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Mineral and Overriding Royalty Interest
Assets in the DJ Basin
March 5, 2018
Confidential – Not For Distribution March 5, 2018 Page 2
Eagle River Holdings, LLC has been exclusively retained by affiliates of McWhinney (“Seller”)
for the divestiture of mineral and overriding royalty interest assets located in the DJ Basin of
Larimer and Adams Counties, Colorado.
▪ Extraction Oil & Gas spud 14 well Coyote pad February 2018 with estimated first sales in August 2018
▪ ~$6.2MM projected net cash flow for 2018 from 14 well Coyote Pad
▪ ~673 net mineral acres at ~18.75% royalty rate leased to Extraction in North Park area
▪ Negotiating Surface Use Agreements for Centerra area with Anadarko Petroleum Corporation
▪ ~3,488 net and ~3,591 gross acres across three prospect areas (per third party report): Centerra, Iron Horse
and North Park
▪ 160 gross PUD well locations in the Niobrara / Codell Formations
▪ 9 gross producing wellbores
▪ ~4,633 MBOE total net Proved Reserves (2% PDP / 98% upside reserves)
▪ ~4,559 MBOE / $64.3MM (PV-20) PUD net Reserves (160 wells)
▪ ~74 MBOE / $1.4MM (PV-10) PDP net Reserves (9 wells)
▪ Primary Targets: Niobrara and Codell Formations
▪ Assets operated and to be developed by basin-leading public companies: Anadarko Petroleum
Corporation and Extraction Oil & Gas (“XOG”)
▪ Significant near-term cash flows from non-cost bearing interests
Mineral and Overriding Royalty Interest Assets for Sale in the DJ Basin
NEAR-TERM
UPSIDE WITH
EXISTING CASH
FLOW
MINERAL AND
ORRI ASSETS IN
THE CORE OF DJ
BASIN
ENGINEERED
RESERVES WITH
SIGNIFICANT
UPSIDE
BEST IN CLASS
OPERATORS OF
ASSETS
CO
Confidential – Not For Distribution March 5, 2018 Page 3
DJ Basin Assets | North Park – Extraction Operated, Adams County
ACREAGE POSITION IN THE DJ BASIN
North Park
North Park
▪ ~ 714 gross and ~673 net acres and additional ORRI
▪ Operator: Extraction Oil & Gas
▪ 3.42% RI average
▪ Currently drilling 14 well Coyote Pad
▪ Development planned throughout mineral / ORRI
position with continuous drilling plan
XOG Spud Coyote Pad
(14 wells) 2/16/20181S-68W
Sec. 3, 4, 5, 8, 10
Adams Co., Co
~673 net mineral
acres with
additional ORRI
(1) Development plan by operator subject to change
Confidential – Not For Distribution March 5, 2018 Page 4
North Park Development Plan
▪ City Council of Broomfield approved operating agreement for Extraction Oil & Gas (“XOG”) in October 2017 to develop their Broomfield assets with best management practices
▪ All spacing unit applications with COGCC suspended until approval of plan
▪ Final plan of development includes consolidation of well pad locations, a 1,000’ minimum setback from residential and plugging of legacy production
▪ Seller’s legacy production not affected
▪ 113 horizontal wells approved across 7 multi-well pad locations
▪ First pad drilling: Coyote Pad (14 wells)
▪ Spudded February 2018
▪ Anticipated first sales August 2018
XOG BROOMFIELD DEVELOPMENT AREAXOG APPROVED PLAN OF DEVELOPMENT
XOG Spud Coyote Pad
(14 wells) 2/16/2018
Currently Drilling and
Actively Permitted Minerals
(14 wells – Coyote Pad)
Pending Permitted ORRI
(34 wells – Livingston Pad)
Pending Permitted Minerals
(2 wells – Interchange Pad)
Vertical Well
Existing HZ Well
Permitted HZ Well
Pending Permit
1S-68W
Sec. 3, 4, 5, 8, 10
Adams Co., Co
~673 net mineral
acres with
additional ORRI
(1) Development plan by operator subject to change
Confidential – Not For Distribution March 5, 2018 Page 5
DJ Basin Assets | Centerra & Iron Horse – Anadarko Operated, Larimer County
ACREAGE POSITION IN THE DJ BASIN
Centerra
Iron Horse
Centerra
▪ ~2,716 gross and ~2,658 net acres (subject to
pooling)
▪ ~11.25% RI average
▪ Operator: Anadarko Petroleum Corporation
▪ Larimer County, CO
Iron Horse
▪ ~161 gross and ~157 net acres
▪ ~3.63% RI average
▪ 1 active permit
▪ Operator: Anadarko Petroleum Corporation
▪ Larimer County, CO
5N-68W (Centerra & Iron
Horse)
Sec. 2, 3, 4, 8, 9, 10, 11, 13
Adams Co., Co
~2,815 net mineral acres
(1) Development plan by operator subject to change
Confidential – Not For Distribution March 5, 2018 Page 6
Centerra Development Plan
▪ Seller currently negotiating Surface Use Agreements with Anadarko Petroleum Corporation for Centerradevelopment
▪ Anadarko anticipates first sales of 2020 –2021 on the three (3) pads shown
▪ 40 horizontal wells proposed across three (3) multi-well pad locations
▪ Additional unquantified upside in potential locations not included in current Anadarko development plan
▪ Known fault path (shown on map to the right) poses slight reduction in type curves
▪ Accounts for sections of the wellbore that will be out of zone and uncompleted due to the faulting
CENTERRA DEVELOPMENT AREACENTERRA DEVELOPMENT PLAN
Pad 1:
16 wells
Pad 2:
12 wells
Pad 3:
12 wells
Approximate Fault Path
5N-68W
Sec. 2, 3, 4, 8, 9, 10, 11
Adams Co., Co
~2,658 net mineral acres
(1) Development plan by operator subject to change
Confidential – Not For Distribution March 5, 2018 Page 7
Reserves Summary
PRICING ASSUMPTIONS
