About PrimeEnergy Resources

PrimeEnergy Resources Corporation operates as an independent oil and natural gas company that engages in acquiring, developing, and producing oil and natural gas in the United States. The company owns producing and non-producing properties located primarily in Texas, and Oklahoma. All of the company’s oil and gas properties and interests are located in the United States. Through its subsidiaries Prime Operating Company, Eastern Oil Well Service Company, and EOWS Midland Company, the company acts as operator and provides well-servicing support operations for many of the onshore oil and gas wells it operates, as well as for third parties. The company is also active in the acquisition of producing oil and gas properties through joint ventures with industry partners. In addition, the company owns a 12.5% overriding royalty interest in over 30,000 acres in the state of West Virginia. In addition, through a wholly owned offshore company, the company owns a 60-mile-long pipeline offshore on the shallow shelf of Texas. The company also holds a 33.3% interest in a limited partnership that owns a 138,000-square-foot retail shopping center on ten acres in Prattville, Alabama. Exploration and Development The company’s activities include development and exploratory drilling. The company’s strategy is to develop its extensive oil and gas reserves primarily through horizontal drilling. This strategy includes targeting reservoirs with high initial production rates and cash flow, as well as targeting reservoirs with lower initial production rates but with higher expected return on investment. In 2023, the company will continue its focus on preserving financial flexibility and ample liquidity as it manages the risks facing its industry. The company is actively developing its leasehold acreage in West Texas and in Oklahoma and on track to drill and complete approximately 40 wells in 2023. In January 2023, the company joined Ovintiv USA, Inc. in the spudding of three 3-mile-long horizontal wells in Canadian County, Oklahoma with 1.96% interest. In addition, in March of 2023, Apache Corporation spud two 3-mile-long horizontals in Upton County, Texas in which the company has 49.4% interest. The company anticipates completion of these two 15,000’ long horizontals in Upton County in May and production to occur in June of 2023. The company has also identified 27 horizontal locations that would be a natural progression of development for three of these project areas in Upton and Reagan counties. These 27 wells are anticipated to be drilled in the 2025-2026 timefram. In the Permian Basin of West Texas and eastern New Mexico the company maintains an acreage position of approximately 16,940 gross (9,969 net) acres, 96.5% of which is located in Reagan, Upton, Martin, and Midland counties of Texas where its West Texas horizontal drilling activities are focused. In Oklahoma, the company focuses on the development of its reserves in Canadian, Grady, Kingfisher, Garfield, Major, and Garvin counties where it has approximately 4,113 net leasehold acres in the Scoop/Stack Play. Significant Activity During the first three quarters of 2022, the company participated in the drilling and completion of eight completed horizontal wells put into production in August 2022. The company participated with a 9% interest in four horizontals located in Canadian County, Oklahoma, operated by Ovintiv Mid-Continent, Inc., and with a 10.13% interest in four wells located in Irion County, Texas, operated by SEM Operating Company. The company is actively participating in 25 horizontals, 22 of which are in the West Texas Spraberry and Wolfcamp trend and three of which are in the Oklahoma Scoop Stack play. Additional development on these same leasehold blocks and adjacent company owned blocks is anticipated in the second half of 2023 and 2024. In 2022, the company entered into an agreement with Double Eagle to create a 2,560-acre AMI for the joint development of horizontal wells; as part of this agreement, the company sold a portion of its interest in this acreage. In addition, in 2022, the company sold 240 net acres in Reagan County to BTA Oil Producers, and it sold 353 net acres in Canadian County, Oklahoma to Paloma Partners, IV, Inc. The company owns producing and non-producing properties located primarily in Texas, and Oklahoma, and it owns a substantial amount of well-servicing equipment. Well Operations The company’s operations are conducted through its principal offices in Houston, Texas, and district offices in Houston and Midland, Texas, and Oklahoma City, Oklahoma. The company operates 628 wells, including producing, saltwater disposal, injection, and supply wells: 96 through the Houston office, 316 through the Midland office, and 216 through the Oklahoma City office. The company owns a majority interest in nearly all of its operated wells. The company operates wells according to operating agreements that govern the relationship between it, as operator, and the other owners of working interests in the properties and joint venture participants. Strategy The company’s strategy is to develop its extensive oil and gas reserves primarily through horizontal drilling. This strategy includes targeting reservoirs with high initial production rates and cash flow, as well as targeting reservoirs with lower initial production rates but with higher expected return on investment. Customers The company sells its oil and gas production to a number of direct purchasers under direct contracts or through other operators under joint operating agreements. Its customers include oil purchasers, such as Apache Corporation and Plains All American Inc.; and gas purchasers, such as Apache Corporation and Targa Pipeline Mid-Continent West Tex, LLC. Regulations The company is subject to the requirements of the Occupational Safety and Health Act (OSHA) and comparable state laws whose purpose is to protect the health and safety of workers. History The company was founded in 1973 under the laws of the state of Delaware. It was incorporated in 1973. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in 2018.