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Marathon Selling "SOHOT" Prospect

Acreage & Leasehold

All Standard Disclaimers Apply & Seller Rights Retained


CADDO CO., OK MULTIPAY PROJECT

~37,372-Acres. Includes All Depths.

PRODUCTIVE MARCHAND TARGET

THICK HOXBAR & SPRINGER GAS

HOGSHOOTER, MEDRANO & CULP

HIGH ROCK QUALITY

Contiguous Acreage. Lateral Development

100% OPERATED WI; HIGH NRI

Development Plan To Drill 70 Wells

Favorable Lease Expiry Terms/Extensions

50% Leases Extendable to 5 Years

Marchand EUR: 278 MBO & 338 MMCF

MOTIVATED SELLER

VDR+THIRD PARTY TECHNICAL REVIEW

MARATHON SEEKS IMMEDIATE IDEAS

L 8000DV

Summary
Marathon Oil Company (MOC) has retained Energy Advisors Group to market for sale its oil & gas leasehold located in Caddo County with potential throughout the Pennsylvanian Hoxbar section.

This is a nice drilling project that offers an attractive opportunity to acquire a large-scale, resource play with multiple target zones analogous to nearby successful drilling by Unit Petroleum & others. In fact, this is a perfect project for a new company (with or without private equity) looking for a starter project. The high net revenue (~80.8% NRI) offer an additional opportunity to acquire, drill, hold and flip for cash and a retained override.

Why Buy?
The package offers an attractive opportunity to acquire a large-scale resource play with multiple taregt zones analagous to nearby successful drilling by Unit Petroleum.

Large, Contiguous Position: ~37,372 Net Acres
-- Long Laterals. Contiguous leases ideal for extended reach and pad development.
-- All Rights. Vast majority of acreage has depth rights to all formations.
-- Quality. Comparable rock quality and net thickness is seen between the asset. and offset high performers drilled by Unit Petroleum in the Marchand in southwestern Grady County;
-- Low Lease Burden. Favorable NRI (19.2% Avg. Lease Burden).
-- Time. No material lease expirations until April 2020 with 19,900 acres having a further 2-year extension option.
-- Plans. Development plan includes an initial drill out of 72-Marchand wells over 3-years w/ a potential of 200+ more wells - EUR of 278 MBO each

High-Quality Rock, Stacked Pay within Multiple Productive Formations
-- Asset targets the Pennsylvanian Hoxbar section in the Anadarko Basin
-- Additional upside in multiple formations including Hogshooter, Medrano & Culp among others

Geology
The regional Pennsylvanian Hoxbar petroleum system is continuous from Grady through Caddo County. The net sand and PhiH of the system compares favorably to southwest Grady County where multiple high-performing wells have been drilled and completed. The "SoHot" Hoxbar play is also known as the “Southern Oklahoma Hoxbar Oil Trend". The Hoxbar is a roughly 2,000-foot-thick, Pennsylvanian-age sequence of sand and shale intervals which estimates it to contain four to six sand intervals that may be commercial.

According to one report, Unit Corp. drilled its first well in the play in 2013 and quickly became a core position. By late 2018, Unit had drilled and completed horizontals in two zones including the:
a. Marchand - deeper, oily zone at around 11,000 Ft
b. Medrano - more shallow zone; gassy zone; 9,800 Ft

With a 4,300-foot lateral, the Marchand wells cost some $7 million and may produce 300-500 MBOE, 80-90% oil. . With a similar lateral, the shallower Medrano wells cost some $4.2 million and may produce 3.0-4.5 billion cubic feet of gas equivalent, 30% liquids

Physical Data Room Presentations
-- Available by Appointment made through EAG representative
-- Presentation will be 1 to 2-hour sessions focusing on introducing the technical and geologic story
-- Quick review of certain commerical materials

Divestiture Process
-- Negotiated Sale Process.
-- Submit offers immediately for direct negotiations
-- Preference to sell the prospect in a single transaction for cash:
-- Financing needs and approvals should be in place when PSA is executed

The prospect and its acreage are owned by Poblano Energy LLC, a wholly owned subsidiary of Marathon Oil Company.

For Prospect Presentation, Physical Data Room Appointments & Questions about the Opportunity, Please Contact:

Energy Advisors Group
Ms. Carrie Calahan
5120 Woodway Dr Ste 10010
Houston, TX 77056
Phone: 713-600-0123
---------Email: [email protected]

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

CADDO CO., OK MULTIPAY PROJECT

~37,372-Acres. Includes All Depths.

