Purpose of Report – The purpose of this report is to provide Vine with an estimate of future reserves and net revenues attributable to interests owned by Vine in the Haynesville and Mid-Bossier shale formations effective as of January 1, 2021.
Scope of Work – W.D. Von Gonten & Co. was engaged by Vine to develop the appropriate reserve projections and estimate the remaining reserves associated with the developed and undeveloped properties included in this report. The properties evaluated by W.D. Von Gonten & Co. represent 100% of the total net proved and undeveloped gas reserves, 100% of the probable reserves, and 100% of the possible reserves owned by Vine as of January 1, 2021. All of Vine’s probable and possible reserves are undeveloped. Once reserves were estimated, future revenues were determined in accordance with Vine provided Henry Hub strip pricing effective December 31, 2020.
Reporting Requirements
Securities and Exchange Commission (SEC) Regulation S-X 210, Rule 4-10 and Regulation S-K 229, Item 1200 (as revised in December 2008, effective 1-1-10), and Accounting Standards Codification Topic 932 require oil and gas reserve information to be reported by publicly held companies as supplemental financial data. These regulations and standards provide for estimates of Proved reserves and revenues discounted at 10% and based on un-escalated prices and costs, however, this report is not prepared with SEC pricing but instead prepared with strip pricing as indicated under “Product Prices” below.
The information presented herein represents optional disclosure pursuant to Item 1202(b) of Regulation S-K.
Estimates of proved, probable and possible reserves presented in the report were prepared in conformance with the Securities and Exchange Commission (SEC) definitions and requirements as set-forth in Rule 4-10(a) of Regulation S-X as required by Item 1202(a)(8)(iv) of Regulation S-K.
Projections – The attached reserves and revenue projections are on a calendar year basis with the first time period being January 1, 2021 through December 31, 2021.
Property Discussion
Vine currently owns, and operates, an approximate 83% working interest in 348 Proved Developed Producing (“PDP”) wells, an approximate 19% working interest in 49 PDP wells that GeoSouthern operates, and an approximate mean working interest of 6% in 42 PDP wells operated by miscellaneous other 3rd party companies. Vine also owns royalty and mineral interests in 182 wells operated by GeoSouthern and other 3rd party companies. All wells are located in Red River, De Soto, Sabine, Bienville, and Natchitoches Parishes, Louisiana. The PDP wells are producing from the Haynesville and Mid-Bossier shale formations.
Reserve Estimates
Proved Producing Reserves – Reserve estimates for the PDP properties were based on volumetric calculations, log analysis, decline curve analysis, rate transient analysis, and/or analogy to nearby production, including from other operators.
Proved Undeveloped Reserves – The proved undeveloped reserves were necessarily estimated using volumetric calculations, log analysis, core analysis, geophysical interpretation and/or analogy to nearby recently drilled wells with comparative completion practices to that which Vine will implement. In addition, W.D. Von Gonten & Co. has performed a field study of the Haynesville and Mid-Bossier shale plays independent of this report. Our conclusion from that field study has fortified our confidence in the producing and undeveloped reserves included herein.
Vine Oil & Gas, L.P. – 01.01.21 3P Reserves Report, Strip Pricing, January 8, 2021 – Page 2
