x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 45-2842469 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer | ¨ | Accelerated filer | x | |||
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
OTHER INFORMATION | |
• | business strategies; |
• | volatility or continued low or further declining commodity prices; |
• | future financial and operating results; |
• | our ability to pay distributions; |
• | ability to replace the reserves we produce through acquisitions and the development of our properties; |
• | revisions to oil and natural gas reserves estimates as a result of changes in commodity prices; |
• | future capital requirements and availability of financing; |
• | technology; |
• | realized oil and natural gas prices; |
• | production volumes; |
• | lease operating expenses; |
• | general and administrative expenses; |
• | cash flow and liquidity; |
• | availability of production equipment; |
• | availability of oil field labor; |
• | capital expenditures; |
• | availability and terms of capital; |
• | marketing of oil and natural gas; |
• | general economic conditions; |
• | competition in the oil and natural gas industry; |
• | effectiveness of risk management activities; |
• | environmental liabilities; |
• | counterparty credit risk; |
• | governmental regulation and taxation; |
• | developments in oil producing and natural gas producing countries; and |
• | plans, objectives, expectations and intentions. |
June 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 4,019 | $ | 615 | |||
Accounts receivable: | |||||||
Oil and natural gas sales | 5,233 | 4,551 | |||||
Other | 1,346 | 5,009 | |||||
Derivative financial instruments | 4,687 | 24,419 | |||||
Prepaids and other | 427 | 623 | |||||
Assets held for sale, net | 20,821 | — | |||||
Total current assets | 36,533 | 35,217 | |||||
Property and Equipment: | |||||||
Oil and natural gas properties, successful efforts method: | |||||||
Proved properties | 418,260 | 518,916 | |||||
Accumulated depletion, depreciation, amortization and impairment | (165,362 | ) | (232,008 | ) | |||
Total property and equipment, net | 252,898 | 286,908 | |||||
Derivative financial instruments | — | 1,144 | |||||
Other assets | 3,202 | 3,817 | |||||
Total assets | $ | 292,633 | $ | 327,086 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable: | |||||||
Trade | $ | 2,290 | $ | 3,185 | |||
Related parties | 620 | 559 | |||||
Derivative financial instruments | 443 | — | |||||
Accrued liabilities | 941 | 165 | |||||
Current maturities of long-term debt | 52,018 | 30,000 | |||||
Liabilities related to assets held for sale | 2,821 | — | |||||
Total current liabilities | 59,133 | 33,909 | |||||
Derivative financial instruments | 1,231 | — | |||||
Long-term debt | 110,000 | 150,000 | |||||
Asset retirement obligations | 10,219 | 12,679 | |||||
Commitments and contingencies | |||||||
EQUITY, per accompanying statements: | |||||||
Partnership equity: | |||||||
General partner interest | (180 | ) | 47 | ||||
Limited partners- 29,784,015 and 29,724,890 units issued and outstanding as of June 30, 2016 and December 31, 2015, respectively. | 112,230 | 130,451 | |||||
Total equity | 112,050 | 130,498 | |||||
Total liabilities and equity | $ | 292,633 | $ | 327,086 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Oil sales | $ | 14,447 | $ | 21,244 | $ | 25,553 | $ | 38,538 | |||||||
Natural gas sales | 330 | 367 | 493 | 644 | |||||||||||
Loss on derivatives, net | (10,088 | ) | (8,871 | ) | (7,520 | ) | (7,227 | ) | |||||||
Total revenues | 4,689 | 12,740 | 18,526 | 31,955 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Lease operating expenses | 5,777 | 7,617 | 11,842 | 16,532 | |||||||||||
Oil and natural gas production taxes | 732 | 1,319 | 1,324 | 2,428 | |||||||||||
Impairment of proved oil and natural gas properties | 895 | — | 895 | — | |||||||||||
Impairment of assets held for sale | 3,578 | — | 3,578 | — | |||||||||||
Depreciation, depletion and amortization | 5,800 | 8,191 | 11,885 | 16,037 | |||||||||||
Accretion of discount on asset retirement obligations | 159 | 93 | 316 | 185 | |||||||||||
General and administrative | 1,478 | 1,637 | 3,566 | 5,278 | |||||||||||
Total operating costs and expenses | 18,419 | 18,857 | 33,406 | 40,460 | |||||||||||
Gain on sale of oil and natural gas properties | 13 | — | 13 | — | |||||||||||
Loss from operations | (13,717 | ) | (6,117 | ) | (14,867 | ) | (8,505 | ) | |||||||
Other income (expense): | |||||||||||||||
Interest income and other | 2 | 3 | 38 | 6 | |||||||||||
Interest expense | (2,054 | ) | (1,830 | ) | (4,253 | ) | (3,557 | ) | |||||||
Total other expense | (2,052 | ) | (1,827 | ) | (4,215 | ) | (3,551 | ) | |||||||
Net loss | $ | (15,769 | ) | $ | (7,944 | ) | $ | (19,082 | ) | $ | (12,056 | ) | |||
Allocation of net loss: | |||||||||||||||
General partner's interest in net loss | $ | (188 | ) | $ | (95 | ) | $ | (227 | ) | $ | (145 | ) | |||
Limited partners’ interest in net loss | $ | (15,581 | ) | $ | (7,849 | ) | $ | (18,855 | ) | $ | (11,911 | ) | |||
Net loss per limited partner unit: | |||||||||||||||
Basic and diluted | $ | (0.52 | ) | $ | (0.26 | ) | $ | (0.63 | ) | $ | (0.40 | ) | |||
Weighted average limited partner units outstanding: | |||||||||||||||
Limited partner units (basic and diluted) | 29,785 | 29,656 | 29,777 | 29,572 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Cash Flows from Operating Activities: | |||||||
Net loss | $ | (19,082 | ) | $ | (12,056 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 11,885 | 16,037 | |||||
Debt issuance costs amortization | 674 | 559 | |||||
Accretion of discount on asset retirement obligations | 316 | 185 | |||||
Impairment of proved oil and natural gas properties | 895 | — | |||||
Impairment of assets held for sale | 3,578 | — | |||||
Mark-to-market on derivatives: | |||||||
Loss on derivatives, net | 7,520 | 7,227 | |||||
Cash settlements received for matured derivatives | 17,285 | 7,183 | |||||
Cash settlements received for early terminations and modifications of derivatives, net | — | 11,069 | |||||
Cash premiums paid for derivatives, net | (2,257 | ) | (15,266 | ) | |||
Gain on sale of oil and natural gas properties | (13 | ) | — | ||||
Non-cash equity-based compensation | 650 | 2,316 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (682 | ) | 1,031 | ||||
Other receivables | 3,822 | 3,287 | |||||
Prepaids and other | 146 | 13 | |||||
Accounts payable and accrued liabilities | 162 | (2,807 | ) | ||||
Net cash provided by operating activities | 24,899 | 18,778 | |||||
Cash Flows from Investing Activities: | |||||||
Additions to oil and natural gas properties | (3,495 | ) | (8,628 | ) | |||
Acquisitions of oil and natural gas properties | — | (1 | ) | ||||
Proceeds from sale of oil and natural gas properties | 7 | — | |||||
Net cash used in investing activities | (3,488 | ) | (8,629 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from line of credit | — | 23,000 | |||||
Payments on line of credit | (17,982 | ) | (28,000 | ) | |||
Offering costs | (16 | ) | (88 | ) | |||
Distributions paid | — | (7,504 | ) | ||||
Debt issuance costs | (9 | ) | — | ||||
Net cash used in financing activities | (18,007 | ) | (12,592 | ) | |||
Net increase (decrease) in cash and cash equivalents | 3,404 | (2,443 | ) | ||||
Beginning cash and cash equivalents | 615 | 3,232 | |||||
Ending cash and cash equivalents | $ | 4,019 | $ | 789 | |||
Supplemental Cash Flow Information: | |||||||
Cash paid for interest | $ | 3,700 | $ | 3,039 | |||
Non-Cash Investing and Financing Activities: | |||||||
Accrued capital expenditures - oil and natural gas properties | $ | 338 | $ | 477 |
Limited Partners | ||||||||||||||
General Partner | Units | Amount | Total Equity | |||||||||||
Balance, December 31, 2015 | $ | 47 | 29,725 | $ | 130,451 | $ | 130,498 | |||||||
Equity-based compensation | — | 59 | 650 | 650 | ||||||||||
Offering costs | — | — | (16 | ) | (16 | ) | ||||||||
Net loss | (227 | ) | — | (18,855 | ) | (19,082 | ) | |||||||
Balance, June 30, 2016 | $ | (180 | ) | 29,784 | $ | 112,230 | $ | 112,050 |
Number of Common Units | ||
Approved and authorized awards | 3,514,000 | |
Unrestricted units granted | (1,183,374 | ) |
Restricted units granted, net of forfeitures | (414,814 | ) |
Equity-settled phantom units granted, net of forfeitures | (109,500 | ) |
Phantom units granted, net of forfeitures | (9,575 | ) |
Awards available for future grant | 1,796,737 |
Number of Restricted Units | Average Grant Date Fair Value per Unit | |||||
Outstanding at December 31, 2015 | 222,833 | $ | 8.49 | |||
Units granted | — | — | ||||
Units vested | (95,698 | ) | 6.96 | |||
Units forfeited | (19,043 | ) | 9.11 | |||
Outstanding at June 30, 2016 | 108,092 | $ | 8.80 | |||
Number of Equity-Settled Phantom Units | Average Grant Date Fair Value per Unit | |||||
Outstanding at December 31, 2015 | 77,500 | $ | 2.81 | |||
Units granted | 24,500 | 1.01 | ||||
Units vested | (8,168 | ) | 1.16 | |||
Units forfeited | (15,500 | ) | 1.90 | |||
Outstanding at June 30, 2016 | 78,332 | $ | 2.73 |
Period Covered | Weighted Average Fixed Price | Weighted Average Floor Price | Weighted Average Ceiling Price | Total Bbls Hedged/day | NYMEX Index | |||||||||||
Swaps - 2016 | $ | 77.85 | 1,386 | WTI | ||||||||||||
Puts - 2016 | $ | 50.00 | $ | — | 1,875 | WTI | ||||||||||
Collars - 2017 | $ | 40.00 | $ | 50.68 | 658 | WTI | ||||||||||
Puts - 2017 | $ | 50.00 | $ | — | 1,932 | WTI | ||||||||||
Collars - 2018 | $ | 45.00 | $ | 58.54 | 1,326 | WTI |
Period Covered | Weighted Average Fixed Price | Weighted Average Floor Price | Weighted Average Ceiling Price | Total Bbls Hedged/day | NYMEX Index | |||||||||||
Swaps - 2016 | $ | 79.98 | 1,598 | WTI | ||||||||||||
Collars - 2016 | $ | 50.00 | $ | 50.00 | 328 | WTI | ||||||||||
Puts - 2016 | $ | 50.00 | $ | — | 1,475 | WTI | ||||||||||
Puts - 2017 | $ | 50.00 | $ | — | 1,932 | WTI |
Gross Amounts Recognized | Gross Amounts Offset in the Unaudited Condensed Consolidated Balance Sheet | Net Amounts Presented in the Unaudited Condensed Consolidated Balance Sheet | |||||||||
(in thousands) | |||||||||||
June 30, 2016: | |||||||||||
Assets | |||||||||||
Derivative financial instruments - current asset | $ | 10,598 | $ | (5,911 | ) | $ | 4,687 | ||||
Derivative financial instruments - long-term asset | 2,432 | (2,432 | ) | — | |||||||
Total | $ | 13,030 | $ | (8,343 | ) | $ | 4,687 | ||||
Liabilities | |||||||||||
Derivative financial instruments - current liability | $ | (1,037 | ) | $ | 594 | $ | (443 | ) | |||
Derivative deferred premium - current liability | (5,317 | ) | 5,317 | — | |||||||
Derivative financial instruments - long-term liability | (1,264 | ) | 33 | (1,231 | ) | ||||||
Derivative deferred premium - long-term liability | (2,399 | ) | 2,399 | — | |||||||
Total | $ | (10,017 | ) | $ | 8,343 | $ | (1,674 | ) | |||
Net Asset | $ | 3,013 | $ | — | $ | 3,013 |
Gross Amounts Recognized | Gross Amounts Offset in the Unaudited Condensed Consolidated Balance Sheet | Net Amounts Presented in the Unaudited Condensed Consolidated Balance Sheet | |||||||||
(in thousands) | |||||||||||
December 31, 2015: | |||||||||||
Assets | |||||||||||
Derivative financial instruments - current asset | $ | 29,973 | $ | (5,554 | ) | $ | 24,419 | ||||
Derivative financial instruments - long-term asset | 6,077 | (4,933 | ) | 1,144 | |||||||
Total | $ | 36,050 | $ | (10,487 | ) | $ | 25,563 | ||||
Liabilities | |||||||||||
Derivative financial instruments - current liability | $ | (514 | ) | $ | 514 | $ | — | ||||
Derivative deferred premium - current liability | (5,040 | ) | 5,040 | — | |||||||
Derivative deferred premium - long-term liability | (4,933 | ) | 4,933 | — | |||||||
Total | $ | (10,487 | ) | $ | 10,487 | $ | — | ||||
Net Asset | $ | 25,563 | $ | — | $ | 25,563 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Net settlements on matured derivatives | $ | 6,191 | $ | 2,423 | $ | 17,285 | $ | 7,183 | |||||||
Net settlements on early terminations and modifications of derivatives | — | — | — | 11,069 | |||||||||||
Change in fair value of derivatives, net | (16,279 | ) | (11,294 | ) | (24,805 | ) | (25,479 | ) | |||||||
Total loss on derivatives, net | $ | (10,088 | ) | $ | (8,871 | ) | $ | (7,520 | ) | $ | (7,227 | ) |
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
June 30, 2016 | |||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||
Derivative financial instruments - asset | $ | — | $ | 13,030 | $ | — | $ | 13,030 | |||||||
Derivative financial instruments - liability | $ | — | $ | 2,301 | $ | — | $ | 2,301 | |||||||
Derivative deferred premiums - liability | $ | — | $ | — | $ | 7,716 | $ | 7,716 | |||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||
Assets held for sale | $ | — | $ | — | $ | 20,821 | $ | 20,821 | |||||||
Asset retirement obligations | $ | — | $ | — | $ | 51 | $ | 51 | |||||||
Asset retirement obligations related to assets held for sale | $ | — | $ | — | $ | 2,821 | $ | 2,821 | |||||||
Impairment of proved oil and natural gas properties | $ | — | $ | — | $ | 895 | $ | 895 | |||||||
Impairment of assets held for sale | $ | — | $ | — | $ | 3,578 | $ | 3,578 | |||||||
December 31, 2015 | |||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||
Derivative financial instruments - asset | $ | — | $ | 36,050 | $ | — | $ | 36,050 | |||||||
Derivative financial instruments - liability | $ | — | $ | 514 | $ | — | $ | 514 | |||||||
Derivative deferred premiums - liability | $ | — | $ | — | $ | 9,973 | $ | 9,973 | |||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||
Asset retirement obligations | $ | — | $ | — | $ | 4,924 | $ | 4,924 | |||||||
Impairment of proved oil and natural gas properties | $ | — | $ | — | $ | 103,938 | $ | 103,938 |
Six Months Ended June 30, 2016 | Year Ended December 31, 2015 | ||||||
(in thousands) | |||||||
Balance of Level 3 at beginning of period | $ | (9,973 | ) | $ | — | ||
Derivative deferred premiums - purchases | — | (11,914 | ) | ||||
Derivative deferred premiums - settlements | 2,257 | 1,941 | |||||
Balance of Level 3 at end of period | $ | (7,716 | ) | $ | (9,973 | ) |
Six Months Ended June 30, 2016 | Year Ended December 31, 2015 | ||||||
(in thousands) | |||||||
Asset retirement obligations - beginning of period | $ | 12,679 | $ | 7,363 | |||
Liabilities incurred for new wells and interest | 51 | 42 | |||||
Liabilities settled upon plugging and abandoning wells | — | (40 | ) | ||||
Liabilities removed upon sale of wells | (6 | ) | — | ||||
Liabilities related to assets held for sale | (2,821 | ) | — | ||||
Revision of estimates(1) | — | 4,882 | |||||
Accretion expense | 316 | 432 | |||||
Asset retirement obligations - end of period | $ | 10,219 | $ | 12,679 |
Six Months Ended June 30, 2016 | Year Ended December 31, 2015 | ||||||
(in thousands) | |||||||
Revolving credit facility | $ | 162,018 | $ | 180,000 | |||
Less: current portion | 52,018 | 30,000 | |||||
Total long-term debt | $ | 110,000 | $ | 150,000 |
Remaining 2016 | $ | 257 | |
2017 | 403 | ||
2018 | 408 | ||
2019 | 413 | ||
2020 | 418 | ||
2021 | 423 | ||
Total | $ | 2,322 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Amounts paid for: | (in thousands) | ||||||||||||||
Services agreement | $ | 706 | $ | 827 | $ | 1,526 | $ | 1,678 | |||||||
Joint operating agreements | 1,616 | 2,044 | 3,281 | 4,158 | |||||||||||
Oilfield services provided by ME3 Oilfield Service | 825 | 883 | 1,496 | 1,913 | |||||||||||
$ | 3,147 | $ | 3,754 | $ | 6,303 | $ | 7,749 |
• | the amount of oil and natural gas we produce; |
• | the prices at which we sell our oil and natural gas production; |
• | our ability to hedge commodity prices; and |
• | the level of our operating and administrative costs. |
• | Oil and natural gas production volumes; |
• | Realized prices on the sale of oil and natural gas, including the effect of our commodity derivative contracts; |
• | Lease operating expenses; and |
• | Adjusted EBITDA. |
• | the cash flow generated by our assets, without regard to financing methods, capital structure or historical cost basis; and |
• | our ability to incur and service debt and fund capital expenditures. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Oil sales | $ | 14,447 | $ | 21,244 | $ | 25,553 | $ | 38,538 | |||||||
Natural gas sales | 330 | 367 | 493 | 644 | |||||||||||
Loss on derivatives, net | (10,088 | ) | (8,871 | ) | (7,520 | ) | (7,227 | ) | |||||||
Operating costs and expenses: | |||||||||||||||
Lease operating expenses | $ | 5,777 | $ | 7,617 | $ | 11,842 | $ | 16,532 | |||||||
Oil and natural gas production taxes | $ | 732 | $ | 1,319 | $ | 1,324 | $ | 2,428 | |||||||
Impairment of proved oil and natural gas properties | $ | 895 | $ | — | $ | 895 | $ | — | |||||||
Depreciation, depletion and amortization | $ | 5,800 | $ | 8,191 | $ | 11,885 | $ | 16,037 | |||||||
General and administrative (1) | $ | 1,478 | $ | 1,637 | $ | 3,566 | $ | 5,278 | |||||||
Interest expense | $ | 2,054 | $ | 1,830 | $ | 4,253 | $ | 3,557 | |||||||
Production: | |||||||||||||||
Oil (MBbls) | 349 | 397 | 718 | 788 | |||||||||||
Natural gas (MMcf) | 130 | 139 | 260 | 266 | |||||||||||
Total (MBoe) | 371 | 420 | 761 | 832 | |||||||||||
Average net production (Boe/d) | 4,077 | 4,615 | 4,181 | 4,597 | |||||||||||
Average sales price: | |||||||||||||||
Oil (per Bbl): | |||||||||||||||
Sales price | $ | 41.40 | $ | 53.51 | $ | 35.59 | $ | 48.91 | |||||||
Effect of net settlements on matured derivative instruments (2) | $ | 7.82 | $ | 5.50 | $ | 13.50 | $ | 8.44 | |||||||
Realized oil price after derivatives | $ | 49.22 | $ | 59.01 | $ | 49.09 | $ | 57.35 | |||||||
Natural gas (per Mcf): | |||||||||||||||
Sales price (3) | $ | 2.54 | $ | 2.64 | $ | 1.90 | $ | 2.42 | |||||||
Average unit costs per Boe: | |||||||||||||||
Lease operating expenses | $ | 15.57 | $ | 18.14 | $ | 15.56 | $ | 19.87 | |||||||
Oil and natural gas production taxes | $ | 1.97 | $ | 3.14 | $ | 1.74 | $ | 2.92 | |||||||
Depreciation, depletion and amortization | $ | 15.63 | $ | 19.50 | $ | 15.62 | $ | 19.28 | |||||||
General and administrative expenses | $ | 3.98 | $ | 3.90 | $ | 4.69 | $ | 6.34 |
(1) | General and administrative expenses include non-cash equity-based compensation of $0.3 million and $0.7 million for the three and six months ended June 30, 2016; and $0.4 million and $2.3 million for the three and six months ended June 30, 2015. |
(2) | Effects of net settlements on commodity derivative instruments does not include the $11.1 million received from restructuring the previous oil derivative contracts in January 2015. |
(3) | Natural gas sales price per Mcf includes the sales of natural gas liquids. |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Operating activities | $ | 24,899 | $ | 18,778 | |||
Investing activities | $ | (3,488 | ) | $ | (8,629 | ) | |
Financing activities | $ | (18,007 | ) | $ | (12,592 | ) |
Exhibit No. | Exhibit Description | |
10.1 | Amendment No.6 to Credit Agreement, dated as of February 12, 2015, among Mid-Con Energy Properties, LLC, as Borrower, Royal Bank of Canada, as Administrative Agent and Collateral Agent and the lenders party thereto (incorporated by reference to Exhibit 10.01 to Mid-Con Energy Partners, LP's current report on Form 8-K filed with the SEC on February 17, 2015). | |
10.2 | Amendment No.7 to Credit Agreement, dated as of November 30, 2015, among Mid-Con Energy Properties, LLC, as Borrower, Royal Bank of Canada, as Administrative Agent and Collateral Agent and the lenders party thereto (incorporated by reference to Exhibit 10.1 to Mid-Con Energy Partners, LP's current report on Form 8-K filed with the SEC on December 1, 2015). | |
10.3 | Amendment No.8 to Credit Agreement, dated as of April 29, 2016, among Mid-Con Energy Properties, LLC, as Borrower, Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent and the lenders party thereto (incorporated by reference to Exhibit 10.3 to Mid-Con Energy Partners, LP's Quarterly Report on Form 10-Q, filed with the SEC on May 2, 2016). | |
10.4 | Amendment No.9 to Credit Agreement, dated as of May 31, 2016, among Mid-Con Energy Properties, LLC, as Borrower, Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent and the lenders party thereto (incorporated by reference to Exhibit 10.1 to Mid-Con Energy Partners, LP's current report on Form 8-K filed with the SEC on June 2, 2016). | |
10.5 | Amendment No. 1 to Mid-Con Energy Partners, LP Long-Term Incentive Program (incorporated by reference to Exhibit 10.1 to Mid-Con Energy Partners, LP's current report on Form 8-K filed with the Commission on November 20, 2015). | |
10.6 | Class A Convertible Preferred Unit Purchase Agreement, dated as of July 31, 2016, by and among Mid-Con Energy Partners, LP and the Purchasers named on Schedule A thereto (incorporated by reference to Exhibit 10.1 to Mid-Con Energy Partners, LP's current report on Form 8-K file with the SEC on August 3, 2016). | |
10.7+ | Purchase and Sale Agreement dated as of May 26, 2016, among Mid-Con Energy Properties, LLC, Mid-Con Energy Operating, LLC as sellers, and PO&G Panhandle, LP, as purchaser. | |
10.8+ | Purchase and Sale Agreement, dated as of July 28, 2016, among Mid-Con Energy Properties, LLC, as purchaser, and Walter Exploration Company, JMW LTD, and Wildcat Properties L.P., as sellers. | |
31.1+ | Rule 13a-14(a)/ 15(d)- 14(a) Certification of Chief Executive Officer | |
31.2+ | Rule 13a-14(a)/ 15(d)- 14(a) Certification of Chief Financial Officer | |
32.1+ | Section 1350 Certificate of Chief Executive Officer | |
32.2+ | Section 1350 Certificate of Chief Financial Officer | |
101.INS++ | XBRL Instance Document | |
101.SCH++ | XBRL Taxonomy Extension Schema Document | |
101.CAL++ | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF++ | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB++ | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE++ | XBRL Taxonomy Extension Presentation Linkbase Document |
+ | Filed herewith |
++ | In accordance with Rule 406T of Regulation S-T, the XBRL information in Exhibit 101 to this Form 10-Q shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act. The financial information contained in the XBRL-related documents is "unaudited" or "unreviewed." |
MID-CON ENERGY PARTNERS, LP | ||||
By: | Mid-Con Energy GP, LLC, its general partner | |||
August 3, 2016 | By: | /s/ Matthew R. Lewis | ||
Matthew R. Lewis | ||||
Chief Financial Officer |
i |
Section 1.2 | Assets.........................................................................................9 |
Section 1.3 | Excluded Assets.......................................................................12 |
Section 1.4 | Effective Time; Proration of Costs and Revenues...................13 |
Section 1.5 | Delivery and Maintenance of Records....................................14 |
Section 2.1 | Purchase Price.........................................................................15 |
Section 2.2 | Adjustments to Purchase Price................................................15 |
Section 2.3 | Deposit....................................................................................17 |
Section 2.4 | Allocated Values.....................................................................17 |
Section 3.1 | Seller’s Title...........................................................................17 |
Section 3.2 | Definition of Defensible Title................................................18 |
Section 3.3 | Definition of Permitted Encumbrances..................................19 |
Section 3.4 | Notice of Title Defect Adjustments........................................21 |
Section 3.5 | Casualty or Condemnation Loss.............................................25 |
Section 3.6 | Limitations on Applicability....................................................25 |
Section 4.1 | Assessment..............................................................................26 |
Section 4.2 | NORM, Wastes and Other Substances....................................27 |
Section 4.3 | Environmental Defects............................................................27 |
Section 4.4 | Inspection Indemnity...............................................................29 |
Section 4.5 | Exclusive Remedy...................................................................29 |
Section 5.1 | Generally.................................................................................30 |
Section 5.2 | Existence and Qualification....................................................30 |
Section 5.3 | Power......................................................................................30 |
Section 5.4 | Authorization and Enforceability...........................................30 |
Section 5.5 | No Conflicts...........................................................................30 |
Section 5.6 | Liability for Brokers’ Fees.....................................................31 |
Section 5.7 | Litigation................................................................................31 |
Section 5.8 | Taxes and Assessments...........................................................31 |
Section 5.9 | Compliance with Laws...........................................................31 |
Section 5.10 | Outstanding Capital Commitments........................................32 |
Section 5.11 | Imbalances..............................................................................32 |
Section 5.12 | Bankruptcy..............................................................................32 |
ii |
Section 5.13 | Transfer Requirements............................................................32 |
Section 5.14 | Preference Rights....................................................................32 |
Section 5.15 | Payment of Royalties..............................................................32 |
Section 5.16 | Oil and Gas Operations...........................................................32 |
Section 5.17 | Well Status; Plugging and Abandonment................................33 |
Section 5.18 | Non-Consent Operations.........................................................33 |
Section 5.19 | Permits.....................................................................................33 |
Section 5.20 | Tax Partnership........................................................................33 |
Section 5.21 | Suspense Accounts..................................................................34 |
Section 5.22 | Insurance; Bonding.................................................................34 |
Section 5.23 | Material Contracts...................................................................34 |
Section 5.24 | Environmental Matters............................................................34 |
Section 5.25 | Mortgages and Other Instruments...........................................35 |
Section 5.26 | Payments for Hydrocarbon Production...................................36 |
Section 5.27 | Payout Balances......................................................................36 |
Section 5.28 | Hedging...................................................................................36 |
Section 6.1 | Existence and Qualification....................................................36 |
Section 6.2 | Power.......................................................................................36 |
