PP

OKLAHOMA CHAPTER 11 SALE

Producing Properties

All Standard Disclaimers Apply & Seller Rights Retained


OKLAHOMA CHAPTER 11 SALE

OKLAHOMA OPERATED PROPERTY

179-Total Wells. ~38,800-Net Acres.

NOBLE, PAWNEE, PAYNE, & WAGONER

2 Fields w/ Supporting Infrastructure

MultiZone Targets Include: Mississippian,

-- Woodford, Red Fork & Arbuckle

3-D Seismic Available.

COURT ORDERED LIQUIDATION

~95% Avg OPERATED WI; ~79% NRI

Gross Prod: 168 BOPD & 1,235 MCFD

Net Prod: 286 BOED (45% Oil)

Ample Near Term Development Potential

Net PDP Rsrvs: 140 MBO & 1.27 BCF

~50 High Impact Horizontal Locations

16-Dedicated Disposal Wells

SOLD BY EAG DECEMBER 2018

PP 7895DV

COURT ORDERED LIQUIDATION SALE.
THIS ASSET WILL BE SOLD
CONTACT MITCHELL BUCHANAN 713-600-0144 FOR GUIDANCE.

Highlights:
- Substantial HBP Acreage
- Existing Wellbores and Production Opportunities
- Numerous Proved Undeveloped Locations
- Solid Salt Water Disposal System
- Additional Best In Class Infrastructure (Electrical Lines, Gathering, Pipelines, etc.)
- Immediate Opportunity to Improve Cash Flow

Summary of Bid Procedures:
- Send all bidMitchell Buchanan [email protected]
- Redlined or Signed APA (Asset Purchase Agreement) Required
- No Contingencies (“as is, where is”)
- 10% deposit of the purchase price (“Good Faith Deposit”)*
- Written statement agreeing to bid procedures
- Proof of funds (cash, financial commitment letter, or financial capability)

See bid procedures PDF for more information.

Summary:
Energy Advisors Group has been retained by Red Fork (USA) Investments, Inc. and EastOK Pipeline, Llc to market their northeast Oklahoma assets as part of a court ordered Chapter 11 bankruptcy process. Red Fork's assets are located in Kay, Noble, Pawnee, Payne and Wagoner counties and consist of 2 large operated fields with 179-Total wells (59-PDP, 100-Shut In, 18-SWD & 2 wells awaiting completion). Red Fork owns an average of 95% operated WI and 79% NRI across the entire position with operations contracted out to Trey Resources, Inc.

The two fields span 44,087-gross acres (38,836-net acres) with production holding 85% of the leases. In May 2018, gross production was 168 BOPD & 1,235 MCFD (374 BOED 6:1) with net production of 120 BOPD & 997 MCFD (286 BOED 6:1). The assets are currently generating an average net cash flow of ~$22,200 per month with significant room for growth in the form of operating cost reductions and optimizing efficiencies from EastOK's large midstream and disposal networks in each field. Significant capital has been invested into this asset with $45,000,000 going towards building out modern infrastructure including over 160 miles of high-density polyethylene gas pipelines, 30 miles of three-phase electrical lines and 16 dedicated disposal wells.

Near Term Development Potential:
Red Fork and Trey Resources recently conducted a reservoir petrophysics and geomechanics study on their most promising asset, the Big River field in Payne, Pawnee and Noble counties in an effort to maximize near-term development potential from the acreage. The study concluded that a new landing and completion strategy will allow a single wellbore to produce from both the Mississippian and Woodford intervals simultaneously while limiting frac fluid leak off and minimizing produced water. This new "Combo" subsurface development strategy, is in line with offset operator development plans as confirmed by nearby AFEs received by Red Fork.

Trey Resources believes that a single 7,500 ft "Combo" well can be drilled and completed for $4,150,000 and produce EURs of ~250 MBOE with a 62% IRR and PV10 of ~$3,250,000. Trey has already identified approximately 50 total Mississippian/Woodford combo locations on the Big River acreage as well as several cost-effective recompletion opportunities.

