EnergyNetNewsletter-INDV-PGS (2)

Marketplacequarterly

Continuous Online Auction • Rapid-Cycle Sealed Bid Sales • Negotiated Sales • State Lease Sales

1st Quarter, 2016

EnergyNet: The Always-On Liquid Market for 2016 Success

FEATURED INSIDE

Resilience Is the Key Word for 2016

Year in Review

2016 Calendar of Events

quarterly In normal markets, the factors that motivate oil and gas property owners to sell their assets are as varied as there are sellers. In the first few quarters of 2016, debt, solvency and survival will be motivating factors for owners of assets to sell.

Not only do potential sellers have to determine what and when to sell, but the options of how to sell have become more critical to achieving the true, maximum market value, as well as achieving certainty of close. EnergyNet provides oil and gas property owners an ‘always-on’ liquid market to monetize assets. We believe this will prove to be a valuable service in 2016.

We expect the next 12 months to be a busy time for the acquisition and divestment of oil and gas properties.

EnergyNet’s sealed bid and auction transaction advisory business demonstrated resilience in a painful 2015. We sold $285 million in oil and gas assets in 2015, which stands as our best sales year in our company’s 16-year history, slightly better than the $283.5 million we successfully closed in 2014. Our firm specializes in helping our clients divest oil and gas properties that are valued between $100,000 and $100 million individually all across the lower 48 states.

Some of EnergyNet’s notable selling clients are: Shell, Chevron, Devon, BHP Billiton, XTO Energy, Oxy, SM Energy, Parsley Energy, Yates, EnerVest, Newfield, Continental, Baker-Hughes, Apache, BP, Noble Energy, WPX, QEP, Memorial and many more.

Over the past few years, the complexity, asset size/value and client-caliber of the deals EnergyNet facilitates has increased dramatically, and we still have potential to grow.

We have closed deals valued at $39 million, $34 million, $29 million, $25 million, $23 million and $18 million over the most recent 18 months.

Additionally, our government lease sale initiative has really taken off. We’ve now sold state leases for the Texas General Land Office, North Dakota, Colorado and Utah. We have been hired to facilitate a sale for The Board for Lease of University Lands (The University of Texas System) in February 2016.

Please keep us in mind if you choose to sell assets in 2016. We have a platform and marketing process that consistently works.

EnergyNet’s divestment advantages are:

1) Our broad, deep and frequent access to more than 18,500 buyers in the market 2) Our high 84% sales close rate 3) Our fast 35-40 day sales process 4) Our comprehensive and thorough data rooms

EnergyNet has been selling properties for our clients for 16 years. We typically complete between 1,000 and 1,500 individual transactions annually. We have property divestments down to a science. We have engineering, technical, land, marketing, closing and business development professionals ready to help you.

Our Energy. Our Network. YOUR Success.

Thanks for your consideration and support. We are ready and prepared to fight through 2016 by your side. We are in this together.

Resilience Is the Key Word for 2016By Chris Atherton, EnergyNet President

Selected Notable Transactions

$39,000,000

Operated WI & Leasehold Package

Regan County, Texas

$34,000,000

Operated 120-Well Package

Gregg and Rusk Counties, Texas

$31,500,000

Texas GLO Online Sealed Bid Sale

Various Counties, Texas

$29,100,000

ORRI, RI Mineral and Surface Acreage

Located Across 41 Counties in 8 States

$24,500,000

Operated & Non-Operated Package

Permian Basin

$21,100,000

Operations & Leasehold

Glasscock and Martin Counties, Texas

$17,900,000

Non-Operated WIPackage

California, Colorado, North Dakota and

Oklahoma

$15,400,000

Operations

Permian Basin

$10,200,000

Permian Basin Royalties

Numerous Legacy Texas Fields

$10,000,000

Operated Wells

McKenzie County, North Dakota

$10,000,000

Permian Basin Leasehold Acreage

Andrews and Garza Counties, Texas

$8,000,000

Operations and RI/MI

Garza County, Texas

$7,100,000

Cottonwood Prospects Leasehold Acreage

Culberson and Reeves Counties, Texas

EnergyNet completed 2015 as the most successful year in the company’s 16-year history, logging $285 million in oil and gas property sales. The increase in sales marked the third consecutive year of record sales. Selling momentum climbed through the year ending with a very strong second half.

A total of 201 unique companies sold assets through EnergyNet in 2015, including Shell, Oxy, Chevron, XTO Energy, Parsley Energy, Devon, Baker Hughes, Chaparral Energy, Yates Petroleum Corporation, BHP Billiton, Newfield Exploration and Overland Oil and Gas.