NET RESERVES SUMMARY
NET RESERVES PROFILENET PRODUCTION PROFILE
(1) Reserve equivalents calculated on energy equivalence of 6 Mcf/Bbl
Oil Gas
Year ($/Bbl) ($/Mcf)
2018 $64.14 $3.00
2019 $59.07 $2.82
2020 $55.87 $2.81
2021 $54.17 $2.87
2022 $53.37 $2.91
2023 $53.28 $2.94
2024+ $55.00 $3.00
1/25/2018 Strip Price
Oil Gas
($/Bbl) ($/Mcf)
$6.50 $.30 - .50
Differentials
Undeveloped
4,559 MBOE
98%
Developed
74 MBOE
2%Oil
2,190 MBO
47%
Gas
14.7 Bcf
53%
Oil Gas
(MBO) (MMCF)
Centerra
Proved Developed Producing 8 2,054.9 24.9 194.2 57.3 $979 1.2%
Proved Undeveloped 40 12,063.4 911.8 3,662.2 1,522.2 $22,184 32.9%
Centerra 1P Reserves 48 14,118.3 936.8 3,856.4 1,579.5 $23,164
Iron Horse
Proved Developed Producing 1 462.2 12.1 28.1 16.8 $375 0.4%
Proved Undeveloped 7 4,580.1 95.6 424.2 166.3 $2,793 3.6%
Iron Horse 1P Reserves 8 5,042.3 107.7 452.3 183.0 $3,168
North Park
Proved Undeveloped 113 92,605.2 1,145.6 10,348.3 2,870.3 $39,324 62.0%
North Park 1P Reserves 113 92,605.2 1,145.6 10,348.3 2,870.3 $39,324
Total 1P Reserves 169 111,765.8 2,190.0 14,657.0 4,632.9 $65,655
PDP PV-10
PUD PV-20
($M)
%
Reserves
Gross No.
Wells
Gross Reserves
(MBOE)
Net Reserves Total (6:1)
Net Equivalent
(MBOE)
Confidential – Not For Distribution March 5, 2018 Page 8
Sales Process Overview | Contact Information
SALES PROCESS OVERVIEW
Key Dates
▪ Effective Date February 1, 2018
▪ VDR opened March 5, 2018
▪ VDR access March 5 – April 5, 2018
Preliminary Bid Instructions
▪ Bids due April 5, 2018
Austin McKeeManaging Director
303-832-5128
Brian GreenManaging Director
832-680-0110
Darrell FinnemanManaging Director
720-726-6091
James BarnesDirector
832-680-0112
Alex SaleDirector of Engineering
720-726-6094
EAGLE RIVER A&D TEAM
Kari BleyleManager
303-770-6096
Disclaimer: The information contained herein has been prepared solely for informational purposes to assist with Recipient’s review of the Assets and to facilitate discussions relevant thereto. Neither Seller, McWhinney Real Estate Services, Inc., or their affiliates (“Seller Parties”)
nor Eagle River claim to present all information that may be necessary or desired to complete Recipient’s review. The materials have been prepared by Eagle River and are based on Eagle River’s assumptions and projections in addition to Seller’s, Third Parties’, and Governmental
Agencies’ files, records, reports, data, assumptions, projections and opinions (the “Material”). Such Material is believed to be reliable and relevant; however, neither Seller Parties nor Eagle River make any representations, express or implied, as to the completeness, accuracy, or
adequacy of such Material presented herein. It being understood by Recipient, that said Material is subject to change without notice. Recipient acknowledges that the information in the Material may also include, but is not limited to, unqualified financial statements, economic and
reserve reports and forecasts, commodity prices, oil and gas production data, lease operating expenses, assumptions, projections, revenue statements, drilling and completion reports, title ownership records pertaining to leasehold, mineral ownership reports and other information
which may not be correct and which are subject to various risks. Recipient represents that Recipient is an experienced individual and/or entity who is engaged in the business of oil and gas operations, owns working interests, royalties, and/or mineral interests and understands the
inherit risks associated with reviewing, valuing, purchasing, drilling, producing, and operating oil and gas assets. Recipient will conduct its own independent evaluation and due diligence and, as such, may wish to employ third party experts, consultants, and advisors to assist in its
review. Recipient will rely solely on its own independent evaluation and analysis for the purpose upon which it is to be utilized. Recipient agrees that neither the Seller Parties nor Eagle River shall be liable for any losses, damages, or claims resulting from the reliance on or use of
such Material, from errors contained therein, or omissions therefrom. This is not an offer to sell properties, assets, securities, and/or provide financing or any other form of a transaction. Recipient agrees that unless and until a final definitive written agreement regarding a transaction
between Seller Parties and Recipient has been executed and delivered, neither Seller Parties nor Recipient will be under any legal obligation of any kind whatsoever with respect to a transaction by virtue of this Presentation. Recipient further acknowledges and agrees that Seller
Parties reserve the right, in their sole discretion, to reject any and all proposals of any nature made by Recipient and to terminate discussions and negotiations with Recipient at any time with or without notice of any kind.
Kit ReasonerReservoir Engineering Analyst
720-726-6092
Denver Office5460 S Quebec St Ste 335
Greenwood Village, CO 80111
Houston Office25700 I-45 North, Suite 400
The Woodlands, TX 77386
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