3D Seismic fully transferrable to the buyer. Seismic covers contiguous blocks near the intersection of Noble, Payne, and Pawnee counties.

Updates:
11/21/18: Surface Descriptions Download Link added to 06. Land
11/20/18: Trey Resources Lease Revisions added to 06. Land
11/20/18: Land and Gathering Shapefiles added to 06. Land
11/20/18: Well Test & Rental Agreements added to 04. Well Data
11/20/18: Division Order Title Opinion Link added to 06. Land
11/20/18: Wagoner JIBs added to 03. Accounting
11/09/18: Well Data Download Link added to 04. Well Data
11/09/18: Big River LOE by Well added to 03. Accounting
11/07/18: Lease Schedule updated in 06. Land
11/07/18: Detailed Equipment Inventory added to 04. Well Data
10/19/18: Assignment Bill of Sale & Conveyance added to 02. Bid and Sale Procedures
10/18/18: Asset Schedules & Financial Affairs Statements added to 03. Court Documents
10/17/18: APA/PSA Schedule added to 02. Bid and Sale Procedures
10/17/18: Seismic Coverage Map added
10/16/18: Court Documents Folder and Files added
10/15/18: Due Diligence Folder and Files added
10/12/18: APA/PSA added to 02. Bid and Sale Procedures
10/12/18: Seismic Link Doc added to 11. Seismic
10/12/18: FAQ added to 10. FAQ
10/12/18: LOS Summary by Well added to 03. Accounting
10/12/18: Wagoner Stratigraphic Chart added to 09. Geology

TO LEARN MORE CONTACT:

Mr. Mitchell Buchanan
A&D Associate
Energy Advisors Group
5120 Woodway Dr Ste 11010
Houston, TX 77056

Phone: 713-600-0123
Direct: 713-600-0144
Cell: 832-525-6147
Email: [email protected]

Questions Regarding This Asset? Email Mitchell Buchanan or call EAG at 713-600-0123
Virtual Data Room

OKLAHOMA OPERATED PROPERTY

179-Total Wells. ~38,800-Net Acres.

NOBLE, PAWNEE, PAYNE, & WAGONER

2 Fields w/ Supporting Infrastructure

MultiZone Targets Include: Mississippian,

-- Woodford, Red Fork & Arbuckle

3-D Seismic Available.

COURT ORDERED LIQUIDATION

~95% Avg OPERATED WI; ~79% NRI

Gross Prod: 168 BOPD & 1,235 MCFD

Net Prod: 286 BOED (45% Oil)

Ample Near Term Development Potential

Net PDP Rsrvs: 140 MBO & 1.27 BCF

~50 High Impact Horizontal Locations

16-Dedicated Disposal Wells

SOLD BY EAG DECEMBER 2018

PP 7895DV

COURT ORDERED LIQUIDATION SALE.
THIS ASSET WILL BE SOLD
CONTACT MITCHELL BUCHANAN 713-600-0144 FOR GUIDANCE.

Highlights:
- Substantial HBP Acreage
- Existing Wellbores and Production Opportunities
- Numerous Proved Undeveloped Locations
- Solid Salt Water Disposal System
- Additional Best In Class Infrastructure (Electrical Lines, Gathering, Pipelines, etc.)
- Immediate Opportunity to Improve Cash Flow

Summary of Bid Procedures:
- Send all bidMitchell Buchanan [email protected]
- Redlined or Signed APA (Asset Purchase Agreement) Required
- No Contingencies (“as is, where is”)
- 10% deposit of the purchase price (“Good Faith Deposit”)*
- Written statement agreeing to bid procedures
- Proof of funds (cash, financial commitment letter, or financial capability)

See bid procedures PDF for more information.

