outstanding Permits. BOED PP 1923DV SALE & IRION COUNTIES PP Avg 18% ROYALTY INTEREST Primary Targets: Wolfcamp D/ Cline, Net Production: ~150 BOED TOM GREEN & IRION CO., TX ASSETS Upper & Middle Spraberry Net Cash Flow: $116,667/Month 22,624-Net Acres. Secondary Targets: Fusselman/ Wolfberry ~1,320 EURs: >1 MMBOE/Well PERMIAN BASIN EASTERN SHELF 100% OPERATED WI; 75% NRI BOED CONTACT AGENT FOR UPDATE Canyon, Cisco, San Andres & Ellenberger PP Current Production: ~1,323 BOED M 5565RR Clear Fork, Wolfcamp, Strawn & Cline PDP Reserves: 3.7 MBOE >500 Vertical PUD Development Plan. ~860 PDP PV10: $66,000,000 NO COMMISSIONS PERMIAN / NEW MEXICO Projected Oct 16’ Net Prod: 859 BOED BOED CONTACT AGENT FOR UPDATE Proj. Oct 16’ Net Cash Flow: $666,000/Mn PP 5575DV LEA CO., NM ASSETS FOR SALE 362 PUD Locations. 1-Well. 3,583-Net Acres. AGENT WANTS OFFERS NOV 11, 2016 PERMIAN BASIN ASSETS FOR SALE NORTHERN DELAWARE BASIN PP 2068DV 3,930-Net Acres (100% HBP). DENTON & KNOWLES FIELDS PP ANDREWS, ECTOR & CROCKETT COS. Producing From: Silurian Wristen & ANDREWS CO., TX LEASEHOLD WORLD FIELD & MARTIN FIELD PP Wolfcamp/Abo Formations 1,200-Net Acres. Producing From: Grayburg, San Andres, Avg 96.7% OPERATED WI; 76.9% NRI PERMIAN BASIN Clearfork, Wolfcamp & Witchita Albany Net Production: 622 BOED ~600 Multiple Sections. W/2 Of County. L ~150 Quantified Drilling Opportunities. Net Cash Flow: $130,000/Month BOED NonProducing Leasehold w/ Potential in ~20 High Impact PDNP Projects. 360 Net PDP Reserves: 944 MBOE San Andres, Clearfork, & Wichita Albany. SAN Avg 75% OPERATED WI; 60% NRI BOED Net Total Proved Reserves: 1,775 MBOE 100% OPERATED WI FOR SALE ANDRES Production Is 85% Oil Net PDP PV10: $12,100,000 CALL 2016, 2017, & 2018 Expirations. Total Proved Reserves: 4.1 MMBOE Net Total Proved PV10: $22,600,000 PLS FOR CONTACT SELLER FOR MORE INFO Total Proved PV10: $26,407,000 CONTACT AGENT FOR UPDATE INFO L 5889 CONTACT AGENT FOR UPDATE PP 2315DV PP 5732DV DELAWARE BASIN MINERAL SALE LEA CO., NM PROPERTY SALE 27-Producing Wells. 793-Net Mineral Acres. PERMIAN BASIN ASSET SALE ~2,440-Acres. REEVES & CULBERSON COUNTIES ~127,000-Net Acres (HBP). PERMIAN BASIN WOLFCAMP PLAY M TEXAS & NEW MEXICO Targets: Seven Rivers, Queen, Tansil PP Avalon, Bone Spring, Woodford & Barnett Formations. Primary Production Intervals: Yates, PP & Grayburg Formations Target Depths: 8,000-12,000 Ft. Clearfork & Canyon Formations Offset New Drill Locations. MINERAL RIGHTS FOR SALE WOLFCAMP ~450 Drilling Projects. Recompletion & RePatternization. ~20 Potential IP Rate: 1,500-4,000 BOED ~76% OPERATED WI; 63% NRI ~7,600 100% OPERATED WI; 80% NRI BOED Net Income: $46,500/Month PDP Cash Flow: $3,958,333/Month BOED Net July 2016 Prod: 9 BOPD & ~51 MCFD EURs: 1-2 MMBOE/Well Total Proved Reserves: 74.7 MMBOE Gross Prod: ~11 BOPD & ~63 MCFD CONTACT SELLER FOR UPDATE ~400 PDNP Opportunities. Net Income: $2,038/Month M 2138PP Total Proved PV10: $736,300,000 CONTACT AGENT FOR UPDATE CONTACT AGENT FOR UPDATE PP 1906DV PP 5655DV Subscribe at plsx.com/subscribe

For listing inquiries, email [email protected] Access PLS’ for featured deals for sale PetroScout 16 November 2, 2016 Eastern EQT to lengthen laterals on Industry group challenges new Pa. drilling rules 190 Marcellus locations Pennsylvania has adopted new drilling rules that tighten oversight on fracking. EQT will drill longer laterals in The Department of Environmental Protection can now require additional protective its core Marcellus development area measures if drilling is to take place near schools, playgrounds, parks or public as a result of two acreage buys totaling resources. Companies must also restore water that may be damaged by drilling, and 59,600 net acres. The company bought operators must submit all forms electronically rather than by paper. 42,600 net acres in Marion, In response to the new rules, industry group Marcellus Shale Coalition filed a Wetzel and Marshall lawsuit on behalf of its members that questions the validity of the new provisions. counties, West Virginia, and 17,000 net President David Spigelmyer said the acres in Washington, Westmoreland and rules conflict with DEP authority and DEP to require protective measures Greene counties, Pennsylvania. The near schools, public places. Supreme Court precedent. “Even with a contiguous nature of those positions record number of on-site inspections of unconventional oil and gas well sites, DEP’s with EQT’s acreage allows the company own data illustrates that environmental compliance in the oil and gas industry has to increase laterals from 2,750 ft to 6,000 never been better,” he said. ft on 190 of EQT’s existing locations. Spigelmyer called the new provisions vague, saying such an unclear regulatory 59,600 net acres allow lateral environment would be harmful to operators in the state in remaining competitive. increase from 2,750 ft to 6,000 ft. Pennsylvania is the most active drilling Operators may also have to restore state in the Eastern region. Even The new acreage adds 347 water damaged by drilling. though its new-well permits dropped undeveloped Marcellus locations to by nearly half YOY, its 855 new-well permits through September accounted for EQT’s arsenal. Of that total, 250 in almost half of the 2,018 filed in the region YTD. Major operators in the state include West Virginia are expected to have EQT, Range Resources, Vantage Energy (which was recently purchased by Rice), 5,700-ft laterals. The 97 locations Cabot and Seneca. in Pennsylvania will sport 4,600-ft laterals on average. EQT is also getting Consol continues to increase EURs for Green Hill Marcellus deep Utica drilling rights on 39,300 After hiking Marcellus EURs early this summer, Consol Energy says its Green Hill total net acres with 29,000 of those field wells in Greene County, Pennsylvania, are expected to do even better. As reported in West Virginia and the remainder in July, Consol increased its Marcellus type curve in the field from 2.7 Bcfe to 3.0-3.5 in Pennsylvania. Bcfe per 1,000 feet of lateral. Now, the company says EURs are expected to be 3.6-3.8 Acreage buy adds 347 Marcellus Bcfe. Some wells are delivering even more than 5.0 Bcfe per 1,000 ft. The company locations & deep Utica rights. brought a six-well pad online during Q3, and another pad will come online in Q4. Laterals average 10,500 ft. So far in 2016, EQT has grown its Additionally in the Marcellus wells seeing EURs 14% core Marcellus by 55% to 400,000 acres, better than previous estimate. Marcellus, Consol and of which it has developed 44,000 acres. Noble Energy have ended their 50:50 JV under which they jointly developed 669,000 The company estimates it now has 3,680 net acres in Pennsylvania and West Virginia. The move gives Consol autonomy over undeveloped Marcellus wells, which 306,000 net acres largely in Pennsylvania. have assumed EURs of 13.6 Bcfe per In the Utica, Consol’s Gaut 4IH well in Westmoreland County, PA., has produced well for a 6,500-ft lateral. As of early 6.04 Bcf after about a year online and remains the second strongest dry-gas Utica October, EQT estimated its wells cost well. It IP’d at 61.4 MMcf/d. EQT’s Scotts Run takes the top spot, having IP’d at $5.7 million each to drill and complete. 72.9 MMcf/d. Scotts Run flowed 30 EQT drilled 24 wells during Q3. Monroe County delivers company’s MMcf/d for 244 days. That included 21 Marcellus wells, two highest ROR at 50%. The company returned to drilling Upper Devonian wells and one Utica the dry Utica in Monroe County, Ohio, in August and has since realized drilling well. So far this year, the company has efficiencies. Consol is drilling wells there for $950 per lateral foot, whichisa 949 drilled wells with 816 of those 39% improvement over its costs when it halted drilling in 2015. The company had online, 32 completed and 101 awaiting targeted $10 million per well assuming a 7,000-ft completion. This drilling pace is more lateral, but it now expects to average $9.3 million Regional Oil & Gas Intelligence November 10, 2015 accelerated than 2015.

