Fossil Resources - Haynesville Divestiture 2017

Overview

Deep Package

  • Excellent opportunity to acquire highly economic, unconventional, dry gas acreage located in the Haynesville and Bossier fairways
  • Contiguous leasehold position of ~9,000 gross / ~8,000 net acres (~100% HBP) in Nacogdoches County, Texas(1)
  • Approximately 720 bcfe of total net reserves(1)
  • Large inventory of high return development opportunities in Haynesville and Bossier
    • Over 100 gross operated drilling locations
  • Significant offset activity by XTO Energy and EXCO Resources
  • Considerable play momentum as technical and operational advancements promote continued well performance
    • Active development in the basin includes over 25 rigs currently targeting the Haynesville / Bossier
    • Drilling longer laterals and advances in completion design (including larger fracture treatment) continue to improve economics
      • Haynesville proppant volumes have increased from ~1,200 lbs/ft in 2009 to 3,000 lbs/ft today
      • High correlation between EUR and proppant loading
  • Owned gathering lines tied to Texas Eastern
    • No gathering / transportation charges

Shallow Package

  • Current net production of ~3,000 mcfe/d (~95% gas) from 24 wells(1)
    • Producing from the Travis Peak and James Lime formations
  • Approximately 8.7 bcfe of proved reserves and 238 bcfe of undeveloped reserves(1)
    • Average F&D cost of $1.12/mcfe
  • Over 220 gross operated Travis Peak and James Lime drilling locations
  • Largely operated production (>90%) and upside

Contacts

Please email the signed Confidentiality Agreement to fossil.haynesville@bmo.com 

Contact Chelsea Neville at +1 713-546-9703 or any of the above individuals with questions.