Summary:
Energy Advisors Group has been retained by Red Fork (USA) Investments, Inc. and EastOK Pipeline, Llc to market their northeast Oklahoma assets as part of a court ordered Chapter 11 bankruptcy process. Red Fork's assets are located in Kay, Noble, Pawnee, Payne and Wagoner counties and consist of 2 large operated fields with 179-Total wells (59-PDP, 100-Shut In, 18-SWD & 2 wells awaiting completion). Red Fork owns an average of 95% operated WI and 79% NRI across the entire position with operations contracted out to Trey Resources, Inc.

The two fields span 44,087-gross acres (38,836-net acres) with production holding 85% of the leases. In May 2018, gross production was 168 BOPD & 1,235 MCFD (374 BOED 6:1) with net production of 120 BOPD & 997 MCFD (286 BOED 6:1). The assets are currently generating an average net cash flow of ~$22,200 per month with significant room for growth in the form of operating cost reductions and optimizing efficiencies from EastOK's large midstream and disposal networks in each field. Significant capital has been invested into this asset with $45,000,000 going towards building out modern infrastructure including over 160 miles of high-density polyethylene gas pipelines, 30 miles of three-phase electrical lines and 16 dedicated disposal wells.

Near Term Development Potential:
Red Fork and Trey Resources recently conducted a reservoir petrophysics and geomechanics study on their most promising asset, the Big River field in Payne, Pawnee and Noble counties in an effort to maximize near-term development potential from the acreage. The study concluded that a new landing and completion strategy will allow a single wellbore to produce from both the Mississippian and Woodford intervals simultaneously while limiting frac fluid leak off and minimizing produced water. This new "Combo" subsurface development strategy, is in line with offset operator development plans as confirmed by nearby AFEs received by Red Fork.

Trey Resources believes that a single 7,500 ft "Combo" well can be drilled and completed for $4,150,000 and produce EURs of ~250 MBOE with a 62% IRR and PV10 of ~$3,250,000. Trey has already identified approximately 50 total Mississippian/Woodford combo locations on the Big River acreage as well as several cost-effective recompletion opportunities.

3D Seismic fully transferrable to the buyer. Seismic covers contiguous blocks near the intersection of Noble, Payne, and Pawnee counties.

Updates:
11/21/18: Surface Descriptions Download Link added to 06. Land
11/20/18: Trey Resources Lease Revisions added to 06. Land
11/20/18: Land and Gathering Shapefiles added to 06. Land
11/20/18: Well Test & Rental Agreements added to 04. Well Data
11/20/18: Division Order Title Opinion Link added to 06. Land
11/20/18: Wagoner JIBs added to 03. Accounting
11/09/18: Well Data Download Link added to 04. Well Data
11/09/18: Big River LOE by Well added to 03. Accounting
11/07/18: Lease Schedule updated in 06. Land
11/07/18: Detailed Equipment Inventory added to 04. Well Data
10/19/18: Assignment Bill of Sale & Conveyance added to 02. Bid and Sale Procedures
10/18/18: Asset Schedules & Financial Affairs Statements added to 03. Court Documents
10/17/18: APA/PSA Schedule added to 02. Bid and Sale Procedures
10/17/18: Seismic Coverage Map added
10/16/18: Court Documents Folder and Files added
10/15/18: Due Diligence Folder and Files added
10/12/18: APA/PSA added to 02. Bid and Sale Procedures
10/12/18: Seismic Link Doc added to 11. Seismic
10/12/18: FAQ added to 10. FAQ
10/12/18: LOS Summary by Well added to 03. Accounting
10/12/18: Wagoner Stratigraphic Chart added to 09. Geology

TO LEARN MORE CONTACT:

Mr. Mitchell Buchanan
A&D Associate
Energy Advisors Group
5120 Woodway Dr Ste 11010
Houston, TX 77056

Phone: 713-600-0123
Direct: 713-600-0144
Cell: 832-525-6147
Email: [email protected]

Questions Regarding This Asset? Email Mitchell Buchanan or call EAG at 713-600-0123