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Who sells properties and leases on EnergyNet? EnergyNet Nationwide Property Sales Darker color denotes higher concentration of properties sold Over $2 Billion in total sales • More than 45,000 properties and leases sold • Over 5,000 active sellers Industry Standard Major oil companies Large independents Universities Bank trust departments Government institutions Many oil and gas companies have already embraced EnergyNet as a critical part of their divestment process. The EnergyNet Marketplace

2016 EnergyNet Overview 6-1-2016

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Page 1: 2016 EnergyNet Overview 6-1-2016

Who sells properties and leases on EnergyNet?

EnergyNet Nationwide Property Sales

Darker color denotes higher concentration of properties sold

Over $2 Billion in total sales • More than 45,000 properties and leases sold • Over 5,000 active sellers • Industry Standard

‣ Major oil companies

‣ Large independents ‣ Universities ‣ Bank trust

departments ‣ Government

institutions

Many oil and gas companies have already embraced EnergyNet as a critical part of their

divestment process.

The EnergyNet Marketplace

Page 2: 2016 EnergyNet Overview 6-1-2016

2014 Sales Statistics

2

2014 featured properties from these and 336 other sellers!2014Total Actual Sales

$283,717,780

Number of Properties Listed 4,552

Number of Unique Sellers 395

Number of Sale Closing Days 123

Page 3: 2016 EnergyNet Overview 6-1-2016

2015 Sales Statistics

3

This year featured properties from these and 155 other sellers!2015

Total Actual Sales $284,650,798

Number of Properties Sold 7,001

Number of Unique Sellers 185

Number of Sale Closing Days 124

MINERALS & ROYALTIES ELEMENTALRESOURCES

ȯland ȯnergy, Inc.

FDICFederal Deposit Insurance Corporation

Page 4: 2016 EnergyNet Overview 6-1-2016

8 State ORRI, RI and Mineral Package

Non-Operated WI Package Ellis County, Oklahoma

Operated Package

Permian Basin

Select Transactions

4

$29,250,000 $10,000,000

$12,000,000

Operated Wells McKenzie County, North

Dakota

$10,000,000

Operations and RI/MI Garza County, TexasMultiple Packages

$37,000,000 $8,000,000

Permian Basin Leasehold Acreage

Andrews and Gaines Counties, Texas

$10,000,000

Cottonwood Prospects Leasehold Acreage

Culberson and Reeves Counties, Texas

$7,100,000

Operations, Non-Producing Leasehold, ORRI & RI

Dawson, Martin, Reagan and Upton Counties, Texas

$18,000,000

Non-Operated WI Package California, Colorado, North

Dakota and Oklahoma

$17,900,000

Operated & Leasehold Package

Ector County, Texas

Operated and Non-Operated Package

Permian Basin

$34,000,000 $31,000,000 $24,500,000

Operations and Leasehold Glasscock and Martin

Counties, Texas

$21,100,000

Operated 120-Well Package

Gregg and Rusk Counties, Texas

Operated & Leasehold Package

Reagan County, Texas

$39,000,000

Page 5: 2016 EnergyNet Overview 6-1-2016

EnergyNet Advantages

Proven & Reliable • 45,000+ property transactions closed in 15 years • 5,000+ unique sellers (significant repeat business) • 18,000+ active qualified buyers • $2B in assets sold • High-profile Recognized Buyers and Sellers

Creates Value for Sellers • 84% Sales Success Rate • Exposure to the Marketplace • Competition for Assets • Streamlined Due Diligence Distribution • Sellers Choose When to Sell

Page 6: 2016 EnergyNet Overview 6-1-2016

EnergyNet AdvantagesCreates Opportunity for Buyers

• Steady Stream of Acquisition Opportunities Ready to be Purchased

• Comprehensive, Thorough, and Complete VDR

• Easy to Access Due Diligence Materials

• Buyers can Evaluate, Bid and Transact from Anywhere

• Link to DrillingInfo Embedded in VDR

• Engineering / Economic Evaluation Input Easily Downloaded

Page 7: 2016 EnergyNet Overview 6-1-2016

Expose your company's assets to more than 18,000 active, sophisticated, registered, accredited oil and gas investors.