Section 6.3 | Authorization and Enforceability............................................36 |
Section 6.4 | No Conflicts............................................................................37 |
Section 6.5 | Liability for Brokers’ Fees......................................................37 |
Section 6.6 | Litigation................................................................................37 |
Section 6.7 | Financing................................................................................37 |
Section 6.8 | Limitation...............................................................................37 |
Section 6.9 | SEC Disclosure......................................................................37 |
Section 6.10 | Bankruptcy.............................................................................38 |
Section 6.11 | Qualification..........................................................................38 |
Section 6.12 | Consents................................................................................38 |
Section 6.13 | Independent Evaluation.........................................................38 |
Section 7.1 | Government Reviews............................................................39 |
Section 7.2 | Notification of Breaches.......................................................39 |
Section 7.3 | Letters-in-Lieu; Assignments; Operatorship.........................40 |
Section 7.4 | Public Announcements..........................................................40 |
Section 7.5 | Operation of Business...........................................................40 |
Section 7.6 | Transfer Requirements..........................................................41 |
Section 7.7 | Tax Matters...........................................................................42 |
Section 7.8 | Further Assurances...............................................................42 |
Section 7.9 | Insurance..............................................................................43 |
Section 7.10 | Record Retention.................................................................43 |
iii |
Section 7.11 | Bonds, Letters of Credit and Guarantees.................................43 |
Section 7.12 | Cure of Misrepresentations......................................................43 |
Section 7.13 | Plugging, Abandonment, Decommissioning and Other Costs.44 |
Section 7.14 | Employees................................................................................44 |
Section 7.15 | Satisfaction of Conditions........................................................44 |
Section 8.1 | Conditions of Seller to Closing................................................44 |
Section 8.2 | Conditions of Purchaser to Closing.........................................46 |
Section 9.1 | Time and Place of Closing.......................................................47 |
Section 9.2 | Obligations of Seller at Closing...............................................47 |
Section 9.3 | Obligations of Purchaser at Closing........................................48 |
Section 9.4 | Closing Adjustments and Closing Payment.............................49 |
Section 10.1 | Termination..............................................................................51 |
Section 10.2 | Effect of Termination...............................................................52 |
Section 10.3 | Distribution of Deposit Upon Termination..............................52 |
Section 11.1 | Assumed Seller Obligations.....................................................53 |
Section 11.2 | Survival....................................................................................54 |
Section 11.3 | Indemnification by Seller.........................................................55 |
Section 11.4 | Indemnification by Purchaser..................................................55 |
Section 11.5 | Indemnification Proceedings...................................................56 |
Section 11.6 | Release.....................................................................................58 |
Section 11.7 | Disclaimers..............................................................................58 |
Section 11.8 | Waiver of Trade Practices Acts................................................60 |
Section 11.9 | Redhibition Waiver..................................................................60 |
Section 11.10 | Recording.................................................................................61 |
Section 11.11 | Non-Compensatory Damages..................................................61 |
Section 11.12 | Disclaimer of Application of Anti-Indemnity Statutes............61 |
Section 12.1 | Counterparts.............................................................................61 |
Section 12.2 | Notices.....................................................................................62 |
iv |
Section 12.3 | Sales or Use Tax Recording Fees and Similar Taxes and Fees..62 |
Section 12.4 | Exhibits and Schedules............................................................62 |
Section 12.5 | Expenses..................................................................................63 |
Section 12.6 | Change of Name......................................................................63 |
Section 12.7 | Governing Law; Venue; and Waiver of Jury Trial...................63 |
Section 12.8 | Captions...................................................................................64 |
Section 12.9 | Waivers....................................................................................64 |
Section 12.10 | Assignment..............................................................................64 |
Section 12.11 | Entire Agreement.....................................................................64 |
Section 12.12 | Amendment.............................................................................64 |
Section 12.13 | No Third-Party Beneficiaries..................................................64 |
Section 12.14 | References...............................................................................65 |
Section 12.15 | Construction............................................................................65 |
Section 12.16 | Conspicuousness.....................................................................65 |
Section 12.17 | Severability.............................................................................66 |
Section 12.18 | Time of Essence......................................................................66 |
v |
Exhibit A | Leases |
Exhibit A-1 | Wells and Units |
Exhibit A-2 | Working Interests and Net Revenue Interests |
Exhibit B | Form of Assignment, Conveyance and Bill of Sale |
Exhibit C | Form of Title Indemnity Agreement |
Schedule 1.2(d) | Contracts |
Schedule 1.2(e) | Easements |
Schedule 1.2(k) | Vehicles and Vessels |
Schedule 1.3(e) | Excluded Assets |
Schedule 3.3(l) | Permitted Encumbrances |
Schedule 3.4(a) | Allocated Values |
Schedule 5.7 | Litigation |
Schedule 5.8 | Taxes and Assessments |
Schedule 5.9 | Compliance with Laws |
Schedule 5.10 | Outstanding Capital Commitments |
Schedule 5.11 | Imbalances |
Schedule 5.13 | Transfer Requirements |
Schedule 5.16 | Oil and Gas Operations |
Schedule 5.17 | Plugging and Abandonment |
Schedule 5.21 | Suspense Accounts |
Schedule 5.22 | Insurance; Bonding |
Schedule 5.23 | Material Contracts |
Schedule 5.24 | Environmental Matters |
Schedule 7.5 | Operation of Business |
Schedule 7.14 | Employees |
vi |
If to Seller: | Mid-Con Energy Properties, LLC |
If to Purchaser: | PO&G Resources, LP |
SELLER: MID-CON ENERGY PROPERTIES, LLC, a Delaware limited liability company By: Mid-Con Energy Partners, LP, a Delaware limited partnership, its Sole Member By: Mid-Con Energy GP, LLC, a Delaware limited liability company, Its General Partner By: Jeffrey R. Olmstead Chief Executive Officer MID-CON ENERGY OPERATING, LLC, an Oklahoma limited liability company By: Jeffrey R. Olmstead Chief Executive Officer PURCHASER: PO&G PANHANDLE, LP, a Texas limited partnership By: PO&G Panhandle Manager, LLC, a Texas limited liability company, Its General Partner By: TJK, LLC, a Nevada limited liability company Its Sole Member By: Steven A. Pfeifer Manager |
Unit/Lease | LESSOR | LESSEE | LEASE DATE | BOOK | PAGE | ST | COUNTY | LEGAL | LEGAL DESCRIPTION |
HRMU | ANADARKO LAND CORP., A NEBRASKA CORPORATION | MID-CON ENERGY CORPORATION | 12/19/2005 | 2006 | 224734 | CO | CHEYENNE | 013S-043W-001, 013S-043W-13 | W/2 SE/4 of Sec 1-13S-43W and N/2 NW/4 of Sec 13-13S-43W |
HRMU | ANADARKO E & P COMPANY LP, A DELAWARE LIMITED PARTNERSHIP | MID-CON ENERGY CORPORATION | 12/192005 | 2006 | 224735 | CO | CHEYENNE | 013S-043W-001, 013S-043W-14 | SW/4; E/2 SE/4 of Sec 1-13S-43W and NE/4 & S/2 NW/4 of Sec 13-13S-43W |
HRMU | LAS ANIMAS MINERALS LTD | WILBANKS & ASSOCIATES INC | 1/11/1988 | 249 | 533 | CO | CHEYENNE | 013S-043W-012 | Lots 11 – 14 (aka SW/4) of Sec 12-13S-43W |
ONA | ESTATE OF ZANE RAYMOND SMALTS, A MINOR, RAYMOND SMALTS, GUARDIAN | THE ATLANTIC REFINING COMPANY | 7/1/1959 | 84 | 305 | OK | CIMARRON | 004N-009E-025 | E/2 NE/4; Limited to Morrow formation |
ONA | RAYMOND AND NADINE SMALTS - HUSBAND AND WIFE | THE ATLANTIC REFINING COMPANY | 9/17/1959 | 84 | 319 | OK | CIMARRON | 004N-009E-025 | NE/4 SE/4, N/2 SE/4 SE/4; Limited to Morrow formation - 25; S/2 SE/4 SE/4; Limited to Morrow formation |
ONA | IVA ELIZA WILSON, JESSIE MAE WILSON, KALL AND REX E. WILSON | THE ATLANTIC REFINING COMPANY | 4/1/1962 | 100 | 159 | OK | CIMARRON | 004N-009E-025 | NE/4 SE/4, N/2 SE/4 SE/4; Limited to Morrow formation - 25; S/2 SE/4 SE/4; Limited to Morrow formation |
MIDWELL | CLAUDYA JO SMITH AND CYRUS L. SMITH | BURK ROYALTY CO. | 9/29/1992 | 280 | 722 | OK | CIMARRON | 004N-009E-035 | NE/4 |
MIDWELL | ROSALIE LANDAU & DAVID LANDAU | BURK ROYALTY CO. | 12/17/1992 | 281 | 881 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | BARBARA CRISS BENNETT ALEXANDER & JOHN ALEXANDER, WH | BURK ROYALTY CO. | 12/20/1992 | 281 | 792 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | RAEANN ZAHN, HEIR OF ROSE BRYANT, AND THOMAS ZAHN, WH | BURK ROYALTY CO. | 12/20/1992 | 282 | 135 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | MICHAEL BATTAGLIA, HEIR OF ROSE BRYANT, AND NIELA BATTAGLIA, HW | BURK ROYALTY CO. | 12/20/1992 | 283 | 48 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | JILL L. ENNIS HOPKINS AND EARL D. HOPKINS, WH | BURK ROYALTY CO. | 12/20/1992 | 282 | 596 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | TILFORD R. BAILEY & INEZROSE BAILEY | BURK ROYALTY CO. | 12/20/1992 | 281 | 909 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | KIP DANIEL ENNIS | BURK ROYALTY CO. | 12/20/1992 | 282 | 250 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | DICK AND DELMA M. WHITE, HW | BURK ROYALTY CO. | 12/20/1992 | 281 | 684 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | JANE AND RONALD SHOUSE | BURK ROYALTY CO. | 12/20/1992 | 281 | 883 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | RICHARD W. ENNIS AND MARY ANN ENNIS, HW | BURK ROYALTY CO. | 12/20/1992 | 282 | 91 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | JERRY C. ENNIS AND ANITA A. ENNIS, HW | BURK ROYALTY CO. | 12/20/1992 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 | ||
MIDWELL | BECKY AND TONY WOODS | BURK ROYALTY CO. | 12/20/1992 | 282 | 14 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | PEGGY AND JIM MUSAL | BURK ROYALTY CO. | 12/20/1992 | 281 | 770 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | EMILY B. PEARCE | BURK ROYALTY CO. | 12/20/1992 | 281 | 772 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | MODESTA BAILEY, A WIDOW | BURK ROYALTY CO. | 12/20/1992 | 281 | 764 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | JANET S. HODGE | BURK ROYALTY CO. | 12/20/1992 | 281 | 766 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | JAMES M. AND RITA ENNIS | BURK ROYALTY CO. | 12/20/1992 | 282 | 12 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | JACK C. ENNIS | BURK ROYALTY CO. | 12/20/1992 | 281 | 885 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | KIMBERLY A. ENNIS HARROUGH & RANDY HARROUGH | BURK ROYALTY CO. | 12/20/1992 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 | ||
MIDWELL | MADONNA AND JOSEPH BRYANT | BURK ROYALTY CO. | 12/20/1992 | 281 | 790 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | CECIL G. & ANNA G. BAILEY | BURK ROYALTY CO. | 12/20/1992 | 281 | 768 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | DAVID R. ENNIS & HELEN ENNIS | BURK ROYALTY CO. | 12/20/1992 | 281 | 776 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | HERSHELL AND DEANN WALTZ | BURK ROYALTY CO. | 12/20/1992 | 281 | 879 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | ANDREA LYNETTE WALTZ CLAYTON AND TODD CLAYTON | BURK ROYALTY CO. | 12/20/1992 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 | ||
MIDWELL | GREGORY AND TERESA WALTZ | BURK ROYALTY CO. | 12/20/1992 | 281 | 877 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | RONALD FRANKLIN STILES | BURK ROYALTY CO. | 12/20/1992 | 281 | 774 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | DAVID AND CAROLE BRIDGES | BURK ROYALTY CO. | 12/20/1992 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 | ||
MIDWELL | MICHAEL AND ALLISON WALTZ | BURK ROYALTY CO. | 12/20/1992 | 282 | 52 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | SHEILA R. ENNIS CHITWOOD & JEFF CHITWOOD | BURK ROYALTY CO. | 12/20/1992 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 | ||
MIDWELL | WINONA KEIFFER AND DICK KIEFFER | BURK ROYALTY CO. | 12/20/1992 | OK | CIMARRON | 004N-009E-035 | NE/4 SW/4 |
MIDWELL | THE ROXIE M. HANKE TESTAMENTARY TRUST UNDER THE WILL OF ROXIE M. HANKE, EDWARD L. NEWLIN, TRUSTEE | BURK ROYALTY CO. | 11/30/1992 | 281 | 463 | OK | CIMARRON | 004N-009E-035 | NW/4 |
MIDWELL | THE PAUL HANKE TESTAMENTARY TRUST UNDER THE WILL OF PAUL HANKE EDWARD L. NEWLIN, TRUSTEE | BURK ROYALTY CO. | 11/30/1992 | 281 | 429 | OK | CIMARRON | 004N-009E-035 | NW/4 |
SMALTZ | RETA NADINE SMALTS ESTATE, A MINOR, RAYMOND SMALTS, GUARDIAN | THE ATLANTIC REFINING COMPANY | 7/1/1959 | 84 | 307 | OK | CIMARRON | 004N-009E-025 | SW/4 |
SMALTZ | IVA ELIZA WILSON, JESSIE MAE WILSON, KALL AND REX E. WILSON | THE ATLANTIC REFINING COMPANY | 4/4/1962 | 100 | 160 | OK | CIMARRON | 004N-009E-025 | SE/4 |
SMALTZ | RAYMOND AND NADINE SMALTS - HUSBAND AND WIFE | THE ATLANTIC REFINING COMPANY | 9/17/1959 | 84 | 319 | OK | CIMARRON | 004N-009E-025 | SE/4 |
SMALTZ | ESTATE OF ZANE RAYMOND SMALTS, A MINOR, RAYMOND SMALTS, GUARDIAN | THE ATLANTIC REFINING COMPANY | 7/1/1959 | 84 | 305 | OK | CIMARRON | 004N-009E-025 | NE/4 |
SMALTZ | ESTATE OF JAMES CLYDE SMALTS, RAYMOND SMALTS, GUARDIAN | THE ATLANTIC REFINING COMPANY | 10/1/1959 | 84 | 321 | OK | CIMARRON | 004N-009E-025 | NW/4 |
EVA | WILLIAM C EGGERS ET AL | HW LONG | 6/28/1954 | 252 | 398 | OK | TEXAS | 003N-011E-005 | S/2 SE/4, NW/4 SE/4 |
EVA | C F WEBB AND GUYNETH V WEBB HIS WIFE | F P HAMBRIGHT | 12/12/1959 | 312 | 69 | OK | TEXAS | 003N-011E-005 | W/2 |
EVA | BERNICE MILES AND E E MILES HER HUSBAND | F P HAMBRIGHT | 12/15/1959 | 312 | 78 | OK | TEXAS | 003N-011E-005 | W/2 |
EVA | SYLVESTER N IVIE, A WIDOWER | CARTER OIL COMPANY | 1/8/1955 | 305 | 487 | OK | TEXAS | 003N-011E-006 | PORTION OF THE SE/4 SE/4 OF SEC. 6, LYING S AND E OF THE TEPEE CREEK FAULT WHICH IS A STRAIGHT LINE BEGINNING AT A POINT 1 ,320' FSL AND 300' FEL OF SEC. 6 AND ENDING AT A POINT ON THE SOUTH LINE OF SEC. 6 ,1 ,200' FEL |
EVA | JAMES PETROLEUM CORPORATION | WILLIAM N PRICE | 7/6/1961 | 336 | 290 | OK | TEXAS | 003N-011E-006 | PORTION OF THE SE/4 SE/4 OF SEC. 6, LYING S AND E OF THE TEPEE CREEK FAULT WHICH IS A STRAIGHT LINE BEGINNING AT A POINT 1 ,320' FSL AND 300' FEL OF SEC. 6 AND ENDING AT A POINT ON THE SOUTH LINE OF SEC. 6, 1 ,200' FEL |
EVA | F HINER DALE ADMIN. OF WILL OF ORLIA A WEEDE, DECEASED | THE CARTER OIL COMPANY | 4/3/1954 | 301 | 187 | OK | TEXAS | 003N-011E-007 | PORTION OF THE NE/4 LYING S AND E OF THE TEPEE CREEK FAULT, WHICH IS A STRAIGHT LINE BEGINNING AT A POINT ON THEN LINE OF SEC. 7, 1200' FEL, AND ENDING AT A POINT 2640' FEL AND 3190' FSL OF SEC. 7 |
EVA | W F DUNAWAY AND MADAL DUNAWAY HUSBAND AND WIFE | THE CARTER OIL COMPANY | 9/3/1953 | 302 | 1 | OK | TEXAS | 003N-011E-007 | PORTION OF THE NE/4 LYING S AND E OF THE TEPEE CREEK FAULT, WHICH IS A STRAIGHT LINE BEGINNING AT A POINT ON THEN LINE OF SEC. 7, 1200' FEL, AND ENDING AT A POINT 2640' FEL AND 3190' FSL OF SEC. 7 |
EVA | W F DUNAWAY | THE CARTER OIL CO | 12/14/1954 | 305 | 473 | OK | TEXAS | 003N-011E-008 | NW/4 |
EVA | COMMERCIAL NATIONAL BANK OF KANSAS CITY, TRUSTEE | THE CARTER OIL CO | 12/14/1954 | 305 | 474 | OK | TEXAS | 003N-011E-008 | NW/4 |
EVA | BERNICE V SHORES | ENSIGN OPERATING CO | 8/17/1992 | 867 | 168 | OK | TEXAS | 003N-011E-008 | NW/4 NE/4, N/2 NE/4 NE/4 |
EVA | LOYD V PETERSON AND NORLENE T. LOYD V PETERSON AND NORLENE T. | ENSIGN OPERATING CO | 8/17/1992 | 867 | 171 | OK | TEXAS | 003N-011E-008 | NW/4 NE/4, N/2 NE/4 NE/4 |
EVA | ALLEN JOE NORRIS | ENSIGN OPERATING CO | 8/17/1992 | 867 | 174 | OK | TEXAS | 003N-011E-008 | NW/4 NE/4, N/2 NE/4 NE/4 |
EVA | MARY LOU NORRIS KENNEY, DANIEL V. NORRIS & STEPHEN W. NORRIS | ENSIGN OPERATING CO | 8/17/1992 | 867 | 489 | OK | TEXAS | 003N-011E-008 | NW/4 NE/4, N/2 NE/4 NE/4 |
ONA | KENNETH BOWMAN & WILMA BOWMAN, HIS WIFE & CLIFFORD H. BOWMAN & ELSIA M. BOWMAN, HIS WIFE | DAWSON OPERATING CO. INC. | 11/22/1973 | OK | TEXAS | 004N-010E-017 | S/2 SW/4, NW/4 SW/4 - 17; NE/4 SW/4 | ||
ONA | J.D. VOILES & T.F. VOILES, TRUSTEES OF J.D. & T.F. VOILES CHILDREN TRUST | BEARD OIL CO. | 3/21/1990 | OK | TEXAS | 004N-010E-018 | E/2 SE/4, SW/4 SE/4, S/2 NW/4 SE/4 | ||
ONA | IMOGENE METCALF | BEARD OIL CO. | 3/21/1990 | OK | TEXAS | 004N-010E-018 | E/2 SE/4, SW/4 SE/4, S/2 NW/4 SE/4 | ||
ONA | CHARLOTTE BUTLER | BEARD OIL CO. | 3/22/1990 | OK | TEXAS | 004N-010E-018 | E/2 SE/4, SW/4 SE/4, S/2 NW/4 SE/4 | ||
ONA | ADRIENNE LEBLANC | BEARD OIL CO. | 3/28/1990 | OK | TEXAS | 004N-010E-018 | E/2 SE/4, SW/4 SE/4, S/2 NW/4 SE/4 | ||
ONA | VONCIELE W. GRAY, A SINGLE WOMAN | BEARD OIL CO. | 5/10/1990 | OK | TEXAS | 004N-010E-018 | E/2 SE/4, SW/4 SE/4, S/2 NW/4 SE/4 | ||
ONA | BILLY F. BRUNS & JANET E. BURNS, HUSBAND & WIFE | HP O&G PROPERTIES INC. | 8/26/1992 | OK | TEXAS | 004N-010E-018 | S/2 NE/4 SW/4, SE/4 SW/4 | ||
ONA | ETHEL BRUMLEY, DARREL C. BRUMLEY & ELISABETH JEAN BRUMLEY | HP O&G PROPERTIES INC. | 10/30/1958 | OK | TEXAS | 004N-010E-019 | Lots 1, 2, 3, 4; E/2 W/2, E/2 (being all of Section 19) | ||
ONA | EDWARD KAAR AND DOROTHY KAAR, HIS WIFE | RALPH H. GRAY | 3/2/1973 | OK | TEXAS | 004N-010E-029 | NW/4 | ||
ONA | C.D. LONG & MARY A. LONG, HIS WIFE | RALPH H. GRAY | 3/8/1973 | OK | TEXAS | 004N-010E-029 | NW/4 | ||
ONA | HUBERT X. ELROD & HELEN L. ELROD, HIS WIFE | RALPH H. GRAY | 3/9/1973 | OK | TEXAS | 004N-010E-029 | NW/4 | ||
ONA | JOHN MARCHBANKS AND FRANCES B. MARCHBANKS, HIS WIFE | RALPH M. REYNOLDS | 4/9/1973 | OK | TEXAS | 004N-010E-029 | NW/4 | ||
ONA | JACK K. CREATE | DAWSON OPERATING CO. INC. | 4/12/1973 | OK | TEXAS | 004N-010E-029 | NW/4 |
ONA | WALLACE R. HOUSTON | RJ SULLIVAN AND WE LEROUX DBA SULLIVAN & LEROUX | 6/22/1968 | OK | TEXAS | 004N-010E-030 | E/2 NW/4, Ltd. from surface to 103' into Mississippi Chester - 30; W/2 NW/4, Ltd. from surface to 4750' | ||
ONA | LEWIS W LONG, E UX | J C SOWERS, JR. | 2/22/1972 | 438 | 387 | OK | TEXAS | 004N-010E-030 | Lots 3 & 4 a/k/a W/2 SW/4 & E/2 SW/4 |
ONA | DARLENE S. FISKE, TRUSTEE | HP O&G PROPERTIES INC. | 2/20/1992 | OK | TEXAS | 004N-010E-030 | NE/4, Ltd. from surface to 100' below producing zone | ||
ONA | MARTIN S. MILLER, TRUSTEE OF THOMAS S. MILLER 1975 TRUST | HP O&G PROPERTIES INC. | 2/20/1992 | OK | TEXAS | 004N-010E-030 | NE/4, Ltd. from surface to 100' below producing zone | ||
ONA | DONALD E. SHARP | HP O&G PROPERTIES INC. | 2/20/1992 | OK | TEXAS | 004N-010E-030 | NE/4, Ltd. from surface to 100' below producing zone | ||
ONA | CHAUNCEY HAMMOND PERSONAL REPRESENTATIVE FOR ESTATE OF HERBERT EUGENE HAMMOND, DECEASED | BEARD OIL CO. | 3/6/1992 | OK | TEXAS | 004N-010E-030 | NE/4, Ltd. from surface to 100' below producing zone | ||
WPWFU I | AUGUSTA HENRICHS | PANHANDLE EASTERN PIPE LINE COMPANY | 8/4/1941 | 231 | 223 | OK | TEXAS | 002N-016E-005 | SW/4 SECTION 5-2N-16ECM |
WPWFU I | AUGUSTA HENRICHS | PANHANDLE EASTERN PIPE LINE COMPANY | 8/19/1941 | 231 | 224 | OK | TEXAS | 002N-016E-005 | SE/4 SECTION 5-2N-16ECM |
WPWFU I | H G WITT ETUX | JOE E. DENHAM | 1/2/1937 | 207 | 300 | OK | TEXAS | 002N-016E-007 | NE/4 SECTION 7-2N-16ECM |
WPWFU I | ADELLE DAVIS ETAL | THE TEXAS COMPANY | 9/1/1937 | 211 | 98 | OK | TEXAS | 002N-016E-007 | S/2 SECTION 7-2N-16ECM |
WPWFU I | DAVID THOMAS | JOE E. DENHAM | 12/19/1936 | 207 | 15 | OK | TEXAS | 002N-016E-008 | E/2 SECTION 8-2N-16ECM |
WPWFU I | DAVID THOMAS | JOE E. DENHAM | 12/19/1936 | 207 | 5 | OK | TEXAS | 002N-016E-008 | NW/4 SECTION 8-2N-16ECM |
WPWFU I | A J GROSS ETUX | JOE E. DENHAM | 1/1/1937 | 207 | 282 | OK | TEXAS | 002N-016E-008 | SW/4 SECTION 8-2N-16ECM |
WPWFU I | ATHOL COCHRAN ETUX | SKELLY OIL COMPANY | 2/11/1937 | 207 | 319 | OK | TEXAS | 002N-016E-017 | E/2 AND SW/4 SECTION 17-2N-16ECM |
WPWFU I | N H READ | PHILLIPS PETROLEUM COMPANY | 8/23/1943 | 243 | 158 | OK | TEXAS | 002N-016E-017 | NW/4 SECTION 17-2N-16ECM |
WPWFU I | WILLIAM F DOTTS ETUX | STANLEY MARSH, JR. | 1/5/1940 | 217 | 136 | OK | TEXAS | 002N-016E-018 | ALL SECTION 18-2N-16ECM |
WPWFU II | W L & ISABEL BUSTER | JOE E. DENHAM | 1/13/1937 | 207 | 149 | OK | TEXAS | 002N-015E-001 | NW/4 SECTION 1-2N-15ECM |
WPWFU II | W L & ISABEL BUSTER | JOE E. DENHAM | 1/13/1937 | 207 | 149 | OK | TEXAS | 002N-015E-001 | NE/4 SECTION 1-2N-15ECM |
WPWFU II | CHRISTIAN & CLIFFIE OLSON | JOE E. DENHAM | 12/21/1936 | 207 | 210 | OK | TEXAS | 002N-015E-001 | S/2 SECTION 1-2N-15ECM |
WPWFU II | HENRY & HELEN MARTIN | JOE E. DENHAM | 1/13/1937 | 207 | 140 | OK | TEXAS | 002N-015E-012 | NE/4 SECTION 12-2N-15ECM |
WPWFU II | NELLIE M WATSON | PANHANDLE EASTERN PIPE LINE COMPANY | 8/28/1939 | 217 | 96 | OK | TEXAS | 002N-016E-005 | NW/4 SECTION 5-2N-16ECM |
WPWFU II | ALICE STROTHER ETAL | SKELLY OIL COMPANY | 3/2/1937 | 195 | 209 | OK | TEXAS | 002N-016E-006 | ALL SECTION 6-2N-16ECM |
WPWFU II | H G WITT ETUX | STANLEY MARSH, JR. | 3/8/1941 | 210 | 97 | OK | TEXAS | 002N-016E-007 | NW/4 SECTION 7-2N-16ECM |
WPWFU II | JACOB REWERTS | R.G.KELLER & I.L. ENNIS | 6/14/1922 | 114 | 535 | OK | TEXAS | 003N-015E-025 | SW/4 SECTION 25-3N-15ECM |
WPWFU II | JACOB REWERTS | R.G.KELLER & I.L. ENNIS | 6/14/1922 | 114 | 535 | OK | TEXAS | 003N-015E-026 | SE/4 SECTION 26-3N-15ECM |
WPWFU II | GAIL F KING ETUX | H.W. LONG | 10/19/1937 | 209 | 545 | OK | TEXAS | 003N-015E-035 | SE/4 SECTION 35-3N-15ECM |
WPWFU II | ALLIANCE LIFE INSURANCE | H.W. LONG | 3/10/1941 | 210 | 17 | OK | TEXAS | 003N-015E-035 | E/2 SECTION 35-3N-15ECM |
WPWFU II | CLAUDE LAIRD ETAL | SKELLY OIL COMPANY | 5/5/1937 | 206 | 486 | OK | TEXAS | 003N-015E-036 | ALL SECTION 36-3N-15ECM |
WPWFU II | R D & CARRY M HALL | STANLEY MARSH, JR. | 1/7/1941 | 231 | 302 | OK | TEXAS | 003N-016E-031 | SW/4 SECTION 31-3N-16ECM |
Clawson | Clawson, Carl H.,et al | Landmark Exploration Company | 12122/1986 | 770 | 371 | OK | TEXAS | 001N-016E-001 | Township 1 North, Range 16 ECM Section 1: NW/4 NW/4 |
Clawson | Clawson, Carl H., et al | Landmark Exploration Company | 1212211986 | 770 | 338 | OK | TEXAS | 001N-016E-001 | Township 1 North, Range 16 ECM Section 1: SW/4SW/4 |
Clawson | Clawson,Carl H., et al | Landmark Exploration Company | 12/2211986 | 770 | 335 | OK | TEXAS | 001N-016E-001 | Township 1 North, Range 16 ECM Section 1: NW/4 SW/4 |
Clawson | Clawson,Carl H., et al | Landmark Exploration Company | 12122/1986 | 770 | 332 | OK | TEXAS | 001N-016E-001 | Township 1 North, Range 16 ECM Section 1: SE/4 SW/4 |
Clawson | Clawson, Carl H., et al | Landmark Exploration Company | 12/2211986 | 770 | 329 | OK | TEXAS | 001N-016E-001 | Township 1 North, Range 16 ECM Section 1: NE/4 SW/4 |
Clawson | Clawson, Carl H., et al | Landmark Exploration Company | 12122/1986 | 770 | 326 | OK | TEXAS | 001N-016E-001 | Township 1 North, Range 16 ECM Section 1: SW/4 NW/4 |
Clawson | Mathewson, C.L., et ux | Skelly Oil Company | 03/03/1937 | 206 | 173 | OK | TEXAS | 001N-016E-001 | Township 1 North, Range 16 ECM Section 1: W/2 NE/4, E/2 NW/4 |
Clawson | Cabot Carbon Company | Phillips Petroleum Company | 07/1211944 | 255 | 171 | OK | TEXAS | 001N-016E-001 | INSOFAR AND ONLY INSOFAR as said lease covers Township 1 North, Range 16 ECM Section 1: E/2 NE/4,W/2 NW/4, SW/4 |
Clawson | Clawson, Kirby, et al | Samson Resources Company | 05/25/2000 | 1012 | 598 | OK | TEXAS | 001N-016E-001 | Township 1 North, Range 16 ECM Section 1: W/2 SE/4 |
Clawson | Clawson, Carl H.,et al | Tidemark Exploration Company | 08/0211983 | 614 | 440 | OK | TEXAS | 001N-016E-002 | Township 1 North. Range 16 ECM Section 2: E/2 SW/4 |
Clawson | Clawson, Carl H., et al | Tidemark Exploration Company | 08/02/1983 | 614 | 392 | OK | TEXAS | 001N-016E-002 | Township 1 North, Range 16 ECM Section 2: E/2 SE/4 |
Clawson | Clawson, Carl H.,et al | Landmark Exploration Company | 1212211986 | 770 | 347 | OK | TEXAS | 001N-016E-002 | Township 1 North, Range 16 ECM Section 2: SE/4 NW/4 |
Clawson | Clawson, Carl H., et al | Landmark Exploration Company | 12122/1986 | 770 | 344 | OK | TEXAS | 001N-016E-002 | Township 1 North. Range 16 ECM Section 2: NE/4 NW/4 |
Clawson | Clawson,Carl H., et al | Landmark Exploration Company | 12122/1986 | 770 | 341 | OK | TEXAS | 001N-016E-002 | Township 1 North, Range 16 ECM Section 2: NW/4 NE/4 |
Clawson | Clawson, Carl H., et al | Landmark Exploration Company | 1212211986 | 770 | 323 | OK | TEXAS | 001N-016E-002 | Township 1 North, Range 16 ECM Section 2: SE/4 NE/4 |
Clawson | Clawson, Carl H.,et al | Landmark Exploration Company | 1212211986 | 770 | 320 | OK | TEXAS | 001N-016E-002 | Township 1 North, Range 16 ECM Section 2: SW/4 NE/4 |
Clawson | Clawson, Carl H., et al | Landmark Exploration Company | 1212211986 | 770 | 317 | OK | TEXAS | 001N-016E-002 | Township 1 North, Range 16 ECM Section 2: NE/4 NE/4 |
Clawson | Cabot Carbon Company | Phillips Petroleum Company | 07/1211944 | 255 | 170 | OK | TEXAS | 001N-016E-002 | INSOFAR AND ONLY INSOFAR as said lease covers Township 1 North, Range 16 ECM Section 2: E/2 W/2, E/2 |
Clawson | Clawson, Kirby,et al | Samson Resources Company | 05/25/2000 | 1012 | 616 | OK | TEXAS | 001N-016E-002 | Township 1 North. Range 16 ECM Section 2: W/2 SE/4 |
Clawson | Clawson, Carl H., et ux | Tidemark Exploration Company | 1/12/1982 | 610 | 1 | OK | TEXAS | 001N-016E-011 | Township 1 North. Range 16 ECM Section 11: E/2 NE/4 |
Clawson | Clawson, Carl H., et ux | Tidemark Exploration Company | 1/12/1982 | 610 | 14 | OK | TEXAS | 001N-016E-011 | Township 1 North. Range 16 ECM Section 11: W/2 SW/4 |
Clawson | Clawson,Carl H., et ux | Tidemark Exploration Company | 1/12/1982 | 610 | 53 | OK | TEXAS | 001N-016E-011 | Township 1 North, Range 16 ECM Section 11: W/2 SE/4 |
Clawson | Clawson, Carl H., et ux | Tidemark Exploration Company | 1/12/1982 | 610 | 66 | OK | TEXAS | 001N-016E-011 | Township 1 North, Range 16 ECM Section 11: E/2 SE/4 |
