PP

COVE PRODUCING ASSETS SUBPKG 1

Producing Properties

All Standard Disclaimers Apply & Seller Rights Retained


COVE PRODUCING ASSETS SUBPKG 1

HOCKLEY, LUBBOCK & COCHRAN CO

21-Operated Wells. 25-NonOperated Wells

SMYER, BROADVIEW, WHITHARRAL

CLEARFORK; UPPER PERMIAN BASIN

Some Deep Potential.

High Impact. Long Life. Shallow Decline.

WATERFLOOD POTENTIAL

Gross Production: 254 BOPD & 36 MCFD

Net Production: 86 BOPD & 9 MCFD

Net Cash Flow: ~$75,000 Mn

Sep 2019 Net PDP PV10: $5,084,600

OFFERS DUE APRIL 15TH, 2020

SUBPACKAGE #1

PP 2732

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, Oklahoma and Arkansas.

Engineering, Accounting and Land Files Include Data for the Total Portfolio and Subpackage

SUBPACKAGE 1----
This is a subpackage of Cove Petroleum's entire portfolio consisting of their Operated and a portion of their NonOperated assets. In more detail and as described above, this SubPackage includes 21-Operated wells and 25-NonOperated wells producing in Hockley, Lubbock & Cochran Co., Texas. These wells produce 254 BOPD & 36 MCFD and are seeing a net production of 86 BOPD & 9 MCFD. A recent seller engaged engineering report details a Net PDP PV10 of $5,084,600.

Cove Operated Properties Highlights:
• All Cove-Operated properties have Waterflood Potential
• Wells in West Broadview Field have Pressure Support from adjacent West Broadview Unit
• Deep potential may exist in the Smyer Field assets (Seismic to be shot in 1st Qtr)

ORRI in 5-Operated Wells
Brown #1, #2 & #3
API: 42-219-33735
API: 42-219-81949
API: 42-219-33820
In Smyer Field with 1.17% ORRI.

Cook 24 #1 & #2
API: 42-219-33483
API: 42-219-33586
In Hockley Co., TX with 4.69% ORRI.

Cove’s HBP’d Leasehold from currently producing wells (non-Unit wells):

1. Stanton #1 well (P&A’d in 2014):
This well was operated by Cove Petroleum and was Plugged & Abandoned back in 2014 and is adjacent to other wells that Cove operates in Lubbock County, Texas; Cove owns HBP’d leasehold of 80 net mineral acres on this property from surface down to a depth equivalent of the base of the Clearfork formation; Cove’s ownership in this leasehold: WI = 100% ; NRI = 75%; Leasehold is HBP’d by the Staton A #1 well that is currently producing and operated by Cove Petroleum.

2. Holmes well (P&A’d in 2014):
This Well was operated by Cove Petroleum and was Plugged & Abandoned back in 2014 and is adjacent to other wells that Cove operates in Lubbock County, Texas; Cove owns HBP’d leasehold of 40 net mineral acres on this property from surface down to a depth equivalent of the base of the Clearfork formation; Cove’s ownership in this leasehold: WI = 100% ; NRI = 75%; Leasehold is HBP’d by the Graham Holmes #1 well that is currently producing and operated by Cove Petroleum.

Asset #1: Stanton Lease
• Stanton Lease
• Cove WI= 100%; NRI: 75%;
• 80-Net Mineral Acres
• Legal Description: E.L. & R.R. RR Co. Survey,
         Block JS, Section 29: N/2 SW/4,
         Lubbock County, Texas

Asset #2: Holmes Lease
• Holmes Lease
• Cove WI = 100.00%; NRI = 75%
• 40-Net Mineral Acres
• Legal Description: E.L. & R.R. RR Co. Survey,
         Block JS, Section 26: NE/4 NW/4,
         Lubbock County, Texas

For more detail regarding the total portfolio and or various SubPackages please open the QuickLook under Summary & Introductory Material.

