Asset Overview

Substantial operations in Campbell County, Wyoming, primarily focused on the development of significant oil-bearing Minnelusa C Sand fields within the Powder River Basin.

Net Proved Reserves: 4.5 MMBbl (2.6 MMBbl PDP), 100% oil
Production: +3,500 Bbls/d gross (+2,300 Bbls/d net)
Proved PV-10: $186.0 MM (PDP PV-10: $109.6 MM)
Operatorship: 85% of producing wells

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Transaction Timeline

January-February 2011 – ECS was engaged by Trend Exploration I LLC as its exclusive financial advisor to sell all or substantially all of the Company’s assets.

August-December 2010 – ECS completed its diligence, prepared a virtual data room and worked with the 3rd party engineer to finalize the reserve report.

January-February 2011 – ECS conducted a narrow, focused marketing effort, contacting a limited number of strategic and financial buyers.

Transaction Highlights

Substantial Commitment for Focused Plan – Six groups advanced to the last round while four submitted final bids.

Strong Buyer Interest – In addition to an attractive buy-in valuation for Le Norman’s contributed assets, management received an incentive structure which earns the team a sizeable ownership stake after a series of reasonable return hurdles.

Strong Valuation – Final bids were in line with comparable transactions for conventional oil production in the Powder River Basin.