Marketed: Ridglea Energy Texas Eastern Shelf Assets

The following information is provided by PetroDivest Advisors. All inquiries on the following listings should be directed to PetroDivest. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

Ridglea Energy I LLC has retained PetroDivest Advisors to sell its Eastern Shelf assets in Motley, King, Stonewall and Shackelford counties, Texas.

The package offers an attractive opportunity to acquire roughly 8,000 net acres with a substantial inventory of drill-ready highly-economic development locations, extensive technical analysis, 3-D seismic data, in-place infrastructure, and 18 low-decline producing wells with steady cash flow.

Asset Highlights:

• Stable, Long-life Oily Production Base
  • Low-decline reserve base
    • 87 boe/d net production (90% oil) from 18 producing wells (two Horizontal / 16 Vertical)
    • 100% Operated with up to 100% working interest available
    • 5% annual decline
    • Nine years proved developed producing (PDP) reserves-to-production ratio
  • Strong near-term cash flow
    • More than $1 million next 12 months PDP cash flow
    • $5 million PDP NPV-10 value
    • $23/boe lease operating expense
• Complemented by High Growth Horizontal Project
  • Contiguous 8,000 net acre position with no expirations until 2020, plus two-year extensions and operator-friendly CDC
  • Delineation of position complete – three Horizontal wells / two Vertical recompletions, all with impressive IP rates
    • Significant upside in completion optimization. Initial Ridglea completions featured only low rate acid stimulations and are refrack candidates
    • Extensive geological and geophysical and technical data provide solid understanding of subsurface environment
  • More than 90 highly-economic horizontal locations in the Chester Limestone formation
    • Low cost $2.3 million drilling and completion per well
    • Top-tier returns (greater than 90% internal rate of returns)
    • Infrastructure in-place and no takeaway constraints (not subject to Mid-Cush differential)
• Substantial Geo-Technical Support
  • The Shackelford County horizontal development targets the Chester (Mississippian) formation, a tight limestone situated between the Barnett Shale source rock and the Chappel Limestone
    • Horizontal wells drilled to date indicate a large continuous oil accumulation, favorable reservoir deliverability, geologic continuity / repeatability, and significant upside from completion optimization
    • Substantial infrastructure in place, including saltwater disposal well, electrical, and gas gathering tied into Targa
    • Robust geologic, technical and reservoir data, including proprietary 3-D, microseismic and core data

Process Overview:

• Evaluation materials available via the Virtual Data Room on Nov. 1
• Proposals due Nov. 30

For information visit petrodivest.com or contact Ken Reed, director of PetroDivest, at ken@petrodivest.com or 713-595-1016.