Clawson | Clawson, Carl H.,et ux | Tidemark Exploration Company | 1/12/1982 | 610 | 79 | OK | TEXAS | 001N-016E-011 | Township 1 North, Range 16 ECM Section 11: E/2 NW/4 |
Clawson | Clawson,Carl H., et ux | Tidemark Exploration Company | 1/12/1982 | 610 | 92 | OK | TEXAS | 001N-016E-011 | Township 1 North, Range 16 ECM Section 11: W/2 NE/4 |
Clawson | Cabot Carbon Company | Phillips Petroleum Company | 7/12/1944 | 255 | 165 | OK | TEXAS | 001N-016E-011 | Township 1 North, Range 16 ECM Section 11: N/2, SE/4,W/2 SW/4 |
Clawson | Clawson, Kirby, et al | Samson Resources Company | 5/25/2000 | 1012 | 589 | OK | TEXAS | 001N-016E-011 | Township 1 North, Range 16 ECM Section 11: W/2 NW/4 |
Clawson | Clawson, Kirby,et al | Samson Resources Company | 5/25/2000 | 1012 | 607 | OK | TEXAS | 001N-016E-011 | Township1 North, Range 16 ECM Section 11: E/2 SW/4 |
Clawson | Clawson, Carl H., et al | Landmark Exploration Company | 12/22/1986 | 770 | 368 | OK | TEXAS | 001N-016E-012 | Township 1 North, Range 16 ECM Section 12: NE/4 NW/4 |
Clawson | Clawson, Carl H., et al | Landmark Exploration Company | 12/22/1986 | 770 | 365 | OK | TEXAS | 001N-016E-012 | Township 1 North, Range 16 ECM Section 12: SW/4 NW/4 |
Clawson | Clawson, Carl H.,et al | Landmark Exploration Company | 12/22/1986 | 770 | 296 | OK | TEXAS | 001N-016E-012 | Township 1 North, Range 16 ECM Section 12: NW/4 NW/4 |
Clawson | Clawson, Carl H., et al | Landmark Exploration Company | 12/22/1986 | 770 | 293 | OK | TEXAS | 001N-016E-012 | Township1 North, Range 16 ECM Section 12: SE/4 NW/4 |
Clawson | Cabot Carbon Company | Phillips Petroleum Company | 7/12/1944 | 255 | 164 | OK | TEXAS | 001N-016E-012 | Township 1 North, Range 16 ECM Section 12: NW/4 |
Clawson | Miller, Charles A., et ux, et al | Panhandle Eastern Pipe Line Company | 1/27/1943 | 240 | 36 | OK | TEXAS | 002N-016E-025 | Township 2 North, Range 16 ECM Section 25: SW/4,W/2 SE/4 |
Clawson | Miller, Charles R., et ux | THE TEXAS COMPANY | 9/13/1937 | 211 | 124 | OK | TEXAS | 002N-016E-026 | INSOFAR AND ONLY INSOFAR as said lease covers Township North. Range 16 ECM Section 26: E/2 SE/4 |
Clawson | Clawson,Carl H., et al | Landmark Exploration Company | 12/22/1986 | 770 | 362 | OK | TEXAS | 002N-016E-035 | Township 2 North. Range 16 ECM Section 35: NE/4 SE/4 |
Clawson | Clawson, Carl H., et al | Landmark Exploration Company | 12/22/1986 | 770 | 359 | OK | TEXAS | 002N-016E-035 | Township 2 North. Range 16 ECM Section 35: NW/4 SE/4 |
Clawson | Clawson, Carl H., et al | Landmark Exploration Company | 12/22/1986 | 770 | 356 | OK | TEXAS | 002N-016E-035 | Township 2 North.Range 16 ECM Section 35: SE/4 SW/4 |
Clawson | Clawson, Carl H., et al | Landmark Exploration Company | 12/22/1986 | 770 | 308 | OK | TEXAS | 002N-016E-035 | Township 2 North. Range 16 ECM Section 35: NE/4 SW/4 |
Clawson | Clawson, Carl H., et a | Landmark Exploration Company | 12/22/1986 | 770 | 305 | OK | TEXAS | 002N-016E-035 | Township 2 North. Range 16 ECM Section 35: SW/4 SE/4 |
Clawson | Clawson, CarlH., et al | Landmark Exploration Company | 12/22/1986 | 770 | 302 | OK | TEXAS | 002N-016E-035 | Township 2 North, Range 16 ECM Section 35: SE/4 SE/4 |
Clawson | Cabot Carbon Company | PETROLEUM COMPANY | 7/12/1944 | 255 | 173 | OK | TEXAS | 002N-016E-035 | INSOFAR AND ONLY INSOFAR as said lease covers Township North. Range 16 ECM Section 35: E/2 SW/4, SE/4 |
Clawson | Prudential Insurance Company of America | FRANK PARKES | 9/9/1941 | 231 | 263 | OK | TEXAS | 002N-016E-035 | INSOFAR AND ONLY INSOFAR as said lease covers Township North. Range 16 ECM Section 35: E/2 NW/4, NE/4 |
Clawson | Miller C. A., et ux | Panhandle Eastern Pipe Line Company | 1/27/1943 | 240 | 19 | OK | TEXAS | 002N-016E-036 | Township 2 North. Range 16 ECM Section 36: W/2 |
Clawson | Miller C. A., et ux, et al | Panhandle Eastern Pipe Line Company | 8/19/1941 | 231 | 218 | OK | TEXAS | 002N-016E-036 | Township 2 North. Range 16 ECM Section 36: E/2 |
Bivins | OLIVER W BIVINS ET AL | BAKER & TAYLOR DRILLING CO | 4/9/1982 | 1433 | 285 | TX | POTTER | ALL LANDS INCLUDED WITHIN THE BIVINS RANCH PENN UNIT, 40-ACRE PRORATION UNITS, BEING IN SECTIONS 2 AND 3, BLOCK 4, ACH&B SURVEY AND N /4 SECTION 209, BLOCK 2, AB&M SURVEY, FROM THE SURFACE TO THE STRATIGRAPHIC EQUIVALENT OF 5,849 FEET WHICH IS 100 FEET BELOW THE BASE OF THE PENN SAND AS IDENTIFIED ON THE HALLIBURTON SPECTRAL DENSITY DUAL SPACED NEUTRON II LOG RUN ON JANUARY 19, 2002 IN THE BIVINS RANCH #15-3 WELL LOCATED IN THE NW/4 OF SECTION 3, BLOCK 4, ACH&B SURVEY, POTTER COUNTY TX | |
Bivins | MARY E BIVINS TRUST | BAKER & TAYLOR DRILLING CO | 4/9/1982 | 1433 | 279 | TX | POTTER | ALL LANDS INCLUDED WITHIN THE BIVINS RANCH PENN UNIT, 40-ACRE PRORATION UNITS, BEING IN SECTIONS 2 AND 3, BLOCK 4, ACH&B SURVEY AND N/4 SECTION 209, BLOCK 2, AB&M SURVEY, FROM THE SURFACE TO THE STRATIGRAPHIC EQUIVALENT OF 5,849 FEET WHICH IS 100 FEET BELOW THE BASE OF THE PENN SAND AS IDENTIFIED ON THE HALLIBURTON SPECTRAL DENSITY DUAL SPACED NEUTRON II LOG RUN ON JANUARY 19, 2002 IN THE BIVINS RANCH #15-3 WELL LOCATED IN THE NW/4 OF SECTION 3, BLOCK 4, ACH&B SURVEY, POTTER COUNTY TEXAS | |
Bivins | STATE OF TEXAS, THROUGH AGENT LX CATTLE COMPANY | QUESTAR EXPLORATION AND PRODUCTION COMPANY | 10/21/2000 | 3013 | 330 | TX | POTTER | SECTION 1, BLOCK B, LEE BIVINS SURVEY, A-1540, POTTER COUNTY TX | |
Bivins | OLIVER W BIVINS ET AL | JOE E WATKINS | 7/18/1995 | 2512 | 677 | TX | POTTER | 12 PARCELS OF LAND CONTAINING 40 ACRES AROUND EACH SHALLOW GAS WELL LOCATED IN SECTION 2 ACH&B SVY BLK 4 A-1355 AND IN SECTION 3 ACH&B BLK 4 A-81, SLIMITED FROM THE SURFACE TO 50' BELOW THE LOWEST PRODUCING ZONE, POTTER COUNTY TX | |
Bivins | OLIVER BIVINS ET AL TRUST | SAND RIVER O&E LLC | 12/11/2003 | 3573 | 711 | TX | POTTER | SECTION 3, ACH&B SVY BLK 4, 40 ACRES DESCRIBED AS 40 ACRE PRORATION UNIT COVERING THE BIVINS RANCH 3005 SURFACE TO 50' BELOW BOTTOM OF LOWEST PRODUCING ZONE IN THE BIVINS RANCH 3005, POTTER COUNTY TEXAS |
Bivins | J M HUBER CORPORATION | SAND RIVER O&E LLC | 12/11/2003 | 3573 | 728 | TX | POTTER | SECTION 3, ACH&B SVY BLK 4, 40 ACRES DESCRIBED AS 40 ACRE PRORATION UNIT COVERING THE BIVINS RANCH 3005 SURFACE TO 50' BELOW BOTTOM OF LOWEST PRODUCING ZONE IN THE BIVINS RANCH 3005, POTTER COUNTY TEXAS |
UNIT/LEASE | WELL NAME | ALTERNATE WELL NAME | LOCATION | API/ALT WELL NAME | ST | COUNTY |
HRMU | HRMU 1 INJ | NE NW 12-13S-43W | 05-017-07046 | CO | CHEYENNE | |
HRMU | HRMU 11 INJ | NW NW 13-13S-43W | 05-017-07793 | CO | CHEYENNE | |
HRMU | HRMU 2 INJ | SW NE 12-13S-43W | 05-017-07078 | CO | CHEYENNE | |
HRMU | HRMU 4 INJ | NW SE 12-13S-43W | 05-017-07112 | CO | CHEYENNE | |
HRMU | HRMU 14-1 | SW SW 1-13S-43W | 05-017-07148 | CO | CHEYENNE | |
HRMU | HRMU 3 | SW NW 12-13S-43W | 05-017-07111 | CO | CHEYENNE | |
HRMU | HRMU 5 | SW SE 1-13S-43W | 05-017-07157 | CO | CHEYENNE | |
HRMU | HRMU 6 | SW SW 12-13S-43W | 05-017-07145 | CO | CHEYENNE | |
HRMU | HRMU 7 | NE SW 12-13S-43W | 05-017-07080 | CO | CHEYENNE | |
HRMU | HRMU 8 WSW | NE NW 13-13S-43W | 05-017-07166 | CO | CHEYENNE | |
HRMU | HRMU 9 | Lot 14 12-13S043W | 05-017-07709 | CO | CHEYENNE | |
OMU | OMU 2512 | CSE4 NE4 of 25-T4N-R9E | 3502520885 | OK | CIMARRON | |
Midwell | MIDWELL 2 | SE4 SE4 of 26-T4N-R9E | 3502520007 | OK | CIMARRON | |
Midwell | MIDWELL 103 | SW4 SE4 of 26-T4N-R9E | 3502520072 | OK | CIMARRON | |
Midwell | MIDWELL 206 | S2 N2 SW4 SW4 of 25-T4N-R9E | 3502520390 | OK | CIMARRON | |
Midwell | MIDWELL 7-35 | NW4 NW4 NE4 NE4 of 35-T4N-R9E | 3502521017 | OK | CIMARRON | |
Midwell | MIDWELL 8-35 | NW NW SW NE of 35-T4N-R9E | 3502521018 | OK | CIMARRON | |
Midwell | MIDWELL 9-35 | SE NE SW NW of 35-T5N-R9E | 3502521058 | OK | CIMARRON | |
Midwell | SMALTZ 1 WSW | C E2 E2 SE4 of 26-T4N-R9E | OK | CIMARRON | ||
SMALTZ | SMALTS UNIT 7 | CSE4 SW4 of 25-T4N-R9E | 3502520460 | OK | CIMARRON | |
SMALTZ | SMALTS UNIT 8-25 | SW4 SW4 NE4 SW4 of 25-T4N-R9E | 3502521060 | OK | CIMARRON | |
EVA | ESU 8 | CSW4 NE4 of 7-T3N-R11E | 3513900289 | OK | TEXAS | |
EVA | ESU 3 | SW4 SW4 SW4 of 5-T3N-R11E | 3513922240 | OK | TEXAS | |
EVA | ESU #4 WSW | SE4 SE4 SE4 of 6-T3N-R11E | 3513922481 | OK | TEXAS | |
EVA | ESU 9 | CNW4 SE4 SE4 of 5-T3N-R11E | 3513922556 | OK | TEXAS | |
EVA | ESU 10 | SE4 SE4 NW4 NE4 of 7-T3N-R11E | 3513922583 | OK | TEXAS | |
EVA | ESU 11 | S2 N2 SE4 NE4 of 7-T3N-R11E | 3513922664 | OK | TEXAS | |
EVA | ESU 12 | SE4 NE4 NW4 NW4 of 8-T3N-R11E | 3513922724 | OK | TEXAS | |
EVA | ESU 13-H | SE4 SW4 SE4 SE4 of 6-T3N-R11E | 3513923072 | OK | TEXAS | |
EVA | ESU 14 | W2 NE4 NE4 NW4 of 8-T3N-R11E | 3513924036 | OK | TEXAS | |
EVA | ESU 15 | N2 SW4 NW4 NW4 of 8-T3N-R11E | 3513924150 | OK | TEXAS | |
EVA | ESU 17 | C SW SW SE of 5-T3N-R11E | 3513924549 | OK | TEXAS | |
EVA | ESU 16 | S2 NE SE SW of 5-T3N-R11E | 3513924550 | OK | TEXAS | |
EVA | ESU 4 | CSE4 SE4 of 6-T3N-R11E | 3513935647 | OK | TEXAS | |
EVA | ESU 6 | CN2 NW4 of 8-T3N-R11E | 3513936000 | OK | TEXAS | |
EVA | ESU #1 WSW | N2 SW NW of 8-T3N-R11E | 3513921753 | OK | TEXAS | |
EVA | ESU #2 WSW | C SE NW of 7-T3N-R11E | 3513935649 | OK | TEXAS | |
OMU | OMU 1 | BRUMLEY 1 | NW4 of 19-T4N-R10E | 3513900217 | OK | TEXAS |
OMU | OMU 3-19 | BRUMLEY 3-19 | CSW4 NE4 of 19-T4N-R10E | 3513920537 | OK | TEXAS |
OMU | OMU 3031 | NE4 SW4 NW4 of 30-T4N-R10E | 3513920538 | OK | TEXAS | |
OMU | OMU 3011X | NW4 NE4 of 30-T4N-R10E | 3513920541 | OK | TEXAS | |
OMU | OMU 3042X | CN2 NW4 SW4 of 30-T4N-R10E | 3513920543 | OK | TEXAS | |
OMU | OMU 1914X | CSE4 SE4 of 19-T4N-R10E | 3513920562 | OK | TEXAS | |
OMU | OMU 2015 | CSW4 SW4 of 20-T4N-R10E | 3513920578 | OK | TEXAS | |
OMU | OMU 3012X | NE4 NE4 of 30-T4N-R10E | 3513920594 | OK | TEXAS | |
OMU | OMU 2012 | CNW4 SW4 of 20-T4N-R10E | 3513920609 | OK | TEXAS | |
OMU | OMU 1915 | SW4 SE4 of 19-T4N-R10E | 3513920626 | OK | TEXAS | |
OMU | OMU 1821X | SE4 SE4 of 18-T4N-R10E | 3513920631 | OK | TEXAS | |
OMU | OMU 2013 | SW4 SE4 NW4 of 20-T4N-R10E | 3513920636 | OK | TEXAS | |
OMU | OMU 1711 | NW4 SW4 SW4 of 17-T4N-R10E | 3513920712 | OK | TEXAS | |
OMU | OMU 6-19 | S2 N2 NE4 SE4 of 19-T4N-R10E | 3513920713 | OK | TEXAS | |
OMU | OMU 3041 | CN2 NE4 SW4 of 30-T4N-R10E | 3513920728 | OK | TEXAS | |
OMU | OMU 2911X | NW4 SW4 NW4 of 29-T4N-R10E | 3513922196 | OK | TEXAS | |
OMU | OMU 2016 | C N2 NW of 20-T4N-R10E | 3513922587 | OK | TEXAS | |
OMU | OMU 2017 | C NW SW NW of 20-T4N-R10E | 3513924592 | OK | TEXAS | |
OMU | OMU 2912Y | W2 NW4 NW4 NW4 of 29-T4N-R10E | 3513922597 | OK | TEXAS | |
OMU | OMU 3032 | NE SW NW NW of 30-T4N-R10E | 3513923112 | OK | TEXAS | |
OMU | OMU 1917 | CNE4 SE4 NW4 of 19-T4N-R10E | 3513923150 | OK | TEXAS | |
OMU | OMU 1918 | SE4 SE4 NE4 SE4 of 19-T4N-R10E | 3513924192 | OK | TEXAS | |
OMU | OMU 3043 | SE4 SE4 SW4 NW4 of 30-T4N-R10E | 3513924193 | OK | TEXAS | |
OMU | OMU 3044 | E2 W2 NE NW of 30-T4N-R10E | 3513924566 | OK | TEXAS | |
OMU | OMU 1919 | W2 SE NE NE of 19-T4N-R10E | 3513924567 | OK | TEXAS | |
OMU | OMU 1920 | SE SE SE NE of 19-T4N-R10E | 35139245910001 | OK | TEXAS | |
OMU | OMU 1 | NE SE NW SE of 19-T4N-R10E | 3513924600 | OK | TEXAS | |
OMU | OMU 2-19 | NE4 NE4 NW4 of 19-T4N-R10E | 3513935646 | OK | TEXAS | |
WPWFU I | WPWF 5#1 | HIGGINS 5-1 | SW/4 of 5-T2N-R16E | 3513922882 | OK | TEXAS |
WPWFU I | WPWF 5#2 | HIGGINS 5-2 | SW/4 of 5-T2N-R16E | 3513923290 | OK | TEXAS |
WPWFU I | WPWF HIGGINS 5-3 | HIGGINS 5-3 | SW/4 of 5-T2N-R16E | 3513924534 | OK | TEXAS |
WPWFU I | WPWF 5#3 | AUBREY 5-1 | SE/4 of 5-T2N-R16E | 3513923327 | OK | TEXAS |
WPWFU I | WPWF 5#4 | AUBREY 5-2 | SE/4 of 5-T2N-R16E | 3513923361 | OK | TEXAS |
WPWFU I | WPWF 7#2 | PETUNIA PIG 7-2 | NE/4 of 7-T2N-R16E | 3513923269 | OK | TEXAS |
WPWFU I | WPWF 7#5 | DAVIS HITCH 7-5 | NE/4 of 7-T2N-R16E | 3513923055 | OK | TEXAS |
WPWFU I | WPWF 7#1 | PETUNIA PIG 7-1 | SE/4 of 7-T2N-R16E | 3513923264 | OK | TEXAS |
WPWFU I | WPWF 7#3 | PETUNIA PIG 7-3 | SE/4 of 7-T2N-R16E | 3513923270 | OK | TEXAS |
WPWFU I | WPWF 7#4 | DAVIS HITCH 7-4 | SE/4 of 7-T2N-R16E | 3513922877 | OK | TEXAS |
WPWFU I | WPWF 8#11 | PORKY PIG 8-11 | NE/4 of 8-T2N-R16E | 3513923231 | OK | TEXAS |
WPWFU I | WPWF 8#13 | PORKY PIG 8-13 | NE/4 of 8-T2N-R16E | 3513923306 | OK | TEXAS |
WPWFU I | WPWF 8#15 | PORKY PIG 8-15 | NE/4 of 8-T2N-R16E | 3513923331 | OK | TEXAS |
WPWFU I | WPWF 8#12 | PORKY PIG 8-12 | NW/4 of 8-T2N-R16E | 3513923271 | OK | TEXAS |
WPWFU I | WPWF 8#17 | PORKY PIG 8-17 | NW/4 of 8-T2N-R16E | 3513923983 | OK | TEXAS |
WPWFU I | WPWF 8#8 | PORKY PIG 8-8 | NW/4 of 8-T2N-R16E | 3513923228 | OK | TEXAS |
WPWFU I | WPWF 8#9 | PORKY PIG 8-9 | NW/4 of 8-T2N-R16E | 3513923229 | OK | TEXAS |
WPWFU I | WPWF 8#2 | PORKY PIG 8-2 | SW/4 of 8-T2N-R16E | 3213923132 | OK | TEXAS |
WPWFU I | WPWF 8#3 | PORKY PIG 8-3 | SW/4 of 8-T2N-R16E | 3513923182 | OK | TEXAS |
WPWFU I | WPWF 8#6 | PORKY PIG 8-6 | SW/4 of 8-T2N-R16E | 3513923226 | OK | TEXAS |
WPWFU I | WPWF 8#7 | PORKY PIG 8-7 | SW/4 of 8-T2N-R16E | 3513923227 | OK | TEXAS |
WPWFU I | WPWF 8#10 | PORKY PIG 8-10 | SE/4 of 8-T2N-R16E | 3513923230 | OK | TEXAS |
WPWFU I | WPWF 8#16 | PORKY PIG 8-16 | SE/4 of 8-T2N-R16E | 3513923368 | OK | TEXAS |
WPWFU I | WPWF 8#4 | PORKY PIG 8-4 | SE/4 of 8-T2N-R16E | 3513923183 | OK | TEXAS |
WPWFU I | WPWF 8#5 | PORKY PIG 8-5 | SE/4 of 8-T2N-R16E | 3513923184 | OK | TEXAS |
WPWFU I | WPWF 17#3 | HITCH ENTERPRISES 17-3 | NE/4 of 17-T2N-R16E | 3513923185 | OK | TEXAS |
WPWFU I | WPWF 17#6 | HITCH ENTERPRISES 17-6 | NE/4 of 17-T2N-R16E | 3513923259 | OK | TEXAS |
WPWFU I | WPWF 17#7 | HITCH ENTERPRISES 17-7 | NE/4 of 17-T2N-R16E | 3513923277 | OK | TEXAS |
WPWFU I | WPWF 17#4 | HITCH ENTERPRISES 17-4 | NW/4 of 17-T2N-R16E | 3513923195 | OK | TEXAS |
WPWFU I | WPWF 17#5 | HITCH ENTERPRISES 17-5 | NW/4 of 17-T2N-R16E | 3513923233 | OK | TEXAS |
WPWFU I | WPWF 18#1 | HITCH ENTERPRISES 18-1 | NE/4 of 18-T2N-R16E | 3513923292 | OK | TEXAS |
WPWFU II | WP2 1 #1 | BUSTER, W.L. 1#1 | NE NE of 1-T2N-R15E | 3513923054 | OK | TEXAS |
WPWFU II | WP2 1 #3 | MINA 1#3 | NW NW of 1-T2N-R15E | 3513923972 | OK | TEXAS |
WPWFU II | WP2 MINA 1-4 | SE NE of 1-T2N-R15E | 3513924535 | OK | TEXAS | |
WPWFU II | MINA 1-4 | MINA 1#4 | SW NE of 1-T2N-R15E | 3513924553 | OK | TEXAS |
WPWFU II | MINA 1-5 | MINA 1#5 | NE SE of 1-T2N-R15E | 3513924613 | OK | TEXAS |
WPWFU II | WP2 12 #1 | MARTIN 12#1 | NE NE of 12-T2N-R15E | 3513923131 | OK | TEXAS |
WPWFU II | WP2 5 #1 | KAUFFMAN 5#1 | SW NW of 5-T2N-R16E | 3513922929 | OK | TEXAS |
WPWFU II | WP2 5 #2 | KAUFFMAN 5#2 | SW NW of 5-T2N-R16E | 3513923500 | OK | TEXAS |
WPWFU II | WP2 6 #1 | MISS PIGGIE 6#1 | SE NW of 6-T2N-R16E | 3513923266 | OK | TEXAS |
WPWFU II | WP2 6 #2H | TRUESDELL 6#2H | SW SW of 6-T2N-R16E | 3513922730 | OK | TEXAS |
WPWFU II | WP2 6 #3 | TRUESDELL 6#3 | SW NW of 6-T2N-R16E | 3513922800 | OK | TEXAS |
WPWFU II | WP2 6 #4 | TRUESDELL 6#4 | NE SW of 6-T2N-R16E | 3513922851 | OK | TEXAS |
WPWFU II | WP2 6 #5 | TRUESDELL 6#5 | SW SE of 6-T2N-R16E | 3513922866 | OK | TEXAS |
WPWFU II | WP2 6 #6 | TRUESDELL 6#6 | NE NW of 6-T2N-R16E | 3513922848 | OK | TEXAS |
WPWFU II | WP2 6 #7 | TRUESDELL 6#7 | SW NE of 6-T2N-R16E | 3513922875 | OK | TEXAS |
WPWFU II | WP2 6 #8 | TRUESDELL 6#8 | NE SE of 6-T2N-R16E | 3513922876 | OK | TEXAS |
WPWFU II | WP2 7 #2 | DAVIS-HITCH 7#2 | SE NW of 7-T2N-R16E | 3513922350 | OK | TEXAS |
WPWFU II | WP2 7 #3 | DAVIS-HITCH 7#3 | NW NW of 7-T2N-R16E | 3513922787 | OK | TEXAS |
WPWFU II | WP2 35 #6 | SCHLUCKENIER 35#6 | NE SE of 35-T3N-R15E | 3513922811 | OK | TEXAS |
WPWFU II | WP2 35 #7 | SCHLUCKENIER 35#7 | NE NE of 35-T3N-R15E | 3513922831 | OK | TEXAS |
WPWFU II | WP2 35 #8 | SCHLUCKENIER 35#8 | SE SE of 35-T3N-R15E | 3513923930 | OK | TEXAS |
WPWFU II | WP2 36 #1 | ARA 36#1 | SW SE of 36-T3N-R15E | 3513922795 | OK | TEXAS |
WPWFU II | WP2 36 #2 (ARA) | ARA 36#2 | NE SE of 36-T3N-R15E | 3513922821 | OK | TEXAS |
WPWFU II | WP2 36 #2 (LAIRD) | LAIRD 36#2 | NE NW of 36-T3N-R15E | 3513922792 | OK | TEXAS |
WPWFU II | WP2 36 #3 (ARA) | ARA 36#3 | SW NE of 36-T3N-R15E | 3513922822 | OK | TEXAS |
WPWFU II | WP2 36 #3 (LAIRD) | LAIRD 36#3 | NE SW of 36-T3N-R15E | 3513922793 | OK | TEXAS |
WPWFU II | WP2 36 #4 | LAIRD 36#4 | SW NW of 36-T3N-R15E | 3513922796 | OK | TEXAS |
WPWFU II | WP2 36 #5 | LAIRD 36#5 | SW SW of 36-T3N-R15E | 3513922819 | OK | TEXAS |
WPWFU II | WP2 36 #6 | LAIRD 36#6 | NW SW of 36-T3N-R15E | 3513923310 | OK | TEXAS |
WPWFU II | WP2 36 #7 | LAIRD 36#7 | NW NW of 36-T3N-R15E | 3513923569 | OK | TEXAS |
WPWFU II | WP2 31 #1 | AIRWAVES 31#1 | SW SW of 31-T3N-R16E | 3513922834 | OK | TEXAS |
WPWFU II | WP2 36 #8 | LAIRD 36#8 | C NW of 35-T3N-R15E | 3513924536 | OK | TEXAS |
WPWFU II | WP2 36 #9 | LAIRD 36#9 | SE SW of 36-T3N-R15E | 3513924541 | OK | TEXAS |
Clawson | STEPHENS #7-25 | W/2 SW/4 of 25-T02N-R16ECM | 3513922920 | OK | TEXAS | |
Clawson | STEPHENS #8-25 | SW/4 NE/4 SW/4 of 25-T02N-R16ECM | 35-139-22962 | OK | TEXAS | |
Clawson | STEPHENS #6-25 | C SW/4 SE/4 of 25-T02N-R16ECM | 35-139-22756 | OK | TEXAS | |
Clawson | MILLER Q #4 | W/2 NW/4 of 36-T02N-R16ECM | 35-139-22727 | OK | TEXAS | |
Clawson | MILLER Q #6 | NW/4 SE/4 NW/4 NW/4 of 36-T02N-R16ECM | 35-139-24372 | OK | TEXAS | |
Clawson | MILLER Q #2 | E/2 NW/4 of 36-T02N-R16ECM | 35-139-22725 | OK | TEXAS | |
Clawson | MILLER Q #5 | NW/4 SE/4 SE/4 NW/4 of 36-T02N-R16ECM | 35-139-24367 | OK | TEXAS | |
Clawson | STEPHENS #4-36 | W/2 NE/4 of 36-T02N-R16ECM | 35-139-22751 | OK | TEXAS |
Clawson | STEPHENS #5-36 | NE/4 NE/4 of 36-T2N-R16ECM | 35-139-24611 | OK | TEXAS | |
Clawson | CLAWSON TRUST #3-35 | E/2 SW/4 of 35-T02N-R16ECM | 35-139-22233 | OK | TEXAS | |
Clawson | CLAWSON TRUST #1-35 | W/2 SE/4 of 35-T02N-R16ECM | 35-139-22209 | OK | TEXAS | |
Clawson | CLAWSON TRUST #2-35 | E/2 SE/4 of 35-T02N-R16ECM | 35-139-22258 | OK | TEXAS | |
Clawson | MILLER TRUST #1-36 | W/2 SW/4 of 36-T02N-R16ECM | 35-139-22295 | OK | TEXAS | |
Clawson | MILLER TRUST #2-36 | SW/4 SE/4 NW/4 SW/4 of 36-T02N-R16ECM | 35-139-24378 | OK | TEXAS | |
Clawson | MILLER TRUST #3-36 | SE NW SE SW of 36-T2N-R16ECM | 35-139-24564 | OK | TEXAS | |
Clawson | STEPHENS #1-36 | E/2 SW/4 of 36-T02N-R16ECM | 35-139-22661 | OK | TEXAS | |
Clawson | STEPHENS #2-36 | W/2 SE/4 of 36-T02N-R16ECM | 35-139-22673 | OK | TEXAS | |
Clawson | STEPHENS #3-36 | C NE/4 SE/4 of 36-T02N-R16ECM | 35-139-22746 | OK | TEXAS | |
Clawson | BERNICE #7-2 | NE SE SE NE of 2-T1N-R16ECM | 35-139-24604 | OK | TEXAS | |
Clawson | BERNICE #6-2 | E/2 NW/4 of 2-T01N-R16ECM | 35-139-22235 | OK | TEXAS | |
Clawson | BERNICE #4-2 | W/2 NE/4 of 2-T01N-R16ECM | 35-139-22162 | OK | TEXAS | |
Clawson | BERNICE #5-2 | C NE/4 NE/4 of 2-T01N-R16ECM | 35-139-22208 | OK | TEXAS | |
Clawson | CARL #2-1 | SE/4 NE/4 SW/4 NW/4 of 1-T01N-R16ECM | 35-139-24275 | OK | TEXAS | |
Clawson | KIRBY #1-1 | E/2 NW/4 of 1-T01N-R16ECM | 35-139-22662 | OK | TEXAS | |
Clawson | KIRBY #2-1 | C SW/4 NE/4 of 1-T01N-R16ECM | 35-139-22683 | OK | TEXAS | |
Clawson | KIRBY #3-1 | E/2 NE/4 of 1-T01N-R16ECM | 35-139-22740 | OK | TEXAS | |
Clawson | KIRBY #4-1 | C NW NW of 1-T1N-R16ECM | 35-139-24562 | OK | TEXAS | |
Clawson | BERNICE #2-2 | E/2 SW/4 of 2-T01N-R16ECM | 35-139-21943 | OK | TEXAS | |
Clawson | BERNICE #1-2 | W/2 SE/4 of 2-T01N-R16ECM | 35-139-21829 | OK | TEXAS | |
Clawson | BERNICE #3-2 | W/2 NE/4 SE/4 of 2-T01N-R16ECM | 35-139-27946 | OK | TEXAS | |
Clawson | LANDON #1 | W/2 SW/4 of 1-T01N-R16ECM | 35-139-22163 | OK | TEXAS | |
Clawson | LANDON #2-1 | E/2 SW/4 of 1-T01N-R16ECM | 35-139-22217 | OK | TEXAS | |
Clawson | CLAWSON #4-11 | W/2 NE/4 of 11-T01N-R16ECM | 35-139-21690 | OK | TEXAS | |
Clawson | CLAWSON #5-11 | E/2 NE/4 of 11-T01N-R16ECM | 35-139-21745 | OK | TEXAS | |
Clawson | LANDON #4 | NW/4 NW/4 NW/4 of 12-T01N-R16ECM | 35-139-22232 | OK | TEXAS | |
Clawson | LANDON #3 | E/2 NW/4 of 12-T01N-R16ECM | 35-139-22231 | OK | TEXAS | |
Clawson | PRUDENTIAL #2 | E/2 NE/4 of 35-T02N-R16ECM | 35-139-22892 | OK | TEXAS | |
Clawson | CLAWSON #8-11 | W/2 NW/4 of 11-T01N-R16ECM | 35-139-21902 | OK | TEXAS | |
Clawson | CLAWSON #6-11 | E/2 NW/4 of 11-T01N-R16ECM | 35-139-21818 | OK | TEXAS | |
Clawson | CLAWSON #2-11 | W/2 SW/4 of 11-T01N-R16ECM | 35-139-21641 | OK | TEXAS | |
Clawson | CLAWSON #1-11 | E/2 SW/4 of 11-T01N-R16ECM | 35-139-20283-A | OK | TEXAS | |
Clawson | CLAWSON #3-11 | W/2 SE/4 of 11-T01N-R16ECM | 35-139-21653 | OK | TEXAS | |
Clawson | CLAWSON #7-11 | E/2 SE/4 of 11-T01N-R16ECM | 35-139-21881 | OK | TEXAS | |
Bivins | BIVINS RANCH 202 | 2800’ FSL & 1055’ FEL SEC 2 | 42 375 31407 | TX | POTTER | |
Bivins | BIVINS RANCH 302 | 2800’ FSL & 2255’ FEL SEC 2 | 42 375 31421 | TX | POTTER | |
Bivins | BIVINS RANCH 602 | 2876’ FEL & 1416’ FNL SEC 2 | 42 375 31459 | TX | POTTER | |
Bivins | BIVINS RANCH 702 | 1416’ FNL & 4126’ FEL SEC 2 | 42 375 31465 | TX | POTTER | |
Bivins | BIVINS RANCH 902 | 1625’ FWL & 2748’ FSL SEC 2 | 42 375 31462 | TX | POTTER | |
Bivins | BIVINS RANCH 1102 | 1500’ FEL & 2375’ FSL SEC 2 | 42 375 31747 | TX | POTTER | |
Bivins | BIVINS RANCH 1202 | NE/4 NE/4 SW/4 FEL SEC 2 | 42 375 31745 | TX | POTTER | |
Bivins | BIVINS RANCH 1302 | 2800’ FSL & 2255’ FWL SEC 2 | 42 375 31794 | TX | POTTER | |
Bivins | BIVINS RANCH 1502 | 1840’ FWL & 1749’ FNL SEC 2 | 42 375 31808 | TX | POTTER | |
Bivins | BIVINS RANCH 103 | 1760’ FSL & 745’ FWL SEC 3 | 42 375 31378 | TX | POTTER | |
Bivins | BIVINS RANCH 303 | SW/4 SW/4 NW/4 OF SEC 3 | 42 375 31393 | TX | POTTER | |
Bivins | BIVINS RANCH 503 | SW/4 SE/4 NW/4 SEC 3 | 42 375 31461 | TX | POTTER | |
Bivins | BIVINS RANCH 803 | 2800’ FSL & 2850’ FWL SEC 3 | 42 375 31463 | TX | POTTER | |
Bivins | BIVINS RANCH 1103 | 1230’ FNL & 2500’ FWL SEC 3 | 42 375 31538 | TX | POTTER | |
Bivins | BIVINS RANCH 1303 | 1230’ FNL & 2500’ FWL SEC 3 | 42 375 31614 | TX | POTTER | |
Bivins | BIVINS RANCH 1703 | SEC 3, BLK 4, ACH&B SVY | 42 375 31793 | TX | POTTER |
Bivins | BIVINS RANCH 1603 | 4687’ FEL & 3830’ FNL SEC 3 | 42 375 31746 | TX | POTTER | |
Bivins | BIVINS RANCH 2203 | SEC 3, BLK 4, ACH&B SVY | 42 375 31807 | TX | POTTER | |
Bivins | BIVINS RANCH 1003 | 1800’ FSL & 1756’ FEL SEC 3 | 42 375 31467 | TX | POTTER | |
Bivins | BIVINS RANCH 502 | 1416’ FNL & 476’ FEL SEC 2 | 42 375 31460 | TX | POTTER | |
Bivins | BIVINS RANCH 403 | 1615’ FSL & 2163’ FWL SEC 3 | 42 375 31458 | TX | POTTER | |
Bivins | BIVINS RANCH 1503 | 1700’ FNL & 800’ FWL SEC 3 | 42 375 31641 | TX | POTTER | |
Bivins | BIVINS RANCH 2001 | 900’ FWL & 1010’ FNL SEC 2 | 42 375 31433 | TX | POTTER | |
Bivins | BIVINS RANCH 102 (WOLFCAMP) | 1320’ FSL & 2025’ FWL SEC 2 | 42 375 31374 | TX | POTTER | |
Bivins | BIVINS RANCH 1029 (WOLFCAMP) | SEC 29, BLK GM-05, G&M SVY | 42 375 31348 | TX | POTTER | |
Bivins | BIVINS RANCH 203 (RED CAVE) | 1328’ FSL & 967’ FEL SEC 2 | 42 375 31366 | TX | POTTER | |
Bivins | BIVINS RANCH 3002 (WOLFCAMP) | 1640’ FWL & 950’ FSL SEC 3 | 42 375 31472 | TX | POTTER | |
Bivins | BIVINS RANCH 3003 (WOLFCAMP) | NW/4 SW/4 SE/4 SEC 3 | 42 375 31473 | TX | POTTER | |
Bivins | BIVINS RANCH C 3001 (RED CAVE) | SW/4 NW/4 SEC 3 | 42 375 31471 | TX | POTTER | |
Bivins | BIVINS RANCH B 2003 (RED CAVE) | SW/4 NE/4 SEC 3 | 42 375 31474 | TX | POTTER | |
Bivins | BIVINS RANCH 3004 (RED CAVE) | Sec 3, Blk 4, ACH&B Svy | 42 375 31599 | TX | POTTER | |
Bivins | BIVINS RANCH 3005 (RED CAVE) | Sec 3, Blk 4, ACH&B Svy | 42 375 31615 | TX | POTTER |
WELL NAME | WORKING INTEREST | NET REVENUE INTEREST | ||
HARKER RANCH MORROW UNIT | 100.00 | % | 82.780876 | % |
MIDWELL WATERFLOOD UNIT | 100.00 | % | 80.00 | % |
ONA NORTHWEST MORROW UNIT | 100.00 | % | 81.31909 | % |
SMALTS LEASE | 100.00 | % | 80.00 | % |
EVA SOUTH MORROW SAND UNIT | 100.00 | % | 84.523118% WI 0.885217% ORRI | |
WAR PARTY WATERFLOOD UNIT I | 100.00 | % | 87.1923% WI 0.11215% ORRI | |
WAR PARTY WATERFLOOD UNIT II | 99.00 | % | 86.198014% WI 0.109354% ORRI | |
CLAWSON RANCH WATERFLOOD UNIT | 100.00 | % | 83.45325 | % |
BIVINS RANCH PENN UNIT | 84.582225 | % | 59.580163% WI 0.115334% ORRI | |
BIVINS RANCH GAS WELLS | 85.00 | % | 63.75 | % |
If to Indemnifying Party: If to Indemnified Party: | Mid-Con Energy Properties, LLC Attn: Charles L. McLawhorn, III 2431 E. 61st Street, Suite 850 Tulsa, Oklahoma 74136 Telephone: (918) 743-7575 Telecopy: (918) 743-8859 Email: cmclawhorn@midcon-energy.com PO&G Panhandle, LP Attn: George A. Oggero, General Counsel, Chief Compliance Officer, & Land Manager 5847 San Felipe, Suite 3200 Houston, Texas 77057 Telephone: 713-589-8138 Telecopy: 713-244-0650 Email: George_oggero@pogresources.com |
INDEMNIFYING PARTY: MID-CON ENERGY PROPERTIES, LLC, a Delaware limited liability company By: Mid-Con Energy Partners, LP, a Delaware limited partnership, its Sole Member By: Mid-Con Energy GP, LLC, a Delaware limited liability company, Its General Partner By:________________________ Jeffrey R. Olmstead Chief Executive Officer MID-CON ENERGY OPERATING, LLC, an Oklahoma limited liability company By: ________________________ Jeffrey R. Olmstead Chief Executive Officer INDEMNIFIED PARTY: PO&G PANHANDLE, LP, a Texas limited partnership By: PO&G Panhandle Manager, LLC, a Texas limited liability company, Its General Partner By: TJK, LLC, a Nevada limited liability company Its Sole Member By:________________________ Steven A. Pfeifer Manager |
• | Gas Marketing Agreement with DCP Midstream, LP (Contract No. CRG022450A) dated September 1, 2014 |
• | Gas Marketing Agreement with DCP Midstream, LP (Contract No. CRG0229500) dated July 1, 2009 |
• | Gas Marketing Agreement with DCP Midstream, LP (Contract No. BOR1413503) dated August 31, 2012 |
• | Gas Marketing Agreement with DCP Midstream, LP (Contract No. NHC029200) terminated February 1, 2016 |
• | Crude Marketing Agreement with Plains Marketing, LP (Contract No. 8220-1004) dated May 1, 2016 |
• | Crude Marketing Agreement with Plains Marketing, LP (Contract No. 8220-1003) dated May 1, 2016 |
• | Crude Marketing Agreement with CHS McPherson Refinery, Inc. (Contract No. 213692) dated May 1, 2016 |
• | Crude Marketing Agreement with Valero and Marketing Supply Company (Contract No. 11-0030) dated June 1, 2013 |
• | Crude Marketing Agreement with Valero and Marketing Supply Company (Contract No. 12-0015) dated March 1, 2012 |
• | Unit Agreement for Bivins Rach Penn Unit dated October 15, 2001 |
• | Unit Operating Agreement for Bivins Ranch Penn Unit dated October 15, 2001 |
• | Line Well Agreement dated February 1, 2014. |
• | Unit Agreement for Harker Ranch Morrow Sand Unit dated October 17, 2005 |
• | Unit Operating Agreement for Harker Ranch Morrow Sand Unit dated October 17, 2005 |
• | Plan of Unitization for Clawson Ranch Waterflood Unit dated July 1, 1999 |
• | Plan of Unitization for Eva South Morrow Sand Unit dated November 2, 1992 |
• | Plan of Unitization for Midwell Waterflood Unit dated March 10, 1993 |
• | Plan of Unitization for Ona Northwest Morrow Sand Unit dated September 23, 1992 |
• | Plan of Unitization for War Party Waterflood Unit dated August 23, 2001 |
• | Plan of Unitization for War Party II Waterflood Unit dated November 5, 2002 |
• | Surface Damage Agreement with LX Cattle Company and Mid-Con Energy Operating, LLC. |
• | Surface Damage Agreement with LX Cattle Company and Mid-Con Energy Operating, LLC. |
• | Surface Damage Agreement with LX Cattle Company and Mid-Con Energy Operating, LLC. |
• | Surface Agreement with Stephens Land & Cattle dated January 24, 2001. |
• | Agreement for Surface Damages with Carl & Bernice Clawson dated May 5, 2000. |
• | Surface Damage Agreement between Kirby B. Clawson and Mid-Con Energy Operating, Inc. dated February 15, 2013. |
