Rice Energy - Barnett Divestiture 2017

Overview

  • Excellent opportunity to acquire a highly economic, operated asset in the Barnett Shale
    • Large ~35,000 net acre position (94% HBP) primarily in Wise, Denton, and Tarrant counties
    • 98% operated, providing control over future development
    • High working interest properties with average PDP WI / NRI of 90% / 69%
    • Primarily rural development with ~70% in non-urban/suburban areas
  • Attractive mix of PDP plus low risk development
    • Current production of ~100 mmcfe/d (85% gas) from 209 wells as of December 2016
    • Approximately 250 gross remaining Barnett horizontal drilling locations in core Wise, Denton and Tarrant counties
    • Reduced D&C costs and improved completion designs will increase already robust drilling economics in current price environment
    • Horizontal and vertical refrac opportunities
  • Extensive midstream infrastructure in place to facilitate further development
    • Little buildout required given significant capital already invested
    • Opportunity to improve contract terms

Contacts

Please email the signed Confidentiality Agreement to client.barnett@bmo.com 

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