EASTERN SCOUT with a 9,700-ft lateral. At current strip pricing and Serving the local market with drilling activity, permits & deals for sale Volume 02, No. 15 EQT encouraged by ongoing deep Utica results Regional Activity (State Data) Just a few months after bringing its per 1,000 ft of lateral for the Scotts Run (10/05/15 to 11/04/15) record-breaking dry gas Utica well online, well. The company says that at present, the Compls Permits EQT Corp. is banking on the play as a well is flowing into the sales pipeline at a assuming an EUR of 2.8 Bcfe per 1,000 ft, dry Illinois – 23 potential paradigm shifter. choke-restricted rate of 30 MMcf/d. Indiana – Eastern9 Scout The company has suspended Kentucky – 31 drilling outside of its core Well tested at 72.9 MMcf/d flowing to New York – 2 sales at choke-restricted 30 MMcf/d. Ohio – 78 area in southwestern Pennsylvania and Pennsylvania – 166 West Virginia to switch its focus to wells “A year ago, it would have been hard Find it now! Utica wells in Monroe County deliver Consol’s Tennessee – 4 with the highest returns. to imagine a more prolific play than the West Virginia 51 53 Back in July, EQT tested the Scotts Run Marcellus. However, if the deep Utica works, FindMost Active Operators out by Permits how#591340 in Greeneother County, Pennsylvania, operators it is likely to be larger than the Marcellus over ➊ EQT Production 27 at a 24-hour rate of 72.9 MMcf/d. Reservoir time,” CEO David Porges said on EQT’s Q3 ➋ SWN Production 24 modeling suggests an EUR of 4.3-5.9 Bcf earnings call. Continues On Pg 14 highest ROR at 50%. It is also drilling seven days ➌ Titusville O&G 20 Learn how at plsx.com/finder Permits by Formation (by Last Scout) Gulfport cutting back on eastern Ohio production are faring inIn itsthe Q3 results update,dry Gulfport Utica.The company drilled 15 Utica wells in Formation 11/10 10/20 09/28 Energy announced it is cutting 100 Q3 and began production on 16 more, and Marcellus 25 27 32 MMcf/d, or ~15%, of its Utica shale it dropped drilling costs 5-8%. Last month, Clinton 19 20 17 faster since that time. production in Ohio until early 2016. The Gulfport entered into a Utica shale JV Utica/Point Pleasant 18 48 31 Knox GP 17 16 4 company hopes gas prices will rise and with Rice Energy for a dry gas gathering Point Pleasant 17 24 11 says it will save $500,000/well by not system. The project, in St Louis 10 4 2 fracking this winter. which Gulfport has a Trenton 9 4 2 25% stake to Rice’s 75%, Will no longer be adding a fifth rig Warsaw 6 3 4 includes the system with a capacity of more Find more listings at Aux Vases 4 3 2 to Utica; will continue running four. No commission! List today, call 713-650-1212 Other Formations 241 260 237 than 1.76 Bcf/d and more than 165 miles TOTAL 366 409 342 Gulfport says it has scrapped its plans of pipelines with multiple connections Source: Illinois DNR, Indiana DNR, KYDOG, to add a fifth rig to its Utica program to interstate lines, 50,000 horsepower of NYSDEC, ODNR, PADEP, TDEC & WVDEP and will instead continue to run four. A compression for gathering and delivery, Active Rigs Running (Baker Hughes) 68 fracking crew will also be idled. and a fresh water distribution system. Dry Gas Utica - Top Wells Deals For Sale Peak Rate Peak Rate Lateral Well Name County Operator (MMcfe/d) (boe/d) Length Stages MERCER CO., OH PROSPECT 10,000-Contiguous Acres. Scotts Run Greene, PA EQT 72.9 12,150 3,221 N/A SHALLOW TRENTON DV HISTORICAL OIL PLAY Claysville Sportsman 11H Washington, PA RRC 59.0 9,833 5,420 N/A Shallow Trenton Blanket. 1,100 Ft. Stewart Winland 1300U Tyler, WV MHR 46.5 7,750 5,289 22 100% OPERATED WI AVAILABLE TERMS NEGOTIABLE TRENTON Bigfoot #9H Belmont, OH RICE 41.7 6,948 6,957 40 CONTACT LEASE OWNER FOR INFO DV 3012L Yontz 1H Monroe, OH AR 38.9 6,483 5,115 N/A WESTERN PA MARCELLUS LEASE Blake U-7H Marshall, WV GST 36.8 6,133 6,617 N/A 417-Acres. Stalder #3UH Monroe, OH MHR 32.5 5,417 5,050 20 EXCO NOT RENEWING L ARMSTRONG COUNTY Rubel 1H Monroe, OH AR 31.1 5,183 6,554 N/A Available Due to Vertical Pugh Clause. Includes Burkett & Utica Shale. MARCELLUS/ Rubel 2H(2) Monroe, OH AR 30.9 5,150 6,571 N/A GROUND FLOOR OPPORTUNITY UTICA NRI And Terms Are Negotiable. Irons #4H Belmont, OH GPOR 30.3 5,050 6,629 23 L 6947 AVERAGE 42.1 7,010 5,742 26.25 No Commission. Call 713–650–1212 All Standard Disclaimers & Rights Apply. Source: Magnum Hunter Resources October 15, 2015 via PLS docFinder (www.plsx.com/finder) Volume 27, No. 16 17 E&P Eastern Antero sees 17% uplift from advanced Marcellus completions Gulfport to ramp up in the Antero Resources said it has completed 33 Marcellus wells this year using Utica in 2017 an advanced method and is getting more productive wells. Preliminary EURs for these wells are tracking with the company’s 2.0 Bcf per 1,000 ft type curve target, Gulfport Energy will ramp up to a six- which is 17% above its current type rig Utica program in 2017 and possibly go curve and 33% above its 2013 Completion design uses 1,500 lb per to eight if gas prices continue to improve. foot of proppant. legacy type curve. The company is running four. Gulfport Under the advanced design, Antero is completing wells with 185-ft stage exceeded expectations length, up to 1,500 lb per foot of proppant and 40 bbl per foot water. The legacy design by 6% to produce a net featured 280-ft stage length, 913 lb per foot proppant and 26 bbl per foot water. 734.1 MMcfe/d (5% The company’s Q3 activity included oil, 9% liquids). The company is adding 4 Utica wells average 17.0 MMcfe/d completing 14 Marcellus and eight Ohio incremental completions in Q4 and will over first 30 days. Utica wells. Four of the eight Utica drill 36-39 net wells and bring 37-41 online. wells recorded at least 30 days of production and averaged 17.0 MMcfe/d, which is Midpoint guidance for this year is 713 up from Q1’s average of 14.1 MMcfe/d. Antero set company records in both plays MMcfe/d net—a 30% increase over 2015. for stages per day at 4.5 in the Marcellus and five in the Ohio Utica. The company In its most recent presentation, credited the Marcellus record to implementation of zipper fracs on certain pads and Gulfport laid out two growth scenarios said it would use them on all new pads going forward. Antero is running four rigs based on six and eight rigs. With a six-rig and five completion crews in the Marcellus and one rig and one crew in the Utica. program, Gulfport expects output growth of 20-25% over 2016 and 35% YOY growth in 2018. An eight-rig campaign Cabot moves to fourth-gen completion design would push that to 25-30% in 2017 and Cabot will employ its fourth-generation completion design throughout the 50% YOY growth in 2018. entirety of its 2017 drilling program. In the Marcellus, that means completing 8,000- ft laterals with 53 stages. Cabot predicts 5-10% output growth in 2017 ABOUT PLS and D&C capex of $575 million. The company will devote 79% of that to the Marcellus, where it will drill 55 net wells, and 21% to the Eagle Ford, Petroscout (USPS 13410) is published every where it will drill 15 net wells. Laterals three weeks by PLS Inc. will average 8,000 ft in the Marcellus Anticipates 5-10% production growth in 2017. PetroScout covers news and analysis on the and 9,000 ft in the Eagle Ford. E&P sector, including new well discoveries, Compared with 2016, Cabot plans to drill 30 