UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION (Tables)

12 Months Ended

Dec. 31, 2017

UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION

Schedule of changes in proved developed reserves

		Natural
	Oil	Gas	NGL’s	Total
	(Bbls)	(Mcf)	(Bbls)	(BOE)
Proved Reserves:
Balance as of December 31, 2014	159	—	—	159
Revisions of previous estimates	(122)	—	—	(122)
Extensions and discoveries	—	—	—	—
Sales of reserves in place	—	—	—	—
Improved recovery	—	—	—	—
Purchase of reserves	—	—	—	—
Production	(37)	—	—	(37)
Balance as of December 31, 2015	—	—	—	—
Revisions of previous estimates	—	—	—	—
Extensions and discoveries	2,710,437	10,498,397	1,570,454	6,030,624
Sales of reserves in place	—	—	—	—
Improved recovery	—	—	—	—
Purchase of reserves	55,669	1,020,516	62,244	287,999
Production	(4,902)	(26,058)	(1,510)	(10,755)
Balance as of December 31, 2016	2,761,204	11,492,855	1,631,188	6,307,868
Revisions of previous estimates	(388,211)	292,477	38,668	(300,797)
Extensions and discoveries	839,738	4,183,757	631,149	2,168,180
Sales of reserves in place	—	—	—	—
Improved recovery	—	—	—	—
Purchase of reserves	—	—	—	—
Production	(188,529)	(549,846)	(50,111)	(330,281)
Balance as of December 31, 2017	3,024,202	15,419,243	2,250,894	7,844,970
Proved Developed Reserves, included above
Balance as of December 31, 2015	—	—	—	—
Balance as of December 31, 2016	260,284	1,788,895	181,655	740,088
Balance as of December 31, 2017	521,354	3,752,330	387,430	1,534,172
Proved Undeveloped Reserves, included above
Balance as of December 31, 2015	—	—	—	—
Balance as of December 31, 2016	2,500,920	9,703,960	1,449,533	5,567,780
Balance as of December 31, 2017	2,502,847	11,666,911	1,863,465	6,310,797

Schedule of standardized measure of discounted future net cash flows

The following are the principal sources of change in the standardized measure (in thousands):

	For the years ended December 31,
	2017		2016		2015
Future cash inflows	$	208,459	$	148,596	$	5
Future cash outflows:
Production cost		(48,929)		(35,038)		(3)
Development cost		(58,784)		(37,667)		—
Future income tax		(16,006)		(5,802)		—
Future net cash flows		84,740		70,089		2
Adjustment to discount future annual net cash flows at 10%		(35,054)		(29,925)		(2)
Standardized measure of discounted future net cash flows	$	49,686	$	40,164	$	—

Schedule of changes in standardized measure of estimated discounted future net cash flows

The following summary sets forth the Company’s future net cash flows relating to proved oil, natural gas and NGL reserves based on the standardized measure prescribed in ASC 932, Extractive Activities-Oil and Gas (in thousands):

Changes in Standardized Measure of Estimated Discounted Future Net Cash Flows

	For the years ended December 31,
	2017		2016		2015
Standardized measure, beginning of year	$	40,164	$	—	$	5
Sales of oil and gas, net of production cost		(9,392)		(126)		(3)
Net change in sales prices, net of production cost		10,263		489		—
Discoveries, extensions and improved recoveries		11,979		76,445		—
Change in future development costs		(4,050)		(37,667)		—
Development costs incurred during the period that reduced future development cost		1,144		—		—
Sales of reserves in place		—		—		—
Revisions of quantity estimates		(559)		—		(2)
Accretion of discount		4,275		130		—
Net change in income tax		(6,810)		(2,587)		—
Purchase of reserves		—		6,021		—
Changes in timing of rates of production		2,672		(2,541)		—
Standardized measure, end of year	$	49,686	$	40,164	$	—