Non-Operated Working Interest Assets in the Williston Basin March 2018
S ALES P ROCESS O VERVIEW | C ONTACT I NFORMATION P RESENTATION O UTLINE S ALES P ROCESS O VERVIEW Key Dates Preliminary Bid Instructions I. Executive Summary ▪ ▪ Effective Date April 1, 2018 Bids due April 26, 2018 II. Land Overview ▪ VDR opened March 27, 2018 ▪ VDR access March 27 – April 26, 2018 III. Geology Overview March April IV. Reservoir Engineering Overview S M T W T F S S M T W T F S 1 2 3 1 2 3 4 5 6 7 V. Asset Summary 4 5 6 7 8 9 10 8 9 10 11 12 13 14 11 12 13 14 15 16 17 15 16 17 18 19 20 21 18 19 20 21 22 23 24 22 23 24 25 26 27 28 25 26 27 28 29 30 31 29 30 VDR Available Holidays Evaluation/Data Rooms Bids Due E AGLE R IVER A&D T EAM Austin McKee Brian Green Darrell Finneman James Barnes Managing Director Managing Director Managing Director Director Austin@EagleRiverHoldingsLLC.com Brian@EagleRiverHoldingsLLC.com Darrell@EagleRiverHoldingsLLC.com James@EagleRiverHoldingsLLC.com 303-832-5128 832-680-0110 720-726-6091 832-680-0112 Alex Sale Kari Bleyle Kit Reasoner Director of Engineering Manager Reservoir Engineering Analyst Alex@EagleRiverHoldingsLLC.com Kathryn@EagleRiverHoldingsLLC.com Kari@EagleRiverHoldingsLLC.com 720-726-6094 720-726-6092 303-770-6096 Houston Office Denver Office 5460 S Quebec St Ste 335 25700 I-45 North, Suite 400 Greenwood Village, CO 80111 The Woodlands, TX 77386 Confidential – Not For Distribution 2
I. E XECUTIVE S UMMARY Non-Operated Working Interest Assets for Sale in the Williston Basin Eagle River Holdings, LLC has been exclusively retained by Holt Production, LLC (“Seller”) for the ND divestiture of non-operated working interest assets and associated development rights located in the Williston Basin of Billings and Stark Counties, North Dakota. N ON -O PERATED ▪ ~2,908 MBOE total net Proved Reserves (16% developed / 84% undeveloped) P OSITION UNDER ▪ ~180 BOEPD net production (65% Oil / 19% Gas / 16% NGL) P LANNED ▪ ~$178,000 monthly operating income (3-mo average) with above WTI realized oil prices D EVELOPMENT ▪ 2 DUC wells anticipated online in 2018 adding ~$37,000 monthly net operating income ▪ ~1,961 net and ~66,854 gross acres B LOCKED ▪ 128 producing wells (3.2% WI / 2.7% NRI average) A CREAGE ▪ 2 DUC wells under Whiting Petroleum (1) and Thunderbird Resources (1) P OSITION ▪ 12 active permits with development timeline proposed by Whiting Petroleum with 104 additional PUD locations identified E NGINEERED ▪ ~444 MBOE PDP net Reserves R ESERVES WITH ▪ ~32 MBOE DUC net Reserves with completions anticipated in 2018 ▪ N EAR AND L ONG ~2,432 MBOE PUD net Reserves ▪ T ERM U PSIDE Unquantified upside associated with horizontal Three Forks second and third bench formation targets ▪ Predictable production and revenue stream given the majority of the wells have entered terminal decline C ONSISTENT AND ▪ Operated predominantly by top Basin operator, Whiting Petroleum Corporation D IVERSE I NCOME ▪ Primary Target : Three Forks / Pronghorn ▪ S TREAM Significant drilling inventory with additional upside in NexGen D&C techniques utilizing higher proppant density and plug & perf designs allowing higher pump rates Confidential – Not For Distribution 3
II. L AND O VERVIEW Williston Basin Assets W ILLISTON B ASIN A SSETS S UMMARY Producing Properties (Black trajectories on map) ▪ Whiting Petroleum Corporation ▪ ~1,351 net and ~46,768 gross acres ▪ 112 producing wells ▪ 3.1% WI / 2.6% NRI average ▪ Continental Resources ▪ ~508 net and ~14,198 gross acres ▪ 14 producing wells ▪ 4.9% WI / 4.1% NRI average ▪ Other operators ▪ ~102 net and ~5,888 gross acres ▪ 2 producing wells ▪ 4.1% WI / 3.4% NRI average DUC Wellbores (Solid red trajectories on map) ▪ 2 DUC wellbores ▪ 1 DUC with anticipated sales between July and September 2018 per Whiting completion program ▪ 1 confidential DUC operated by Thunderbird Permitted Wellbores (Dashed red trajectories on map) ▪ 12 permitted wellbores by Whiting Petroleum ▪ Anticipated sales dates specified in well files and are included in the VDR Additional PUD locations (not represented on map) ▪ 104 additional PUD locations identified ▪ New and infill drilling locations ▪ Assuming 5 wells per DSU (1) Development plan by operator subject to change DUCS (2) Seller owns partial interest in highlighted sections. Refer to VDR for PERMITS specific ownership information. Confidential – Not For Distribution 4
