PP

DIVERSIFIED PORTFOLIO FOR SALE

Producing Properties

All Standard Disclaimers Apply & Seller Rights Retained


DIVERSIFIED PORTFOLIO FOR SALE

MULTISTATE PRODUCING PROPERTIES

422-Wells. 21-Op. 237-NonOp. 164-RI/ORRI

NORTH PERMIAN, TEXAS, OKLAHOMA

CLEAR FORK, SAN ANDRES, CHESTER

SOME WATERFLOOD POTENTIAL

SOLID AREA OPERATORS

OPERATED, NONOPERATED, ROYALTY

Gross Prod: 998 BOPD & 15,669 MCFD

Net Production: 140 BOPD & 435 MCFD

Net Cash Flow: ~$125,000/Mn

Net PDP PV10: $8,011,540

Net PDP Reserves: 621 MBO & 962 MMCF

CONTACT EAG FOR FULL ACCESS TO VDR

PP 2730RR

Seller Seeks to Monetize Total Portfolio & Will Consider Offers Along Asset Type

Summary
Energy Advisors Group has been retained by Cove Petroleum to assist in marketing their entire portfolio of Operated WI, NonOperated WI and RI/ORRI in 422 wells, mainly in Texas and Oklahoma.

The portfolio encompasses 21-Operated wells, 237-NonOperated wells and 164-Royalty and Override interest Wells. The Operated wells are concentrated in Hockley and Lubbock Cos., TX and all produce from the Clearfork Formation which is a proven secondary recovery reservoir via waterflood. The upper or northern Permian Basin assets include both Operated and Non-Operated working interests and some with Royalty/ORR interests. In addition, some of the wells have both working and royalty interest ownership.

This package is a multistate producing portfolio which includes 3-Major Oil and Gas States being Texas, Oklahoma & Arkansas. There are 76 different operators whose wells are producing with long life and shallow decline reservoirs.

Cove Properties Highlights:
• All Cove-Operated properties have Waterflood Potential
• Various wells in the West Broadview field potentially have some pressure support from the adjacent West Broadview Unit
• Deep potential may exist in the Smyer field assets (Seismic to be shot in 1st Qtr)
• ORRI in Ward County, TX.
       -One Hz well (UL Kerwin A 18-12 #7101H) recently drilled
       -Thus Additional Wolfcamp Hz wells are expected
       -Potential for Bone Springs Hz development as well
• Undeveloped Minerals
       -Cove owns Mineral Interest in Sec 16-6N-9W; Caddo County, OK.
       -Multi-unit Hz application by Zarvona Energy currently in OCC and continued to June 23, 2020.
• Cash flow of $1.5MM to $1.9MM annually
• Minimal number of inactive properties

Texas Producing Properties, (Operated, NonOperated, & Overrides/Royalty Interests)
--22-Counties. >230 Wells
--Panhandle; Permian; North Texas; East Texas
--Operated Properties Have Proven Waterflood Potential
--Gross Production From The Texas Assets: 887 BOPD & 3,626 MCFD
--Net Production From Texas: 140 BOPD & 216 MCFD

Key Texas Positions:
--Permian (Cochran, Dawson, Gaines, Dawson, Hockley, Lubbock)
--East Texas (Rusk, Harrison, Cass)
--Panhandle/North Texas (Coke, Ochiltree)
--South Texas (Lavaca)

Oklahoma Producing Properties (Mostly NonOperated WI)
--14-Counties. >120 Wells
--Anadarko & Arkoma Basins
--Beaver, Carter, Pittsburgh & Roger Mills
--Gross Production From Oklahoma: 109 BOPD & 9,169 MCFD
--Net Production From The Oklahoma Assets: 3 BOPD & 204 MCFD

Key Oklahoma Plays & Positions:
--STACK/SCOOP Play
--Oklahoma Panhandle

The Seller also owns small interests in Arkansas, Colorado and Louisiana.

Purchasers of operated working interest should note that this Sales Package will include some wells applicable for Waterflood including interests around the West Broadview Unit.

SALES OFFERING---
These assets will be marketed as one offering but potential buyers can make offers on a subpackage basis along property type including operated, nonoperated, and royalty & overrides:

Package #1 Cove Operated & NonOperated Properties (North Permian)
Package #2 Cove Scattered NonOperated WI
Package #3 Cove Mineral and Royalties

Any acceptance of SubPackage offers must allow for the complete sale of ALL assets.

For more detail regarding the portfolio and it's sub packages please open the QuickLook under Summary & Introductory Material which will be posted February 24.

MOTIVATED SELLER----
This is a highly motivated seller looking to exit oil and gas and the client will accept offers along property type in so much as all of the offers allow for the sale of ALL OF THESE ASSETS. For example, potential purchasers can make offers for the operated assets; nonoperated assets and the overrides and royalty separately. There may be some consideration for purchasers to also look at an offer for the waterflood properties in the North Permian Basin.