• | Surface Damage Agreement between Carl & Bernice Clawson Trust and Mid-Con Energy Operating, LLC. |
• | Surface Agreement with Mid-Con Energy Operating, LLC and Stephens Land & Cattle dated May 22, 2014. |
• | Surface Agreement with Mid-Con Energy Operating, LLC and Stephens Land & Cattle dated January 1, 2013. |
• | Surface Damage Agreement between Mid-Con Energy Operating, Inc. and Douglas & Kay Horton Inter Vivos Trust dated October 30, 2012. |
• | Surface Damage Agreement between Mid-Con Energy Operating, Inc. and Webb Red Living Trust dated December 21, 2012. |
• | Surface Damage Agreement between Mid-Con Energy Operating, Inc. and Donna Campbell dated March 6, 2012. |
• | Surface Damage Agreement between Mid-Con Energy Operating, LLC and Donna Campbell dated April 29, 2014. |
• | Surface Damage Agreement between RDT Properties and Donna Campbell and Campbell Family Trust dated May 20, 2006. |
• | Surface Agreement and Right of Way Easement between Robert H. Campbell and Bass Enterprises Production Company dated March 23, 1990. |
• | Surface Damage Agreement between Mid-Con Energy Operating, LLC and Harker Family Registered, LLLP dated June 23, 2014. |
• | Surface Damage Agreement between Mid-Con Energy Operating, LLC and Barry J. & Carolyn L. Gerstner dated June 3, 2014. |
• | Addendum to Surface Damage Agreement between Mid-Con Energy Operating, LLC and Hanke Properties, LLC dated July 19, 2014. |
• | Surface Damage Agreement between Mid-Con Energy Operating, LLC and Ada Phillips, LLC dated January 31, 2014. |
• | Surface Damage Agreement between Mid-Con Energy Operating, LLC and Ada Phillips, LLC dated September 4, 2013. |
• | Surface Damage Agreement between Mid-Con Energy Operating, LLC and Triple S. Land Company dated September 9, 2013. |
• | Surface Damage Agreement between Mid-Con Energy Operating, Inc. and JB & Carol J. Stewart dated March 22, 2013. |
• | Surface Damage Agreement between Mid-Con Energy Operating, LLC and N&R Dry Acres, LLC. |
• | Surface Damage Agreement between Mid-Con Energy Operating, Inc. and James B. & Kim R. Alleman dated June 5, 2012. |
• | Surface Damage Agreement between Mid-Con Energy Operating, Inc. and Steven C. Robin K. Laird dated April 26, 2012. |
• | Surface Damage Agreement between Mid-Con Energy Operating, Inc. and Steven C. Robin K. Laird dated April 26, 2012. |
• | Surface Damage Agreement between Mid-Con Energy Operating, Inc. and Neva Joyce Keesecker Revocable Trust dated September 20, 2013. |
• | Surface Damage Agreement between Mid-Con Energy Operating, Inc. and Loren J. & Anita C. Witt, Kathleen Fyffe and Eugene & Bonita Harke. |
• | Surface Damage Agreement between & Mid-Con Energy Operating, Inc. and Ada Phillips, LLC dated November 12, 2013. |
• | Surface Damage Agreement between Mid-Con Energy Operating Inc. and Triple S Land Company dated March 22, 2013. |
• | Surface Damage Agreement between Mid-Con Energy Operating, LLC and Barry J. and Carolyn L. Gerstner dated November 15, 2014. |
• | Surface Damage Agreement between RDT Properties, Inc. and Donna M. Campbell dated July 26, 2011. |
VEHICLES | |||||
Unit No. | Year | Make | Model | VIN | OK-Tag |
14584 | 2012 | Ford | F-150 | 1FTFW1EFXCFB14584 | 696JGE |
80418 | 2013 | Ford | F-150 | 1FTFX1EFXDKD80418 | 820JPW |
15197 | 2012 | Ford | F-250 | 1FT7X2B6XCEA15197 | I39706 |
2454 | 2011 | Ford | F-250 | 1FT7X2B66BED02454 | I39649 |
7228 | 2012 | Ford | F-250 | 1FT7X2B69CED07228 | 490JPW |
56397 | 2012 | Ford | F-250 | 1FT7X2B63CEA56397 | 327JGG |
23240 | 2013 | Ford | F-250 | 1FT7X2B68DEB23240 | 928JPX |
53447 | 2014 | Ford | F-150 | 1FTFW1EF0EKF53447 | 838KSS |
2609 | 2016 | Toyota | Tacoma | 5TFSZ5AN7GX002609 | Z33695 |
EQUIPMENT | |||||
FIELD | Equipment Type | MAKE | SIZE | SERIAL NUMBER | MOTOR HP |
Midwell | Pumping Unit | Unknown | C-114-143-74 | 20060701 | 20 |
Midwell | Pumping Unit | Lufkin | C114D | 20 | |
Midwell | Pumping Unit | American | 80-119-54 | T11F54-11-1322 |
CONTRACTS | |||||
• Water Supply Well Agreement dated January 2016; between Mid-Con Energy Properties, LLC and | |||||
Mid-Con Energy III, LLC |
Unit | Allocation |
Bivins Ranch | 2,199,000 |
Clawson Ranch Waterflood | 1,064,000 |
Eva South Morrow Unit | 0 |
Harker Ranch Morrow Unit | 2,525,000 |
Midwell Unit | 1,882,000 |
Ona Morrow Unit | 7,060,000 |
Smaltz Unit | 270,000 |
War Party Unit I | 0 |
War Party Unit II | 3,000,000 |
Total | 18,000,000 |
• | May 15, 2016 AFE for Harker Ranch #9 well -- $61,890 |
• | War Party II Waterflood Unit Plan of Unitization |
• | Bivins Ranch leases |
• | 2015-07-01 Commercial Umbrella - Chubb #7988-64-97 - MCEO, Inc. |
• | 2015-07-01 Commercial Umbrella - Chubb #7988-64-97 - amendment to MCEO LLC |
• | 2015-07-01 Commercial Umbrella 2nd layer - AIG #047721714 - MCEO Inc. |
• | 2015-07-01 Commercial Umbrella 2nd layer - AIG #047721714 - amendment to MCEO LLC |
• | 2015-07-01 General Liability - Chubb #3600-37-89 - MCEO, Inc. |
• | 2015-07-01 General Liability - Chubb #3600-37-89 - amendment to MCEO, LLC |
• | 2015-07-01 General Liability - Chubb #3600-37-89 - WFB to additional insured |
• | 2015-07-01 General Liability Certificate of Insurance - Chubb #3600-37-89 - MCEO, LLC w WF |
• | 2015-10-02 General Liability - Chubb #3600-37-89 - 30-day cancellation notice to Harwood |
• | 2015-07-01 Pollution Liability - Chubb #3733-43-65 - MCEO, Inc. |
• | 2015-07-01 Pollution Liability - Chubb #3733-43-65 - amend to MCEO, LLC |
• | 2015-07-01 Property Equipment - Allianz #MXI93067888 - MCEO Inc. |
• | 2015-07-01 Property Equipment - Allianz #MXI93067888 - amend to MCEO LLC |
• | 2015-09-09 Worker's Compensation - Chubb-Federal Insurance Co. #16-7174-65-95 - MCEO LLC |
• | 2015-09-09 Worker's Compensation - Chubb-Federal Insurance Co. #16-7174-65-95 - final audit 2015-12-29 |
• | 2015-07-01 Control of Well - Lloyd's #AMW146847 - MCEO Inc. |
• | 2015-10-15 Control of Well - Lloyd's #AMW146847 - amendment to MCEO, LLC |
• | 2015-12-31 Control of Well - Lloyd's #AMW146847 - terrorism exclusion |
• | 2016-01-05 Control of Well - Lloyd's #AMW156987 - MCEO, Inc. |
• | Mid-Con Energy Operating, LLC – Colorado Oil & Gas Conservation; |
◦ | Surety ID 2016-0018 Cash Blanket Plugging Bond for $60,000. |
• | Mid-Con Energy Operating, LLC – Oklahoma Corporation Commission; |
o | Irrevocable Letter of Credit #320 - $25,000. |
• | Mid-Con Energy Operating, LLC – Oklahoma Secretary of State; |
o | Irrevocable Letter of Credit #321 - $25,000. |
• | Mid-Con Energy Operating, LLC – Commissioners of the Land Office, State of Oklahoma; |
o | Irrevocable Letter of Credit #322 - $10,000. |
• | Mid-Con Energy Operating, LLC – Texas Railroad Commission; |
o | Irrevocable Letter of Credit #323 - $250,000. |
• | Mid-Con Energy Operating, LLC – Anadarko E&P Company; |
o | Irrevocable Letter of Credit #315 - $50,000. |
• | Unit Agreement for Bivins Rach Penn Unit dated October 15, 2001 |
• | Unit Operating Agreement for Bivins Ranch Penn Unit dated October 15, 2001 |
• | Line Well Agreement dated February 1, 2014 |
• | Unit Agreement for Harker Ranch Morrow Sand Unit dated October 17, 2005 |
• | Unit Operating Agreement for Harker Ranch Morrow Sand Unit dated October 17, 2005 |
• | Plan of Unitization for Clawson Ranch Waterflood Unit dated July 1, 1999 |
• | Plan of Unitization for Eva South Morrow Sand Unit dated November 2, 1992 |
• | Plan of Unitization for Midwell Waterflood Unit dated March 10, 1993 |
• | Plan of Unitization for Ona Northwest Morrow Sand Unit dated September 23, 1992 |
• | Plan of Unitization for War Party Waterflood Unit dated August 23, 2001 |
• | Plan of Unitization for War Party II Waterflood Unit dated November 5, 2002 |
• | Anthony Aton, Field Supervisor |
• | Jeremy Lavielle, Fluid Tech |
• | John Byrd, Jr., Pumper |
• | Guy Dickerson, Pumper |
• | Luis Gutierrez, Pumper |
• | Jesus Nevarez, Pumper |
• | Juan Carlos Rodriguez, Pumper |
• | Will Berry, Pumper |
1. | DEFINITIONS 7 |
2. | PURCHASE AND SALE 13 |
2.1 | Assets 13 |
2.2 | Retained Assets 15 |
2.3 | Third Party Owners 16 |
2.4 | Participation of Third Party Owners 17 |
3. | PURCHASE PRICE AND ALLOCATION 18 |
3.1 | Base Purchase Price 18 |
3.2 | Performance Deposit and Payment 18 |
3.3 | Adjustments to the Base Purchase Price 19 |
3.4 | Allocation of Base Purchase Price 21 |
4. | ACCESS TO ASSETS AND DATA; DISCLAIMERS; GOVERNMENTAL REVIEWS 21 |
4.1 | Access 22 |
4.2 | Confidentiality Obligations 22 |
4.3 | Disclaimer 23 |
4.4 | Governmental Reviews 24 |
5. | SELLERS’ REPRESENTATIONS 25 |
5.1 | Existence 25 |
5.2 | Authority 25 |
5.3 | Compliance 25 |
5.4 | Payment of Royalties 25 |
5.5 | Taxes 25 |
5.6 | Material Contracts 25 |
5.7 | Permits 26 |
5.8 | Litigation and Claims 26 |
5.9 | Sale Contracts 26 |
5.10 | Notices 26 |
5.11 | Take-or-Pay 26 |
5.12 | Timely Payment 26 |
5.13 | Imbalances 26 |
5.14 | Outstanding Obligations 26 |
5.15 | Brokers 27 |
5.16 | Bankruptcy 27 |
5.17 | Consents 27 |
5.18 | Preferential Purchase Rights 27 |
5.19 | Mortgages and Other Instruments 27 |
6. | BUYER’S REPRESENTATIONS 27 |
6.1 | Information 27 |
6.2 | Knowledge and Experience 28 |
6.3 | No Warranty 28 |
6.4 | Existence 29 |
6.5 | Authority 29 |
6.6 | Liability for Broker’s Fees 29 |
6.7 | Bankruptcy 29 |
6.8 | Qualification to Assume Operatorship 29 |
6.9 | Consents 30 |
6.10 | Litigation 30 |
7. | TITLE 30 |
7.1 | Title Defects 30 |
7.2 | Additional Interests 32 |
7.3 | Notices 32 |
7.4 | Adjustments to Base Purchase Price 32 |
7.5 | Deductible for Title, Environmental, or Casualty Defects 34 |
7.6 | Termination Threshold for Defects 35 |
8. | ENVIRONMENTAL AND ENVIRONMENTAL INDEMNITY 35 |
8.1 | Acceptance of Environmental Condition 35 |
8.2 | Remedy for Environmental Defects 36 |
8.3 | Acceptance of Environmental Condition 37 |
8.4 | NORM 38 |
8.5 | Environmental Indemnities 38 |
9. | THIRD-PARTY CONSENTS AND PREFERENTIAL PURCHASE RIGHTS 39 |
9.1 | Third Party Notices 39 |
9.2 | Third-Party Exercise 39 |
9.3 | Third-Party Failure to Purchase 39 |
9.4 | Consents 40 |
10. | CONDITIONS TO CLOSING; Settlement Statement; CLOSING 40 |
10.1 | Sellers’ Conditions to Closing 40 |
10.2 | Buyer’s Conditions to Closing 41 |
10.3 | Closing Settlement Statement 42 |
10.4 | Closing Date and Place 42 |
10.5 | Closing Activities 42 |
11. | POST-CLOSING OBLIGATIONS 44 |
11.1 | Recordation and Filing of Documents 44 |
11.2 | Records 44 |
11.3 | Final Settlement Statement 44 |
11.4 | Cooperation with Sellers’ Retained Assets 45 |
11.5 | Suspense Accounts 45 |
11.6 | Further Assurances 46 |
12. | TAXES 46 |
12.1 | Property Taxes 46 |
12.2 | Production Taxes 46 |
12.3 | Other Taxes 47 |
13. | OWNERSHIP OF ASSETS 47 |
13.1 | Distribution of Production 47 |
13.2 | Proration of Income and Expenses 47 |
13.3 | Notice to Remitters of Proceeds 48 |
13.4 | Notice to Third Party Users of Key Facilities 48 |
13.5 | Production Imbalances 48 |
13.6 | Pipeline and Other Non-Wellhead Imbalances 48 |
14. | INTERIM OPERATIONS 49 |
14.1 | Standard of Care 49 |
14.2 | Liability of Operator 49 |
14.3 | Removal of Signs 49 |
14.4 | Third-Party Notifications 50 |
14.5 | Seller Credit Obligations 50 |
14.6 | Notification of Breaches 50 |
15. | ASSUMPTION OF LIABILITY AND GENERAL INDEMNIFICATION 50 |
15.1 | Buyer’s Assumption of Obligations 50 |
15.2 | Definitions 51 |
15.3 | Buyer’s General Indemnity 52 |
15.4 | Sellers’ General Indemnity 52 |
15.5 | Limitation on Indemnification 54 |
15.6 | Further Limitation on Indemnification 54 |
15.7 | Indemnification Procedures 54 |
15.8 | Exclusive Remedy. 55 |
16. | CASUALTY LOSS 56 |
17. | NOTICES 56 |
18. | TERMINATION 57 |
18.1 | Termination 57 |
18.2 | Liabilities Upon Termination; Deposit Amount 58 |
19. | JOINDER OF ZEBRA INVESTMENTS, INC. Zebra Investments, Inc. (herein “Zebra”), a Texas corporation, joins in this Agreement for the following limited purposes: 58 |
19.1 | Pace 1-68 Well 58 |
19.2 | Sisters Lease 59 |
19.3 | Undeveloped Leases covering Tract 1 through Tract 5 59 |
19.4 | Mineral Interest in leased premises of Joe Young Lease 59 |
19.5 | Representations 60 |
19.6 | Form of Conveyance 60 |
19.7 | Breach of Covenant. 60 |
20. | MISCELLANEOUS 60 |
20.1 | Entire Agreement 60 |
20.2 | Survival 60 |
20.3 | Arbitration 60 |
20.4 | Memorandum of Understanding 61 |
20.5 | Choice of Law 61 |
20.6 | Assignment 61 |
20.7 | No Admissions 61 |
20.8 | Waivers and Amendments 62 |
20.9 | Counterparts 62 |
20.10 | Third-Party Beneficiaries 62 |
20.11 | Specific Performance 62 |
20.12 | Public Communications 62 |
20.13 | Headings 63 |
20.14 | Expenses 63 |
20.15 | No Recourse 63 |
. |
. | DEFINITIONS |
. |
. | PURCHASE AND SALE |
1. | Assets. Subject to the terms and conditions of this Agreement, Sellers agree to sell to Buyer and Buyer agrees to buy from Sellers, effective as of the Effective Time for the consideration recited and subject to the terms and conditions set forth in this Agreement, all of Sellers’ right, title and interest in the following (each individually referred to as an “Asset” and all collectively referred to as the “Assets”): |
(a) | Interests - All of those certain oil and gas leases and oil, gas and mineral leases described on the attached Exhibit “A-1” (describing those leases on which are located Wells, or that are pooled or communitized with Wells) and Exhibit “A-2” (describing the Undeveloped Leases) (collectively the “Leases”), and the mineral interest described on Exhibit “A-1,” together with all other rights, titles and interests of Sellers insofar as the same pertain to the right to explore for, develop, and/or produce oil and/or gas, in the Leases and the lands for which the Leases are now in force and effect, and the lands and leases pooled, unitized or communitized therewith, including all working interests, royalty interests, overriding royalty interests, net profits interests, production payments, forced pooled interests, and interests pertaining to the right to explore for, develop, and/or produce oil and/or gas acquired under contracts or otherwise in the lands covered by the Leases, to which the Leases are currently in force and effect, and any other lands or interests pooled, unitized or communitized therewith; provided, however, that all of the foregoing are subject to the limitations described in Exhibit “A-1” and Exhibit “A-2” (the Leases and the lands currently covered thereby and other interests therein are collectively referred to in this Agreement as the “Interests”). |
(b) | Wells - All of the oil and gas wells, salt water disposal wells, injection wells, monitoring wells and any other wells and wellbores located on or attributable to the Interests or on lands pooled, unitized or communitized with any portion thereof, or on lands located within any governmental drilling and/or spacing unit (if applicable) which includes any portion thereof, or on portions thereof associated with proved undeveloped reserves whether producing, plugged or unplugged, shut-in, or permanently or temporarily abandoned, including, but not limited to, the wells identified on the attached Exhibit “B” (the “Wells”). |
(c) | Equipment |
(d) | Key Facilities |
(e) | Production |
(f) | Easements and Surface Agreements |
(g) | Contract Rights and Permits |
(h) | Files and Records |
(i) | A license in respect of the seismic survey data owned by Seller, only to the extent covering any of the lands to which the Leases are currently in force and effect, together with a “halo” or extension of 1/4th of a mile beyond the boundaries of such lands (all to the extent existing), which shall be a non-exclusive license to hold and use the data, indefinite in term, with such license, as to data relating to a particular property, transferable to the successors in title to the interests acquired under this Agreement in the particular property, and otherwise containing mutually agreed terms (the “Seismic License”); |
1. | Retained Assets |
• | - Notwithstanding anything to the contrary in Section 2.1(a) through Section 2.1(h) or elsewhere herein, the Assets do not include the following (collectively, the “Retained Assets”): |
(a) | All rights and interests of Sellers (i) under any policy or agreement of insurance or indemnity, (ii) under any bond or (iii) to any insurance or condemnation proceeds or awards arising, in each case, from acts, omissions or events related to, or damage to or destruction of, the Assets, or any part or portion thereof, occurring or accrued prior to the Effective Time; |
(b) | All claims of Sellers for refunds or loss carry forwards with respect to (i) production, severance or any other taxes attributable to the Assets for any period prior to the Effective Time, (ii) income or franchise taxes or (iii) any taxes attributable to the Retained Assets; |
(c) | All hydro-carbon production from or attributable to the Assets with respect to all periods prior to the Effective Time, and all proceeds, income, revenues, claims, refunds or other benefits (including any benefit attributable to any current or future laws or regulations in respect of “royalty relief” or other similar measures) not otherwise enumerated above, prior to the Effective Time as well as any security or other deposits made, attributable to (i) the Assets for any period prior to the Effective Time, or (ii) any Retained Assets; |
(d) | All documents and instruments of Sellers relating to the Assets that may be protected by an attorney-client or attorney-work product privilege; |
(e) | All audit rights arising under any of the Contracts or otherwise with respect to any period prior to the Effective Time or to any Retained Assets; |
(f) | The Excluded Records; and |
(g) | Those items more particularly identified and described on Schedule 2.2(g)hereto. |
2. | Third Party Owners |
(a) | KAREN M. WALTER, JOHN V. WALTER, Individually and as Trustee of the trusts created under the last will and testament of ANGES MARIE WALTER, Deceased, CRAIG WALTER, KIMBERLY WALTER, J. BLAKE WALTER, Trustee of THE J. BLAKE WALTER TRUST, J. BRIAN WALTER, Trustee of THE J. BRIAN WALTER TRUST, J. CRAIG WALTER, Trustee of the J. CRAIG WALTER |
(b) | This Agreement contemplates, and the Purchase Price set forth in Section 3 below is based upon, all of the Third Party Owners electing to have all of their ownership interests in the Assets conveyed to Buyer under this Agreement; provided, however, and notwithstanding the foregoing, the overriding royalty interest of one-half of one percent (0.5%) to which Kent Fouret is entitles to the Undeveloped Leases covering Tracts 1 through Tract 5 in Exhibit “A-2” are not covered by this Agreement. Kent Fouret has no overriding royalty interest in the Undeveloped Leases covering Tract 6 in Exhibit “A-2”. |
3. | Participation of Third Party Owners |
(a) | The Third Party Owners shall utilize Exhibit “F-1” to elect to participate in the sale under this Agreement, or, alternatively, the Third Party Owners shall utilize Exhibit “F-2” to elect not to participate in the sale under this Agreement. The elections to be made by the Third Party Owners are herein called the “Election Agreements”. |
(b) | Promptly after the execution of this Agreement WEC shall deliver a copy of this Agreement to each Third Party Owner informing such persons of the opportunity to elect to sell all of their respective interests in the Assets to Buyer under this Agreement, and providing such persons with the appropriate Election Agreements to allow such persons to make their respective elections. |
(c) | Not later than 5:00 p.m. CDT on Monday, August 1, 2016 (the “Third Party Notice Date”), WEC shall deliver to Buyer a copy of the Election Agreements having been executed by the Third Party Owners. The Third Party Owners electing to participate in the sale are herein referred to as the “Participating Third Party Owners”. The Third Party Owners who elect not to participate in the sale are herein referred to as the “Non-Participating Third Party Owners”. The interests of the Non-Participating Third Party Owners shall be deemed excluded from this Agreement (“Excluded Third Party Owner Interests”). Any Third Party Owner who fails to timely execute and deliver an Election Agreement on or before the Third Party Notice Date shall be deemed to be a Non-Participating Third Party Owner. In addition to delivering to Buyer copies of the Election Agreements on or before the Third Party Notice Date, WEC shall also deliver to Buyer in writing a summary report of the Participating Third Party Owners, the Non-Participating Third Party Owners and the Excluded Third Party Owner Interests, if any, certifying to Buyer the Net Revenue Interest that comprise the Excluded Third Party Owner Interests. |
(d) | If not all Third Party Owners elect to participate in the sale, then Buyer, by written notice to Sellers, delivered not later than 5:00 p.m. CDT on Friday, August 5, 2016, may elect to terminate its obligation to purchase the Assets under this Agreement. If Buyer does not elect to terminate its purchase under this Agreement, then the Excluded Third Party Owner Interests shall cause a direct and full reduction in the Purchase Price by the Purchase Price attributable to the Excluded Third Party Owners Interest as though the Excluded Third Party Owner Interests are Title Defects and a Title Defect Property, as set forth under the applicable provisions below; but, however, Sellers shall have no right to cure such deemed Title Defects. The deemed Title Defect Amount caused by the Excluded Third Party Owner Interests shall not be subject or applicable to the Aggregate Defect Deductible. |
(e) | Per the terms of Section 10.5 below, the originally executed copies of the Election Agreements shall be delivered to Buyer at Closing. |
(f) | All of right, title and interest of Sellers and the Participating Third Party Owners in the Assets, less and except the Retained Assets, and less and except the Excluded Third Party Owner Interests, shall be herein referred to as the “Sale Interests.” |
(g) | Buyer is directed to rely upon the representation and covenants set forth in the Election Agreements, including the directive to deliver to WEC all payments to be made by Buyer under this Agreement. |
(h) | Buyer is directed to rely upon the Participating Third Party Owners designation of WEC as their respective agent and attorney in fact to act for them as to all matters under this Agreement, as expressed in the Election Agreements. |
(i) | Buyer’s duty to close with Sellers is a condition to Buyer’s duty to close under the Election Agreement of any Participating Third Party Owner. Any Participating Third Party Owner’s duty to close under its Election Agreement is a conditioned upon Sellers’ duty to close under this Agreement. |
(j) | In the event Kent Fouret executes and Election Agreement, and becomes a Participating Third Party Owner under this Agreement, such Election Agreement shall be deemed to cover only his interests in the Leases described in Exhibit A-1, and shall be deemed not to cover the overriding royalty interest to which he is entitled in the Undeveloped Leases covering Tract 1 through Tract 5 in Exhibit “A-2”. |
. |
. | PURCHASE PRICE AND ALLOCATION |
1. | Base Purchase Price |
2. | Performance Deposit and Payment |
3. | Adjustments to the Base Purchase Price |
(a) | Adjustments for Out-of-Pocket Costs. The Purchase Price is to be inclusive of the actual out-of-pocket costs incurred by Sellers in the acquisition of such leases (e.g. bonus fees paid to the mineral owners, landman fees, and attorney fees) for the Undeveloped Leases (the “Out-of-Pocket Costs”). Exhibit C-2 contains a schedule of out the Out-of-Pocket Costs incurred (invoices received) by Sellers as of July 20, 2016. The leasing activity of Sellers for Tract 1 through Tract 5 referenced in Exhibit “A-1” has been concluded by Sellers, and Seller’s confirm that the Out-of-Pockets Costs incurred are included in Exhibit “C-2.” On the other hand, the leasing activity of Sellers for Tract 6 referenced in Exhibit “A-2” is ongoing, and Out-of-Pocket Costs have been incurred after the effective date of Exhibit “C-2,” and will hereafter be incurred by Sellers. The Out-of-Pocket Costs incurred after the effective date of Exhibit “C-2” are to be to an upward adjustment to the Base Purchase Price. Upon request Sellers shall advise Buyer of any additional Out-of-Pocket Costs not reflected in Exhibit “C-2.” The Out-of-Pocket Costs are subject to Buyer’s review. In the event such costs are overstated, or understated, by Sellers, the Base Purchase Price shall be increased, or decreased, as the case may be, by any understatement or overstatement, which adjustments shall be made in the Closing Settlement Statement or the Final Settlement Statement, as the case may be. |
(b) | Upward Adjustments - In addition to Section 3.3(a) above, the Base Purchase Price shall be adjusted upward for the following, without duplication: |
(i) | all production expenses, operating expenses, operated and non-operated overhead charges and capital expenditures paid or incurred by Sellers in connection with the ownership and operation of the Assets, including, but not limited to, lease option or extension payments, attributable to the periods from and after the Effective Time (including, without limitation, royalties and taxes attributable to Hydrocarbons produced and saved from and after the Effective Time, and pre-paid charges) (the fixed overhead charges currently charged to the joint on the Wells by WEC as operator shall continue to be so charged by WEC to the joint account for the adjustment period; in this respect WEC shall be entitled to receive the fixed overhead charges for the adjustment period, proportionally reduced for any period less than a full calendar month); |
(ii) | all proceeds attributable to the sale of Hydrocarbons from the Assets received by Buyer, and all other income and benefits received by Buyer, attributable to production, ownership and operation of the Assets prior to the Effective Time (net of royalties, overriding royalties and other burdens attributable to the Sale Interests’ share of production not otherwise accounted for hereunder); |
(iii) | all positive adjustments, if any, regarding Additional Interests, as provided in Section 7.2; |
(iv) | to the extent the Assumed Imbalances reflect an underbalanced (or under-produced or under-received balance) position of the Sellers as of the Effective Time, all adjustments regarding such underbalanced Assumed Imbalances in accordance with the provisions of Section 13.5; |
(v) | all adjustments for oil in storage above the pipeline connection, as provided in Section 13.1; |
(vi) | adjustments for over-delivered Pipeline Imbalances (volumes owed to Sellers) as provided in Section 13.6; |
(vii) | all royalty overpayment amounts and/or future deductions as royalty offsets associated with the Assets as of the Effective Time; |
(viii) | all fees charged to third parties but for which payment has not been collected by Sellers for services provided on or related to any Key Facility from and after the Effective Time; and |
(ix) | any other upward adjustments to the Base Purchase Price specified in this Agreement. |
(c) | Downward Adjustments - In addition to Section 3.3(a) above, the Base Purchase Price shall be adjusted downward for the following, without duplication: |
