Nora Field Non-Operated Natural Gas Opportunity...Shale (Berea & Big Lime) ~5,000’ 23 0 Horizontal...
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Detring Energy Advisors 172 80 41 18 55 9 46 100 78 60 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 10 100 1,000 Operated Gross Production (MMcfed) Virginia Kentucky West Virginia Tazewell Russell Letcher Buchanan Dickenson McDowell Mingo Wise Knott Washington Location Map Low Risk, Repeatable Development Locations 700+ low risk, economic locations identified by EnerVest – ~16% IRRs at ~$400M D&C costs – Low capital commitment to maintain flat production profile Active workover program of ~35 projects scheduled for 2020 – 2019 program of 56 workovers yielded 200% IRR EnerVest Energy Institutional Fund XIV-1A, LP (“EnerVest” or “EV”) has retained Detring Energy Advisors to market for sale a 15% non-operated position in its Nora Field assets inclusive of upstream properties, gathering pipelines, disposal wells, and a compressor fleet located in Dickenson, Buchanan, Wise & Russell Counties, Virginia and Clay & Kanawha Counties, West Virginia. Underpinned by strong, shallow-decline production, low royalty burdens, advantaged pricing, and a top conventional operator (EnerVest), the asset yields robust and predictable cash flow and provides substantial optionality across the fully HBP position. Nora Field Non-Operated Natural Gas Opportunity EnerVest Energy Institutional Fund XIV-1A, LP May 2020 ~54,000 Net Acres 98% Avg. NRI | 100% HBP Note: All values, including cash flow, reserves, PV10, and IRR’s, are based on an effective date of 6/1/2020 and five-year NYMEX strip as of 5/26/2020. 1. Currently ~97% of gas is sold at NYMEX plus pricing, with 100% to be sold at a premium to NYMEX after completion of the Home Creek Pipeline in 2021 (in-progress). 15% interest in the highly contiguous Nora Field operated by EnerVest – EV owns the remaining 85% interest, ensuring alignment of interest Significant royalty interests buoy field level economics – 15.0% WI / 14.8% NRI – Minimal royalty burden provides substantial operating margin in the current pricing environment Long-Lived Production ~15 MMcfd | 100% Gas ~$7MM NTM PDP cash flow (pre- hedging) at ~6% annual decline PDP PV10 and reserves of $54MM and 95 Bcf, respectively (18-yr R/P) Extensive gathering and transportation infrastructure in place – Advantageous location for marketing & transportation yields realized pricing of +$0.04 (2020E), +$0.23 (2021E) and +$0.25 (2022E) to Henry Hub Substantial, Low-Decline Production with Full Exposure to Premium Pricing Provides Predictable Cash Flow 100% WI & 100% NRI 100% WI & 87.5% NRI Gathering Lines Legend ~100% of gas sold at NYMEX plus pricing or at Transco Z5 (1) NTM Decline: ~6% (PDP Only) Flat production at ~75 wells drilled per year Historical PDP Prod. Forecast PDP Prod. PDP Spuds/Year (Scale Note Shown) Extensive midstream infrastructure provides value- add vertical integration with vast upstream holdings: • ~1,300 miles of gas gathering pipelines • 6 disposal wells with ~5.2 MBwd capacity • ~80,500 HP from 61 owned and 17 leased compressor units
Transcript of Nora Field Non-Operated Natural Gas Opportunity...Shale (Berea & Big Lime) ~5,000’ 23 0 Horizontal...
Detring Energy Advisors
172
80
41
18
55
9
46
10078
60
2010 2012 2014 2016 2018 2020 2022 2024 2026 202810
100
1,000
Ope
rate
d G
ross
Pro
duct
ion
(MM
cfed
)
Virginia
Kentucky
West Virginia
Tazewell
Russell
Scott
Letcher
Buchanan
Dickenson
McDowell
Mingo
Pike
Wise
Knott
Washington
Floyd
Location Map
Low Risk, Repeatable Development Locations
700+ low risk, economic locations identified by EnerVest
– ~16% IRRs at ~$400M D&C costs– Low capital commitment to maintain
flat production profile Active workover program of ~35
projects scheduled for 2020
– 2019 program of 56 workovers yielded 200% IRR
EnerVest Energy Institutional Fund XIV-1A, LP (“EnerVest” or “EV”) has retained Detring Energy Advisors to market for sale a 15% non-operated position in its Nora Field assets inclusive of upstream properties, gathering
pipelines, disposal wells, and a compressor fleet located in Dickenson, Buchanan, Wise & Russell Counties, Virginia and Clay & Kanawha Counties, West Virginia. Underpinned by strong, shallow-decline production, low royalty
burdens, advantaged pricing, and a top conventional operator (EnerVest), the asset yields robust and predictable cash flow and provides substantial optionality across the fully HBP position.
