We are an independent oil and natural gas company focused on the acquisition and development of crude oil and natural gas properties and have assembled approximately 10,000 net acres, including mineral rights only acreage, most of which is located in the Denver-Julesburg Basin, or the DJ Basin, in northeast Colorado. Our current operating focus is within the Wattenberg Field of the DJ Basin, which is located primarily in Adams and Weld Counties, Colorado. We have concentrated our efforts in areas where we believe the geo-mechanical characteristics of the underlying formations offer the potential for greater returns on capital. Our evaluation metrics include reservoir thickness, rock quality and resistivity of each formation, each of which affect the number of wells we plan to drill per drilling spacing unit.

We have placed particular emphasis on acquiring acreage in an area of the southern Wattenberg Field in Adams County and southwest Weld County, Colorado, along with an area southeast of the field, which areas we refer to collectively as the Southern Core, where we have assembled over 9,000 net acres. We selected our Southern Core acreage due to the quality of the hydrocarbon bearing rock, the production performance from other nearby wells, and the liquids-weighted nature of the production. We believe that all of these factors make development of much of our Southern Core acreage economic in the prevailing commodity price environment. We also have recently completed acquisitions in an area in the northern portion of the Wattenberg Field that previously has yielded hydrocarbon production from both vertical and horizontal wells.

Our strategy is to continue to leverage our management team's extensive technical, land, financial, and industry operating experience to direct the majority of our capital expenditure program through December 2019 toward drilling operated Niobrara and Codell horizontal wells and acquire additional leaseholds in the DJ Basin, which we believe will enhance our strategic value. Since entering the DJ Basin in 2015, we have grown our position through acquisitions and organic leasing activities. Consistent with our track record, we plan to continue to selectively and opportunistically pursue strategic acquisitions in and around our core areas in Adams and Weld Counties.

Southern Wattenberg

Todd Creek Farms – Southern Wattenberg Focus Area

  • 3,000 gross (~1,400 net) acres; Robust Horizontal Drilling and Permitting Activity

  • 14 Gross Operated wells (5.75 net) completing/turning in line in June/July 2018

  • Approx. 116 Gross Non-Op WI Locations are Fully Permitted

South Brighton ~3,000 Net Acres In the Southern Wattenberg Core

New Midstream Oil and Gas Takeaway Capacity Promoting Development Growing Operating Inventory PRHR Has 7 DSUs Along Pipeline Corridor

  • Newly Active Horizontal Area

  • New Midstream Oil and Gas Takeaway Capacity Promoting Development

  • Growing Operating Inventory

  • PRHR Has 7 DSUs Along Pipeline Corridor

  • Ability to Trade Acreage and Increase Working Interest in Operated DSUs

Northern Wattenberg Leasehold

  • Approx. 780 Net Acres in 7N 63W with up to 36 potential gross Horizontal Niobrara & Codell Locations (based on 12 wells per 1,280 acre XRL drilling spacing unit*)

  • New Gathering System Infrastructure to be in service Q1 2019

  • Thick Niobrara B & C Pay Zones

  • Clean Codell Sandstone Bench