Please Note---
The Seller Will Entertain Offers for the Cove SubPackage #1 so much as they can secure proper offers for the total portfolio. Offers are due April 15, 2020

Click below for SubPackages:
Cove Total Sale Package
Package #2 Cove Scattered NonOperated WI
Package #3 Cove Mineral and Royalties

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

HOCKLEY, LUBBOCK & COCHRAN CO

21-Operated Wells. 25-NonOperated Wells

SMYER, BROADVIEW, WHITHARRAL

CLEARFORK; UPPER PERMIAN BASIN

Some Deep Potential.

High Impact. Long Life. Shallow Decline.

WATERFLOOD POTENTIAL

Gross Production: 254 BOPD & 36 MCFD

Net Production: 86 BOPD & 9 MCFD

Net Cash Flow: ~$75,000 Mn

Sep 2019 Net PDP PV10: $5,084,600

OFFERS DUE APRIL 15TH, 2020

SUBPACKAGE #1

PP 2732

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, Oklahoma and Arkansas.

Engineering, Accounting and Land Files Include Data for the Total Portfolio and Subpackage

SUBPACKAGE 1----
This is a subpackage of Cove Petroleum's entire portfolio consisting of their Operated and a portion of their NonOperated assets. In more detail and as described above, this SubPackage includes 21-Operated wells and 25-NonOperated wells producing in Hockley, Lubbock & Cochran Co., Texas. These wells produce 254 BOPD & 36 MCFD and are seeing a net production of 86 BOPD & 9 MCFD. A recent seller engaged engineering report details a Net PDP PV10 of $5,084,600.

Cove Operated Properties Highlights:
• All Cove-Operated properties have Waterflood Potential
• Wells in West Broadview Field have Pressure Support from adjacent West Broadview Unit
• Deep potential may exist in the Smyer Field assets (Seismic to be shot in 1st Qtr)

ORRI in 5-Operated Wells
Brown #1, #2 & #3
API: 42-219-33735
API: 42-219-81949
API: 42-219-33820
In Smyer Field with 1.17% ORRI.

Cook 24 #1 & #2
API: 42-219-33483
API: 42-219-33586
In Hockley Co., TX with 4.69% ORRI.

Cove’s HBP’d Leasehold from currently producing wells (non-Unit wells):

1. Stanton #1 well (P&A’d in 2014):
This well was operated by Cove Petroleum and was Plugged & Abandoned back in 2014 and is adjacent to other wells that Cove operates in Lubbock County, Texas; Cove owns HBP’d leasehold of 80 net mineral acres on this property from surface down to a depth equivalent of the base of the Clearfork formation; Cove’s ownership in this leasehold: WI = 100% ; NRI = 75%; Leasehold is HBP’d by the Staton A #1 well that is currently producing and operated by Cove Petroleum.

2. Holmes well (P&A’d in 2014):
This Well was operated by Cove Petroleum and was Plugged & Abandoned back in 2014 and is adjacent to other wells that Cove operates in Lubbock County, Texas; Cove owns HBP’d leasehold of 40 net mineral acres on this property from surface down to a depth equivalent of the base of the Clearfork formation; Cove’s ownership in this leasehold: WI = 100% ; NRI = 75%; Leasehold is HBP’d by the Graham Holmes #1 well that is currently producing and operated by Cove Petroleum.

Asset #1: Stanton Lease
• Stanton Lease
• Cove WI= 100%; NRI: 75%;
• 80-Net Mineral Acres
• Legal Description: E.L. & R.R. RR Co. Survey,
         Block JS, Section 29: N/2 SW/4,
         Lubbock County, Texas

Asset #2: Holmes Lease
• Holmes Lease
• Cove WI = 100.00%; NRI = 75%
• 40-Net Mineral Acres
• Legal Description: E.L. & R.R. RR Co. Survey,
         Block JS, Section 26: NE/4 NW/4,
         Lubbock County, Texas

For more detail regarding the total portfolio and or various SubPackages please open the QuickLook under Summary & Introductory Material.

Please Note---
The Seller Will Entertain Offers for the Cove SubPackage #1 so much as they can secure proper offers for the total portfolio. Offers are due April 15, 2020

Click below for SubPackages:
Cove Total Sale Package
Package #2 Cove Scattered NonOperated WI
Package #3 Cove Mineral and Royalties

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