more net wells in 2017. The drilling activities, acreage sales, statistics company will complete 50 net Marcellus wells and 25 Eagle Ford net wells year, and technological updates. which would be five fewer completions than this year. At YE16, the company expects In addition, Petroscout carries the latest to have a DUC inventory of 26 Marcellus wells and 16 Eagle Ford wells. At YE17, prospects (DV), farmouts (FO) and lands (L) Cabot expects to grow Marcellus DUCs to 34 and have 17 Eagle Ford DUCs. that are coded alpha-numerically. To obtain additional PLS product details, drill www. Developments & Trends plsx.com/publications. Administration pledges support for Arctic development Periodicals postage paid at Houston TX. The Obama administration and former military leaders recently laid out their PLS Inc. support for Arctic drilling, ahead of the Interior Department’s announcement of its One Riverway, Ste 2500 Houston, Texas 77056 next five-year leasing program for the Outer Continental Shelf. The program will include sales in the Beaufort Sea in 2020, Cook Inlet in 2021 and the Chukchi Sea in POSTMASTER: Please send address changes to PLS Inc. 2022. Both have been the subject of activist groups’ push to get the administration to cancel the sales and ban Arctic drilling. 713-650-1212 (Main) Amy Pope, the vice chair of the Sales for Beaufort Sea, Cook Inlet and 713-658-1922 (Facsimile) Chukchi Sea upcoming. administration’s Arctic Executive To obtain additional listing info, contact us Steering Community and deputy homeland security adviser, said the region was at 713-650-1212 or [email protected] with the listing code. Only clients are able to an important part of the US’ “all-of-the-above” mindset to develop America’s receive additional information. To become a domestic resources. Robert Papp, the State Department’s special representative client call 713-650-1212. for the Arctic, said encouraging development was important because the US will depend on petroleum and gas for a long time. He did acknowledge a challenge in © Copyright 2016 by PLS, Inc. the lack of infrastructure in the region. Any means of unauthorized reproduction is prohibited by federal law and imposes fines up to $100,000 for violations. Information. Transactions. Advisory. Call 713-650-1212

For general inquiries, email [email protected] Access PLS’ archive for previous E&P news PetroScout 18 November 2, 2016 People & Companies PERMIAN / WEST TEXAS PERMIAN / WEST TEXAS ■■ Black Stone Minerals SVP and HOWARD CO., TX ASSETS FOR SALE REEVES CO., TX MINERALS FOR SALE CFO Marc Carroll is retiring effective 6-Producing Wells. ~1,774-Net Acres. 24-Producing Wells. ~103-NMA. Nov. 11. Carroll will act as a consultant PERMIAN BASIN PERMIAN BASIN to Black Stone into 2017. Carroll has Wolfcamp & Fusselman Production PP Producing From: Wolfcamp, Bone Spring M been with the company and Spraberry & Wolfcamp HZ Potential & Delaware Sands 100% OPERATED WI; 75% NRI WOLFCAMP HZ Objs: Avalon Shale, Bone Spring, its predecessor for 12 years. Net Production: ~13 BOPD & 52 MCFD Wolfcamp S/Y, A, B & C WOLFCAMP Replacing him will be Jeffrey P. Gross Production: ~16 BOPD & ~62 MCFD Up To ~1.45% MINERAL INTEREST Wood, who was most recently EVP CONTACT AGENT FOR UPDATE Net Production: 7 BOPD & 42 MCFD and CFO of Siluria Technologies, which PP 2502DV NO Gross Prod: 3,186 BOPD & 18,281 MCFD specializes in process technologies for the COMMISSIONS Avg Net Income: $7,288/Month MIDLAND BASIN CONTACT AGENT FOR MORE INFO energy and petrochemical industries. 11-Producing Wells. ~9,250-Net Acres. M 5868PP ■■ Clayton Williams hired Patrick MIDLAND, MARTIN, HOWARD & G. Cooke as SVP and COO. Cooke GLASSCOCK CO., TX PP REEVES CO., TX SALE PACKAGE comes from Noble Energy, where he Middle & Lower Spraberry & Wolfcamp 2-Producers. 9,050-Net Acres on Trend. most recently served as Texas business A, B, C & D Intervals PERMIAN - DELAWARE BASIN unit manager overseeing the company’s ~50% Of Acreage Is Held By Production ~1,700 Mostly Undeveloped Acreage. PP Current Net Prod: ~1,700 BOED (71% Oil) BOED Multiple Proven Wolfcamp Benches. Delaware Basin assets. He also worked Offset IP30 Rates: >1,000 BOED Additional Upside in Bone Spring. with BP America, where he was Proj’d 2017 Net Cash Flow: $1,208,333/Mn All Depths Retained in Primary Term. 150 operations manager for the Thunder Horse PDP PV10: ~$60,000,000 Potential 350+ Horizontal Wolfcamp Wells BOED platform in the Gulf of Mexico. Jamie R. CONTACT AGENT FOR MORE INFO 100% OPERATED WI; 75% NRI PP 2380DV Gross Production: 150 BOED Casas is also joining Clayton Williams as OFFERS DUE BY NOVEMBER 7, 2016 SVP and CFO. Casas was previously VP MIDLAND BASIN SALE PACKAGE PP 2112L and CFO of the general partner of LRR ~2,560-Gross Acres. Energy. From 2009-2011, Casas was VP MIDLAND & MARTIN COUNTIES WEST TEXAS ASSETS FOR SALE and CFO of Laredo Energy. Horizontal Drilling Program. DV ~15,040-Net Acres. ■■ Energy Hunter Resources’ board Targets: Wolfcamp A, Upper & Lower DELAWARE BASIN has named Roger Burks as interim CFO Wolfcamp B WINKLER & WARD COUNTIES L 40-45 Gross Drilling Locations WOLFCAMP 2nd Bone Spring To Base Of Atoka Shale effective Nov. 1. Burks is executive ~100% OPERATED WI; Avg ~78% NRI Potential Zones: 2nd & 3rd Bone Sping managing director and CEO of WG Potential Recoverable: 75 BBOE & Wolfcamp A & B DELAWARE Consulting. Burks has experience as a NPV10: $5,000,000/Well 3D Seismic Data Available. senior executive in the energy industry CONTACT AGENT FOR UPDATE 100% OPERATED WI AVAILABLE CALL including funding new ventures and board DV 1830 Offset IP30: >1,000 BOED PLS FOR CONTACT AGENT FOR UPDATE INFO memberships. Additionally, Victor G. PECOS CO., TX SALE PACKAGE L 5984 Carrillo has been appointed to the board of ~1,029-NMA. ~1,129-Net Surface Acres. directors. Carrillo is CEO of Zion Oil & Gas DELAWARE BASIN M WEST TEXAS LEASEHOLD FOR SALE and was a director at Magnum Hunter for ~10,230-Net Acres on Trend. 3rd Wolfbone, Wolfcamp A, B & C five years. He is also an ex-commissioner -- Horizontal Targets DELAWARE LOVING & WINKLER COUNTIES for the Texas Railroad Commission. MINERALS FOR SALE PERMIAN - DELAWARE BASIN L Producing & NonProducing Minerals. Proven Wolfcamp & Bone Spring Benches ■■ Exco Resources’ VP of strategic AGENT WANTS OFFERS NOV 3, 2016 Potential 400+ Horizontal Wells. WOLFCAMP planning, Tyler Farquharson, will M 2084PP All Depths Retained. become acting CFO and Leases Will Deliver 75-87.5% NRI treasurer Nov. 2 after the PERMIAN BASIN ASSET SALE Mostly Undeveloped Acreage. OFFERS DUE BY NOVEMBER 7, 2016 departure of Chris Peracchi. ~120-Producing Wells. ~25,000-Net Acres. L 2011DV LOVING, PECOS & REEVES CO., TX Farquharson, who has been with the Vermejo, Dimmit & Brooklaw Fields PP company for 11 years, will continue as Atoka, Fusselman, Morrow & Ellenburger VP of strategic planning as well. Lower Wolfcamp & Wolfcamp B Prospects No Commissions ■■ EQT president Steven Schlotterbeck Dimmit & Brooklaw Fields Ready For >10 Get Listed! will succeed CEO David Porges upon -- Waterflood Development MMCFED Porges’ retirement in 1Q17. Porges will Avg 85% OPERATED WI; 68% NRI For over 25 years, PLS has been the Net Production: 11.2 MMCFED (84% Gas) central access point for buyers & sellers. remain a member of the board for a year. AGENT WANTS OFFERS EARLY NOV 2016 Schlotterbeck has been with EQT since For more information on listing, email PP 2401DV [email protected] 2000. In 2008, he was promoted to VP and president of production. Find more listings at No commission! List today, call 713-650-1212 Volume 27, No. 16 19 E&P People & Companies ■■ Magnum Hunter Resources PERMIAN / WEST TEXAS MICHIGAN named Michael R. Koy as EVP and WEST TEXAS MINERALS FOR SALE MICHIGAN MINERALS FOR SALE CFO effective Oct. 31. Koy had been 13-Producing Wells. ~335-Net Acres. 