rfd holdings ii, llc petrotex energy partners, llc · 2017. 4. 2. · copyright @ 2003-2017...

Copyright @ 2003-2017 Riverford Exploration, LLC, All Rights Reserved

Rfd Holdings II, LLCPetroTex Energy Partners, LLC

Bill FairhurstApril 6, 2017


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Disclaimers


1. Acquire direct interest in PDP wells, properties, drilling opportunities, minerals onshore U.S basins:

A. Modeled after Riverford Exploration, LLC 14 year record and B. Fairhurst previous Equity Investment and M&A Programs at CMP III, LP; Eagle Oil

& Gas, Co.; Discovery Resources & Development, LLC; Hilcorp Energy Company; Petro-Hunt, LLC; and Marathon Oil Company.

2 Seeking Investment of $1 – 5 MM; 100% of Investors funds to be invested in assets.

3. Seeking more than Double Investors Return in 5 years; immediate CF.

4. Riverford Exploration, LLC providing $200 M to $2.0 MM of captured, in-hand opportunities, immediate CF, all are resource plays.

5. Management in PetroTex Energy Partners, LLC working for equity stake; no salary (low cost – low risk); management is investing in program.

PetroTex Energy Partners, LLC


Bill Fairhurst recently turned around a mid-size, private equity (PE) financed

Exploration & Production (E&P) firm from a $70 million loss to a $600 million dollar

gain in two years. Previously he was a key Executive leader at well-known, private

E&P firm driving growth, strategically advancing a $200 million firm into a billion

dollar organization in six years, adding two new regional offices and multiple new

investment opportunities. He has successfully led Acquisition & Divestiture (A&D and M&A) teams in

technical and general management positions and as President, CEO and COO. Bill has obtained equity and

debt financing for several organizations.

Bill has been involved in the majority of U.S. resource plays prior to the resource revolution directing new

investment opportunities, portfolio development, strategic planning, reserve evaluation and cash flow models.

Bill is credited with economic discovery of the WolfBone play in the southern Delaware Basin and

placing his company in Elm Coulee (Bakken) Field prior to discovery, the largest onshore U.S. discovery

in 56 years. He and his teams have discovered dozens of new fields in traditional plays in the Rocky

Mountains, Williston and Permian Basins, ArkLaTex-Mississippi Salt Basins, South Texas, South Louisiana

and offshore Gulf of Mexico and has over 25 years M&A management and technical M&A experience.


Ronnie Nutt, PE, was the Chief Operating Officer for Vess Oil Corporation in Dallas, Texas. There he revampedthe company’s efforts in existing acreage in the EagleBine trend to achieve better results by updating drilling andcompletion procedures. He focused the company’s acquisition efforts to purchase an additional 14,000 acresadjacent to the existing leasehold to establish a 36,000 acre core area for horizontal drilling and development.He was in charge of all drilling, completion and work over operations and managed the drilling programcompleting 6,000’ laterals with 30 stage completions in the Woodbine formation.

Prior to Vess Ronnie served as Vice President-Southern Division for Forest Oil. At Forest he initiated andexecuted entry into the Eagle Ford play by sourcing, purchasing, and developing a new core area in GonzalesCounty, Texas. After drilling and completing over 2-dozen 5,000’ laterals, portions of this asset were sold to PennVirginia to fund future company investments and capital requirements and with the remaining acreage formed aJV with Schlumberger. As Vice President-Southern Division managed 100 employees with Profit and Lossresponsibility for Eagle Ford, Eaglebine and other East and South Texas assets. Director-Engineering for ScotiaWaterous

Prior to joining Forest Oil Ronnie served as participating in approximately $5,000,000,000 in asset sales in 4years. Throughout his career he has been involved with all facets of drilling, completions, reservoir, andproduction engineering in basins across Texas, Louisiana, Oklahoma, Arkansas, New Mexico, and Kansas.


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Riverford Annualized (3 Mo Moving Average) Return on Investment: (ROI) (Yr 1) Annualized Return on Assets (Yr 2+)

Dow Jones Average = 5.63%

Riverford Exploration, LLC Model for PetroTex Energy Partners, LLC:Based on O&G Journal 150 (2016, based on 2015 data):

1. Riverford is in top 18 Companies in Net Income,2. Riverford is in top half in Equity,

Riverford’s 14 year monthly moving average annualized ROA is 63%.Riverford’s 14 year Profit Margin for Oil & Gas Production

Operations is 67%


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Riverford Exploration, LLC Gross Production (BOE)

"Gross Oil Production" Gross Gas Production

Initiate VerticalWolfBone

Drilling Program

Industry Discovery of Economic

WolfBone Purchase Elm Coulee (Bakken)

Assets

Sale of Net 50% WolfBone Assets in

2 Sales for > 10 Years CF

Elm Coulee HrzDev Program

WolfBone HrzDev Program

Stage 1


Stage 2


Stage 3

ExistingScoop &

Midland Basin Assets, largest Net Acreage

Positions *Expect 2nd

Qtr 2017+ Prod Rate 2X

2016 Prod Rate

CAPEX from New Investment ***CAPEX from CF

Industry’s First

HorizontalWolfBone

Well

Trade-out of 20% of

WolfBone Assets to

Trade-in and Purchase

4X increase in 60% of

WolfBone Assets


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Waterfall Chart (2010-Present):Riverford Exploration, LLC Net WI Production

"McComas" Phillips Donnell Capps 214-1 COP 15-1 Bell 213-2 Monroe 28-1 Roy Rogers 21-1 Monroe 39-1 Capps 214-2 Bell 213-3

Wyatt Earp 22-1 Bell 213-4 Monroe 28-2 Pistola 186-2 Boles 1-33H McVay 2-34H McVay 3-34H Monroe 39-A2R Bell 213-1 Pistola 186-1 O'MalleyMonroe 39-1

Monroe 39-2 Monroe 39-3 Capps 214-A5 Boles 2-33H Boles 3-33H Capps 214-A2H Bell 213-A5H Bell 213-A9H Monroe 28-39 4HR Monroe 28-39 5H Monroe 28-39 31H



Stage 1: Initial Investment Stage: 9–18 months (ending 12/31/2018), immediate CF.

Stage 2: Initial Payout (0-100%): Investors 90% Equity; Management 10% Equity,

PetroTex Energy Partners, LLC III launches,

Stage 3: 100% Payout for Investors: Investors 75% Equity; Management 25% Equity,

Stage 4: Investors’ Exit:

210% Payout for Investors on or prior to December 31, 2022, Below 210% Payout Management pays Investors up to 210% or fair market

value for assets on December 31, 2022.



SWOT:

Strengths: Management experience, network for opportunities, proven record, immediate CF, low organization cost and low risk (no employees),

Weaknesses: Lean M&A market for assets < $1B but improving,

Opportunities: Provided by Managing Partner, open market for assets and market inefficiencies in this market range.

Threats: Mostly non-unique to Rfd Holdings II, LLC and macro to the industry.



Contact: Bill Fairhurst35 Freestone PlaceThe Woodlands, Texas 77382

Phone: 832-928-5303Emails:

Websites: riverfordexpl.competrotexenergy.com

[email protected]@petrotexenergy.com

mailto:[email protected]

rfd holdings ii, llc petrotex energy partners, llc · 2017. 4. 2. · copyright @ 2003-2017...

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