For sale oil & gas producing properties, leasehold, and related assets located throughout the core of the SCOOP/Merge/STACK play

Description

Castell Oil Company (“Castell”) is offering for sale its oil & gas producing properties, leasehold, and related assets located throughout the core of the SCOOP/Merge/STACK play of Central Oklahoma (the “Assets”). The Assets offer an attractive opportunity to acquire operated and non-operated leasehold across the core liquids-rich gas and over-pressured windows of the region.

Asset Highlights:

· 5,050 Net Acres Across the Prolific & Highly Active SCOOP, Merge & STACK

o 55% operated and ~40% HBP

§ ~45% of term acreage subject to regulatory pooling and/or spacing activity

o Operated Assets: 2,780 net acres across Canadian, Garvin, & Dewey counties (75% Canadian/Merge) (midstream undedicated)

o Non-Op. Assets: 2,270 net acres, with operations potential through forced pooling

§ Diversified footprint with exposure to premier operators including DVN, NFX, EOG, CLR, XEC, and others

· ~1,200 Boed Net Production (~50% Liquids)

o ~15x annual growth vs. Q4-17

o ~$15.5MM PDP PV10

o $5MM+ operating cash flow (next 12 months PDP)

o 101 producing wells (100% non-op)

· Acreage Located in Top-Tier U.S. Basin with 101 Horizontal Rigs Currently Running

o >2,300 identified gross locations across multiple proven horizons including the Woodford, Springer, and Mississippian (Meramec/Osage/Sycamore)

o 30 hz wells in-progress (15 completing, 11 DUC, 4 drilling) with 13 additional wells elected

§ 90 hz spuds on-lease in 2018

§ 32 hz rigs currently drilling within 3 miles of Castell acreage

o Continued improvement in well performance and economics resulting from optimized completions, longer laterals, and pad development across all benches

Process Overview:

· Evaluation materials available via the Virtual Data Room (“VDR”) on Monday, February 25th

· Proposals due on Wednesday, March 27th

Please see the attached teaser for additional details regarding the properties and sales process.