15,782-Net Acres. 19,825-Gross Acres. M CEO of Denali Energy since 2014. REEVES, WARD, MARTIN, MIDLAND MULTIPLE COUNTIES FOR Before that, he was CEO of EdgeMarc & HOWARD COUNTIES M MINERALS FOR SALE SALE PERMIAN BASIN Energy, a private equity-backed CONTACT SELLER FOR MORE INFO Producing Formations: Bone Springs, M 5951 firm focused in the Marcellus Spraberry, Wolfcamp A, B & C PERMIAN and Utica. Koy began his career 74 PUD Locations Identified. MULTISTATE MIDCONTINENT with BP in 1995 and was also part of the Varying ROYLATY INTEREST AVAILABLE CALL Talisman Energy team. CONTACT AGENT FOR UPDATE PLS FOR MIDCONTINENT ASSETS FOR SALE M 5652RR INFO ■■ Range Resources has chosen John 49-Producing Wells. Applegath to lead its North Louisiana division TEXAS PANHANDLE & OKLAHOMA WEST TEXAS MINERALS FOR SALE ANADARKO BASIN PP upon the closing of the Memorial Resource 2-Producing Wells. ~640-Gross Acres. Producing Formations: Cherokee, Red Development acquisition. Applegath has HOWARD COUNTY Fork, Morrow, Granite Wash & Cleveland spent the last five years overseeing Range’s Producing From: Spraberry, Wolfcamp, M OPERATIONS FOR SALE MIDCON Strawn, Atoka & Mississippian southern Marcellus operations. He does, Net Potential Reserves: 909 MBO, 10 BCF Potential HZ Development: Lower WEST however, have previous experience with & 846 MBNGL Spraberry, Wolfcamp A & B TEXAS CONTACT AGENT FOR UPDATE NO operations in the Cotton Valley. VARYING MINERAL INTEREST & NPRI PP 5991DV COMMISSIONS ■■ Sanchez Energy named Howard CONTACT AGENT FOR MORE INFO Thill as EVP and CFO. Thill was SVP of M 5807 NORTH TEXAS communications and investor relations at WEST TEXAS MINERALS FOR SALE Devon Energy prior to Sanchez. Before that, CALLAHAN CO., TX PROSPECT 46-Producing Wells. ~1,314-NMA. 5-6 Potential Wells. 300-Acres. he served as VP of corporate, government HOWARD & MARTIN COUNTIES EASTERN SHELF DV and investor relations at Marathon Oil. PERMIAN BASIN M Objective 1: Morris Sand At 3,600 Ft. ■■ Swift Energy appointed Robert J. Vertically Producing From: Wolfberry Objective 2: Dothan At 2,100 Ft. EASTERN Banks as interim CEO, replacing Terry HZ Objs: Lower & Middle Spraberry, Subsurface Geological Data Available. SHELF Wolfcamp A, B & D/Cline MINERALS E. Swift, who retired Oct. 7. Banks will NonOperated WI AVAILABLE 8.33-12.5% ROYALTY INTEREST CONTACT SELLER FOR MORE INFO continue as EVP and COO, positions he has Net Production: 39 BOPD & 255 MCFD DEALS DV 2132 held since 2008. The company’s Gross Prod: 419 BOPD & 2,849 MCFD FOR board of directors will search for Avg Net Income: $65,600/Month SALE FISHER CO., TX HZ PROSPECT CONTACT AGENT FOR MORE INFO a permanent CEO. 10,000-Gross Acres. M 5881RR ■■ Torchlight Energy named two PENNSYLVANIAN SANDS DV independent directors to its board: E. 78-Total Locations Identified. DAWSON CO., TX ACREAGE 70% Working Interest Available; 75% NRI PENN Scott Kimbrough and R. David Newton. 6-Vertical Wells. ~12,800-Net Acres. Net EUR: 11.7+ MMBOE SANDS The company also named Greg McCabe PERMIAN BASIN D&C Per Well: $2,064,245 as chair of the board. The additions bring Horizontal Targets: Lower Spraberry, L CONTACT SELLER FOR MORE INFO Dean & Wolfcamp A DV 1922 Torchlight’s board to eight members, Includes Exisiting SWD System. but two are not standing for re-election Geological & Petrophysical Data Available GRAYSON CO., TX PROSPECT at the annual meeting. Kimbrough owns 100% OPERATED WI; 75% NRI ~5,000-Net Mineral Acres. DV Maverick Oil & Gas. Newton has a Existing Production: 50 BOPD SPRABERRY MIDCONTINENT background in management consulting Offset EURs: 1.2 MMBOE (L Sprayberry) Offsetting Horizontal Viola Production. VIOLA CONTACT AGENT FOR MORE INFO 75% WORKING INTEREST AVAILABLE with experience in venture capital and L 5964 growth-stage oil and gas entities. Drilling AFE: $4,000,000 CONTACT SELLER FOR MORE INFO ■■ Warren Resources has emerged GARZA CO., TX PROSPECT DV 1367 from Chapter 11. As part of its 5-10 Potential Wells. 3,000-Acres. restructuring, the company will relocate PERMIAN BASIN headquarters to Dallas by early 2017. It Objective 1: Glorieta At 3,500 Ft. DV Objective 2: Strawn At 8,100 Ft. Increase deal will reduce staff in other locations but keep 4-Total Prospects. STRAWN a small team in Denver and field offices 3D Seismic Data Available. flow & business and associated personnel in Long Beach, OPERATED WI AVAILABLE opportunities. California; Rollins and Casper, Wyoming; CONTACT SELLER FOR MORE INFO DV 2131 Subscribe to PLS! For available options, and Tunkhannock, Pennsylvania. Warren email [email protected] will close its Houston and Plano offices. For general inquiries, email [email protected] Access PLS’ archive for previous E&P news PetroScout 20 November 2, 2016 What the Analysts Are Saying About E&P Chesapeake Energy (CHK; $6.68-Oct. 24; Sell; PT:$2.50) OKLAHOMA Analyst Day highlights significant improvements but NAV upside remains GRANT CO., OK PROSPECT challenged. Management commentary showcased commendable capital efficiency 8,400-Gross Acres. 7,800-Net Acres. DV strides across the portfolio, with CHK reiterating its goal of reaching FCF neutrality MIDCONTINENT Primary Target: Mississippian Formation by 2018, and 2x net debt-to-EBITDA by 2020 in a $60 oil/$3 gas environment as 94% Of Acreage Held By Production. MISSISSIPPIAN it rakes in an incremental $2B-$3B in asset sales over this timeframe. Leases Can Deliver 75% NRI While progress is evident, we note that CHK’s outlook seems to place CONTACT SELLER FOR INFO NO COMMISSIONS meaningful reliance upon early-inning plays including the PRB, Oswego DV 5866 and the newly unveiled “Wedge” play in the Midcontinent, which could potentially NORTHERN OKLAHOMA PROJECT carry more delineation risk than other, more established assets. We have revised our 8-Potential Wells. 1,160-Net Acres. individual play-by-play inputs to reflect CHK’s latest assumptions, which increases KAY, NOBLE & PAWNEE COUNTIES our NAV to $2.50 from $0 previously. We still struggle to find upside to the stock, NEMAHA UPLIFT DV therefore we’re inclined to maintain our Sell rating at this juncture. —Seaport Obj 1: Wilcox At 4,800 Ft. Obj 2: Red Fork At 3,800 Ft. Diamondback Energy (FANG; $94.70-Oct. 7; Outperform) 50% NonOperated WI; 77% NRI Summary: Positive. Big production beat, 2016 guidance raised, and 2017 Expected IP Rate: 80 BOPD (Wilcox) WILCOX guidance 12% ahead of street, while capex in line. Importantly, press release Expected IP Rate: 20 BOPD (Red Fork) Est Well Reserves: 150 MBO acknowledges company had been in discussions involving speculated Silver Hill Est Project Reserves: 750 MBO acquisition, as reported by the WSJ. FANG is no longer actively pursuing further CONTACT SELLER FOR MORE INFO negotiations. Deal metrics, as indicated in the WSJ article, implied expensive acreage DV 5675 valuation, and management's commentary should remove overhang of potentially setting a high water mark for acreage. Bottom line, 30% growth within cash flow at OKLAHOMA MINERALS FOR SALE 2-Producers. 