Pursuant to Bankruptcy of El Dorado Gas & Oil, Hugoton Operating and affiliate interests

• First Sale Package Launched Includes Two Fields
• A.W.P. Olmos Field in McMullen County, Texas
• Mecom Ranch Lease (J.C. Martin Field) in Zapata County, Texas

Houston —  August 9, 2024 — Energy Advisors Group (“EA”) has been retained as Sales Agent for the liquidation of the oil and gas interests of El Dorado Gas & Oil, Hugoton Operating LLC and related entities in a bankruptcy process underway in the Mississippi Southern Bankruptcy Court.

The first sale package includes the Debtor’s interest in A.W.P. field in McMullen County, Texas and the Mecom Ranch lease located in the J.C. Martin field in Zapata County, Texas. The Trustee is accepting Qualified Bids for both assets or for each individual asset if separate sales still assure the sale of both packages. All offers are subject to Court approval of the following planned timeline:

• Qualified Bids Due September 9, 2024
• Auction Scheduled September 12, 2024
• Sale Hearing Planned September 16, 2024

A.W.P. Olmos Field, McMullen County, Texas

A.W.P. field was first developed by Shell Oil in early 1982 and to date has produced over 360 Bcf of natural gas and 14 million barrels of oil. The field’s primary producer is the tight Olmos sand which holds large amounts of hydrocarbons in a low-permeability, depletion-driven reservoir at depths ranging from 10,000 to 11,000 feet. Notably, the Olmos reservoir stretches from an oily window in the northern part of the field to a rich gas window to the south. Silverbow Energy’s predecessor, Swift Energy, acquired a 4,900-acre leasehold and 65 wells in 1988 and expanded the field. By year-end 2008, Swift had >550 vertical producers and initiated its first horizontal Olmos producer and by 2013 had 30 horizontal wells, with 5,000’ average laterals.  The Debtor acquired the asset, now for sale, over a series of acquisitions from Silverbow Energy and White Oak Resources putting together a largely contiguous position of 40,605 gross acres (100% working interest, 76% net revenue interest). The asset operated under the names El Dorado Gas & Oil and Dorado Drilling is depth limited to the Olmos. After field production dropped after the bankruptcy filing, production is being restored and continues to rise steadily. New compression in the field is soon scheduled in August to further boost volumes.  A third-party engineering firm estimates that as of June 1, 2024 using NYMEX pricing, the PV10 value of the remaining Proved Reserves is $30,500,690, with $26,151,109 classified as Proved Developed Producing.

Mecom Ranch Lease (J.C. Martin Field), Zapata County, Texas

The second asset for sale is the 8,304-acre Mecom Ranch lease (99% working interest, 70% net revenue interest) in northwest Zapata County, Texas which has produced over 340 Bcf from the J.C. Martin Field. The contiguous single lease asset began production in 1975 and changed hands over time to Coastal Oil & Gas, Kerr McGee, and Anadarko. Anadarko sold the asset in 2011 as part of a larger package to Bluestone Natural Resources, an NGP private-equity backed company who later transferred the asset to Blackbeard Operating who sold the asset to the Debtor in 2020 who operated the asset under the name Hugoton Operating.

The field’s primary production is from the Wilcox (Lobo Trend) through a series of Lobo sands (Lobo 1-Lobo 6) characterized as low permeability, geopressured and fault compartmentalized ranging in depth from 7,000 to 10,000 feet. The first well (J.W. Mecom #1) came online in 1975 and produced over 16 Bcf. A third-party engineering firm estimates that as of June 1, 2024 using NYMEX pricing, the PV10 value of the remaining Proved Reserves is $9,223,034 of which $7,932,773 is classified as Proved Developed Producing.

ABOUT ENERGY ADVISORS GROUP

EAG is a leading provider of global oil and gas marketing and advisory services. The firm and its partners have worked on over 1,000 assignments and advised on over $100 billion in transactions for over 400 clients. More information on the Sale Package can be found at: www.energyadvisors.com.