Increased Participation and Competition

‣ Top 250+ Public E&P Companies

‣ Top 250+ Private E&P Companies

‣ Private Equity Backed E&P’s ‣ Upstream MLP’s ‣ Regional O&G Companies ‣ Royalty Aggregators ‣ Investor Groups ‣ High Net Worth Individuals EnergyNet Nationwide Buyer Distribution

Darker color denotes higher concentration of buyers

Who buys properties and leases on EnergyNet?Aggregate bid allowance

Over $6 billion

Page 8: 2016 EnergyNet Overview 6-1-2016

1,000 Buyers EnergyNet Reaches All Well Known Buyers ‣ Top 250+ Public E&P Companies

‣ Top 250+ Private E&P Companies

‣ Private Equity Backed E&P’s

‣ Upstream MLP’s

+ 17,000 Buyers EnergyNet Also Reaches All Less Known Buyers ‣ Regional O&G Companies ‣ Royalty Aggregators ‣ Investor Groups ‣ Institutions ‣ Funds ‣ High Net Worth Individuals

Access to the Marketplace

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Page 9: 2016 EnergyNet Overview 6-1-2016

Access To Key Companies Nationwide ExxonMobil

Chevron Shell BP

ConocoPhillips Occidental Anadarko

EOG Resources Apache

Marathon Hess

Devon Noble Energy Continental

Pioneer Chesapeake

EnCana Cabot

Statoil Southwestern

Range Murphy Concho

EQT Denbury Cimarex Freeport-McMoran Whiting

QEP Fidelity

SM Energy Energen

WPX Gulfport

Total

Newfield Ultra

Sandridge Laredo Halcon

American Energy Partners Sheridan

Unit Bonanza Creek

Exco PDC

W&T Offshore Stone

Carrizo Approach Bill Barrett Northern

Diamondback Comstock

BHP-Billiton EP Energy Resolute Enerplus Endeavor Sanchez Goodrich

RSP Permian Clayton Williams

Matador Earthstone PetroQuest

PennVirginia Callon Parsley

Contango

Gastar Bass Petroleum

XTO Energy Chief

Consol Ring Energy

Eagle Linn Energy

Repsol Breitburn Vanguard

Legacy KinderMorgan

Eclipse Antero

Lime Rock California

Resource Corp.

Merit Energy Citation Hilcorp

Enervest Walter

Samson Yates Hunt

J-W Operating Kaiser Francis

Valence Smith Production

Rice Energy Jones Energy

Oasis Petroleum Rex Energy Energy XXI Blackstone

Page 10: 2016 EnergyNet Overview 6-1-2016

Stepping into the RingUpCurve Energy

LLC Lola Energy

Black Mountain Oil & Gas

Rover Petroleum Rimrock Resource Partners Red Bluff Holdings

Resource Energy Partners Element

Petroleum III Balidor Oil and

Gas Terra Energy

Partners Luxe Energy

Monadnock Resources

Bison Oil and Gas Partners

Colgate Energy Partners

Percussion Petroleum LLC

PCORE II Torrent Oil & Gas

Scala Energy Rockcliff Energy Rebellion Energy Laurel Mountain Channel Energy

Banner Resources

Krewe Energy Rio Oil & Gas

Cantera Energy EXL Energy

Primary Natural Resources IV

Protege Energy Rockcliff Energy

Haymaker Minerals

Phillips Energy Partners

Tabula Rasa Partners

Invictus Energy HRM Resources

Endless Mountain Oak Ridge Energy Riverbend Oil &

Gas Panther Energy

Ameredev Bold Energy III Brigadier Oil &

Gas Advance Energy

Partners Eclipse Energy Marlin Energy

QStar Plantation Petroleum

Tracker Resources Travis Peak

PayRock EnergyQuest Jagged Peak

Tug Hill Vitruvian

Wishbone Energy Partners

Newark E&P LOGOS Resources

Talos Tanos

Renaissance Kraken Oil & Gas Atlantic Resource

Company Bright Horizon

Resources Tundra Oil & Gas

Covey Park Ursa Resource

Group Wild Wind Petroleum

Craton Energy

Juniper Resources Stanolind

Boaz Energy Windy Cove Bluestone

Trail Ridge Energy Partners

PetroEdge Saxes Minerals

Exponential Resource Crown Oil Partners

CP Exploration Battlecat Oil &

Gas Capstone Natural

Resources

Page 11: 2016 EnergyNet Overview 6-1-2016
Page 12: 2016 EnergyNet Overview 6-1-2016

EnergyNet Continuous Sales CycleWeek 1

Property Preparation / Marketing Preparation

Week 5 Closing /

Filing of Assignments

Week 2 Due Diligence / Marketing Window

Week 4 Competitive Bidding / Bid Deadline

Week 3 Due Diligence / Marketing Window

12

3

45

Page 13: 2016 EnergyNet Overview 6-1-2016

The Sum of the Parts is Greater Than the WholeChevron Case Study

‣ Producing Fields ‣ Oil and gas leases ‣ Large operated packages ‣ Larger non-operated

working interests and small operated properties

‣ Small non-operated working interests

‣ Producing Overrides ‣ Producing Royalties ‣ Non-Producing Minerals

Total actual sales$450 Million

Transactions Sold2,000+

Anticipated sales results$325 Million

Darker color denotes higher concentration of properties sold

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Page 14: 2016 EnergyNet Overview 6-1-2016

Broad & Targeted Marketing Campaign:EnergyNet Marketing Strategy‣ Personal Contact by Business Development to Bidders and Area Operators

‣ 18,000+ Pre-registered Bidders

‣ Highlighted Direct Website Marketing

‣ Save Search Profile Activation e-mails

‣ Direct Mail and Fax to Area Operators & Historical Buyers

‣ Weekly Email Notification to Pre-registered Bidders

‣ DrillingInfo Marketplace and Areas of Interests

‣ Press Releases to Industry Publications (A&D Watch, OG Investor, DrillingInfo, OGFJ, etc.)

