About Lucero Energy

PetroShale Inc. operates as an independent oil company. The company focuses on the acquisition, development and production of oil-weighted assets in the Bakken and Three Forks formations in the Williston Basin of North Dakota. The company conducts its business in the United States through PetroShale (US), Inc. The company’s strategy focuses on acquiring and developing leases in the most prolific areas of the Williston Basin where the resources and stacked pay zones are the most intense. The company has a mix of operated and non-operated properties with the majority of its properties being operated. The company has several operated drilling spacing units and will continue to pursue operated working interests in its core fields. In addition, its non-operated interests are operated by large, experienced and capable operators. The company’s assets are crude oil properties located primarily in the Fort Berthold region of North Dakota. The company also has minor interests in Richland County, Montana and miscellaneous royalty interests in Alberta and Ontario. The company has approximately 8,218 net acres of land in Fort Berthold, primarily in McKenzie and Dunn counties, of which 7,967 net acres are held by production. During 2019, the company participated in 95 gross (19.3 net) crude oil wells targeting both the Middle Bakken and Three Forks formations. Production averaged 8,680 barrels of oil equivalent per day (Boe/d) (consisting of 6,538 barrels per day (Bbls/d) of tight oil, 1,023 Bbls/d of NGLs and 6,716 thousand cubic feet per day (Mcf/d) of shale gas) during 2019, with a liquids weighting of approximately 87%. As of December 31, 2019, the company had 2 gross (1.2 net) operated wells, which were drilled and not yet completed and 39 gross (7.3 net) non-operated wells drilled and not yet completed. During 2019, the company added 10.8 MMboe of proved plus probable reserves at its Fort Berthold property, after adjusting for production, including 6.7 MMboe from acquisitions, as well as technical revisions and other factors. As of December 31, 2019, the company had approximately 70.5 million barrels of oil equivalent (MMboe) of total proved plus probable reserves associated with this property. The company participated in 95 gross (19.3 net) tight oil wells during the year ended December 31, 2019. In 2020, the company expects to participate in approximately 57 gross (3.7 net) tight oil wells in North Dakota.