III. G EOLOGY O VERVIEW Williston Basin | Three Forks Geology S TRATIGRAPHIC C OLUMN T HREE F ORKS | I SOPACH M APS ▪ The Williston Basin sedimentary deposition occurred, predominantly, during the Ordovician, Silurian and Devonian periods ▪ The Three Forks formation is of the upper Devonian period and is an unconventional carbonate play consisting of interbedded dolomites and shale ▪ Production from the Three Forks has proven feasibility of economic development under Seller’s acreage position T HREE F ORKS | S TRUCTURE M AP Seller’s Position Seller’s Seller’s Position Position Source: Bakken/Three Forks Tight Oil Resource Play by Steve Sonnenberg Confidential – Not For Distribution 5
IV. R ESERVOIR E NGINEERING O VERVIEW Reserves Summary N ET R ESERVES S UMMARY Net Reserves Total (6:1) Gross No. Net No. Gross Reserves % Oil Gas NGL Net Equivalent Wells Wells (MMBOE) Reserves (MBOE) (MBO) (MMCF) (MB) Proved Reserves Proved Developed Producing 128 4.12 25,706.3 300.0 458.7 67.3 443.7 15% Proved Developed Non-Producing 2 0.05 1,767.8 26.6 30.2 0.3 31.9 1% Proved Undeveloped 116 4.03 112,042.7 1,566.8 2,733.6 409.5 2,432.0 84% Total 1P Reserves 246 8.20 139,516.7 1,893.4 3,222.5 477.1 2,907.6 N ET P RODUCTION P ROFILE N ET R ESERVES P ROFILE P RICING A SSUMPTIONS PDNP PDP 3/21/2018 Strip Price NGL 32 MBOE 443 MBOE 477 MB Oil Gas 1% 15% 16% Year ($/Bbl) ($/Mcf) 2018 $63.94 $2.79 2019 $59.06 $2.79 2020 $55.40 $2.75 Gas 2021 $53.10 $2.80 3.2 Bcf 19% 2022 $52.06 $2.85 2023 $51.83 $2.91 2024+ $52.11 $2.96 Differentials Oil PUD 1,893 MBO Oil Gas NGL 2,432 MBOE 65% 84% ($/Bbl) ($/Mcf) (Frac of Oil) $0.08 -$0.21 0.680 (1) Reserve equivalents calculated on energy equivalence of 6 Mcf/Bbl (2) Pricing differentials on an asset level average. Reserves database differentials assumed by Operator. Confidential – Not For Distribution 6
IV. R ESERVOIR E NGINEERING O VERVIEW Asset Production and Forecast G ROSS P RODUCTION P LOT | PDP AND U PSIDE Historical Forecast 12 active permits to be drilled and completed by Whiting Petroleum based upon timeline submitted to NDIC in Gas Capture Plans (available in the VDR). 2 DUCS to be completed by 104 additional new and infill Whiting Petroleum in Q3 2018 (1) drilling PUD locations and Thunderbird Resources in identified and scheduled within 2018 (1) SEC guidelines. ▪ Submitted plan of development to the NDIC with completion timeline (available in the VDR) (1) Development plan by operator subject to change Confidential – Not For Distribution 7
IV. R ESERVOIR E NGINEERING Three Forks / Pronghorn Formation Type Curve T HREE F ORKS / P RONGHORN H ORIZONTAL PUD L OCATIONS T HREE F ORKS /P RONGHORN F ORMATION O IL T YPE C URVE D&C: $7MM ~ 9,500’ Lateral Length: Disc. Payout: 2.5 years ROR: 48% T HREE F ORKS / P RONGHORN S INGLE W ELL E CONOMICS Oil Gas NGL IP30 18.3 MBO 25.3 MMCF 3.2 MB D i 68% 53% 53% b-factor 1.30 1.30 1.30 EUR 594 MBO 1,228 MMCF 155 MB DUCS Economic EUR: 954 MBOE PERMITS ADDITIONAL PUDS (1) Calculated using strip pricing assumptions Confidential – Not For Distribution 8
IV. R ESERVOIR E NGINEERING Whiting Petroleum Corporation | Enhanced Completion Designs Yielding Higher EURs T HREE F ORKS /P RONGHORN F ORMATION O IL T YPE C URVE ▪ Whiting Petroleum presents 3 significant production results from enhanced completions 2 ▪ Whiting has not yet implemented 1 enhanced completion techniques on Seller’s position, providing significant additional upside in future development of the assets W HITING | P RODUCTION R ESULTS FROM E NHANCED C OMPLETIONS W HITING A CREAGE | L OCATOR M AP 2 1 3 Seller’s approximate position Source: Whiting Petroleum March 2018 Investor Presentation Confidential – Not For Distribution 9
IV. R ESERVOIR E NGINEERING Unquantified Upside | Three Forks Second and Third Bench Horizontal Potential T HREE F ORKS F ORMATION | A DDITIONAL U PSIDE T HREE F ORKS S TRATIGRAPHIC C OLUMN ▪ Multiple operators throughout the Williston Basin are testing and developing the second and third benches of the Three Forks formation ▪ Production results from Three Forks second and third bench wellbores provide support for economic development competitive with Three Forks first bench producing wellbores ▪ As the second and third bench become delineated by top operators, additional undeveloped locations may become available for further development of the Seller’s assets W ILLISTON B ASIN | C ROSS S ECTION Source: Continental Resources Investor Presentation Seller’s approximate position Source: Continental Resources Investor Presentation Confidential – Not For Distribution 10
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