In 2015, EnergyNet successfully closed transactions on 126 business days, ensuring our sellers a liquid and continuous marketplace to exit their holdings while our

buyers experienced a steady stream of acquisition opportunities for review.

While the private industry segment of EnergyNet’s business was strong, the Government Lease Sales division also performed very well, closing state lease sales for Texas, Colorado, North Dakota and Utah. Current listings and the calendar of upcoming sales can be viewed at the EnergyNet Government Lease Sales website at gov.energynet.com.

EnergyNet facilitates the sale of producing oil and gas fields, working interests (operated and non-operated), overrides, royalties, mineral interests and non-producing leasehold in every onshore U.S. basin. Sellers and buyers take advantage of EnergyNet’s Rapid-Cycle Sealed Bid Sales Process, as well as our Auction Services.

EnergyNet 2015 Sales by Property Type

$285 Million2015 Sales

54%10%

5%10%

12%

5%

3%1%

Producing �eld – 54%

Combination interest (WI/ORRI/RI) – 5%

Operated working interest (WI) – 10%

Non-operated working interest (Non-op) – 12%

Royalty interest (RI) – 5%

Overriding royalty interest (ORRI) – 1%

Non-producing minerals – 3%

Non-producing leasehold interest – 10%

2015 is Another Record Year for EnergyNet Property Sales

2015 in Review

EnergyNet sold the �rst ever oil and gas property in an online interactive auction in February 2000. Since that time, we have helped our sellers divest more than $1.8 billion in assets – listing more than 48,500 properties, as of Jan. 6, 2016. We host the most active online oil and gas marketplace in the world with more than 18,000 active buyers and 5,000 active sellers. We are proud to share our results with you.

We just �nished our best year ever, with $284,885,266 in total sales in 2015. We thank all our buyers and sellers for their con�dence in us.

4TH QUARTER 2015

Total actual sales $94,301,561

Number of properties sold 2,469

Number of sellers 84

Number of sale closing days 28

3RD QUARTER 2015

Total actual sales $103,421,699

Number of properties sold 1,760



2ND QUARTER 2015

Total Actual Sales $58,879,662

Number of properties listed 1,456



1ST QUARTER 2015

Total Actual Sales $28,282,354

Number of properties listed 1,693



ADAM-Greater East Texas LuncheonWillow Brook Country Club – Tyler, TX

OIPA Wildcatter Wednesday LuncheonTulsa Country Club – Tulsa, OK

ADAM-Permian LuncheonMidland Country Club – Midland, TX

ADAM-Dallas/Ft. Worth LuncheonDallas Petroleum Club – Dallas, TX

Western Energy Alliance – 4th Annual Winter Wine Tasting and Silent AuctionHyatt Regency Convention Center –Denver, Colorado

NAPE Summit / Winter NAPEGeorge R. Brown Convention Center – Houston, TX

NAPE Summit Schedule / EnergyNet Events

EnergyNet Booth #2811

FEBRUARY 118 am – Exhibits Open9 am – Bill Britain: The Oil and Gas Industry and A&D–Now What? 10 am – John Munroe: Government Lease Sales11 am – NAPE Charities Luncheon1:30 pm - Alec Neville,PetroCap: A Di�erent Kind of Private Equity2 pm – Cody Felton: EnergyNet’s Marketing Dynamics3 pm – Chris Atherton: Overview of EnergyNet’s A&D Services3:30 pm - Alan Harp,Stout Risius Ross, Inc.: How an Appraiser Values Mineral and Royalty Properties 4 pm – Ethan House: Packaging Deals4:30 pm – NAPE Floor Reception

FEBRUARY 128 am – Exhibits Open9 am – Chris Atherton: Overview of EnergyNet’s A&D Services10 am – Michael Baker: How to Buy on EnergyNet 11 am – Bill Britain: The Oil and Gas Industry and A&D–Now What?11:15 am – NAPE Expo Lunch

IPAA-TIPRO “Leaders in Industry” LuncheonPetroleum Club of Houston – Houston, TX IPAA Wildcatter’s BallHilton Americas – Houston, TX

Houston Producer’s Forum LuncheonPetroleum Club of Houston – Houston, TX

ADAM-Houston LuncheonBrennan’s – Houston, TX

ADAM-OKC LUNCHEONPark House – Oklahoma City, OK

SPE – Business Development MeetingFour Seasons – Houston, TX

OIPA Wildcatter Wednesday LuncheonNational Cowboy & Western Heritage Museum – Oklahoma City, OK