(i) | except as otherwise provided in this Agreement, all production expenses, operating expenses, operated and non-operated overhead charges and other costs under applicable operating agreements (or other contracts, pooling orders, or other similar agreements) and other expenses, costs and charges paid or incurred by Buyer in connection with the Assets attributable to periods prior to the Effective Time, including, without limitation, taxes, capital expenses and other costs; |
(ii) | except as otherwise provided in this Agreement, all proceeds attributable to the sale of Hydrocarbons and all other income and benefits received by Sellers and attributable to the production, operation or ownership of the Assets on or after the Effective Time (net of royalties, overriding royalties (other than overriding royalties that are conveyed as part of the Assets) and other burdens on Buyer’s share of production not otherwise accounted for hereunder); |
(iii) | all adjustments regarding Title Defects, in accordance with the provisions of Article 7; |
(iv) | all adjustments regarding Environmental Defects, in accordance with the provisions of Article 8; |
(v) | all adjustments regarding exercised Preferential Purchase Rights, as contemplated in Article 9; |
(vi) | all adjustments regarding Casualty Defects, in accordance with the provisions of Article 16; |
(vii) | to the extent the Assumed Imbalances reflect an overbalanced (or over-produced or over-received balance) position of Seller as of the Effective Time regarding the Assets, all adjustments regarding such overbalanced Assumed Imbalances, in accordance with the provisions of Sections 13.5; |
(viii) | adjustments for under-delivered Pipeline Imbalances (volumes owed by Sellers), as provided in Section 13.6; |
(ix) | an amount equal to the amounts held in the Suspense Accounts as of the Closing, as contemplated in Section 11.5; |
(x) | all fees charged to third parties and for which payment has been collected by Sellers for service provided on or related to any Key Facility from and after the Effective Time; and |
(xi) | any other downward adjustments to the Base Purchase Price as specifically provided for under the terms of this Agreement. |
4. | Allocation of Base Purchase Price |
. |
. | ACCESS TO ASSETS AND DATA; DISCLAIMERS; GOVERNMENTAL REVIEWS |
1. | Access |
2. | Confidentiality Obligations |
(a) | Prior to the Closing, and thereafter, if Closing does not occur, Buyer shall maintain as confidential all information made available to it under Section 4.1 which is not otherwise currently in Buyer’s possession or control and which is not otherwise generally available to the public, and shall cause its officers, employees, representatives, consultants and advisors to maintain all such information confidential. |
(b) | For a period of one (1) year from and after the Closing and except as otherwise required by any requirements of law, Sellers shall maintain all information relating to and with respect to the Assets confidential and otherwise to comply in all respects with, and to cause its officers, employees, representatives, consultants and advisors to maintain all information relating to the Assets confidential; provided, however, that the information subject to such confidentiality restrictions shall not include information that is or becomes generally available to the public other than as a result of disclosure by Sellers or by any member of Seller Group. |
3. | Disclaimer |
1. | Title - Subject to the other provisions contained in this Agreement, title to the Sale Interests shall be transferred and conveyed from Sellers and the Participating Third Party Owners to Buyer at Closing with a “by, through and under” warranty of title through the Effective Time, and shall otherwise be conveyed in accordance with the terms of this Agreement and the Conveyances. |
2. | Disclaimer of Warranty - EXCEPT AS EXPRESSLY PROVIDED FOR OTHERWISE IN THIS AGREEMENT, OR IN THE CONVEYANCES, SELLERS AND THE PARTICIPATING THIRD PARTY OWNERS EXPRESSLY DISCLAIM AND NEGATE ANY REPRESENTATION, COVENANT OR WARRANTY, EXPRESS OR IMPLIED, AT COMMON LAW, BY STATUTE OR OTHERWISE, RELATING TO THE TITLE OR CONDITION OF THE ASSETS AND ANY PERSONAL PROPERTY, EQUIPMENT, FIXTURES AND ITEMS OF MOVABLE PROPERTY COMPRISING ANY PART OF THE ASSETS, INCLUDING (i) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE OR WARRANTY OF MERCHANTABILITY; (ii) ANY IMPLIED OR EXPRESS WARRANTY OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS; (iii) ANY RIGHTS OF BUYER UNDER APPLICABLE STATUTES TO CLAIM DIMINUTION OF CONSIDERATION OR RETURN OF THE PURCHASE |
3. | Additional Disclaimer - EXCEPT AS OTHERWISE EXPRESSLY PROVIDED FOR IN THIS AGREEMENT OR IN THE CONVEYANCES, SELLERS AND THE PARTICIPATING THIRD PARTY OWNERS HEREBY EXPRESSLY NEGATE AND DISCLAIM, AND BUYER HEREBY WAIVES AND ACKNOWLEDGES THAT SELLERS AND PARTICIPATING THIRD PARTY OWNERS HAVE NOT MADE AND BUYER HAS NOT RELIED UPON, ANY WARRANTY, REPRESENTATION OR COVENANT, EXPRESS OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OR MATERIALITY OF ANY FILES, RECORDS, DATA, INFORMATION, OR MATERIALS (WHETHER WRITTEN, ORAL OR OTHERWISE) HERETOFORE OR HEREAFTER FURNISHED TO BUYER IN CONNECTION WITH THE ASSETS, OR AS TO THE QUALITY OR QUANTITY OF HYDROCARBON RESERVES (IF ANY) ATTRIBUTABLE TO THE ASSETS OR THE ABILITY OF THE ASSETS TO PRODUCE HYDROCARBONS. ANY AND ALL SUCH FILES, RECORDS, DATA, INFORMATION, AND OTHER MATERIALS FURNISHED TO BUYER, WHETHER MADE AVAILABLE PURSUANT TO THIS ARTICLE 4 OR OTHERWISE, ARE PROVIDED TO BUYER AS A CONVENIENCE AND ACCOMMODATION, AND ANY RELIANCE UPON OR USE OF THE SAME SHALL BE AT BUYER’S SOLE RISK. |
4. | Governmental Reviews |
• | - Sellers and Buyer shall each in a timely manner make (or cause its applicable affiliate to make) (i) all required filings, including filings required under the Hart-Scott-Rodino Act, and prepare applications to and conduct negotiations with, each Governmental Authority as to which such filings, applications or negotiations are necessary or appropriate in the consummation of the transaction contemplated hereby, and (ii) provide such information as the other may reasonably request in order to make such filings, prepare such applications and conduct such negotiations. Each Party shall cooperate with and use all reasonable efforts to assist the other with respect to such filings, applications and negotiations. Buyer shall bear the cost of all filing or application fees payable to any Governmental Authority with respect to the transaction contemplated by this Agreement, regardless of whether Buyer, Seller, or any affiliate of any of them is required to make the payment. |
• |
. |
. | SELLERS’ REPRESENTATIONS |
1. | Existence |
2. | Authority |
3. | Compliance |
4. | Payment of Royalties |
5. | Taxes |
6. | Material Contracts |
7. | Permits |
8. | Litigation and Claims |
9. | Sale Contracts |
10. | Notices |
11. | Take-or-Pay |
12. | Timely Payment |
13. | Imbalances |
14. | Outstanding Obligations |
15. | Brokers |
16. | Bankruptcy |
17. | Consents |
18. | Preferential Purchase Rights |
19. | Mortgages and Other Instruments - There is no lien or security interest in or on any Asset securing indebtedness for borrowed money that has been created by, through or under Seller or any of its affiliates that burden any of the Assets. |
5.20 | Seismic Data - Seller is a joint owner of the Seismic Data and has the right to grant the License, together with the other Sellers, without consent of any third parties. |
. |
. | BUYER’S REPRESENTATIONS |
1. | Information |
2. | Knowledge and Experience |
3. | No Warranty |
4. | Existence |
5. | Authority |
6. | Liability for Broker’s Fees |
7. | Bankruptcy |
8. | Qualification to Assume Operatorship |
9. | Consents |
10. | Litigation |
. |
. | TITLE |
1. | Title Defects |
(a) | Adverse Claims - The title of Sellers and the Participating Third Party Owners as to all or part of a Well or Lease is subject to (i) an outstanding mortgage which is not released on or before Closing; (ii) a deed of trust which is not released on or before Closing; (iii) a lien or encumbrance which is not released on or before Closing, save and except the contractual liens set forth in the governing operating agreement; or (iv) a pending claim or cause of action in which a competing ownership interest in a Well or Lease is claimed or implied; |
(b) | Decreased Net Revenue Interest - Sellers and the Participating Third Party Owners, in the aggregate, own less than the net revenue interest shown on Exhibit “G” for a particular Well; and |
(c) | Increased Working Interest - Sellers and the Participating Third Party Owners, in the aggregate, own more than the working interest shown on Exhibit “G” for a particular Well without a proportionate increase in the corresponding net revenue interest shown on Exhibit “G”; |
2. | Additional Interests |
3. | Notices |
4. | Adjustments to Base Purchase Price |
(a) | Liquidated Charges - If the adjustment is based upon a lien, encumbrance, or other charge upon a Well, or the Lease or Leases on which such Well is located, or the easement or Key Facilities servicing such Well, which is liquidated in amount or which can be estimated with reasonable certainty, then the adjustment shall be the sum necessary to be paid to the obligee to remove the encumbrance from the affected Well, Lease or Leases, easement or Key Facility, but in no event will such adjustment exceed fifty percent (50%) of the Allocated Value of the affected Sale Interest(s). For purposes of the foregoing, if a Title Defect affects multiple Sale Interests, the adjustment amount shall be deemed allocated between the multiple Sale Interests. |
(b) | Ownership Variance - If the adjustment is based upon Sellers and the Participating Third Party Owners owning in the aggregate a lesser or greater net revenue interest with a corresponding proportionate lesser or greater working interest in a Well than that shown on Exhibit “B”, then the adjustment shall be proportionate to the amount allocated to the affected Well on Exhibit “C-1”. If the adjustment is based upon a lesser or greater net revenue interest without a corresponding proportionate lesser or greater working interest in a Well than that shown on Exhibit “B”, then the Parties shall use their best efforts to agree upon a mutually acceptable Base Purchase Price adjustment based upon the Allocated Value for such Well as set forth on Exhibit “C-1”. |
(c) | Valuation of Title Defects and Additional Interests - If the adjustment is for an item other than as set forth in (a) or (b) above, Buyer and Sellers shall endeavor to mutually agree on the amount of the Base Purchase Price adjustment. If the Parties cannot agree to the existence of a Title Defect or Additional Interests or the applicable adjustment, the matter shall be resolved in accordance with the dispute resolution provisions in Section 20.3. Any such item shall be referred to as an “Open Defect”. Notwithstanding any of the preceding provisions of this Article 7, all adjustments applicable to Title Defects or Additional Interests shall be made prior to Closing which Closing shall be extended until resolution of any disputes relating to the Title Defects or Additional Interests; provided, however, that if adjustments for alleged Title Defects, Environmental Defects, Casualty Defects and Open Defects do not, in the aggregate, exceed five percent (5%) of the Base Purchase Price, then Closing shall occur as to the other Assets that are not subject to the dispute (with the portion of the Assets subject to the dispute being excluded, and the Base Purchase Price reduced for the entire Allocated Values thereof) and Closing shall subsequently occur with respect to the Assets made the subject of the dispute within thirty (30) days following the final resolution of the dispute unless Sellers elect exclusion of the affected Assets. For purpose of the foregoing, if an Open Defect applies to a Key Facility, then the Assets serviced by such Key Facility shall be deemed subject to the dispute and shall be excluded from Closing, and subject to the subsequent Closing following final resolution of the dispute. |
5. | Deductible for Title, Environmental, or Casualty Defects |
6. | Termination Threshold for Defects |
. |
. | ENVIRONMENTAL AND ENVIRONMENTAL INDEMNITY |
1. | Acceptance of Environmental Condition |
(a) | The Environmental Notice must be received by WEC as soon as reasonably practical after discovery of the Environmental Defect by Buyer, but in any event on or before 5:00 p.m. CDT on Friday, August 5, 2016, and thereafter any such claim shall be deemed to have been waived; |
(b) | The Environmental Notice must be based on credible and probative evidence substantiated in good faith by Buyer’s environmental experts (which may include internal employees or personnel of Buyer, |
(c) | The evidence referred to in Section 8.1(b) must be fully described, substantiated in good faith by Buyer’s environmental experts, and in the case of documentary evidence, enclosed; |
(d) | The Environmental Notice must reasonably describe the remediation and/or restoration required to remedy the Environmental Defect, or the potential damages claimed or likely to be claimed by a third party (the “Cleanup”), each as recommended or estimated in good faith by Buyer’s environmental experts; and |
(e) | To the extent practicable, the Environmental Notice must state Buyer’s good faith estimate of the amount of potential Loss to be incurred by Buyer as a result of the Environmental Defect. For purposes of this Agreement, the term “Loss” shall include any estimated Cleanup, costs, losses, expenses, liabilities (including civil fines), damages, demands, suits, sanctions, reasonable fees and expenses of attorneys, technical experts and expert witnesses. |
2. | Remedy for Environmental Defects |
(a) | Remedy - If Buyer delivers a valid Environmental Notice to Sellers, Sellers, at their election, shall have the option of (i) remediating the Environmental Defect and resolving the Losses arising from such Environmental Defect to the reasonable satisfaction of Buyer or the appropriate state and federal agencies having jurisdiction, (ii) contesting the existence of an Environmental Defect or Buyer’s estimate of the amount of all Losses associated with the Environmental Defect pursuant to Section 8.2(c), (iii) paying Buyer’s good faith estimate of the amount of all Losses associated with the Environmental Defect in the form of a reduction to the Purchase Price (an “Environmental Adjustment”), or (iv) excluding the Well or, in the event of a Key Facility, excluding the Key Facility and the Wells and Leases serviced by the particular Key Facility pursuant to Section 8.2(b). |
(b) | Exclusion of Affected Well or any Key Facility - At Sellers’ option, an exclusion adjustment may be made in an amount equal to the Allocated Value of the Well which is the subject of a valid Environmental Notice (in the event of a Key Facility, the Wells serviced by the Key Facility). In such event Sellers shall retain the Well or the Key Facility and the Wells serviced by the Key Facility, and the Base Purchase Price shall be reduced by the Allocated Value of such Wells, as applicable. |
(c) | Contested Environmental Defects - If Sellers contest the existence of any Environmental Defect or Buyer’s estimate of the Loss associated with such Environmental Defect, Sellers shall notify Buyer no later than 5:00 p.m. CDT on Tuesday, August 9, 2016, after Sellers’ receipt of the Environmental Notice. The notice shall state the basis for Sellers’ contest of the Environmental Defect or the estimate of the Cleanup cost. By no later than Wednesday, August 10, 2016, representatives of Sellers and Buyer, knowledgeable in environmental matters, shall meet in person or otherwise, and, prior to Closing, either: (i) agree to reject the Environmental Defect, in which case Buyer shall waive the Environmental Defect, or (ii) agree on the validity of the Environmental Defect and the estimated Loss, in which case Sellers shall have the options described in Section 8.2(a) (except the right to contest) and Section 8.2(b). If Sellers and Buyer cannot agree on either option (i) or (ii) in the preceding sentence, the Environmental Defect or the estimated Loss subject to the Environmental Notice shall be resolved in accordance with the dispute resolution provisions set forth in Section 20.3. Notwithstanding any of the preceding provisions of this Section 8.2(c), all Environmental Adjustments shall be made prior to Closing, which Closing shall be extended until resolution of any disputes relating to the Environmental Defects; provided, however, that if adjustments for alleged Title Defects, Environmental Defects, Casualty Defects and Open Defects do not, in the aggregate, exceed the Termination Threshold, then Closing shall occur as to the other Assets that are not subject to the dispute (with the portion of the Assets subject to the dispute being excluded, and the Base Purchase Price reduced for the entire Allocated Values thereof) and Closing shall subsequently occur with respect to the Assets made the subject of the dispute within thirty (30) days following the final resolution of the dispute unless Sellers elect exclusion of the affected Assets. IT IS SPECIFICALLY UNDERSTOOD AND AGREED THAT ONCE AN ENVIRONMENTAL DEFECT HAS BEEN REMEDIATED AND THE LOSSES RELATED TO |
(d) | Implementing Cleanup - If Sellers elect to Cleanup an Environmental Defect pursuant to Section 8.2(a), Sellers shall select the means and methods of effecting the Cleanup in accordance with applicable Environmental Laws, applicable industry standards, and any applicable agreement, provided, however, that Sellers shall not be required to plug and abandon any currently unplugged wells if the cost thereof would be customary and normal site remediation costs assumed by Buyer in the transfer of the Sale Interests hereunder, including without limitation, plugging and abandonment of Wells. Sellers’ responsibility for remediation under this Section 8.2 shall be limited to a standard appropriate for the use of an Asset for oil and gas activities and in accordance with all applicable laws. |
3. | Acceptance of Environmental Condition |
4. | NORM |
5. | Environmental Indemnities |
. |
. | THIRD-PARTY CONSENTS AND PREFERENTIAL PURCHASE RIGHTS |
1. | Third Party Notices |
2. | Third-Party Exercise |
3. | Third-Party Failure to Purchase |
4. | Consents |
. |
. | CONDITIONS TO CLOSING; Settlement Statement; CLOSING |
1. | Sellers’ Conditions to Closing |
(a) | All representations and warranties of Buyer contained in this Agreement, to the extent qualified with respect to materiality, shall be true and correct in all respects, and to the extent not so qualified, shall be true and correct in all material respects, in each case as if such representations and warranties were |
(b) | On the Closing Date, no injunction, order or award enjoining or otherwise prohibiting the consummation of the transactions contemplated by this Agreement shall have been issued by a Governmental Authority and remain in force. |
(c) | All material consents and approvals required of Governmental Authorities in order to sell and transfer the Assets to Buyer and otherwise close and consummate the transaction contemplated herein, except consents and approvals of assignments by Governmental Authorities that are customarily obtained after Closing, shall have been received or waived in writing, or the necessary waiting period shall have expired, or early termination of the waiting period shall have been granted. |
(d) | Buyer shall have provided Sellers evidence satisfactory to Sellers that Buyer, as of Closing (i) is qualified to do business and to own and operate the Assets in all jurisdictions in which the Assets are located and (ii) has posted all bonds and obtained all insurance required by any Governmental Authority or other body to own and operate the Assets or by any applicable operating agreement. |
(e) | The aggregate adjustments to the Base Purchase Price attributable to Title Defects, Environmental Defects, Open Defects and Casualty Defects shall not have exceeded the Termination Threshold. |
(f) | Buyer shall have performed its obligations set forth in Section 10.5. |
(g) | Sellers shall have executed the Closing Settlement Statement defined under Section 10.3. |
2. | Buyer’s Conditions to Closing |
(a) | All representations and warranties of Sellers and Zebra contained in this Agreement, to the extent qualified with respect to materiality, shall be true and correct in all respects, and to the extent not so qualified, shall be true and correct in all material respects, in each case as if such representations and warranties were made at and as of the Closing Date (except to the extent such representations and warranties are made as of a specified date, in which case such representations and warranties shall be true and correct as of the specified date), and Sellers shall have performed and satisfied in all material respects all covenants and agreements required to be performed and satisfied by it under this Agreement at or prior to the Closing. |
(b) | On the Closing Date, no injunction, order or award enjoining or otherwise prohibiting the consummation of the transactions contemplated by this Agreement shall have been issued by a Governmental Authority and remain in force. |
(c) | All material consents and approvals required of Governmental Authorities in order to sell and transfer the Assets to Buyer and otherwise close and consummate the transaction contemplated herein, except consents and approvals of assignments by Governmental Authorities that are customarily obtained after Closing, shall have been received or waived in writing, or the necessary waiting period shall have expired, or early termination of the waiting period shall have been granted. |
(d) | The aggregate adjustments to the Base Purchase Price attributable to Title Defects, Environmental Defects, Open Defects and Casualty Defects shall not have exceeded the Termination Threshold. |
(e) | Sellers shall have performed its obligations set forth in Section 10.5. |
(f) | Zebra shall have performed its obligations set forth in Article 19. |
(g) | Sellers shall have executed the Closing Settlement Statement defined under Section 10.3, including WEC executing the Closing Statement on behalf of the Participating Third Party Owners pursuant to the authority granted under the Election Agreements. |
(h) | The execution and deliveries of the Participating Third Party Owners set forth in Section 10.5 shall have been performed. |
3. | Closing Settlement Statement |
4. | Closing Date and Place |
5. | Closing Activities |
(a) | Certificates - Each Party shall deliver to the other Party a certificate in a form reasonably satisfactory to the other Party, dated as of the Closing, and executed by a duly authorized officer, partner, attorney-in-fact or owner, as appropriate, of such Party, certifying that the conditions to Closing as set forth in Sections 10.1(a) or 10.2(a), as the case may be, have been met. |
(b) | Conveyances from Sellers - Sellers and Buyer shall execute, acknowledge and deliver two (2) counterpart copies of each of the Conveyances (substantially in the form set forth as Exhibit “D” attached hereto) to be filed in Nolan County, Texas, where the Assets are located, assigning and conveying the Sellers’ Sale Interests in the Assets to Buyer, as well as the requisite number of applicable governmental assignment forms. |
(c) | Election Agreements - WEC shall deliver to Buyer the originally executed Election Agreements having been executed by the Participating Third Party Owners. |
(d) | Conveyances from Participating Third Party Owners - WEC shall deliver to Buyer two (2) counterpart copies of an assignment and conveyance, in a mutually agreed form, executed and acknowledged by the Participating Third Party Owner, assigning and conveying the Participating Third Party Owner’s Sale Interests in the Assets to Buyer. |
(e) | Payment - Buyer shall deliver to an account designated in writing by WEC by wire transfer of same day funds in the amount as set forth on the Closing Settlement Statement. |
(f) | Resignation of Operator - WEC shall execute and deliver to Buyer resignation of operator letters with respect to all of the Wells in forms reasonably acceptable to Buyer; |
(g) | Additional Documents - Buyer shall (i) furnish to Sellers such evidence (including evidence of satisfaction of all applicable bonding or insurance requirements) as Sellers may require demonstrating that Buyer is qualified with the applicable Governmental Authorities or pursuant to any operating agreement to succeed Sellers as the owners and, where applicable, the operator of the Assets, (ii) with respect to Assets operated by Sellers where Buyer intends to succeed WEC as operator, execute and deliver to Sellers appropriate evidence reflecting change of operator as required by applicable Governmental Authorities, and (iii) execute and deliver to Sellers such forms as Sellers may reasonably request for filing with applicable Governmental Authorities to reflect Buyer’s assumption of plugging and abandonment liabilities with respect to all of the Assets. As to any of the Wells and Leases in which Buyer does not acquire all of the leasehold interest governed by the applicable operating agreement, Buyer shall hold the designation of operatorship subject to the succession election under the governing operating agreement, and shall indemnify and hold Sellers harmless from any and all claims of third parties arising from the delivery by Sellers of the operator succession to Buyer. |
(h) | Possession -Sellers shall (subject to the terms of any applicable operating agreements and to the other provisions hereof) deliver to Buyer possession of the Assets to be conveyed at the Closing. |
(i) | Letters-in-Lieu - Sellers and Buyer shall execute and deliver to Buyer the Letters-in-Lieu of Transfer Orders, all as provided for in Section 13.3. WEC shall deliver to Buyer Letters-in-Lieu of Transfer Orders executed by the Participating Third Party Owners, all as provided in Section 13.3. |
(j) | Release of Mortgages, Deeds of Trusts, Liens, Encumbrances and Financing Statements - Sellers shall deliver to Buyer duly executed releases of any mortgages, deeds of trust, liens, encumbrances and financing statements, if any, placed by Sellers upon and encumbering Sellers’ interest in the Assets, other than Permitted Encumbrances. WEC shall deliver to Buyer duly executed releases of any mortgages, deeds of trust, liens, encumbrances and financing statements, if any, placed by the Participating Third Party Owners upon and encumbering any of their interest in the Assets, other than Permitted Encumbrances. |
(k) | Seismic License - Sellers and Buyer shall execute and deliver the Seismic License. |
. |
. | POST-CLOSING OBLIGATIONS |
1. | Recordation and Filing of Documents |
2. | Records |
3. | Final Settlement Statement |
4. | Cooperation with Sellers’ Retained Assets |
5. | Suspense Accounts |
6. | Further Assurances |
. |
. | TAXES |
1. | Property Taxes |
2. | Production Taxes |
3. | Other Taxes |
. |
. | OWNERSHIP OF ASSETS |
1. | Distribution of Production |
2. | Proration of Income and Expenses |
3. | Notice to Remitters of Proceeds |