Nora Field Non-Operated Natural Gas OpportunityEnerVest Energy Institutional Fund XIV-1A, LP
May 2020
~54,000 Net Acres98% Avg. NRI | 100% HBP
Note: All values, including cash flow, reserves, PV10, and IRR’s, are based on an effective date of 6/1/2020 and five-year NYMEX strip as of 5/26/2020.1. Currently ~97% of gas is sold at NYMEX plus pricing, with 100% to be sold at a premium to NYMEX after completion of the Home Creek Pipeline in 2021 (in-progress).
15% interest in the highly contiguous Nora Field operated by EnerVest
– EV owns the remaining 85% interest, ensuring alignment of interest
Significant royalty interests buoy field level economics
– 15.0% WI / 14.8% NRI – Minimal royalty burden provides
substantial operating margin in the current pricing environment
Long-Lived Production~15 MMcfd | 100% Gas
~$7MM NTM PDP cash flow (pre-hedging) at ~6% annual decline
PDP PV10 and reserves of $54MM and 95 Bcf, respectively (18-yr R/P)
Extensive gathering and transportation infrastructure in place
– Advantageous location for marketing & transportation yields realized pricing of +$0.04 (2020E), +$0.23 (2021E) and +$0.25 (2022E) to Henry Hub
Substantial, Low-Decline Production with Full Exposure to Premium Pricing Provides Predictable Cash Flow
100% WI & 100% NRI100% WI & 87.5% NRIGathering Lines
Legend
~100% of gas sold at NYMEX plus pricing or at Transco Z5(1)
NTM Decline: ~6% (PDP Only)
Flat production at ~75 wells drilled
per year
Historical PDP Prod.Forecast PDP Prod.PDP Spuds/Year (Scale Note Shown)
Extensive midstream infrastructure provides value-add vertical integration with vast upstream holdings: • ~1,300 miles of gas gathering pipelines• 6 disposal wells with ~5.2 MBwd capacity• ~80,500 HP from 61 owned and 17 leased
compressor units
Detring Energy Advisors
Target / DepthProducing
WellsAdditional Locations
Coal Bed Methane 1,000’-2,700’
2,320 2,338
Tight Gas2,700-5,000’
1,742 2,171
Horizontal Non-Shale (Berea & Big
Lime)~5,000’
23 0
Horizontal Shale(Lower Huron
Shale)5,000’-6,000’
63 2,718
Cambrian Rogersville Shale
0 +500
Total 4,148 7,727
!!
Russell
Sullivan
Scott
MartinJohnson
Letcher
Buchanan
Dickenson
McDowell
Logan
Mingo
Pike
Wise
Hawkins
Washington
Wayne
Floyd
®
0 5 10 15 20
Miles
The Nora field produces from multiple stacked-pay intervals: shallow CBM, deeper conventional sands, and carbonate intervals, along with the local unconventional horizontal target, the Huron shale. In addition to the 7,700+
identified and established drilling locations, Enervest, in partnership with Virginia Tech and the Department of Energy, is currently drilling a deep stratigraphic well to analyze previously untested horizons which could prove
additional reservoirs and increase upside.