PRODUCTIVE MARCHAND TARGET

THICK HOXBAR & SPRINGER GAS

HOGSHOOTER, MEDRANO & CULP

HIGH ROCK QUALITY

Contiguous Acreage. Lateral Development

100% OPERATED WI; HIGH NRI

Development Plan To Drill 70 Wells

Favorable Lease Expiry Terms/Extensions

50% Leases Extendable to 5 Years

Marchand EUR: 278 MBO & 338 MMCF

MOTIVATED SELLER

VDR+THIRD PARTY TECHNICAL REVIEW

MARATHON SEEKS IMMEDIATE IDEAS

L 8000DV

Summary
Marathon Oil Company (MOC) has retained Energy Advisors Group to market for sale its oil & gas leasehold located in Caddo County with potential throughout the Pennsylvanian Hoxbar section.

This is a nice drilling project that offers an attractive opportunity to acquire a large-scale, resource play with multiple target zones analogous to nearby successful drilling by Unit Petroleum & others. In fact, this is a perfect project for a new company (with or without private equity) looking for a starter project. The high net revenue (~80.8% NRI) offer an additional opportunity to acquire, drill, hold and flip for cash and a retained override.

Why Buy?
The package offers an attractive opportunity to acquire a large-scale resource play with multiple taregt zones analagous to nearby successful drilling by Unit Petroleum.

Large, Contiguous Position: ~37,372 Net Acres
-- Long Laterals. Contiguous leases ideal for extended reach and pad development.
-- All Rights. Vast majority of acreage has depth rights to all formations.
-- Quality. Comparable rock quality and net thickness is seen between the asset. and offset high performers drilled by Unit Petroleum in the Marchand in southwestern Grady County;
-- Low Lease Burden. Favorable NRI (19.2% Avg. Lease Burden).
-- Time. No material lease expirations until April 2020 with 19,900 acres having a further 2-year extension option.
-- Plans. Development plan includes an initial drill out of 72-Marchand wells over 3-years w/ a potential of 200+ more wells - EUR of 278 MBO each

High-Quality Rock, Stacked Pay within Multiple Productive Formations
-- Asset targets the Pennsylvanian Hoxbar section in the Anadarko Basin
-- Additional upside in multiple formations including Hogshooter, Medrano & Culp among others

Geology
The regional Pennsylvanian Hoxbar petroleum system is continuous from Grady through Caddo County. The net sand and PhiH of the system compares favorably to southwest Grady County where multiple high-performing wells have been drilled and completed. The "SoHot" Hoxbar play is also known as the “Southern Oklahoma Hoxbar Oil Trend". The Hoxbar is a roughly 2,000-foot-thick, Pennsylvanian-age sequence of sand and shale intervals which estimates it to contain four to six sand intervals that may be commercial.

According to one report, Unit Corp. drilled its first well in the play in 2013 and quickly became a core position. By late 2018, Unit had drilled and completed horizontals in two zones including the:
a. Marchand - deeper, oily zone at around 11,000 Ft
b. Medrano - more shallow zone; gassy zone; 9,800 Ft

With a 4,300-foot lateral, the Marchand wells cost some $7 million and may produce 300-500 MBOE, 80-90% oil. . With a similar lateral, the shallower Medrano wells cost some $4.2 million and may produce 3.0-4.5 billion cubic feet of gas equivalent, 30% liquids

Physical Data Room Presentations
-- Available by Appointment made through EAG representative
-- Presentation will be 1 to 2-hour sessions focusing on introducing the technical and geologic story
-- Quick review of certain commerical materials

Divestiture Process
-- Negotiated Sale Process.
-- Submit offers immediately for direct negotiations
-- Preference to sell the prospect in a single transaction for cash:
-- Financing needs and approvals should be in place when PSA is executed

The prospect and its acreage are owned by Poblano Energy LLC, a wholly owned subsidiary of Marathon Oil Company.

For Prospect Presentation, Physical Data Room Appointments & Questions about the Opportunity, Please Contact:

Energy Advisors Group
Ms. Carrie Calahan
5120 Woodway Dr Ste 10010
Houston, TX 77056
Phone: 713-600-0123
---------Email: [email protected]

Questions Regarding This Asset? Email Carrie Calahan or call EAG at 713-600-0123