3,237-Net Mineral Acres. the strip in 2017 should compare well to peers, with better capital efficiency. First pass STACK & SCOOP PLAYS with model indicates stock 1.4x cheaper on 2017E EBITDA compared to our prior MULTIPLE COUNTIES PP estimates. Expect stock to outperform on update. —Wells Fargo Upper, Lower & Middle Osage -- & Meramec Formations Gastar Exploration (GST; $1.11-Oct. 20; Buy; PT: $2.25) 1,200 Ft. Of Stacked Pay Zones STACK JV covering up to 60 wells provides a creative solution to hold expiring Across 126 High Quality Sections. MINERALS acreage without necessity for meaningful capital cost – GST only fronts 10% of initial MINERALS FOR SALE IP30 Rate: 8,500 MCFED (Lower Osage) wells costs, and its WI grows to 90% after its JV partner achieves 20% IRR. In addition, EURs: ~1 MMBOE we estimate each 20 well tranche could allow GST to hold up to ~12K net acres. CONTACT AGENT FOR UPDATE And while it’s still early to fully digest the impact of the JV on GST’s return PP 5735M profile, we believe it should ultimately provide a drastic uptick to drillbit IRRs. As a bonus, we note CHK’s Analyst Day presentation - hot off the presses - OKLAHOMA NONOP SALE PACKAGE pegs returns from the shallower Oswego formation in the STACK at 170% - a definite 268-Producing Wells. 16,750-Net Acres. SCOOP & STACK PLAYS positive for GST given its direct overlap with CHK in Kingfisher County. —Seaport Multiple Counties. PP Oasis Petroleum (OAS; $10.57-Oct. 19; Hold; PT: $12) Producing From: STACK, SCOOP, Merge & Arkoma Formations ~2,300 Oasis announced a $785mm acquisition in the Williston Basin from SM Energy 59-Total Rigs Running. BOED (SM-NR). OAS also did an equity raise concurrently and issued 48 mm shares and NonOperated WI AVAILABLE raised $518mm of gross proceeds to pay for part of the purchase, which does not Current Net Production: ~2,300 BOED include a 7.2 million 30-day option. Adjusted for production at $35,000 per flowing AGENT WANTS OFFERS MID NOV 2016 CALL PP 2993DV barrel, Oasis paid ~$6,400 per acre. The land fits in with the company’s existing PLS FOR INFO position in the Wild Basin area and should generate ~$100 million of cash flow in OKLAHOMA SALE PACKAGE 2017. We like this transaction as it will increase the company’s inventory in the 21-Producing Wells. 18,500-Net Acres. core by 25%. OAS could grow 2017 production by the low teens if crude were to stay GARFIELD, LOGAN, MCCLAIN, NOBLE above $45/bbl. We raise our NAV and price target from $10 to $12 per share to reflect & PAYNE COUNTIES PP Producing From: Mississippi Lime & this transaction and higher EURs. —Wunderlich Woodford Formations ~76% Of Acreage Is Held By Production Information. Transactions. Advisory. Avg 87.6% OPERATED WI; 70.6% NRI ~1,000 Cash Flow: $450,000 Per Month BOED PLS provides clients with the research, marketing & consulting services they need to better Net Proved Reserves: 2.63 MMBOE manage their portfolio & facilitate profitable transactions. Clients can access an archive of Net PV10: $23,100,000 news & reports, plus the PLS multiple listing database at any time. For more information CONTACT AGENT - POST BID STATUS on PLS services, please call 713-650-1212 PP 4500DV

Find more on the E&P arena at To learn more about PLS, call 713-650-1212 Volume 27, No. 16 21 E&P What the Analysts Are Saying About E&P OKLAHOMA Range Resources (RRC; $34.95-Oct. 27; Underweight; PT: $28) TEXAS CO., OK PROPERTY We remain Underweight RRC due to steep valuation and moderately high leverage. 159-Producing Wells. 129,000-Net Acres. Our production estimates are largely consistent with 11-13% and 20% organic production ANADARKO BASIN growth guidance in 2017-2018 while our capital spending forecast is above suggested capital Acreage 100% Held By Production. PP Council Grove, Morrow & Cherokee spending (within cash flow). We are lowering our price target by $4 to $28 largely to reflect Lansing, Marmaton, Keyes, Topeka & Toronto our lower forecast for 2018 commodity price realizations. Range trades at a 40- Target Depth <7,000 Ft. ANADARKO 45% premium multiple to peers on mid-cycle debt-adjusted cash flow, which ~95% Of Acreage Is Fee Acreage. could be steep given the potential for future cash burn and already high leverage. Net Production: 58 BOPD, 2,380 MCFD We think Range’s robust organic growth forecast for 2017 (+11-13%) and 2018 (+20%), -- & 57 BNGLPD Projected Nov Cash Flow: $140,000 would be difficult to achieve without spending more than cash flow. RRC has moderately PDP Reserves: 382 MBO & 6 BCF high leverage vs. many peers at 3.0x 2016E net debt to 2017E EBITDA versus 2.0x for peers AGENT WANTS OFFERS NOV 10, 2016 at $55/bbl oil and $3.35/mmBtu gas for next year. —Barclays PP 2126DV RSP Permian (RSPP; $42.20-Oct. 17; Buy; PT: $51) PANHANDLE TEXAS Will hit the ground running in the Delaware Basin. RSP Permian, Inc. (RSPP) has excelled as one of the first movers in the Midland Basin. The management team has also LIPSCOMB CO., TX PROSPECT worked in the Delaware Basin prior to forming RSPP and has long expressed an interest 4,800-Gross/Net Acres. in returning. Last Thursday, RSPP announced the $2.4 billion Silver Hill acquisition. TEXAS PANHANDLE DV MULTIPLE PAY ZONES While the price tag of $45,000/net acre is a new record, the deal is immediately accretive Targets: Marmaton, Cleveland, Granite MARMATON to NAV as RSPP will be able to hit the ground running. The area is populated with first- Wash & Morrow Formations class producers, and at this point we view this part of the Delaware Basin as mostly de- Leasehold Can Deliver 75% NRI DEALS FOR risked. We also expect upside from RSPP’s current inventory count of 1,950 net wells for CONTACT SELLER FOR MORE INFO SALE DV 5865 the Delaware Basin. We have raised our NAV and price target from $44 to $51 and look forward to seeing RSPP accelerate drilling in both basins. —Wunderlich KENTUCKY SM Energy (SM; $40.43-Oct. 19; Outperform; PT: $50) LAWRENCE CO., KY PROSPECT March Deeper into Midland to Bring Additional Long-Term Positives. 450-Acres. 600-Additional Acres Available. Permian acquisition brings lasting economic and sentiment tailwinds. With 30%+ IRRs ROGERSVILLE SHALE DV available in the company’s Permian inventory at current pricing, this deal Targets: Trenton/Black River, Devonian further stacks SM’s inventory of economic development opportunities. Shale, Big Lime, Weir & Berea Recent Title Opinion & Trenton Well TENTON While the acquisition’s $41,457 per acre multiple (assuming $50,000 Permitted. BLACK RIVER paid per flowing boe) may bring some upfront pause from investors, we expect SM’s 100% OPERATED WI; 84.5% NRI development efforts to validate the economic worth of this purchase in time, providing Seller Is Long Time Operator & Can Be a steady sentiment uplift going forward. —Baird Retained To Drill, Complete & Operate CONTACT SELLER FOR MORE INFO Southwestern Energy (SWN; $15-Oct. 21) DV 5617 Turned in an overall positive quarter with adjusted EPS in line with ICP estimates of $0.03 per share and production just above the midpoint of Company guidance (211 vs. MULTISTATE EASTERN 209 Bcfe). On the cost side Opex came in significantly below ICP estimates while DDA ILLINOIS & INDIANA SALE PACKAGE and production taxes were in line with our numbers. The absence of a stronger production 9-Producing Wells. 