Sabine - NLA Divestiture 2017

Sabine Oil & Gas Corporation (‘Sabine”) is offering for sale its North Louisiana assets in Red River Parish, Louisiana (the “Properties”); BMO Capital markets has been retained as exclusive financial advisor to Sabine

Overview

  • Excellent opportunity to acquire a highly economic, substantially operated asset in the Louisiana “Sweet Spot” of the Haynesville Shale play
  • Acreage acquired during Sabine’s merger with Forest Oil in 2014
  • Legacy operated Sabine wells have a predictable production profile based on multi-year production histories for legacy operated wells
  • Current production of over 9.4 mmcfepd increasing to 228 mmcfepd by year end 2018 assuming ongoing development
  • Contiguous leasehold of 7,886 net Cotton Valley acres overlaying 5,543 net Haynesville acres in Red River Parish, Louisiana
  • High degree of control given 100% HBP
  • Considerable Haynesville play momentum as technical and operational advancements have materially improved well performance and economics
    • Longer lateral lengths with 7,500’ laterals common (where land positions allow) and 10,000’+ laterals increasingly testedModern completions with larger fluid volumes and higher proppant concentrations; 3,000+ lbs/ft increasingly common and over 5,000 lbs/ft recently tested
    • Tighter cluster spacing and decreased stage spacing promoting more effective fracs
    • Pressure drawdown management preventing damage from high rates and high drawdown
  • 49 quantified gross horizontal Haynesville locations and 25 quantified gross horizontal Cotton Valley locations with attractive economics at current strip
  • Additional quantified behind pipe recompletions and incremental parent well enhancement due to offset stimulations

Contacts

Please email the signed Confidentiality Agreement to Sabine.NLA@bmo.com

Contact Chelsea Neville at +1 713-546-9703 or comstock.eagleford@bmo.com with any additional questions.