IPAA-TIPRO “Leaders in Industry” LuncheonPetroleum Club of Houston – Houston, TX

DUG Rockies Colorado Convention Center – Denver, CO


ADAM-Houston LuncheonBrennan’s – Houston TX

ADAM-Tulsa LuncheonThe Tavern on Brady - Tulsa, OK


IPAA Wildcatter’s Open Golf TournamentBlackhorse Golf Club – Cypress, TX

Energy Capital ConferenceOmni Barton Creek – Austin, TX





IPAA OGIS New YorkSheraton New York Times Square – New York, NY

World Oilman’s Poker TournamentWynn Encore Casino – Las Vegas, NV




TX Alliance ExpoWichita Falls MPEC – Wichita Falls, TX

ADAM-OKC LuncheonPark House – Oklahoma City, OK






DUG PermianFort Worth Convention Center – Fort Worth, TX



Western Energy Alliance Golf TournamentArrowhead Golf Course - Littleton, CO






OIPA Annual Meeting Four Seasons Resort – Las Colinas, TX

Houston Producer’s Forum LuncheonPetroleum Club of Houston – Houston TX

FEBRUARY

3

3

3

4

4

10-12

10

12

16

19

23

24

2

3

9

9-11

15

18

22

23

24

28-29

6

6

6

7

12-13

13-15

13

MARCH

APRIL

15

19

19-20

26

27

4

11

17

20

23-25

24

25

26

1

1

1

2

8

10-13

21

MAY

JUNE

2016 Calendar of Events

DUG EastDavid L. Lawrence Convention Center – Pittsburgh, PA


Western Energy Alliance Car Show Jet Linx Hangars at Centennial Airport - Centennial, CO

IPAA 86th Midyear MeetingThe Broadmoor – Colorado Springs, CO













Summer NAPEGeorge R. Brown Convention Center – Houston, TX

KIOGA Convention & ExpoHyatt Regency and Century II Expo Hall – Wichita, KS

EnerCom Oil & Gas ConferenceDenver Westin – Denver, CO


Western Energy Alliance Annual Meeting (Members only)Vail Marriott Mountain Resort - Vail, CO





A&D Strategies ConferenceRitz Carlton – Dallas, TX

Western Energy Alliance Sporting Clays TournamentColorado Clays Shooting Park – Brighton, CO

DUG Eagle FordHenry B. Gonzalez Convention Center – San Antonio, TX




IPAA OGIS San FranciscoThe Palace Hotel – San Francisco, CA







NAPE DenverColorado Convention Center – Denver, CO



OIPA Fall ConferenceBig Cedar Lodge - Ridgedale, MO


DUG MidContinentCox Convention Center – Oklahoma City, OK



Executive Oil ConferenceHorseshoe Convention Center – Midland, TX


IPAA Annual MeetingThe Cloister – Sea Island,GA


ADAM-Houston LuncheonBrennan’s – Houston TX




21-23

22

23

27-29

28

6

7

13

15

19

26

3

3

3

4

10

10-11

14-15

14-18

JULY

AUGUST

16

17-19

19

23

1

7

7-8

9

12-14

14

16

20

26-28

27

5

5

5

12

13

SEPTEMBER

OCTOBER

12-13

18

21

21

25

26-28

2

3

7-8

9

9-11

15

18

1

7

14

NOVEMBER

DECEMBER

EnergyNet.com, Inc.7201 I-40 West, Suite 319Amarillo, TX 79106(806) 351-2953www.energynet.com

STANDARD MAILUS POSTAGE

PAIDAMARILLO, TX

PERMIT NO. 444

Call us at (877) 351-4488 or visit www.energynet.com

ENERGYNET’S BUSINESS DEVELOPMENT TEAMPictured left to right: Ryan Dobbs, Chris Atherton, Michael Baker, Ethan House, Lindsay Ballard, Cody Felton and John Klee

Chris Atherton - PresidentCell: (832) [email protected]

MID-CONTINENT / TEXAS PANHANDLEEthan D. House - VP Business DevelopmentCell: (405) [email protected]

PERMIAN BASIN / EAST TX / NORTH LAMichael Baker - VP Business Development Cell: (972) 898-5358 [email protected]

ROCKIES/WESTERN U.S.Ryan P. DobbsCell: (720) [email protected]

HOUSTON / EASTERN U.S.Cody FeltonCell: (281) [email protected]

PERMIAN BASIN Lindsay D. BallardCell: (512) [email protected]

John KleeVP Corporate Business DevelopmentCell: (720) [email protected]

John S. Munroe VP Engineering & Government Lease SalesCell: (713) 582-7755 [email protected]

CONTACT US TODAY TO DISCUSS YOUR A&D OBJECTIVES!

Documents

EnergyNetNewsletter-INDV-PGS (2)