‣ Targeted Marketing to Historical Buyers/Bidders/Viewers of Similar Properties

Page 15: 2016 EnergyNet Overview 6-1-2016

From over 54,000 contacts, Pinpoint identifies the most likely buyers, regardless of location

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Page 16: 2016 EnergyNet Overview 6-1-2016

Advanced platform to showcase your assets

Our advanced website displays assets and due diligence information in a uniform format, coupling the

information with mapping technology and unparalleled access to advanced research tools. Complete information

is available for the buyer to review.

What can EnergyNet do for your company?

Premier marketing servicesEnergyNet’s website listings, weekly email market

report, advanced notification techniques and advertisements in leading industry publications

reach thousands of potential buyers nationwide on your behalf.

Choose the sale method: Auction, Sealed Bid or Negotiated

Take advantage of EnergyNet’s premier marketplace and asset platform while transitioning from a traditional outcry or “hybrid” auction to a more robust continuous online auction, rapid-cycle sealed bid sale, or customized

negotiated sale. The choice is yours.

Technical and Evaluation support for property sales

EnergyNet’s expert technical and evaluation team helps identify upside and showcase the attributes of

your property package to maximize value. EnergyNet uses our internal evaluations, as well as, third-party engineering and we are flexible to meet

your company's needs.

Page 17: 2016 EnergyNet Overview 6-1-2016

EnergyNet ServicesEnergyNet will prepare data rooms, market properties to buyers, facilitate competitive bid marketing/sales processes, and act as closing and escrow agent for the disposition your oil and gas assets.

‣ Property Preparation ‣ Engineering and Technical Presentation of Upside ‣ Land Staff Support ‣ Scanning Hardcopy Data / Electronic Data Transfer ‣Create Custom GIS Mapping ‣Create Online Data Rooms for Each Lot ‣Creation & Delivery of Bound Data Packages & Electronic

Packages ‣ Property Marketing ‣ Facilitate Rapid-Cycle Sealed Bid Process ‣ Screen Buyers / Credit Verification ‣Closing Services / Post Sale Negotiation Services ‣Wiring / Escrow Services ‣Conveyance Documents to Seller & Buyer Recorded

Success Based Commission Includes:‣Personal Contact by Business Development to

Bidders and Area Operators ‣ 18,000+ Pre-Registered Bidders ‣Highlighted Direct Website Marketing ‣Direct Mail and Fax to Area Operators & Historical

Buyers ‣Weekly Email Notification to Pre-registered Bidders ‣Press Releases to Industry Publications (A&D

Watch, DrillingInfo, OGFJ, etc.) ‣Pinpoint - Finding the Most Likely Buyer,

Regardless of Location

Marketing Efforts Include:

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Page 18: 2016 EnergyNet Overview 6-1-2016

Proposal Summary

‣ EnergyNet maximizes value by driving competition ‣ Our Business Development Representatives have deep market knowledge and

an extensive buyer network ‣ EnergyNet will apply its proprietary Pinpoint technology to find the “needle in

the haystack” buyer for each asset grouping ‣ The EnergyNet marketing team will insure these lots are thoroughly-marketed

via personal phone calls, face-to-face meetings, U.S. mail, email, press releases, Drilling Info AOI’s and print media

‣ Efficient, streamlined transaction: Buyer/Seller Agreement is the PSA ‣ Ability to take advantage of a market teeming with Buyers ‣ Upon your acceptance of our proposal, EnergyNet is prepared to create

comprehensive VDRs for each asset package and begin our marketing process

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Page 19: 2016 EnergyNet Overview 6-1-2016

ROCKIES/WESTERN U.S.

Ryan P. [email protected]

PERMIAN BASIN

Lindsay D. [email protected]

VP-MID-CONTINENT /TX PANHANDLE

Ethan [email protected]

HOUSTON / EASTERN U.S.

Cody [email protected]

VP-PERMIAN BASIN / EAST TX / NORTH LA

Michael [email protected]

PRESIDENT

Chris [email protected]

Member FINRA. Investments in oil and gas properties involve substantial risk including the possible loss of principal. 877.351.4488 • energynet.com

VP-CORPORATE DEVELOPMENT

John [email protected]

• CONTINUOUS ONLINE AUCTION • RAPID-CYCLE SEALED BID SALES • NEGOTIATED SALES • STATE LEASE SALES