4. | Notice to Third Party Users of Key Facilities |
5. | Production Imbalances |
6. | Pipeline and Other Non-Wellhead Imbalances |
. |
. | INTERIM OPERATIONS |
1. | Standard of Care |
2. | Liability of Operator |
3. | Removal of Signs |
4. | Third-Party Notifications |
5. | Seller Credit Obligations |
6. | Notification of Breaches |
. |
. | ASSUMPTION OF LIABILITY AND GENERAL INDEMNIFICATION |
1. | Buyer’s Assumption of Obligations. Subject to the Closing occurring, and further subject to the Sellers’ indemnification provisions of Section 15.4, and unless expressly provided for otherwise hereunder, Buyer hereby assumes and agrees to fulfill, perform, pay and discharge (or cause to be fulfilled, performed, paid or discharged) all of the obligations and liabilities of the Sellers, known or unknown, with respect to the Assets, whether arising before, on or after the Effective Time, REGARDLESS OF WHETHER ANY OF SUCH OBLIGATIONS, LIABILITIES OR CLAIMS MAY BE ATTRIBUTABLE, IN WHOLE OR IN PART, TO THE STRICT LIABILITY OR NEGLIGENCE OF SELLER GROUP, BUYER OR THIRD PARTIES, WHETHER SUCH NEGLIGENCE IS ACTIVE OR PASSIVE, JOINT, CONCURRENT OR SOLE (collectively, the “Assumed Obligations”). The Assumed Obligations do not cover or include Sellers’ indemnity obligations as set forth in Section 15.4, prior to the expiration of such Sellers’ indemnity obligations, and any and all duties and obligations or claims which would fall under Sections 15.4(i) through (vi), inclusive. Subject to the Sellers’ indemnification provisions of Section 15.4, the Assumed Obligations include, without limitation, the payment and/or performance of all taxes, leasehold and equipment rentals and release payments, royalties, excess royalties, in-lieu royalties, overriding royalty interests, production payments, net profit obligations, carried working interests, payments for the purchase of third party production from the Key Facilities or fees charged for services provided on the Key Facilities, and any other matters with which the Assets may be burdened, insofar as the same are attributable to the periods before, on or after the Effective Time. Subject to the Sellers’ indemnification provisions of Section 15.4: |
(a) | THE ASSUMED OBLIGATIONS SHALL INCLUDE, AND BUYER, FROM AND AFTER THE CLOSING ACCEPTS SOLE RESPONSIBILITY FOR AND AGREES TO PAY, ALL COSTS AND EXPENSES INCURRED FROM AND AFTER THE EFFECTIVE TIME AND ASSOCIATED WITH PLUGGING AND ABANDONMENT OF ALL WELLS, DECOMMISSIONING OF ALL FACILITIES (INCLUDING THE KEY FACILITIES) AND PLATFORMS, AND CLEARING AND RESTORATION OF ALL SITES, IN EACH CASE INCLUDED IN, OR ASSOCIATED WITH, THE ASSETS, AND BUYER MAY NOT CLAIM THE FACT THAT PLUGGING AND ABANDONMENT, DECOMMISSIONING, SITE CLEARANCE OR RESTORATION OPERATIONS ARE NOT COMPLETE OR THAT ADDITIONAL COSTS AND EXPENSES ARE REQUIRED TO COMPLETE ANY SUCH OPERATIONS AS A BREACH OF SELLERS’ REPRESENTATIONS OR WARRANTIES MADE HEREUNDER OR THE BASIS FOR ANY OTHER REDRESS AGAINST SELLERS. |
(b) | SUBJECT TO ARTICLE 8, THE ASSUMED OBLIGATIONS SHALL INCLUDE, AND BUYER, FROM AND AFTER THE CLOSING ACCEPTS SOLE RESPONSIBILITY FOR AND AGREES TO PAY, ANY AND ALL COSTS AND EXPENSES ARISING OUT OF ENVIRONMENTAL LAWS (INCLUDING, WITHOUT LIMITATION, ANY COMPLIANCE OR NON-COMPLIANCE THEREWITH, ANY ADVERSE ENVIRONMENTAL CONDITIONS, AND THE DISPOSAL, RELEASE, DISCHARGE OR EMISSION OF HYDROCARBONS, HAZARDOUS SUBSTANCES, HAZARDOUS WASTES, HAZARDOUS MATERIALS, SOLID WASTES OR POLLUTANTS INTO THE ENVIRONMENT), KNOWN OR UNKNOWN, WITH RESPECT TO THE ASSETS, REGARDLESS OF WHETHER SUCH OBLIGATIONS OR LIABILITIES AROSE PRIOR TO, ON, OR AFTER THE EFFECTIVE TIME. BUYER EXPRESSLY AGREES TO ASSUME THE RISK THAT THE ASSETS MAY CONTAIN WASTE MATERIALS, INCLUDING, WITHOUT LIMITATION, NORM, HAZARDOUS SUBSTANCES, HAZARDOUS WASTES, HAZARDOUS MATERIALS, SOLID WASTES, OR OTHER POLLUTANTS. |
2. | Definitions |
3. | Buyer’s General Indemnity |
(i) | Buyer’s breach of any of its representations and warranties in this Agreement; |
(ii) | Buyer’s breach of any of its covenants in and under this Agreement; and |
(iii) | the Assumed Obligations. |
4. | Sellers’ General Indemnity |
(i) | Such Seller’s breach of any of its representations and warranties in this Agreement, excluding, any Claims relating to title or environmental matters; |
(ii) | Such Seller’s breach of any of their covenants in and under this Agreement; |
(iii) | except as otherwise provided in this Agreement, any and all duties and obligations of such Seller, express or implied with respect to the Assets, or the use, ownership, operation or disposition of the Assets arising before (or otherwise attributable to periods, or to actions, occurrences or operations conducted prior to) the Effective Time under any theory of liability, including, without limitation, by virtue of the Leases, Easements, Contracts and/or any permit, applicable statute, rule, regulation or order of any Governmental Authority; |
(iv) | subject to the provisions of Article 8, any Claims for damage to or property owned by a third party or for personal injury, illness, bodily injury, or death of any person arising before the Effective Time; |
(v) | except as otherwise provided in this Agreement, any other Claims arising directly or indirectly from, or incident to, the use, occupation, operation (including, but not limited to, royalty and accounting Claims) or maintenance of any of the Assets, and arising or accruing prior to the Effective Time; and |
(vi) | the failure of Sellers to properly pay when due all taxes, royalties, overriding royalties, production payments, working interest payments, relating to the Assets and attributable to periods prior to the Effective Time, other than amounts included in Suspense Accounts; |
5. | Limitation on Indemnification |
6. | Further Limitation on Indemnification |
7. | Indemnification Procedures |
1. | General - All claims for indemnification under this Agreement shall be asserted and resolved pursuant to this Section 15.7. Any person claiming indemnification hereunder is hereinafter referred to as the “Indemnified Party” and any person against whom such claims are asserted hereunder is hereinafter referred to as the “Indemnifying Party.” |
2. | Claim Notice - In the event that a Party wishes to assert a claim for indemnity hereunder, such Party shall with reasonable promptness provide to the Indemnifying Party a written notice of the indemnity claim it wishes to assert on behalf of itself or another Indemnified Party, including the specific details of and specific basis under this Agreement for its indemnity claim (a “Claim Notice”). To the extent any Losses for which indemnification is sought are asserted against or sought to be collected from an Indemnified Party by a third party, such Claim Notice shall include a copy of all papers served on the applicable Indemnified Party with respect to such claim. |
3. | Notice Period - The Indemnifying Party shall have thirty (30) days from the personal delivery or receipt of the Claim Notice (the “Notice Period”) to notify the Indemnified Party (i) whether or not it disputes its liability hereunder with respect to such Losses and/or (ii) with respect to any Losses arising out of, associated with, or relating to third party claims, whether or not it desires, at the sole cost and expense of the Indemnifying Party, to defend the Indemnified Party against any such Losses. In the event that the Indemnifying Party notifies the Indemnified Party within the Notice Period that it desires to defend the Indemnified Party against such Losses, the Indemnifying Party shall have the right to defend all appropriate proceedings with counsel of its own choosing. If the Indemnified Party desires to participate in, but not control, any such defense or settlement it may do so at its sole cost and expense. |
4. | Cooperation - If requested by the Indemnifying Party, the Indemnified Party agrees to cooperate with the Indemnifying Party and its counsel in contesting any Losses that the Indemnifying Party elects to contest or, if appropriate and related to the claim in question, in making any counterclaims against the third party asserting such Losses, or any cross-complaint against any third party (other than a Seller Indemnified Party, if the Indemnified Party is a Seller Indemnified Party; and other than a Buyer Indemnified Party, if the Indemnified Party is a Buyer Indemnified Party). Such cooperation shall include the retention and provision to the Indemnifying Party of all records and other information that are reasonably relevant to the losses at issue. |
5. | Settlement - No third party claim that is the subject of indemnification hereunder may be settled or otherwise compromised without the prior written consent of the Indemnifying Party. No such claim may be settled or compromised by the Indemnifying Party without the prior written consent of the Indemnified Party unless such settlement or compromise (i) entails a full and unconditional release of the Indemnified Party (and any other members of the Indemnified Party’s group, i.e., all Seller Indemnified Parties or all Buyer Indemnified Parties) without any admission or finding of fault or liability and (ii) does not impose on the Indemnified Party any material non-financial obligation or any financial obligation that is not fully paid by the Indemnifying Party. |
8. | Exclusive Remedy. Sellers and Buyer acknowledge and agree that from and after the Closing the indemnification provisions of this Article 15 are the sole and exclusive remedy of Sellers and Buyer for the breach of any representation or warranty or nonfulfillment of any covenant or agreement on the part of Sellers or Buyer under this Agreement or confirmed in any certificate delivered pursuant hereto, and Sellers do hereby release, acquit and forever discharge all Buyer Indemnified Parties and Buyer does hereby release, acquit, and forever discharge all Seller Indemnified Parties from any such other remedies; provided, however, that a Party shall be entitled to pursue all remedies available at law or in equity (including specific performance and injunctive relief without the necessity of posting bond) for any breach by another Party of the provisions of Section 4.2. |
. |
. | CASUALTY LOSS |
. |
. | NOTICES |
SELLERS | ||
WALTER EXPLORATION COMPANY Attn: J. Brian Walter Suite 313 6116 North Central Expressway Dallas, Texas 75206 Fax: (214) 369-7679 Email: brian@walterx.com and to Kurt M. Daniel Kurt M. Daniel, P.C. 4849 Greenville Avenue Suite 1111 Dallas, Texas 75206 Fax: 214-890-7628 Email: kurt@kurtmdanielpc.com | ||
BUYER | ||
MID-CON ENERGY PROPERTIES, LLC | ||
2431 E. 61st Street, Suite 850 | ||
Tulsa, Oklahoma 74136 | ||
Attention: Charles L. McLawhorn, III | ||
Phone: 918-743-7575 | ||
Fax: 918-743-8859 | ||
Email: cmclawhorn@midcon-energy.com |
. |
. | TERMINATION |
1. | Termination |
(a) | by the mutual written agreement of Buyer and Sellers; |
(b) | by written notice from either Buyer or Sellers if Closing has not occurred on or before 5:00 p.m. CDT on August 12, 2016; provided, however, that no Party may terminate this Agreement pursuant to this Section 18.1(b) if such Party’s breach of its representations and warranties or its failure to comply with its obligations or covenants under this Agreement caused the Closing not to occur on or before the above date; or |
(c) | by written notice from either Buyer or Sellers if the aggregate sum of (i) the Title Defect amounts for all Title Defects timely and properly asserted pursuant to Article 7, (ii) the Environmental Defect |
2. | Liabilities Upon Termination; Deposit Amount |
(a) | a willful or intentional breach of this Agreement by Sellers or because Buyer’s conditions to Closing are not satisfied as a result of Sellers’ willful or intentional failure to comply with its obligations under this Agreement (and, as a result, Buyer elects to terminate this Agreement under Section 18.1(b) above), then Buyer shall be entitled to the immediate return of the Deposit and shall also be entitled to pursue all remedies available at law for damages or other relief, in equity or otherwise; or |
(b) | a willful or intentional breach of this Agreement by Buyer or because Sellers’ conditions to Closing are not satisfied as a result of Buyer’s willful or intentional failure to comply with its obligations under this Agreement (and, as a result, Sellers elect to terminate this Agreement under Section 18.1(b) above), then Sellers shall be entitled to retain the Deposit as liquidated damages (and the parties hereby acknowledge that the extent of damages to Sellers occasioned by such breach or default or failure to proceed by Buyer would be impossible or extremely impractical to ascertain and that the Deposit is a fair and reasonable estimate of such damage; provided, however, that nothing in this Section 18.2(b) shall be deemed to limit Sellers’ right to seek and obtain specific performance. |
. |
. | JOINDER OF ZEBRA INVESTMENTS, INC. Zebra Investments, Inc. (herein “Zebra”), a Texas corporation, joins in this Agreement for the following limited purposes: |
1. | Pace 1-68 Well. By special warranty of title only, Zebra represents that it holds title to an undivided 96.875% of the Pace 1-68 Well which is used for water disposal for salt water produced from the Pace Heirs Unit No. 1 Well and the Pace No. 303X Well. If Closing shall occur, and the Sale Interests in the Pace Heirs Unit No. 1 Well and the Pace No. 303X Well are conveyed by Sellers to Buyer at Closing, then at Closing Zebra shall assign and convey to Buyer, effective as of the Effective Time, all of Zebra’s right, title and interest in the Pace 1-68 Well, and all Contracts and Equipment relating to such Well. |
2. | Sisters Lease. Zebra represents that it holds title to the leasehold interest of the Sisters Lease as nominee for the Sellers and Third Party Owners having an interest in such Lease, as reflected in Exhibit “G”. If Closing shall occur, and the Sale Interests of the Sellers and the Third Party Owners having an interest in the Sisters Lease are to be conveyed to Buyer at Closing, then at Closing Zebra shall assign and convey to Buyer, effective as of the Effective Time, all of the right, title and interest held by Zebra in the Sisters Lease. On the other hand, if at Closing all of the interests of Sellers and the Third Party Owners having an interest in the Sisters Lease are to be conveyed to Buyer, save and except any Excluded Third Party Owner Interest, then, in such event, at Closing Zebra shall assign and convey to the Excluded Third Party Owner its Excluded Third Party Interest in the Sisters Lease, in a form reasonably approved by the Excluded Third Party Owner and Buyer, and then Zebra shall assign and convey to Buyer all of the remaining right, title and interest held by Zebra in the Sisters Lease. |
3. | Undeveloped Leases covering Tract 1 through Tract 5. Title to the Undeveloped Leases covering Tract 1 through Tract 5, described in Exhibit “A-2” are held by Zebra as nominee for Sellers. Such leases are subject to a one-half of one percent (0.5%) overriding royalty interest to Kent Fouret. If Closing shall occur, and the Sale Interests of the Sellers in such Leases are to be conveyed to Buyer at Closing, then at Closing Zebra shall assign and convey to Buyer, effective as of the Effective Time, all of the right, title and interest held by Zebra in such Undeveloped Leases, less and except and subject to the overriding royalty interest of Kent Fouret, which overriding royalty interest shall be conveyed to Kent Fouret in a form reasonably approved by the Kent Fouret and Buyer. |
4. | Mineral Interest in leased premises of Joe Young Lease. By special warranty of title only, Zebra represents that it holds title to the mineral interest in the leased premises of the Joe Young Lease, identified in item 2 under the Joe Young Lease heading of Exhibit “A-2,” as nominee for Sellers. If Closing shall occur, and the Sale Interests of Sellers in such mineral interest is to be conveyed to Buyer at Closing, then at Closing Zebra shall grant and convey to Buyer, effective as of the Effective Time, all of Zebra’s right, title and interest in such mineral interest, by form of mineral deed reasonably approved by Buyer. |
5. | Representations. Zebra makes the same representations to Buyer as made by Sellers under Article 5 above, provided, however, such representations by Zebra are limited to the Assets described in this Article 19 in which title is owned or held by Zebra. |
6. | Form of Conveyance. Subject to this Article 19, and as otherwise set forth in this Article 19, the conveyances to be made by Zebra at Closing shall be in the form of Exhibit D. |
7. | Breach of Covenant. In the event of a breach by Zebra of any of its covenants herein, Zebra shall be subject to the same remedies set forth herein for Buyer in the event of a breach by Seller of a covenant herein of such Seller. |
. |
. | MISCELLANEOUS |
1. | Entire Agreement |
2. | Survival |
3. | Arbitration |
• | - All disputes arising out of, or in connection with, this Agreement or any determination required to be made by Buyer and Sellers as to which the parties cannot reach an agreement shall be settled by arbitration in Dallas, Texas. Any matter to be submitted to arbitration shall be determined by a panel of three (3) arbitrators, unless otherwise agreed by the Parties. Each arbitrator shall be a person experienced in both the oil and gas industry and the subject matter of the dispute and shall be appointed: |
(a) | by mutual agreement of Buyer and Sellers; or |
(b) | failing such agreement, within sixty (60) days of the request for arbitration, each Party shall appoint one arbitrator, and the third arbitrator shall be appointed by the other two arbitrators, or, if they cannot agree, by a Judge of the United States District Court, Northern District of Texas. |
4. | Memorandum of Understanding |
(a) | is or becomes publicly available through no act or omission of the Buyer or any of its consultants or advisors; |
(b) | is subsequently obtained lawfully from a third party, where the Buyer has made reasonable efforts to insure that such third party is not a party to or bound by any confidentiality agreement with the Sellers; or |
(c) | is already in the Buyer’s possession at the time of disclosure, without restriction on disclosure. |
5. | Choice of Law |
6. | Assignment |
7. | No Admissions |
8. | Waivers and Amendments |
9. | Counterparts |
10. | Third-Party Beneficiaries |
• | - Neither this Agreement nor any performances hereunder by Sellers or Buyer shall create any right, claim, cause of action, or remedy on behalf of any person not a party hereto. |
11. | Specific Performance |
12. | Public Communications |
13. | Headings |
14. | Expenses |
15. | No Recourse |
1. | I have reviewed this Quarterly Report on Form 10-Q of Mid-Con Energy Partners, LP; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Jeffrey R. Olmstead | |
Jeffrey R. Olmstead | |
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Mid-Con Energy Partners, LP; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Matthew R. Lewis | |
Matthew R. Lewis | |
Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
/s/ Jeffrey R. Olmstead | |
Jeffrey R. Olmstead | |
Chief Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
/s/ Matthew R. Lewis | |
Matthew R. Lewis | |
Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Aug. 03, 2016 |
|
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MCEP | |
Entity Registrant Name | Mid-Con Energy Partners, LP | |
Entity Central Index Key | 0001527709 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,912,230 | |
General Partner Units [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 360,000 |
Condensed Consolidated Balance Sheets (Parenthetical) - shares |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Limited partners, units issued | 29,784,015 | 29,724,890 |
Limited partners, units outstanding | 29,784,015 | 29,724,890 |
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Revenues: | ||||
Oil sales | $ 14,447,000 | $ 21,244,000 | $ 25,553,000 | $ 38,538,000 |
Natural gas sales | 330,000 | 367,000 | 493,000 | 644,000 |
Loss on derivatives, net | (10,088,000) | (8,871,000) | (7,520,000) | (7,227,000) |
Total revenues | 4,689,000 | 12,740,000 | 18,526,000 | 31,955,000 |
Operating costs and expenses: | ||||
Lease operating expenses | 5,777,000 | 7,617,000 | 11,842,000 | 16,532,000 |
Oil and natural gas production taxes | 732,000 | 1,319,000 | 1,324,000 | 2,428,000 |
Impairment of proved oil and natural gas properties | 895,000 | 0 | 895,000 | 0 |
Impairment of assets held for sale | 3,578,000 | 0 | 3,578,000 | 0 |
Depreciation, depletion and amortization | 5,800,000 | 8,191,000 | 11,885,000 | 16,037,000 |
Accretion of discount on asset retirement obligations | 159,000 | 93,000 | 316,000 | 185,000 |
General and administrative | 1,478,000 | 1,637,000 | 3,566,000 | 5,278,000 |
Total operating costs and expenses | 18,419,000 | 18,857,000 | 33,406,000 | 40,460,000 |
Gain on sale of oil and natural gas properties | 13,000 | 0 | 13,000 | 0 |
Loss from operations | (13,717,000) | (6,117,000) | (14,867,000) | (8,505,000) |
Other income (expense): | ||||
Interest income and other | 2,000 | 3,000 | 38,000 | 6,000 |
Interest expense | (2,054,000) | (1,830,000) | (4,253,000) | (3,557,000) |
Total other expense | (2,052,000) | (1,827,000) | (4,215,000) | (3,551,000) |
Net loss | (15,769,000) | (7,944,000) | (19,082,000) | (12,056,000) |
Allocation of net loss: | ||||
General partner's interest in net loss | (188,000) | (95,000) | (227,000) | (145,000) |
Limited partners’ interest in net loss | $ (15,581,000) | $ (7,849,000) | $ (18,855,000) | $ (11,911,000) |
Net loss per limited partner unit: | ||||
Basic and diluted ($ per share) | $ (0.52) | $ (0.26) | $ (0.63) | $ (0.40) |
Weighted average limited partner units outstanding: | ||||
Limited partner units (basic and diluted) (in shares) | 29,785 | 29,656 | 29,777 | 29,572 |
Condensed Consolidated Statements of Changes in Equity - 6 months ended Jun. 30, 2016 - USD ($) shares in Thousands, $ in Thousands |
Total |
General Partner [Member] |
Limited Partner [Member] |
---|---|---|---|
Balance at Dec. 31, 2015 | $ 130,498 | $ 47 | $ 130,451 |
Balance, Units at Dec. 31, 2015 | 29,725 | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Equity-based compensation | 650 | $ 650 | |
Equity-based compensation, Units | 59 | ||
Offering costs | (16) | $ (16) | |
Net loss | (19,082) | (227) | (18,855) |
Balance at Jun. 30, 2016 | $ 112,050 | $ (180) | $ 112,230 |
Balance, Units at Jun. 30, 2016 | 29,784 |
Organization and Nature of Operations |
6 Months Ended |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations Nature of Operations Mid-Con Energy Partners, LP ("we," "our," "us," the "Partnership," the "Company") is a publicly held Delaware limited partnership formed in July 2011 that engages in the ownership, acquisition, exploitation and development of producing oil and natural gas properties in North America, with a focus on enhanced oil recovery ("EOR"). Our limited partner units ("common units") are traded on the National Association of Securities Dealers Automated Quotation System Global Select Market ("NASDAQ") under the symbol "MCEP." Our general partner is Mid-Con Energy GP, LLC, a Delaware limited liability company. Basis of Presentation Our unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the SEC. These financial statements have not been audited by our independent registered public accounting firm, except that the condensed consolidated balance sheet at December 31, 2015 is derived from the audited financial statements. Accordingly, certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted in this Form 10-Q. We believe that the presentations and disclosures herein are adequate to make the information not misleading. The unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the interim periods. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. These interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2015. All intercompany transactions and account balances have been eliminated. Liquidity and Capital Resources Our ability to finance our operations, fund our capital expenditures and acquisitions, meet or refinance our debt obligations and meet our collateral requirements will depend on our future cash flows. Our ability to generate cash is subject to a number of factors, some of which are beyond our control, including weather, oil and natural gas prices, operating costs and maintenance capital expenditures, as well as general economic, financial, competitive, legislative, regulatory and other factors. Our primary use of cash has been for debt reduction and to fund capital spending. Oil prices have fallen to thirteen-year lows during 2016, impacting the way we conduct business. We have implemented a number of adjustments to strengthen our financial position. In January 2015, we restructured our commodity derivative contracts and subsequently increased our revenue security for 2016 and 2017 by executing additional commodity derivative contracts in November 2015 and April 2016 to provide greater oil price protection over a longer period of time. Additionally, we indefinitely suspended our quarterly cash distributions beginning with the third quarter of 2015. We are also aggressively pursuing cost reductions in order to improve profitability and maximize cash flows. Our primary cost reduction initiatives encompass periodic economic review of each well within our portfolio along with ongoing scrutiny of lease operating expenses and general and administrative expenses. Our liquidity position at June 30, 2016 consisted of approximately $4.0 million of available cash. Our borrowing base is redetermined in or around April and October of each year. During May 2016, we finalized our spring 2016 redetermination and resulting amendment of the underlying revolving credit facility. The new borrowing base was effective as of June 1, 2016 and was comprised of a $110.0 million conforming tranche and a permitted overadvance of $53.0 million. The permitted overadvance matures on November 1, 2016. In addition, the amendment (i) required the Partnership to provide a monthly excess cash flow report; (ii) required the Partnership to make varied minimum monthly principal payments totaling approximately $1.9 million through October 31, 2016; (iii) reduced the borrowing base to $105.0 million upon the close of the previously announced Hugoton divestiture; (iv) allowed an additional non-scheduled borrowing base redetermination between September 1, 2016 and November 1, 2016 to be requested by any lender; (v) increased the minimum collateral coverage from 90% to 95% of proved reserves (and 100% of PDP reserves); (vi) required the Partnership to unwind and early terminate existing hedges covering production from July 2016 through September 2016 and add new at-the-market swap contracts to replace these hedge terminations; and (vii) required the net proceeds from the previously announced Hugoton sale and the early termination of hedge contracts to be applied to debt reduction. Based on our cash balance, forecasted cash flows from operating activities, the early monetization of existing hedges and the closing of the previously announced Hugoton divestiture, we expect to be able to fund our planned capital expenditures budget, meet our debt service requirements and fund our other commitments and obligations. Although we currently expect our sources of cash to be sufficient to meet our near-term liquidity needs, there can be no assurance that our liquidity requirements will continue to be satisfied given current oil prices and the discretion of our lenders to decrease our borrowing base. Due to the volatility of commodity prices, we may not be able to obtain funding in the equity or capital markets on terms we find acceptable. The cost of obtaining money from the credit markets generally has increased as many lenders and institutional investors have increased interest rates, enacted tighter lending standards and reduced and, in some cases, ceased to provide any new funding. |