TO LEARN MORE
Energy Advisors Group
Mr. Blake Dornak
A&D Director
5120 Woodway Dr Ste 10010
Houston, TX 77056
---Phone: 713-600-0123 Direct: 713-600-0169 Cell: 903-390-6803
---Email: [email protected]

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

MULTISTATE PRODUCING PROPERTIES

422-Wells. 21-Op. 237-NonOp. 164-RI/ORRI

NORTH PERMIAN, TEXAS, OKLAHOMA

CLEAR FORK, SAN ANDRES, CHESTER

SOME WATERFLOOD POTENTIAL

SOLID AREA OPERATORS

OPERATED, NONOPERATED, ROYALTY

Gross Prod: 998 BOPD & 15,669 MCFD

Net Production: 140 BOPD & 435 MCFD

Net Cash Flow: ~$125,000/Mn

Net PDP PV10: $8,011,540

Net PDP Reserves: 621 MBO & 962 MMCF

CONTACT EAG FOR FULL ACCESS TO VDR

PP 2730RR

Seller Seeks to Monetize Total Portfolio & Will Consider Offers Along Asset Type

Summary
Energy Advisors Group has been retained by Cove Petroleum to assist in marketing their entire portfolio of Operated WI, NonOperated WI and RI/ORRI in 422 wells, mainly in Texas and Oklahoma.

The portfolio encompasses 21-Operated wells, 237-NonOperated wells and 164-Royalty and Override interest Wells. The Operated wells are concentrated in Hockley and Lubbock Cos., TX and all produce from the Clearfork Formation which is a proven secondary recovery reservoir via waterflood. The upper or northern Permian Basin assets include both Operated and Non-Operated working interests and some with Royalty/ORR interests. In addition, some of the wells have both working and royalty interest ownership.

This package is a multistate producing portfolio which includes 3-Major Oil and Gas States being Texas, Oklahoma & Arkansas. There are 76 different operators whose wells are producing with long life and shallow decline reservoirs.

Cove Properties Highlights:
• All Cove-Operated properties have Waterflood Potential
• Various wells in the West Broadview field potentially have some pressure support from the adjacent West Broadview Unit
• Deep potential may exist in the Smyer field assets (Seismic to be shot in 1st Qtr)
• ORRI in Ward County, TX.
       -One Hz well (UL Kerwin A 18-12 #7101H) recently drilled
       -Thus Additional Wolfcamp Hz wells are expected
       -Potential for Bone Springs Hz development as well
• Undeveloped Minerals
       -Cove owns Mineral Interest in Sec 16-6N-9W; Caddo County, OK.
       -Multi-unit Hz application by Zarvona Energy currently in OCC and continued to June 23, 2020.
• Cash flow of $1.5MM to $1.9MM annually
• Minimal number of inactive properties

Texas Producing Properties, (Operated, NonOperated, & Overrides/Royalty Interests)
--22-Counties. >230 Wells
--Panhandle; Permian; North Texas; East Texas
--Operated Properties Have Proven Waterflood Potential
--Gross Production From The Texas Assets: 887 BOPD & 3,626 MCFD
--Net Production From Texas: 140 BOPD & 216 MCFD

Key Texas Positions:
--Permian (Cochran, Dawson, Gaines, Dawson, Hockley, Lubbock)
--East Texas (Rusk, Harrison, Cass)
--Panhandle/North Texas (Coke, Ochiltree)
--South Texas (Lavaca)

Oklahoma Producing Properties (Mostly NonOperated WI)
--14-Counties. >120 Wells
--Anadarko & Arkoma Basins
--Beaver, Carter, Pittsburgh & Roger Mills
--Gross Production From Oklahoma: 109 BOPD & 9,169 MCFD
--Net Production From The Oklahoma Assets: 3 BOPD & 204 MCFD

Key Oklahoma Plays & Positions:
--STACK/SCOOP Play
--Oklahoma Panhandle

The Seller also owns small interests in Arkansas, Colorado and Louisiana.

Purchasers of operated working interest should note that this Sales Package will include some wells applicable for Waterflood including interests around the West Broadview Unit.

SALES OFFERING---
These assets will be marketed as one offering but potential buyers can make offers on a subpackage basis along property type including operated, nonoperated, and royalty & overrides:

Package #1 Cove Operated & NonOperated Properties (North Permian)
Package #2 Cove Scattered NonOperated WI
Package #3 Cove Mineral and Royalties

Any acceptance of SubPackage offers must allow for the complete sale of ALL assets.

For more detail regarding the portfolio and it's sub packages please open the QuickLook under Summary & Introductory Material which will be posted February 24.

MOTIVATED SELLER----
This is a highly motivated seller looking to exit oil and gas and the client will accept offers along property type in so much as all of the offers allow for the sale of ALL OF THESE ASSETS. For example, potential purchasers can make offers for the operated assets; nonoperated assets and the overrides and royalty separately. There may be some consideration for purchasers to also look at an offer for the waterflood properties in the North Permian Basin.

TO LEARN MORE
Energy Advisors Group
Mr. Blake Dornak
A&D Director
5120 Woodway Dr Ste 10010
Houston, TX 77056
---Phone: 713-600-0123 Direct: 713-600-0169 Cell: 903-390-6803
---Email: [email protected]

Questions Regarding This Asset? Email Blake Dornak or call EAG at 713-600-0123