Press release

Athlon's acreage acquired by Encana is valued well above the average Permian Midland acreage by other operators

October 3, 2014

Athlon’s acreage had an estimated NPV/acre of ~$52,000/acre, well above the average estimate of $24,000/acre, as per Rystad Energy latest analysis (NASReport Q3/2014).

This NPV/acre is estimated at $100/bbl oil price scenario at a 10% discount rate. The average includes the acreage of the operators in Permian Midland with the highest NPV, including Pioneer Natural Resources, Apache, Concho Resources and Laredo Petroleum, among others.

“Based only on the acreage acquired comprising 140,000 net acres, Encana paid $50,000/acre, which is among the highest value per acre ever paid in a shale transaction”, says Bielenis Villanueva Triana, Analyst at Rystad Energy. The acreage acquired includes more than 1,000 producing wells, most of which are vertical hydraulically fractured wells drilled between 2010-2014. Rystad Energy considers the highest value of the acreage is justified by the significant upside with horizontal development in the Wolfcamp shale.