Equity Awards |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Awards | Equity Awards We have a long-term incentive program (the "Long-Term Incentive Program") for employees, officers, consultants and directors of our general partner and its affiliates, including Mid-Con Energy Operating, LLC ("Mid-Con Energy Operating") and ME3 Oilfield Service, LLC ("ME3 Oilfield Service"), who perform services for us. The Long-Term Incentive Program allows for the award of unit options, unit appreciation rights, unrestricted units, restricted units, phantom units, distribution equivalent rights granted with phantom units and other types of awards. The Long-Term Incentive Program is administered by the members of our general partner (the "Founders") and approved by the Board of Directors of the general partner. If an employee terminates employment prior to the restriction lapse date, the awarded units are forfeited and canceled and are no longer considered issued and outstanding. On November 20, 2015, the Board of Directors of the general partner approved an amendment to the Long-Term Incentive Program that increased the number of common units available for issuance from 1,764,000 to 3,514,000. The following table shows the number of existing awards and awards available under the Long-Term Incentive Program at June 30, 2016:
We recognized $0.3 million and $0.7 million of total equity-based compensation expense for the three and six months ended June 30, 2016, respectively, and we recognized $0.4 million and $2.4 million of total equity-based compensation expense for the three and six months ended June 30, 2015, respectively. These costs are reported as a component of general and administrative expense in our unaudited condensed consolidated statement of operations. Unrestricted unit awards We account for unrestricted awards as equity awards since they are settled by issuing common units. During the six months ended June 30, 2016, we granted 70,000 unrestricted units with an average grant date fair value of $1.16 per unit. These units were granted to certain directors of our general partner. Restricted unit awards We account for restricted awards as equity awards since they will be settled by issuing common units. These units vest over a two or three year period. The compensation expense we recognize associated with our restricted units is net of estimated forfeitures. We estimate our forfeiture rate based on prior experience and adjust it as circumstances warrant. We did not issue any restricted units during the six months ended June 30, 2016. A summary of our restricted unit awards for the six months ended June 30, 2016 is presented below:
As of June 30, 2016, there were approximately $0.5 million of unrecognized compensation costs related to non-vested restricted units. The cost is expected to be recognized over a weighted average period of approximately 10 months. Equity-settled phantom unit awards We account for equity-settled phantom units as equity awards since these awards will be settled by issuing common units. These units vest over a two or three year period and do not have any rights or privileges of a common unitholder, including right to distributions, until vesting and the resulting conversion into common units. The compensation expense we recognize associated with our equity-settled phantom units is net of estimated forfeitures. We estimate our forfeiture rate based on prior experience and adjust it as circumstances warrant. During the six months ended June 30, 2016, we granted 24,500 equity-settled phantom units with one-third vesting immediately and the other two-thirds vesting over two years. These units were granted to certain employees of our affiliates. A summary of our equity-settled phantom unit awards for the six months ended June 30, 2016 is presented below:
As of June 30, 2016, there were approximately $0.1 million of unrecognized compensation costs related to equity-settled phantom units. The cost is expected to be recognized over a weighted average period of approximately 1.43 years. |
Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Our risk management program is intended to reduce our exposure to commodity price volatility and to assist with stabilizing cash flows. Accordingly, we utilize commodity derivative contracts (swaps, calls, puts and costless collars) to manage a portion of our exposure to commodity prices and specific delivery points. The commodity derivative contracts that we have entered into generally have the effect of providing us with a fixed price or a floor for a portion of our expected future oil production over a fixed period of time. We enter into commodity derivative contracts or modify our portfolio of existing commodity derivative contracts when we believe market conditions or other circumstances suggest that it is prudent to do so, or as required by our lenders. These are presented as derivative financial instruments on our unaudited condensed consolidated financial statements. At June 30, 2016 and December 31, 2015, our net commodity derivative contracts were in a net asset position with a fair value of approximately $3.0 million and $25.6 million, respectively. All of our commodity derivative contracts are with major financial institutions that are also members of our banking group. Should one of these financial counterparties not perform, we may not realize the benefit of some of our commodity derivative contracts under lower commodity prices and we could incur a loss. As of June 30, 2016, all of our counterparties have performed pursuant to their commodity derivative contracts. At June 30, 2016 and December 31, 2015, our commodity derivative contracts had maturities that extended through June 2018 and December 2017, respectively, and were comprised of commodity price swap, call, put and collar contracts. For commodity price swap contracts, at the time of execution the seller agrees to receive a fixed price at maturity in exchange for any gains or losses that might be realized from allowing the price of the underlying commodity to float with the market until maturity. From the perspective of the seller, these instruments limit exposure to price declines below the price fixed by the swap at the expense of participating in any price increases above the price fixed by the swap. For commodity price call contracts, in return for a premium received, which can be effected at either execution or settlement, the seller is obliged to pay the difference, when positive, between the market price of the underlying commodity at maturity and the strike price. From the perspective of the seller, these instruments provide income via the premium received at the expense of any incremental gains that would have otherwise been received above the strike price. For commodity price put contracts, in return for a premium paid, which can be effected at either execution or settlement, the purchaser has the right to receive the difference, when positive, between the strike price and the market price of the underlying commodity at maturity. From the perspective of the purchaser, these instruments limit exposure to price declines below the strike price at the expense of premiums paid. For commodity price collar contracts, a collar is the combination of a put purchased or sold by a party and a call option sold or purchased by the same party. The collar is defined as costless when the value of the option purchased is approximately offset by the value of the option sold. We do not designate derivatives as hedges for accounting purposes; therefore, the mark-to-market adjustment reflecting the change in the fair value of our commodity derivative contracts is recorded in current period earnings. When prices for oil are volatile, a significant portion of the effect of our hedging activities consists of non-cash gains or losses due to changes in the fair value of our commodity derivative contracts. In addition to mark-to-market adjustments, gains or losses arise from net payments made or received on monthly settlements, proceeds or payments for termination of contracts prior to their expiration and premiums paid or received for new contracts. Any deferred premiums are recorded as a liability and recognized in earnings as the related contracts mature. Gains and losses on derivatives are included in cash flows from operating activities. Pursuant to the accounting standard that permits netting of assets and liabilities where the right of offset exists, we present the fair value of commodity derivative contracts on a net basis. At June 30, 2016, we had the following oil derivatives net positions:
At December 31, 2015, we had the following oil derivatives net positions:
During the first quarter of 2015, we restructured a significant portion of our existing commodity derivative contracts that were in place at December 31, 2014 and entered into new commodity derivative contracts which extend through September 2016. In connection with the early termination of our commodity derivative contracts, we received net proceeds of approximately $11.1 million. We received approximately $5.9 million from selling calls and paid approximately $19.8 million in premiums to extend the contracts through September 2016. The restructuring also resulted in approximately $4.1 million in deferred premium put options. As of June 30, 2016, we had paid approximately $3.4 million of the deferred premiums in connection with these contract settlements. In connection with the November 2015 semi-annual redetermination of our borrowing base, we entered into additional commodity derivative contracts resulting in total commodity derivative contracts covering at least 80% of our 2016 projected monthly production and at least 50% of our 2017 projected monthly production, calculated based on Proved Developed Producing reserves. No cash settlements were required and the contracts included deferred premiums of approximately $7.8 million that will be paid through December 2017. As of June 30, 2016, we had paid approximately $0.8 million of the deferred premiums in connection with these contract settlements. The following tables summarize the gross fair value by the appropriate balance sheet classification, even when the derivative financial instruments are subject to netting arrangements and qualify for net presentation in our unaudited condensed consolidated balance sheets at June 30, 2016 and December 31, 2015:
The following table presents the impact of derivative financial instruments and their location within the unaudited condensed consolidated statements of operations:
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Fair Value Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | Fair Value Disclosures Fair Value of Financial Instruments The carrying amounts reported in our balance sheet for cash, accounts receivable and accounts payable approximate their fair values. The carrying amount of debt under our revolving credit facility approximates fair value because the revolving credit facility’s variable interest rate resets frequently and approximates current market rates available to us. We account for our commodity derivative contracts at fair value as discussed in "Assets and Liabilities Measures at Fair Value on a Recurring Basis" below. Fair Value Measurements Fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Assets and liabilities recorded in the balance sheet are categorized based on the inputs to the valuation technique as follows: Level 1—Financial assets and liabilities for which values are based on unadjusted quoted prices for identical assets or liabilities in an active market that management has the ability to access. We consider active markets to be those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an on-going basis. Level 2—Financial assets and liabilities for which values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 instruments primarily include swap, call and put contracts. Level 3—Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. When the inputs used to measure fair value fall within different levels of the hierarchy in a liquid environment, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. We had no transfers in or out of Levels 1, 2 or 3 at June 30, 2016 and December 31, 2015. Our estimates of fair value have been determined at discrete points in time based on relevant market data. These estimates involve uncertainty and cannot be determined with precision. There were no changes in valuation techniques or related inputs for the six months ended June 30, 2016 and for the year ended December 31, 2015. Assets and Liabilities Measured at Fair Value on a Recurring Basis We account for commodity derivative contracts and their corresponding deferred premiums at fair value on a recurring basis utilizing certain pricing models. Inputs to the pricing models include publicly available prices from a compilation of data gathered from third parties and brokers. We validate the data provided by third parties by understanding the pricing models used, obtaining market values from other pricing sources, analyzing pricing data in certain situations and confirming that those securities trade in active markets. See Note 3 in this section for a summary of our derivative financial instruments. Assets and Liabilities Measured at Fair Value on a Non-recurring Basis We estimate the fair value of our Asset Retirement Obligations ("ARO") based on discounted cash flow projections using numerous estimates, assumptions and judgments regarding such factors as the existence of a legal obligation for ARO, amounts and timing of settlements, the credit-adjusted risk-free rate to be used and inflation rates. See Note 5 in this section for a summary of changes in ARO. We calculate the estimated fair values of reserves and properties using valuation techniques consistent with the income approach, converting future cash flows to a single discounted amount. Significant inputs used to determine the fair values of proved properties include estimates of: (i) reserves; (ii) future operating and developmental costs; (iii) future commodity prices; (iv) a market-based weighted average cost of capital rate; and (v) the rate at which future cash flows are discounted to estimate present value. We discount future values by a per annum rate of 10% because we believe this amount approximates our long-term cost of capital and accordingly, is well aligned with our internal business decisions. The underlying commodity prices embedded in our estimated cash flows are the product of a process that begins with Level 1 NYMEX-WTI forward curve pricing, as well as Level 3 assumptions including: pricing adjustments for estimated location and quality differentials, production costs, capital expenditures, production volumes, decline rates, and estimated reserves. The need to test an asset for impairment may result from significant declines in sales prices or downward revisions in estimated quantities of oil and natural gas reserves. If the carrying value of the long-lived assets exceeds the sum of estimated undiscounted future net cash flows, an impairment loss is recognized for the difference between the estimated fair value and the carrying value of the assets. During the three and six months ended June 30, 2016, we recorded a non-cash impairment charge of approximately $0.9 million due to a revision of reserve estimates for a property in our Permian core area. The impairment is included in "Impairment of proved oil and natural gas properties" in our unaudited condensed consolidated statements of operations. On May 26, 2016, we entered into an agreement to sell our assets in the Hugoton core area. The related assets and liabilities were classified as held for sale in the unaudited condensed consolidated balance sheets at June 30, 2016. In conjunction with this agreement, we recorded a non-cash impairment charge of approximately $3.6 million to reduce the carrying amount of these assets to their fair value, based on the agreed upon sales price of $18.0 million, prior to customary post-closing adjustments. The impairment is included in "Impairment of assets held for sale" in our unaudited condensed consolidated statements of operations. There were no impairment charges for the three and six months ended June 30, 2015. The following sets forth, by level within the hierarchy, the fair value of our assets and liabilities measured at fair value as of June 30, 2016 and December 31, 2015:
A summary of the changes in Level 3 fair value measurements for the periods presented are as follows:
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Asset Retirement Obligations |
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Asset Retirement Obligation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligations | Asset Retirement Obligations We have obligations under our lease agreements and federal regulations to remove equipment and restore land at the end of oil and natural gas production operations. These ARO are primarily associated with plugging and abandoning wells. We typically incur this liability upon acquiring or drilling a well and determine our ARO by calculating the present value of estimated cash flow related to the estimated future liability. Determining the removal and future restoration obligation requires management to make estimates and judgments, including the ultimate settlement amounts, inflation factors, credit adjusted risk-free rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. We are required to record the fair value of a liability for the ARO in the period in which it is incurred with a corresponding increase in the carrying amount of the related long-lived asset. We review our assumptions and estimates of future asset retirement obligations on an annual basis, or more frequently, if an event or circumstances occur that would impact our assumptions. To the extent future revisions to these assumptions impact the present value of the abandonment liability, management will make corresponding adjustments to both the ARO and the related oil and natural gas property asset balance. Over time, the liability is accreted each period toward its future value and is recorded in our unaudited condensed consolidated statements of operations. The discounted capitalized cost is amortized to expense through the depreciation calculation over the life of the assets based on proved developed reserves. Upon settlement of the liability, a gain or loss is recognized to the extent the actual costs differ from the recorded liability. As of June 30, 2016 and December 31, 2015, our ARO were reported as "Asset retirement obligations" in our unaudited condensed consolidated balance sheets. Changes in our ARO for the periods indicated are presented in the following table:
(1) The revision of estimates that occurred during the year ended December 31, 2015 was primarily due to a change in estimated plugging and abandonment costs based on 2015 settlements. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt A summary of our debt at June 30, 2016 and year ended December 31, 2015 is presented below:
At June 30, 2016, we had $162.0 million of borrowings outstanding under our revolving credit facility, comprised of a $110.0 million conforming borrowing base and a $52.0 million permitted overadvance. At June 30, 2016 maturities of our debt were $52.0 million in 2016 and $110.0 million in 2018. The borrowing base of our revolving credit facility is collectively determined by our lenders based on the value of our proved oil and natural gas reserves using assumptions regarding future prices, costs and other matters that may vary. The borrowing base is subject to scheduled redeterminations in or around April and October of each year with an additional redetermination, either at our request or at the request of the lender, during the period between each scheduled borrowing base determination. An additional borrowing base redetermination may be made at the request of the lenders in connection with a material disposition of our properties or a material liquidation of a hedge contract. Borrowings under the revolving credit facility bear interest at a floating rate based on, at our election: (i) the greater of the prime rate of the Wells Fargo Bank, National Association, the federal funds effective rate plus 0.50% and the one month adjusted London Interbank Offered Rate ("LIBOR") plus 1.0%, all of which are subject to a margin that varies from 1.00% to 2.75% per annum according to the borrowing base usage (which is the ratio of outstanding borrowings and letters of credit to the borrowing base then in effect), or (ii) the applicable LIBOR plus a margin that varies from 2.00% to 3.75% per annum according to the borrowing base usage. For the three months ended June 30, 2016, the average effective rate was approximately 4.13%. Any unused portion of the borrowing base will be subject to a commitment fee that varies from 0.375% to 0.50% per annum according to the borrowing base usage. We may use borrowings under the facility for acquiring and developing oil and natural gas properties, for working capital purposes, for general partnership purposes and for funding distributions to our unitholders. The revolving credit facility includes customary affirmative and negative covenants, such as limitations on the creation of new indebtedness and on certain liens, restrictions on certain transactions and payments, including distributions. If we fail to perform our obligations under these and other covenants, the revolving credit commitments may be terminated and any outstanding indebtedness under the credit agreement, together with accrued interest, could be declared immediately due and payable. We were in compliance with these covenants as of and during the six months ended June 30, 2016. During February 2015, the revolving credit facility was amended to allow our Consolidated EBITDAX calculation, as defined in section 7.13 of the original revolving credit agreement, to reflect the net cash flows attributable to the restructured commodity derivative contracts that occurred during January 2015 for the periods of the first quarter 2015 through the third quarter of 2016. During the semi-annual redetermination in April 2015, the borrowing base under the revolving credit facility was reduced to $220.0 million from $240.0 million. No other material terms of the original credit agreement were amended. During November 2015, the semi-annual redetermination of our borrowing base and amendment of the underlying revolving credit facility was completed. This redetermination resulted in a borrowing base of $190.0 million, consisting of a $165.0 million conforming tranche, which required six monthly commitment reductions of $2.5 million each through May 2016, and a $25.0 million non-conforming tranche that matured on May 1, 2016. The credit facility amendment also designated Wells Fargo Bank, National Association, as our administrative and collateral agent, replacing Royal Bank of Canada. This redetermination also required that by December 10, 2015, we enter into commodity derivative contracts of not less than 80% of our 2016 projected monthly production and not less than 50% of our 2017 projected monthly production, calculated based on Proved Developed Producing reserves. These requirements were satisfied during November 2015 with the execution of additional commodity derivative contracts maturing in 2016 and 2017. In connection with this amendment to our revolving credit facility, we incurred financing fees and expenses of approximately $0.7 million, which will be amortized over the remaining life of the revolving credit facility. Such amortized expenses are recorded in "interest expense" on our unaudited condensed consolidated statements of operations. During May 2016, we finalized our spring 2016 redetermination and resulting amendment of the underlying revolving credit facility. The new borrowing base was effective as of June 1, 2016 and was comprised of a $110.0 million conforming tranche and a permitted overadvance of $53.0 million. The permitted overadvance matures on November 1, 2016. In addition, the amendment (i) required the Partnership to provide a monthly excess cash flow report; (ii) required the Partnership to make varied minimum monthly principal payments totaling approximately $1.9 million through October 31, 2016; (iii) reduced the borrowing base to $105.0 million upon the close of the previously announced Hugoton divestiture; (iv) allowed an additional non-scheduled borrowing base redetermination between September 1, 2016 and November 1, 2016 to be requested by any lender; (v) increased the minimum collateral coverage from 90% to 95% of proved reserves (and 100% of PDP reserves); (vi) required the Partnership to unwind and early terminate existing hedges covering production from July 2016 through September 2016 and add new at-the-market swap contracts to replace these hedge terminations; and (vii) required the net proceeds from the previously announced Hugoton sale and from the early termination of hedge contracts to be applied to debt reduction. |
Commitment and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Commitment and Contingencies | Commitments and Contingencies We lease corporate office space in Tulsa, Oklahoma and Abilene, Texas. We are also allocated office rent from Mid-Con Energy Operating. Total lease expenses were approximately $0.1 million each for the three months ended June 30, 2016 and 2015, and approximately $0.2 million each for the six months ended June 30, 2016 and 2015, respectively. These expenses are included in general and administrative expenses in our unaudited condensed consolidated statements of operations. Future minimum lease payments under the non-cancellable operating leases at June 30, 2016 were as follows (in thousands):
