State of Colorado

	State of Colorado
	Department of Natural Resources
	Colorado Board of Land Commissioners

October 17, 2011
Request for Qualifications
Proposed Leasing of the Lowry Range
Arapahoe County, Colorado

Meagher Energy Advisors (“MEAGHER”), has been exclusively retained by the State of Colorado and the Colorado Board of Land Commissioners (“SLB”), to develop a list of qualified companies in anticipation of the effective and responsible development of the oil and gas resources located on the lands within the boundaries of the Lowry Range. There is a unique opportunity to develop Niobrara oil reserves in a highly prospective area of the DJ Basin. The Request for Qualifications (“RFQ”) contains the detailed information regarding the proposed transaction and the process to be followed by interested companies in responding to the RFQ. The RFQ may be accessed at http://www.meagheradvisors.com/resources/project/State%20of%20Colorado/RFQ.pdf.

CONTACT INFORMATION

Matthew E. Meagher
President
Meagher Energy Advisors
16 Inverness Place East, Building B
Englewood, CO 80112
(303) 721-6354 x230
mmeagher@meagheradvisors.com

LOWRY RANGE

Land

• Located approximately 20 miles southeast of Metro Denver, the Lowry Range is one of the largest contiguous parcels under single ownership next to a major metropolitan area in the United States
• ~21,048 net mineral and ~26,591 surface acres in a concentrated area would allow for efficient operations and economic infrastructure requirements
• Major Niobrara players in the adjacent area with active leasing, seismic and drilling programs

Geology

• Superior Niobrara resistivity readings over acreage block 
• Strong evidence of natural fracturing
• Niobrara maturity of acreage indicated to be in the oil generative window (Ro = ~0.8)
• Target formation (Niobrara “B” Chalk) found at ~7000 – 8000 feet TVD
• Highly developed Niobrara “C” Chalk in addition to the “B” Chalk
• Potential additional horizontal targets in the Codell and Greenhorn as well as vertical targets in the “D” and “J” Sands

Engineering

• Historical oil production on the acreage from the Niobrara “B” and “C” zones as well as the Fort Hays Limestone
• Offset drilling ongoing and de-risking the project
• Attractive type well economics based upon analogous horizontal well performance

Environmental

• High level of surface stewardship would be required during oil and gas development
• Formerly used defense site, the majority of which has been remediated by the US Army Corps of Engineers

TRANSACTION PROCESS

All questions should be directed to Matt Meagher at (303) 721-6354 x230 or by email to mmeagher@meagheradvisors.com. The proposed process timeline is shown below. Following the RFQ evaluation period, selected qualified companies will be furnished with a Request for Proposal (“RFP”) which will require the submittal of a formal proposal that complies with all requirements as set forth in the RFP. Additional information will be furnished to all qualified companies during the RFP process. The SLB reserves the right to amend or alter in any way the following schedule, or cancel the process and withdraw the property from the RFQ or RFP.

PROPOSED SCHEDULE OF ACTIVITIES