SOUTH TEXAS HBP OPPORTUNITY

Summary

Energy Advisors Group has been retained by DAHCO Exploration to market an operated conventional oil and gas asset in Live Oak County, South Texas. The position is 4,560 net acres and is 100% HBP across two leases of similar size: the Reynolds lease west of Highway 281 and the McCaslin lease to the east. The asset is being marketed as 100% operated WI and 75% NRI. The asset is 16 wells, 4 active and 12 shut-in, which hold the acreage and provide a stable base while allowing a buyer to focus capital on redevelopment. The property benefits from good access, simple operations, and manageable surface ownership typical of South Texas.

Engineering Upside

The asset has a proved reserve base supported by third-party engineering, showing 464,583 Bbl and 1.0 Bcf with a total proved PV10 of $12.5 MM. The asset fits the conventional profile many potential buyers prefer: existing wells hold the ground, while the value is in low-risk behind-pipe work and drill-ready locations. There are 23 total engineered upside opportunities, made up of 15 behind-pipe, 4 PUD, and 4 PROB. Each existing well has 3 to 6 behind-pipe opportunities, mainly in the Frio and Yegua, giving a clear path to grow production.

Behind Pipe & Drilling Locations

The behind-pipe is low-cost and repeatable, with 15 planned workovers scheduled over time. Individual workovers are estimated to cost $36,000 to $68,000, with typical reactivation rates of 25 to 40 bopd per well. The drilling locations are modeled at $625,000 per well, targeting the Hockley and Yegua formations at depths of 5,000–5,500 feet. Modeled results show expected additions of about 122 bopd and 1,000 Mcf/d per well. Technical support for the asset is strong and well organized. DAHCO shot a proprietary 11-square-mile 3D seismic survey in 2021, which will transfer with a perpetual license to the buyer. The seismic is available for review, along with a supporting dataset that includes original well files, historical field records, and legacy data.

Potential purchasers are encouraged to review the Virtual Data Room. The Private VDR includes (1) a summary tab QuickLook, (2) accounting, (3) a 3rd party PHDWin database with summary reports, (4) a seismic presentation, (5) land map and (6) annotated logs and gauge sheets.

The bid date for this opportunity is scheduled for May 28. Please contact the EAG team below with any questions or to request access to the VDR. Our firm is happy to assist you and provide any necessary clarification regarding this opportunity.

Please direct all inquiries to the EAG contacts listed below:

Richard S. Martin

Director

[email protected]

--- Phn: 469-866-9796

Vann Keefover

Petroleum Engineer

[email protected]

--- Phn: 713-600-0144

Houston Office

4265 San Felipe, Suite 650

Houston, TX, 77027

---Main: 713-600-0123 and/or 713-600-1069