1-SWD. 990-Net Acres. beat and guidance raise may disappoint some investors that were bullish on the timing of ILLINOIS BASIN PP expected productivity from the current rig ramp up by SWN. The quarter was understandably Multiple Counties. light on operational detail given that SWN restarted its development program only a few Potential Upside. 20% Of Acreage Held By Production. UPSIDE months ago. In the Fayetteville Shale, SWN is experimenting with increased proppant 100% OPERATED WI; 77.5% NRI loads and put onto production six wells completed with this new design. The six wells 6-Mn Gross Prod: 96 BOPD averaged IP rates of ~6.7 mmcf/d the highest ever in the Fayetteville. —Iberia 4-Mn Avg Cash Flow: $85,657/Month AGENT WANTS OFFERS NOV 16, 2016 Whiting Petroleum (WLL; $8.27-Oct. 27; Outperform) PP 2425DV 3Q16 initial take: solid execution. Well-rounded 3Q16 beat. WLL’s 3Q16 output of 119.9 Mboe/d bested our forecast by 3% and the Street by 2% with upside in all commodity types vs. our modeling. With realizations matching our expectations, www.plsx.com this output upside combined with lower-than-expected LOE and production taxes to push reported DCF $58.0MM above our forecast to $163.1MM. Capex of $85.0MM Call to advertise! measured 4% or $3.6MM ahead of our modeling. All in, WLL recorded a second For options, call 713-650-1212. consecutive quarter of positive free cash flow, netting to $78.1MM in 3Q16. —Baird For general inquiries, email [email protected] Access PLS’ archive for previous E&P news PetroScout 22 November 2, 2016 Bakken Whiting’s completions Oasis raises EURs Continued From Pg 1 tracking 1.5 MMboe EURs “Our confidence is growing that increasing proppant loading and stage counts will Whiting offered an update on its high- continue to improve well performance, as we are seeing production uplift in our own sand “super completions” in its Q3 earnings tests as well as tests done by other operators in similar operating areas,” he said. release, including releasing IP rates for the Oasis said its single-well IRR at Wild Basin is more than 100% for both formations wells. A pair of Bakken wells completed at Oct. 14 strip pricing ($52.40/bbl). This is assuming a well cost of $5.2 million, in July in Williams County, which is down from $5.9 million with the new completion design. North Dakota, are supporting “We have reduced an increased proppant argument. our current well costs down to $5.2 Single-well IRR at Wild Basin exceeds The P Bibler used 10.1 million lb of sand 100% at Oct. 14 strip. million from $5.9 million on our 4 IP’d at 2,674 boe/d, and the Carscallen 31- million lb of sand slickwater well completion technique,” Nusz said. “The team has 14-4H utilizing 13.6 million lb posted an done an incredible job improving upon our efficiency gains, and we believe our team IP of 2,766 boe/d. has the ability to drive costs even lower.” In other efficiencies, Oasis is drilling wells Pair of 10.0MM-lb-plus wells IP’d at in 13 days as of 3Q16, down 50% from 2014. Oasis completed and placed online 17 2,720 boe/d. wells during the quarter. In addition to operational successes, Oasis grew its core drilling inventory 25% It was reported in September that the heading into Q4. The company bought 55,000 net acres in the Williston Basin— wells were performing 30-50% above largely in McKenzie and Williams the 900,000 boe type curve, but they’re Oasis added 130 operated locations counties—from SM Energy in the faring even better after 90 days online. P in its core from SM Energy. largest Bakken deal in two years. The Bibler is on track to recover 1.5 MMboe, purchase included an estimated 226 total operated drilling locations in 34 drilling and Carscallen is outperforming that. spacing units with 130 of those in Oasis’ core area. Oasis now controls 539,745 net Back to work in central Williston; IPs acres in the Williston with proved reserves of 50.2 MMboe (77% oil). The company average 3,727 boe/d. expects to operate 75% of the assets based on proved reserves. “With our continued capital efficiency and Also during Q3, Whiting resumed December 31, 2014 • Volume 25, No. 18 its operations in the central Williston Transactions best-in-class operations in the Williston Basin, Serving the marketplace with news, analysis and business opportunities Basin. The company brought 13 wells Repsol strikes, snapping up Talisman for $13 billion Whiting seals buyout of we are well-positioned to take full advantage Capitalizing on falling oil prices to gain a substantial upstream foothold in North Bakken peer Kodiak America, Repsol has struck a deal to acquire Talisman Energy for $13 billion. The There is one less publicly listed purchase price consists of $8.00/share (C$9.33/share) in cash plus the Calgary company’s Bakken producer following the closing $4.7 billion debt. Unanimously approved by both companies’ boards, the deal will of Whiting Petroleum’s acquisition online in McKenzie County, North boost Repsol’s pro forma 2014 production by 76% to over 4.08 Bcfed immediately and of rival Kodiak Oil & Gas. of this complementary asset that we believe significantly expand its explorationA&D portfolio. The combinedTransactions company will have a presence The deal created a combined in more than 50 countries with Bids $8.00/share after Talisman company with a market cap 27,000 employees. tagged a low of $3.46/share. north of $6.0 billion based on the stock Cash-rich Repsol had price the day before closing. Whiting Dakota, at the Rolla Federal Unit. The been gearing up for a strategic upstream acquisition, building up a $12 billion-plus war now has the highest Bakken/Three Forks will generate substantial shareholder accretion chest this spring through the divestment of its equity in Argentine explorer YPF, a $5.0 billion settlement with Argentina over the 2012 seizure of a 51% stake in YPF, and the Creates largest producer in Bakken with Q3 output of 125,000 boepd. Oasissale to Shell of its Latin inks America-focused LNG$785 business. At the time, million Repsol said it was shopping for companies or assets within the OECD with development potential, production at a pro forma 125,000 boepd wells averaged 3,727 boe/d over 24 scale, extra growth capacity and above 8% return on capital. Continues On Pg 12 for Q3, squeaking by long-time leader based on our currently anticipated acquisition Oxy in talks to buy private Permian driller Three Rivers Continental Resource's 121,600 boepd. WillistonCash-rich after receiving $6.0 billion deal. in the spin-off of its California business, The deal also increased Whiting’s Occidental Petroleum is looking to supercharge its core Permian growth engine Bakken/Three Forks inventory by by pursuing privately held Three Rivers Operating Co. II LLC. Industry sources 158% to 3,460 net drilling locations hours. They were completed with an contacted by PLS have estimated values in the $1.20-1.35 billion for the deal. A across 855,000 net acres. YE14 proved financing,” Nusz said. Bloomberg story citing an unnamed source said the companies are discussing a price reserves for the combined company total below $20,000/acre—implying a value below $1.75 billion based on Three Rivers’ 780 MMboe (83% crude, 7% NGLs), 82,000 net acres at YE13 plus 5,400 net up 29% compared to Whiting and PLS sources value deal for Riverstone- acres picked up this summer. Kodiak’s YE13 sum. Cont'd On Pg 17 average of 7.3 million lb of sand. backed company at $1.20-1.35 billion. Austin, Texas-based Three FEATURED DEALS Rivers II launched in August 2012 with the acquisition of 15,000 net acres and 1,900 boepd in the Midland Basin from Meritage Energy. Backed by Riverstone EAST TEXAS SALE PACKAGE Holdings, the company at YE13 touted 25,000 net acres in the Midland Basin, 22,000 12-Active Wells. 