We have a service agreement with Mid-Con Energy Operating, pursuant to which Mid-Con Energy Operating will provide certain services to us, our subsidiaries and our general partner, including management, administrative and operations services, which include marketing, geological and engineering services. Under the services agreement, we reimburse Mid-Con Energy Operating, on a monthly basis, for the allocable expenses it incurs in its performance under the services agreement. These expenses include, among other things, salary, bonus, incentive compensation and other amounts paid to persons who perform services for or on our behalf and other expenses allocated by Mid-Con Energy Operating to us. Our general partner has entered into employment agreements with the following named employees of our general partner: Jeffrey R. Olmstead, President and Chief Executive Officer, and Charles R. Olmstead, Executive Chairman of the Board. The employment agreements automatically renew for one-year terms unless either we or the employee gives written notice of termination by at least February 1st preceding any such August 1st. Pursuant to the employment agreements, each employee will serve in his respective position with our general partner, as set forth above, and has duties, responsibilities and authority as the Board of Directors of our general partner may specify from time to time, in roles consistent with such positions that are assigned to them. The agreement stipulates that if there is a change of control, termination of employment, with cause or without cause, or death of the executive certain payments will be made to the executive officer. These payments, depending on the reason for termination, currently range from $0.3 million to $0.7 million, including the value of vesting of any outstanding units. We are party to various claims, legal actions and complaints arising in the ordinary course of business. In the opinion of management and our General Counsel, the ultimate resolution of all claims, legal actions and complaints after consideration of amounts accrued, insurance coverage or other indemnification arrangements will not have a material adverse effect on our financial position, results of operations or cash flows. |
Equity |
6 Months Ended |
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Jun. 30, 2016 | |
Equity [Abstract] | |
Equity | Equity Common Units At June 30, 2016 and December 31, 2015, the Partnership’s equity consisted of 29,784,015 and 29,724,890 common units, respectively, representing approximately a 98.8% limited partnership interest in us. On May 5, 2015, we entered into an Equity Distribution Agreement (the "Agreement") to sell, from time to time through or to the Managers (as defined in the Agreement), up to $50.0 million in common units representing limited partner interests. The sales, if any, of common units made under the Agreement will be made by any method permitted by law deemed to be an "at-the-market-offering" as defined in Rule 415 under the Securities Act of 1933, as amended (the "Securities Act"), including without limitation, sales made directly on the NASDAQ, on any other existing trading market for our common units or to or through a market maker. From the period of the original agreement to June 30, 2016, we did not sell any common units. Cash Distributions Our partnership agreement requires us to distribute all of our available cash on a quarterly basis. Our available cash is our cash on hand at the end of a quarter after the payment of our expenses and the establishment of reserves for future capital expenditures and operational needs, including cash from working capital borrowings. There is no assurance as to the future cash distributions since they are dependent upon our projections for future earnings, cash flows, capital requirements, financial conditions and other factors. As of August 3, 2016, cash distributions continue to be indefinitely suspended. Our credit agreement stipulates written consent from our lenders is required in order to reinstate distributions and also prohibits us from making cash distributions if any potential default or event of default, as defined in the credit agreement, occurs or would result from the cash distribution. Management and the Board of Directors will continue to evaluate, on a quarterly basis, the appropriate level of cash reserves in determining future distributions. The suspension of cash distributions is designed to preserve liquidity and reallocate excess cash flow towards capital expenditure projects and debt reduction to maximize long-term value for our unitholders. Allocation of Net Income or Loss Net income or loss is allocated between our general partner and the limited partner unitholders in proportion to their pro rata ownership during the period. |
Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions Agreements with Affiliates The following agreements were negotiated among affiliated parties and, consequently, are not the result of arm’s length negotiations. The following is a description of those agreements that have been entered into with the affiliates of our general partner and with our general partner. Services Agreement. We are party to a services agreement with Mid-Con Energy Operating pursuant to which Mid-Con Energy Operating provides certain services to us, including management, administrative and operational services. The operational services include marketing, geological and engineering services. Under the services agreement, we reimburse Mid-Con Energy Operating, on a monthly basis, for the allocable expenses it incurs in its performance under the services agreement. These expenses include, among other things, salary, bonus, incentive compensation and other amounts paid to persons who perform services for us or on our behalf and other expenses allocated by Mid-Con Energy Operating to us. These expenses are included in general and administrative expenses in our unaudited condensed consolidated statements of operations. Operating Agreements. We, various third parties with an ownership interest in the same property and our affiliate, Mid-Con Energy Operating, are party to standard oil and natural gas joint operating agreements, pursuant to which we and those third parties pay Mid-Con Energy Operating overhead charges associated with operating our properties. We and those third parties pay Mid-Con Energy Operating for its direct and indirect expenses that are chargeable to the wells under their respective operating agreements. The majority of these expenses are included in lease operating expenses in our unaudited condensed consolidated statements of operations. Oilfield Services. We are party to standard oilfield services operating agreements, pursuant to which Mid-Con Energy Operating bills us for oilfield services performed by our affiliate ME3 Oilfield Service. These expenses are either included in lease operating expenses in our unaudited condensed consolidated statements of operations or in oil and natural gas properties in our unaudited condensed consolidated balance sheets. The following table summarizes the affiliates' transactions for the periods indicated:
At June 30, 2016, we had a net payable to Mid-Con Energy Operating of approximately $0.6 million which was comprised of a joint interest billing payable of approximately $0.4 million and a payable for operating services of approximately $0.2 million. These amounts are included in the accounts payable-related parties in our unaudited condensed consolidated balance sheets. |
New Accounting Standards |
6 Months Ended |
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Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued a comprehensive new revenue recognition standard that supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and industry-specific guidance in Subtopic 932-605, Extractive Activities-Oil and Gas-Revenue Recognition. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring those goods or services. The new standard also requires significantly expanded disclosure regarding the qualitative and quantitative information of an entity's nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard creates a five-step model that requires companies to exercise judgment when considering the terms of a contract and all relevant facts and circumstances. The standard allows for several transition methods: (a) a full retrospective adoption in which the standard is applied to all of the periods presented, or (b) a modified retrospective adoption in which the standard is applied only to the most current period presented in the financial statements, including additional disclosures of the standard's application impact to individual financial statement line items. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Partnership is currently evaluating the impact this guidance will have on its consolidated financial statements upon adoption of this standard. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. The amendments in ASU 2014-15 are intended to define management's responsibility to evaluate whether there is a substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This standard is effective for the annual periods ending after December 15, 2016, and for interim periods within annual period beginning after December 15, 2016. Early adoption is permitted. As of June 30, 2016 the Partnership has not elected early adoption. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which supersedes current lease guidance. The new lease standard requires all leases with a term greater than one year to be recognized on the balance sheet while maintaining substantially similar classifications for finance and operating leases. Lease expense recognition on the income statement will be effectively unchanged. This guidance is effective for reporting periods beginning after December 15, 2018 and early adoption is permitted. The Partnership is currently evaluating the impact this guidance will have on its consolidated financial statements upon adoption of this standard. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The guidance simplifies the accounting for employee stock-based payment transactions including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification of awards as either equity or liabilities, and classification of related amounts within the statement of cash flows. The guidance requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid in capital pools. The guidance also allows for the employer to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting. In addition, the guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis. The guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early adoption is permitted. The Partnership is currently evaluating the impact this guidance will have on its consolidated financial statements upon adoption of this standard. |
Subsequent Events |
6 Months Ended |
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Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 1, 2016, in connection with our spring 2016 borrowing base redetermination, we terminated some of our commodity derivative contracts covering July 2016 through September 2016 production, resulting in net receipts of approximately $4.3 million. Per the amendment to the credit facility, we used the funds received to reduce our outstanding debt. Also on July 1, 2016, we entered into new commodity derivative at-the-market swap contracts covering 300,000 barrels of future oil production which extend through September 2016. On July 20, 2016, the Board of Directors authorized the issuance of 3,932 unrestricted units, 323,000 equity-settled phantom units with one-third vesting immediately and the other two-thirds vesting over two years, and 27,000 equity-settled phantom units with a three-year vesting period. The equity-settled phantom units do not have any rights or privileges of a unit holder, including right to distributions, until vesting and the resulting conversion into common units. These units were granted to certain employees of our affiliates and founders of our general partner. On July 28, 2016, we closed on the previously announced sale of oil and natural gas assets within the Hugoton area. The effective date of the sale was May 1, 2016. Proceeds from the sale of approximately $17.9 million, inclusive of preliminary post-closing adjustments, were used to reduce borrowings outstanding under the Partnership's revolving credit facility. These assets, net of DD&A and impairment, were classified as assets held for sale, net and their corresponding ARO liabilities were classified as liabilities related to assets held for sale in our unaudited condensed consolidated balance sheets at June 30, 2016. On July 28, 2016, we entered into a definitive purchase and sale agreement to purchase oil and natural gas assets in Nolan County, Texas for an aggregate purchase price of approximately $19.5 million, subject to customary post-closing purchase price adjustments. The effective date of the acquisition is June 1, 2016 and it is expected to close on or before August 12, 2016. The purchase price will be paid in cash, which is expected to be funded by the Private Offering described below. On July 28, 2016, as more fully described in the Partnership’s Form 8-K filed with the SEC on August 3, 2016, we entered into a definitive agreement to issue and sell $20.0 million of Class A Convertible Preferred Units ("preferred units") in a private offering subject to customary closing conditions with the Partnership having the option to issue and sell an additional $5.0 million in additional preferred units. The Partnership will use the net proceeds from the offering to fund the acquisition of certain properties in Nolan County, Texas, and any excess will be used to reduce borrowings under our revolving credit facility or general corporate purposes. The preferred units will be issued at a price of $2.15 per preferred unit (the "unit purchase price"). The Partnership will pay holders of the preferred units a cumulative, quarterly distribution in cash at an annual rate of 8.0%, or under certain circumstances, in additional preferred units, at an annual rate of 10%. At any time after the six month anniversary and prior to the five year anniversary of the closing date, each holder of the preferred units may elect to convert all or any portion of their preferred units into common units representing limited partner interests in the Partnership on a one-for-one basis. On the fifth anniversary of the closing date of the offering, each holder may elect to cause the Partnership to redeem all or any portion of their preferred units for cash at the unit purchase price, and any remaining preferred units will thereafter be converted to common units on a one-for-one basis. The agreement requires the Partnership to enter into a registration rights agreement and has provisions relating to a change of control. The agreement also requires the Partnership to suspend sales of Common Units pursuant to the Equity Distribution Agreement, which is described in Note 8 in our unaudited condensed consolidated financial statements, from the closing date through the fifth anniversary of the closing date and prohibits the Partnership from incurring any indebtedness (other than under the Partnership’s existing credit facility and trade accounts payable arising in the ordinary course of business) without the consent of the majority of the holders of the preferred units. On July 29, 2016, we entered into new commodity derivative contracts covering 150,000 barrels of future oil production which extend through December 2018. On August 1, 2016, we entered into new commodity derivative contracts covering 150,000 barrels of future oil production which extend through December 2018. On August 1, 2016, we announced that effective upon the closing of the Nolan County, Texas asset purchase, we have received unanimous lender support to increase the pro forma conforming borrowing base of our revolving credit facility to $140.0 million subject to execution of Amendment No. 10 to the credit agreement. As of August 3, 2016, borrowings outstanding under the revolving credit facility were approximately $139.3 million, after total debt payments of approximately $22.7 million from the June 30, 2016 balance. |
Organization and Nature of Operations (Policies) |
6 Months Ended |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the SEC. These financial statements have not been audited by our independent registered public accounting firm, except that the condensed consolidated balance sheet at December 31, 2015 is derived from the audited financial statements. Accordingly, certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted in this Form 10-Q. We believe that the presentations and disclosures herein are adequate to make the information not misleading. The unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the interim periods. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. These interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2015. All intercompany transactions and account balances have been eliminated. |
Equity Awards (Tables) |
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of awards under Long-Term Incentive Program | The following table shows the number of existing awards and awards available under the Long-Term Incentive Program at June 30, 2016:
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Summary of restricted units awarded | A summary of our restricted unit awards for the six months ended June 30, 2016 is presented below:
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Summary of equity-settled units | A summary of our equity-settled phantom unit awards for the six months ended June 30, 2016 is presented below:
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Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity Contracts | At December 31, 2015, we had the following oil derivatives net positions:
At June 30, 2016, we had the following oil derivatives net positions:
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Estimated Fair Value of Derivative Assets and Liabilities | The following tables summarize the gross fair value by the appropriate balance sheet classification, even when the derivative financial instruments are subject to netting arrangements and qualify for net presentation in our unaudited condensed consolidated balance sheets at June 30, 2016 and December 31, 2015:
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Impact of Derivative Financial Instruments within Condensed Consolidated Statement of Operations | The following table presents the impact of derivative financial instruments and their location within the unaudited condensed consolidated statements of operations:
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Fair Value Disclosures (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value measurements | The following sets forth, by level within the hierarchy, the fair value of our assets and liabilities measured at fair value as of June 30, 2016 and December 31, 2015:
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Schedule of changes in Level 3 fair value measurements | A summary of the changes in Level 3 fair value measurements for the periods presented are as follows:
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Asset Retirement Obligations (Tables) |
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Asset Retirement Obligation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Asset Retirement Obligations | Changes in our ARO for the periods indicated are presented in the following table:
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | A summary of our debt at June 30, 2016 and year ended December 31, 2015 is presented below:
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Commitments and Contingencies - Non-Cancellable Operating Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of commitments and contingencies | Future minimum lease payments under the non-cancellable operating leases at June 30, 2016 were as follows (in thousands):
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Related Party Transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following table summarizes the affiliates' transactions for the periods indicated:
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Equity Awards - Awards available for future grant (Details) - Long-Term Incentive Plan [Member] - $ / shares |
Jun. 30, 2016 |
Nov. 20, 2015 |
---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Approved and authorized awards | 3,514,000 | 1,764,000 |
Unrestricted units granted | (1,183,374) | |
Restricted units granted, net of forfeitures | (414,814) | |
Equity settled phantom units granted, net of forfeitures | (109,500) | |
Phantom units granted, net of forfeitures | $ (9,575) | |
Awards available for future grant | 1,796,737 |
Equity Awards - Restricted Units (Details) - Restricted Common Units [Member] |
6 Months Ended |
---|---|
Jun. 30, 2016
$ / shares
shares
| |
Number of units | |
Outstanding, beginning of period | shares | 222,833 |
Units granted | shares | 0 |
Units vested | shares | (95,698) |
Units forfeited | shares | (19,043) |
Outstanding, end of period | shares | 108,092 |
Weighted Average Grant Date Fair Value per Phantom Unit | |
Average fair value per unit, outstanding | $ / shares | $ 8.49 |
Average grant date fair value per unit, granted | $ / shares | 0.00 |
Average grant date fair value per unit, vested | $ / shares | 6.96 |
Average grant date fair value per unit, forfeited | $ / shares | 9.11 |
Average fair value per unit, outstanding | $ / shares | $ 8.80 |
Equity Awards - Equity-Settled Phantom Units (Details) - Equity-Settled Phantom Units [Member] - $ / shares |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2016 |
|
Number of units | ||
Outstanding, beginning of period | 77,500 | |
Units granted | 24,500 | 24,500 |
Units vested | (8,168) | |
Units forfeited | (15,500) | |
Outstanding, end of period | 78,332 | 78,332 |
Weighted Average Grant Date Fair Value per Phantom Unit | ||
Average fair value per unit, outstanding | $ 2.81 | |
Average grant date fair value per unit, granted | 1.01 | |
Average grant date fair value per unit, vested | 1.16 | |
Average grant date fair value per unit, forfeited | 1.90 | |
Average fair value per unit, outstanding | $ 2.73 | $ 2.73 |
Derivative Financial Instruments Derivative Financial Instruments - Additional information (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Fair value of net derivate asset | $ 3,013 | $ 25,563 |
Derivative Financial Instruments - Impact of Derivative Financial Instruments within Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Net settlements on matured derivatives | $ 6,191 | $ 2,423 | $ 17,285 | $ 7,183 |
Net settlements on early terminations and modifications of derivatives | 0 | 0 | 0 | 11,069 |
Change in fair value of derivatives, net | (16,279) | (11,294) | (24,805) | (25,479) |
Total loss on derivatives, net | $ (10,088) | $ (8,871) | $ (7,520) | $ (7,227) |
Fair Value Disclosures - Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
May 26, 2016 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Fair Value Disclosures [Abstract] | |||||
Fair value measurement, discount rate (percent) | 10.00% | ||||
Asset impairment charges | $ 895,000 | $ 0 | $ 895,000 | $ 0 | |
Impairment of assets held for sale | $ 3,600,000 | $ 3,578,000 | $ 0 | $ 3,578,000 | $ 0 |
Agreed upon sales price | $ 18,000,000 |
Fair Value Disclosures - Summary of Changes in assets (liabilities) - Level 3 (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
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Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance of Level 3 at beginning of period | $ (9,973) | $ 0 |
Derivative deferred premiums - purchases | 0 | (11,914) |
Derivative deferred premiums - settlements | 2,257 | 1,941 |
Balance of Level 3 at end of period | $ (7,716) | $ (9,973) |
Asset Retirement Obligations - Changes in Asset Retirement Obligations (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
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Asset Retirement Obligation [Roll Forward] | |||||
Asset retirement obligation - beginning of period | $ 12,679 | $ 7,363 | $ 7,363 | ||
Liabilities incurred for new wells and interest | 51 | 42 | |||
Liabilities settled upon plugging and abandoning wells | 0 | (40) | |||
Asset Retirement Obligations Related To Sale Of Wells | (6) | 0 | |||
Revision of estimates | 0 | 4,882 | |||
Accretion expense | $ 159 | $ 93 | 316 | $ 185 | 432 |
Asset Retirement Obligation Non Current | 10,219 | 10,219 | 12,679 | ||
Asset retirement obligations related to assets held for sale | $ (2,821) | $ (2,821) | 0 | ||
Asset retirement obligation - end of period | $ 12,679 |
Debt - Schedule of Debt (Details) - Revolving Credit Facility [Member] - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 162,018 | $ 180,000 |
Current portion | 52,018 | 30,000 |
Long-term debt | $ 110,000 | $ 150,000 |
Debt - Borrowings Outstanding (Details) - Revolving Credit Facility [Member] - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 162,018 | $ 180,000 |
Maturities of debt in 2016 | 52,000 | |
Maturities of debt in 2018 | 110,000 | |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility | 162,000 | |
Borrowing base | 110,000 | |
Permitted overadvance | $ 52,000 |
Debt - Credit Facility Effective Rates (Details) - Revolving Credit Facility [Member] |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Line of Credit Facility [Line Items] | |
Average effective rate | 4.13% |
Federal Funds Effective Swap Rate [Member] | |
Line of Credit Facility [Line Items] | |
Federal funds effective rate | 0.50% |
LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Federal funds effective LIBOR | 1.00% |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Margin | 1.00% |
Unused portion of borrowing base, percentage fee | 0.375% |
Minimum [Member] | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Applicable margin rate | 2.00% |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Margin | 2.75% |
Unused portion of borrowing base, percentage fee | 0.50% |
Maximum [Member] | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Applicable margin rate | 3.75% |
Commitment and Contingencies - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Other Commitments [Line Items] | ||||
Lease expenses | $ 100 | $ 100 | $ 200 | $ 200 |
Remaining 2016 | 257 | 257 | ||
2017 | 403 | 403 | ||
2018 | 408 | 408 | ||
2019 | 413 | 413 | ||
2020 | 418 | 418 | ||
2021 | 423 | 423 | ||
Total | $ 2,322 | 2,322 | ||
Minimum [Member] | ||||
Other Commitments [Line Items] | ||||
Employee agreement termination payments | 300 | |||
Maximum [Member] | ||||
Other Commitments [Line Items] | ||||
Employee agreement termination payments | $ 700 |
Equity - Additional Information (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
May 05, 2015 |
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Equity [Line Items] | |||
Limited partners, units outstanding | 29,784,015 | 29,724,890 | |
Limited partnership interest | 98.80% | ||
Maximum Proceeds Under Equity Distribution Agreement | $ 50.0 |
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Related Party Transaction [Line Items] | ||||
Net receivable from Mid-Con Energy Operating | $ 600 | $ 600 | ||
Joint interest billing receivable | 400 | 400 | ||
Payable for operating services | 200 | 200 | ||
Mid-Con Energy Operating [Member] | ||||
Related Party Transaction [Line Items] | ||||
Direct administrative expenses paid | 706 | $ 827 | 1,526 | $ 1,678 |
Related party op agreement fee paid | 1,616 | 2,044 | 3,281 | 4,158 |
Related party oil field services | 825 | 883 | 1,496 | 1,913 |
Costs and Expenses, Related Party | $ 3,147 | $ 3,754 | $ 6,303 | $ 7,749 |
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