The DJ/Niobrara Basin| December 2019

Field Overview

Located mainly in the Northeast of Colorado, the Denver-Julesburg Basin consists of five main oil-producing formations: Niobrara sections A-C, Codell, and Greenhorn. These five plays produce over 90% of Colorado’s oil/gas.

State Drilling Statistics

Active Drilling Rigs in Basin- 19
Total Rigs in Colorado- 21
Total Rigs in United States- 781
Total U.S. Rigs down 27% YTD

State Top Producers

Top Gas Producer- Anadarko (Oxy)
Top Oil Producer- Anadarko (Oxy)

Financial & Economic Updates

Bayswater Resources Fund III and York Tactical Energy Fund Form Joint Venture

Bayswater Resources and Bayswater Natural Resources Fund III and the York Tactical Energy Fund, through its structured development capital strategy, YTEF Drilling Capital, LLC (collectively, “YTEF”), announced today that they have formed a strategic joint venture. Under the terms of the agreement, YTEF has committed to fund an undivided portion of up to 63 horizontal oil and gas wells located on six well pads for the development of Bayswater’s flagship Weld County, Colorado acreage position located in the volatile oil window of the DJ Basin. The investment will fund the drilling and completion of the joint wells targeting the oil-rich Niobrara A, B, C and Codell stacked-pay intervals in accordance with a mutually agreed development plan. In exchange for funding a portion of the capital expenditures required to develop the joint wells, YTEF will receive an assignment of working interests entitling YTEF to receive a portion of the revenues from such wells. The joint wells are anticipated to be drilled and completed through the fourth quarter of 2020. YTEF anticipates that it will fund up to $125 million of capital expenditures relating to its participation in the joint wells.

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State Highlights

Energy Transfer Expands Pipeline Network

Energy Transfer LP reported Thursday that it has added crude oil and natural gas liquids gathering and transmission pipelines in the DJ Basin in Colorado and Anadarko Basin in Oklahoma and Kansas as well as natural gas gathering and processing assets in Western Canada’s Alberta Basin. The larger pipeline network, along with a major crude oil terminal near Houston, come with the completion Thursday of Energy Transfer’s approximately $5 billion cash and stock acquisition of SemGroup Corp. During a special meeting Wednesday, holders of a majority of Tulsa-based SemGroup’s stock voted to approve the deal, Dallasbased Energy Transfer said in a written statement. Effective with the opening of the market Thursday, SemGroup ceased to be a publicly traded company and its common stock discontinued trading on the New York Stock Exchange, Energy Transfer added. It contends that combining both firms’ operations will save more than $170 million annually, yielding “commercial and operational synergies of $80 million, financial savings of $50 million and cost savings of $40 million.”

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Noble Midstream to Transfer Stock Exchange Listing to Nasdaq

Noble Midstream Partners LP (NYSE: NBLX) (the “Partnership” or “Noble Midstream”) announced that it will voluntarily transfer its stock exchange listing to the Nasdaq Global Select Market from the New York Stock Exchange, effective December 27, 2019 after market close. Noble Midstream units are expected to begin trading as a Nasdaq-listed security on December 30, 2019. The Partnership will retain its current ticker symbol “NBLX”.

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Top Gas Producers

Top Oil Producers

Refining

Colorado Production

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The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
noted:

www.eia.gov
www.drillinginfo.com
www.bhge.com
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