3-SWD. ~3,700 Acres. in the southern Delaware Basin and 5,000 in the Central Basin Platform representing a BUNA WEST & SILSBEE FIELDS drilling inventory exceeding 1,800 locations (average 90% WI) targeting the Wolfcamp, HARDIN & JASPER COUNTIES PP Cline and Wolfberry combo play. Continues On Pg 11 Wilcox Sands 10,000 Ft.-15,000 Ft. Oasis Raises TypeAdditional Drilling Locations Identified Curves at Wild Basin Whiting is drilling DJ Basin wells 30% 58-100% Operated WI; ~73 Lease NRI 191 Southwestern buys more Marcellus/Utica for $394 million Gross Production: 77 BOPD & 888 MCFD BOED Also closes $5.4 billion initial acquisition from Chesapeake Net Production: 44 BOPD & 530 MCFD June 2014 Cash Flow: ~$156,600/Mn Statoil is selling a 5.8% stake in its Marcellus and Utica JV assets in northern PDP PV10: $4,826,000 West Virginia and southern Pennsylvania to new partner Southwestern Energy for BIDS DUE BY JANUARY 15, 2015 faster YOY; best time is 2.75 days. $394 million and retaining ~23% WI. Having also closed its $5.4 billion purchase of PP 2351DV Chesapeake’s 67.5% WI, Southwestern’sWild newly acquired Basin interests will riseBakken to 73.3% Well Performance Wild Basin Three Forks Well Performance WI, representing 443,000 net acres. KERN CO., CA PROPERTY Gets additional 30,000 net acres & The Statoil deal adds ~18,000-Contiguous Net Acres. 29 MMcfed from Statoil interest. BEER NOSE FIELD incremental October Bloemer Tight Sandstone Objective. PP net production25 of 029 MMcfed and 30,000 net acres targeting the Marcellus, Utica Estimated Depth: 10,000-15,000 Ft. 250 and Upper Devonian for Southwestern. Statoil had a preferential right to buy Also Monterey, Belridge, Gibson, Oceanic, Santos, Tumey & Kreyenhagen Potential. In the DJ Basin, Whiting reports Chesapeake’s stake when that company’s deal with Southwestern was announced

100% OPERATED WI; ~77% NRI d in October, but chose not to exercise it. Including these properties and others in the TIGHT Gross Production: 36 BOPD & 57 MCFD SAND play, Statoil retains a strong Marcellus position covering ~570,000 net acres with Net Production:27Updated BOPD & 441,550 MCFD MBOE Wild Basin Type Curve pro forma Q320 net production0 of 759 MMcfed. 6-Mn Avg. Net Cash Flow: ~$28,800/Mn 200 The Statoil deal is expected to close in 1Q15 and will be financed from PP 5217DV faster drilling times at Redtail now that Southwestern’s revolver. Continues On Pg 15 Updated 1,200 MBOE Wild Basin Type Curve All Standard Disclaimers & Seller Rights Apply. 150 150 MBOE Produced it has moved to a monobore well design. MBOE Produce e 100 100 Core Bakken Type Curve The average well is being drilled in Core Three Forks Type Curve Cumulave 50 Cumulav 50 seven days, or 30% faster than this time 0 0 last year. The company’s best is 2.75 0306090120 150 180 0306090120 150180 Days Producing Days Producing Cum. Avg. BOE/Day (12 wells) Original WB TF 1,000 MBOE Type Curve Cumulave Avg. BOE/Day (12 wells) Original WB Bakken 1,200 MBOE Type Curve days. At Redtail, Whiting has moved to Updated 1,200 MBOE TF Type Curve 875 MBOE TF Core Type Curve Updated 1,550 MBOE Bakken Type Curve 1,050 MBOE Bakken Core Type Curve 1,280-acre spaced wells. The company Wild Basin Type Curve Statistics (1) Highlights expects to recover 655,000 boe per well Core: Core: Bakken Three Forks with this spacing, or 40% more than it EUR (Mboe) 1,550 1,200 § Single well IRRs in excess of 100% for both Bakken Initial Production and Three Forks at 10/14/2016 strip could with 960-acre-spaced wells. IP – 7 day midpoint (Boepd) 2,304 1,795 □ Assuming $5.2MM current well costs 1st 30 days -average (Boepd) 1,912 1,490 § Remaining upside from ongoing completion testing 2nd 30 days - average (Boepd) 1,331 1,037 program Regional Oil & Gas Intelligence November 3, 2015 Cumulative (Mboe) 30 day 57 45 § Substantial portion of remaining core inventory 60 day 97 76 BAKKEN SCOUT Serving the local market with drilling activity, permits & deals for sale Volume 02, No. 14 180 day 201 157 Statoil long lateral flows at 3,486 boe/d from the Bakken 365 day 302 235 Regional Activity (State Data)BakkenInternational Scoutplayer Statoil flowed Nov. a flowed at1 2,369 bo/d and 2,735 Mcf/d (2,825 (10/08/15 to 10/29/15) long-lateral Bakken well at 3,071 bo/d and boe/d, 84% oil) and the #7H has a 10,313-ft Compls Permits 2,489 Mcf/d (3,486 boe/d, 88% oil). The lateral targeting the Bakken, flowing 2,285 1) Type curve parameters: Qi=varies, b=1.6, initial decline 82%, terminal decline 6%, 2,500 gas / oil ratio North Dakota 25 136 Heen 26-35 #7H was drilled with a 9,604 ft bo/d and 2,508 Mcf/d (2,703 boe/d, 85% oil). lateral in Todd field in Williams South Dakota – – County, North Dakota. Has 330,000 net acres in the play Hess sees Q3 Bakken beat, expectsalong with gathering continued system. Montana – 2 Two other Statoil completions Most Active Operators by Permits in Williams County, the Smith Farm 23-14 Statoil’s Bakken assets include #6TFH and #7H, are also long laterals drilled 330,000 net acres with an extensive Source: Oasis Petroleum Oct. 18 Presentation via PLS docFinder www.plsx.com/finder increases.➊ EOG Resources 32 in Cow Creek field. The #6TFH targets the gathering system for transportation and ➋ Continental Resources 21 Three Forks with a 10,560-ft lateral and resource marketing. Continues On Pg 3 ➌ QEP Energy 12 SM reports efficiency gains despite delaying completions Permits by Formation (by Last Scout) In the Bakken/Three Forks, SM with cemented liners are driving 20-30% Find more on the E&P arena at FormationTo learn11/03 10/13 more09/22 Energy about production increased PLS, 27% YOY callincreases in713-650-1212 recoveries per well. M Bakken 12 16 9 in Q3 but dropped 7% sequentially to SM has been adding Bakken resources Three Forks B2 10 3 1 22,200 boe/d (85% oil) as the company to its Three Forks inventory, and nine Three Forks B1 7 9 13 increased its completion backlog to 47 Middle Bakken wells are Bakken 3 7 7 wells. The company reported that it has performing above its Three Three Forks B3 2 2 1 Forks type curve. Two Drilling times down by 11% & costs additional recently completed wells could Cut Bank 1 – – down 20-25% vs. 2014. Duperow 1 – – extend SM’s Divide County Bakken Three Forks B4 1 – – reduced drilling times to 15-21 days— footprint farther south. Other Formations 101 78 111 down by 11% vs. 2014—and has drilled The company also recently announced TOTAL 138 115 142 several Divide County wells in fewer the opening of a new office in Williston, Sources: MBOGC, NDIC & SDDNR than 10 days. Overall costs are down 20- North Dakota that SM calls a “tangible 25% vs. 2014. Furthermore, enhanced indication” of its commitment to growing Active Rigs Running (Baker Hughes) 63 completions including plug-and-perf its North Dakota operations.