May 2020
Location MapShallow CBM Section Conventional Section
Lower Huron Shale
Berea Sand
Big Lime
Weir Sand
Ravencliff Sand
Maxton Sand
GR ResD RHOBMD
2500’
3000’
3500’
4000’
4500’
5000’
5500’
CBM WellHorizontal Shale Well
Conventional Gas Well
Silurian - Cambrian
TypewellDOE Exploratory WellTight Sand FairwayCBM FairwayBig Sandy Field
Legend
Devonian Age Huron Shale
Pocahantas Coal
Ravencliff Sand
Huron Shale Lat. Length ~ 3,000 ft
CONVENTIONAL
DOE Test Spud 4/29/2020
RHOB
War Creek Coal
Horse Pen Coal
Pocahantas Coal
GR MD
500’
1000’
1500’
2000’
Big Sandy Field(Analogous Offset)
UNCONVENTIONAL
Seaboard Coal
Horsepen Coal
Big Lime
Berea Sand
Nora Field Non-Operated Natural Gas OpportunityEnerVest Energy Institutional Fund XIV-1A, LP
Jawbone Coal
War Creek Coal
SHALLOW
Seaboard Coal
Jawbone Coal
Detring Energy Advisors
This Information Flyer is based on material provided by EnerVest Energy Institutional Fund XIV-1A, LP and its affiliates (“Seller”) and is offered to interested parties for the sole purpose ofproviding an overview of an opportunity to acquire certain of the Seller's assets (the "Transaction"). This Information Flyer is delivered on behalf of Seller by Detring & Associates, LLC ("Advisor").The information contained in this Information Flyer ("Information") is for informational purposes only and does not constitute an obligation by Seller to enter into any future transaction. TheInformation should not be relied upon by the recipient in considering the Transaction, and the recipient should consider its own financial situation when evaluating the Transaction. ThisInformation Flyer does not constitute investment, legal, financial, tax, accounting or other counsel of any kind, and the recipient should conduct its own independent examination and assessmentof the Information, including obtaining investment, legal, tax, accounting and such other counsel as it considers suitable. Seller may change or otherwise modify the transaction process at anytime without notice to the recipient, including but not limited to accepting any proposal at any point in time, altering the dates of the process, or terminating the process completely without definingany reason and without any liability to any interested party. Advisor and its directors, employees, consultants and agents ("Group") make no representation or warranty as to the accuracy,completeness, timeliness or reliability of the contents of this Information Flyer or any Information provided during the course of the Transaction process. The Information has been prepared onthe basis of publicly accessible information and material made available to Advisor by Seller. Advisor has relied upon and assumed, without independent verification, the accuracy orcompleteness of all such information, which does not claim to be all-inclusive or to contain all of the information that may be relevant to the Transaction. The recipient acknowledges thatconditions may change and that the Information may become out-of-date as a result. Advisor is under no obligation to update or correct this Information. Seller and Advisor are under noobligation to provide the recipient with access to any further information. Seller and Group shall have no liability for any representations (expressed or implied) other than, in the case of Seller,those given by Seller in the purchase and sale agreement, for any written or oral communications with any Interested Parties in the course of their review of the Transaction, or for any impliedterms or obligations arising from operation of law or otherwise. To the maximum extent permitted by law, no member of the Group accepts any liability (including, without limitation, any liabilityarising from fault or negligence on the part of any of them) for any loss whatsoever arising from the use of this Information Flyer or its contents or otherwise arising in connection with it or from theuse of any Information provided throughout the course of the Transaction procedure. Certain statements contained herein may constitute forward-looking statements which involve risks anduncertainties that could cause actual events or results to differ materially from the projected or expected events or results implied or conveyed in such forward-looking statements. In particular,statements regarding oil and gas reserves may include the implied assessment that the resources described can be profitably produced in the future, based on certain estimates andassumptions. No constituent of the Group represents or warrants that such forward-looking statements will be achieved or will prove to be correct. Actual future results and operations could varymaterially from the forward-looking statements. Similarly, no representation or warranty is made that the assumptions on which the forward-looking statements are based may be reasonable. Noaudit, review or verification has been undertaken by the Group or an independent third party of the assumptions, data, results, calculations and forecasts presented or referred to herein. Therecipient acknowledges that neither it nor Advisor intends that Advisor acts or be responsible as a fiduciary to the recipient, its management, stockholders, creditors or any other person. Each ofthe recipient and Advisor, by accepting and providing this Information Flyer respectively, expressly disclaims any fiduciary relationship and agrees that the recipient is responsible for making itsown independent judgments with respect to any transaction and any other matters regarding this Information Flyer. Subsequent modifications may be provided as required.
Please contact Melinda Faust or Tony Fazio to request a confidentiality agreement or to learn more about this opportunity. Please route all communications through Detring and do not contact EnerVest directly.
Process Calendar
EnerVest anticipates PSA execution and closing by mid-July and late August, respectively.
May 2020
VDR Opens
Evaluation
Bids Due
Derek Detring Melinda Faust Matt Loewenstein Richard BallPresident Managing Director Director Director, Geology(713) 595-1001 (713) 595-1004 (713) 595-1003 (713) [email protected] [email protected] [email protected] [email protected]
Jonathan Bristal Tony Fazio Paul NgoSenior Associate Senior Associate Associate(713) 595-1010 (713) 595-1014 (713) [email protected] [email protected] [email protected]
Bryan Bottoms Payne Winter Mohammad AbbasAnalyst, Geology Analyst Analyst(713) 595-1007 (713) 595-1011 (713) [email protected] [email protected] [email protected]
Key Process Contact
Detring Energy Advisors | Contact Information
Nora Field Non-Operated Natural Gas OpportunityEnerVest Energy Institutional Fund XIV-1A, LP
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