Top 20 Statoil Williston Basin Completions (01/15/15 - 09/25/15) Deals For Sale

County Operator Well Name Field Reservoir TD boe/d Oil % MUSSELSHELL CO., MT ACREAGE McKenzie Statoil Johnston 7-6 #4H Banks Bakken 22,420 5,129 75% 77,413-Gross & 52,200-Net Acres. Mountrail Statoil Bures 20-29 #5H Alger Bakken 20,610 4,354 85% CENTRAL MONTANA UPLIFT L Mountrail Statoil Bures 20-29 #6TFH Alger Three Forks 20,646 4,047 86% MISSISSIPPIAN HEATH OIL PLAY Williams Statoil Judy 22-15 #5H East Fork Three Forks 20,720 3,894 86% Proposed Depths: 3,600-9,675 Ft. HEATH Williams Statoil Hawkeye 16-21 #3H Todd Bakken 21,281 3,884 89% 100% OPERATED WI FOR SALE SHALE McKenzie Statoil Maston 34-27 #5TFH Banks Three Forks 20,775 3,791 76% Offset Production: ~100 BOPD Mountrail Statoil Bures 20-29 #3H Alger Bakken 20,254 3,759 86% L 3185DV Williams Statoil East Fork 32-29 XE #1H East Fork Bakken 19,985 3,726 87% Williams Statoil Folvag 5-8 XE #1H Stony Creek Bakken 20,765 3,686 87% SHERIDAN CO., MT PROSPECTS Williams Statoil Heen 26-35 #7H Todd Bakken 20,310 3,486 88% 10-Potential Wells. 3-Prospects. Williams Statoil Irgens 27-34 #5H East Fork Bakken 20,350 3,399 82% WILLISTON BASIN DV Williams Statoil Irgens 27-34 #3H East Fork Three Forks 10,830 3,295 83% MULTIPAY PROSPECTS Williams Statoil Judy 22-15 #3H East Fork Three Forks 20,990 3,260 85% Red River. 11,300 Ft. McKenzie Statoil Maston 34-27 #6H Banks Bakken 21,415 3,143 71% Mission Canyon & Others. 7,500 Ft. Williams Statoil East Fork 32-29 #6TFH East Fork Three Forks 10,699 3,065 87% 60% OPERATED WI; 48% NRI MULTIPAY Williams Statoil Field Trust 7-6 #4H Todd Bakken 20,442 2,893 90% Expected IP (Red River): 375 BOPD Williams Statoil Smith Farm 23-14 #6TFH Cow Creek Three Forks 21,235 2,825 84% Well Reserve: 300 MBOE/Well Williams Statoil Folvag 5-8 #6TFH Stony Creek Three Forks 20,824 2,774 88% DV 3851 Williams Statoil Smith Farm 23-14 #7H Cow Creek Bakken 20,925 2,703 85% No Commission. Call 713-650-1212 Williams Statoil Folvag 5-8 #5H Stony Creek Bakken 20,820 2,656 87% All Standard Disclaimers & Rights Apply. Source: North Dakota Industrial Commission Volume 27, No. 16 23 E&P

PENNSYLVANIA COLORADO CALIFORNIA POTTER CO., PA MINERALS DJ BASIN ASSETS FOR SALE SACRAMENTO BASIN PROSPECT +/-315-Gross/Net Mineral Acres. 428-Total Wells. 67,496-Net Acres. >450,000-Net Acres. OSWAYO TOWNSHIP M LARAMIE & WELD CO., CO GLENN, COLUSA, SUTTER & BUTTE APPALACHIA BASIN Niobrara, Codell, D & J Sands Production PP COUNTY, CALIFORNIA DV MINERALS FOR SALE MINERALS 96% Of Leases Are Held By Production. Multi-Stacked Pay Potential CONTACT SELLER FOR MORE INFO >2,000 Gross Undeveloped Locations. 1,200 Target Depths: 5,000-15,000 Ft. M 1318 Avg 74% Working Interest; Avg 80% NRI BOED Subsurface Geology, Geophysics, SACRAMENTO Current Net Prod: 1,200 BOED (48% Oil) -- Geochemistry, 2D & 3D Seismic Data WASHINGTON CO., PA MINERALS PDP PV10: ~$42,000,0000 OPERATIONS NEGOTIABLE CALL 1-Unit. +/-10-Gross/Net Mineral Acres AGENT WANTS OFFERS NOV 16, 2016 P50 Prospective Resource: >2 TCF PLS FOR SMITH TOWNSHIP M PP 2702DV DHC: $1,000-3,000; Compl: $100-2,000 INFO APPALACHIA BASIN DV 2730 Acreage Is Held By Production. MINERALS MULTISTATE ROCKIES Lessee: Range Resources SAN JOAQUIN BASIN PROSPECT Leases Can Deliver 84% NRI NORTH DAKOTA & MONTANA ASSETS >1,000,000-Net Acres. CONTACT SELLER FOR MORE INFO 54,500-Net Acres. KERN, KINGS & FRESNO COS., CA DV M 1330 WILLISTON BASIN L Multi-Stacked Pay Potential Raven/Bear Den Acreage. Target Depths: 4,000-14,000 Ft. COLORADO LEASEHOLD ASSETS FOR SALE ROCKIES Subsurface Geology, Geophysics, SACRAMENTO CONTACT AGENT FOR MORE INFO -- Geochemistry, 2D & 3D Seismic Data WELD CO., CO NONOP PROPERTIES L 2158 OPERATIONS NEGOTIABLE 52-Total Wells. P50 Prospective Resource:100 MMBOE DJ BASIN ROCKY MOUNTAINS SALE PACKAGE DHC: $750k-$7.0MM; Compl: $100k-$2.0MM 18-Horizontal Wells. 34-Vertical Wells. PP 6-Lots. DV 2731 Potential Targets: Niobrara & Codell COLORADO & WYOMING Additional ORR Wellbore Only Interest Ava. Multiple Counties. DV VENTURA CO., CA PROSPECT NonOperated WI AVAILABLE NONOP Powder River Basin, Wyoming Thrust >100,000-Net Acres. Oct 2016 Net Prod: 86 BOPD, 565 MCFD Belt, Wyoming/Colorado Green River ROCKIES VENTURA BASIN DV & 55 BNGLD Basin & Wyoming Wind River Basin Multi-Stacked Pay Conventional Reservoirs Oct Net Cash Flow: ~$143,000/Monthly Varying OPERATED, NonOp WI & ORRI Target Depths: 5,000-15,000 Feet VENTURA Total PV10: $9,871,000 CONTACT AGENT FOR UPDATE OPERATIONS NEGOTIABLE CONTACT AGENT FOR UPDATE NO DV 5672PP P50 Prospective Reserves: >100 MMBOE PP 5713DV COMMISSIONS DHC: $1,000-7,000; Compl: $100-1,000 NORTH DAKOTA DV 2729 WELD CO., CO NONOP SALE PACKAGE ~1,624-Net Mineral Acres. BURKE CO., ND PROSPECT NEVADA WATTENBERG FIELD - DJ BASIN PP 100+ Potential Wells. 22,300-Acres. Producing From: Niobrara & Codell MIDALE & NESSON DV WHITE PINE CO., NV PROSPECT ~346 Acres Held By Production. Target Depths: 5,950 Ft. - 6,010 Ft. 14,773-Acres. 23 Permitted PUD Locations Identified. ~60 22.5% Working Interest; 18% NRI GREAT BASIN DV 196 Unpermitted PUD - BOED Expected IP: 350 BOPD MIDALE Obj 1: Tertiary Lake Shale At 7,000 Ft. -- Locations Identified. Est Well Reserves: 300 MBO/ Well Obj 2: Mississippian Chainman. 8,000 Ft. GREAT NonOperated WI AVAILABLE Est Project Reserves: 18 MMBO & 66 BCF Obj 3: Miss/Devonian Pilot. 12,000 Ft. BASIN Avg Production: 61 BOED CONTACT SELLER FOR MORE INFO 100% OPERATED WI; 75% NRI CONTACT AGENT FOR UPDATE DV 1663 8 Year Federal Leases. PP 5729DV DV 5877 UTAH WELD CO., CO PRODUCING MINERALS MOSTLY MIDCONTINENT 393-Producing Wells. ~1,473-NMA (HBP). SOUTHERN UINTA BASIN ASSETS DJ BASIN - WATTENBERG FIELD 338-Wells. 29,915-Net Acres (85% HBP). MULTISTATE NONOP SALE PACKAGE Wattenburg Field, Wells Ranch, East PP DUCHESNE & CARBON COUNTY, UTAH PP 642-Gross Wells. ~24,000-Net Acres. Pony & Red Tail Areas Primary Target: Wasatch-Mesa Verde OKLAHOMA, LOUISIANA & TEXAS PP 240-Horizontal Wells. 153-Vertical Wells. Secondary Targets: Wasatch/ Mesa Producing From: Mississippian, Hunton, NonOperated WI AVAILABLE Verde & Navajo/ Entrada Arkoma Woodford & Haynesville May Net Prod: 581 BOPD, 1,112 MCFD NONOP Avg 95% OPERATED WI; 80% NRI ~50 608 Gas Identified Gross Drilling Locations & 67 BNGLD Net Production: ~49 MMCFED (94% Gas) MMCFED 189 Oil Identified Gross Drilling Locations 20 May 2016 Cash Flow: $736,725 Forecast Cash Flow: $1,666,667/Month Current Net Prod: 20 MMCFED (71% Gas) MMCFED PDP Reserves: 1,156 MBOE PDP Reserves: 201 BCFE Projected Cash Flow: $833,333 Per Month Total Reserves: 7,002 MBOE Total Reserves: 1,066 BCFE DEALS Potential Rsrvs: 1.5 MMBOE & 233 BCFE CONTACT AGENT FOR MORE INFO FOR Total PDP PV10: $48,000,000 Total PV10: $579,000,000 SALE PP 5630M CONTACT AGENT FOR UPDATE CONTACT AGENT FOR UPDATE PP 5579DV PP 5613DV

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