1. Springer Energy Development LLC
.Springer Energy Partners, LP
Executive Summary
Shoats Creek Field
South Weslaco Gas Unit
May 2015
2. Table of Contents
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SpringerEnergyPartners,LP,ExecutiveSummary,May2015
2. Table of Contents
3. Partnership & General Partner Overview
4. Partnership Term Sheet
5. Sources and Uses of Funds
6. South Weslaco Gas Unit Overview
7. Shoats Creek Field Summary
8. Shoats Creek Infrastructure
9. SC Geology and Reservior Analysis
10.SC Frio Sand Overview
11.SC Cockfield Sand Overview
12.SC Proposed New Drill
13.SC Drilling Inventory
14. SC Regional Overview
Appendices and Memorandums:
1. Economics & Reserves
2. Confidential Offering Memorandum
3. Form of Limited Partnership
4. Subscription Documents and Disclosure
3. Partnership & General Partner Overview
SpringerEnergyPartners,LP,ExecutiveSummary,May2015
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Springer Energy Partners, LP ("Springer") is designed to offer investors immediate cash flow
supported by producing natural gas wells with steady, long lived production and upside based on a
drilling program to continue development in a prolific oil field in Beauregard Parish, Louisiana. The
partnership will own interests in three producing natural gas wells in the South Weslaco Gas Unit in
Hidalgo County, Texas which will underpin the preferred return to investors and provide a solid base
for the investment opportunity. Additionally the partnership will participate in a minimum of four new
drill wells at Shoats Creek Field which has produced cumulative oil in excess of 2.4 million barrels to
date.
Springer Energy Partners, LP: GP, Springer Energy Development, LLC
Springer Energy Development, LLC is managed by three seasoned participants in the
oil and gas industry
Northcote Energy Limited, a UK AIM listed oil and gas company with over 4,000 net acres of
leasehold in three states including Texas, Oklahoma and Louisiana. Northcote is focused on
developing conventional oil and gas prospects (vertical drilling with limited use of fracture stimulation
required to recover oil and gas) taking positions in its wells with balance sheet capital supplied by the
shareholders of Northcote. The company is led by Randall J. Connally a seasoned oil and gas
executive with 20 years experience in oil and gas operations, business development and finance. More
information on the company can be found on our website: www.northcoteenergy.com.
RiverBend Energy, LLC, a private Texas based company formed in 2010. RiverBend is a
shareholder of Northcote and manages two partnerships focused on development of oil and gas
assets in the State of Oklahoma. RiverBend is managed by Stephen D. Keller.
Bryon Conley has been involved in the oil and gas business as an advisor and investor since 2008
when he entered into a shale gas play in Haskell County, Oklahoma along with Steve Antry of Beta Oil
and Gas, Inc. Since that initial foray into the oil and gas industry Mr. Conley has been involved with a
number of private and public oil and gas companies including RiverBend Energy, LLC where his
concepts and strategies recommended by Mr. Conley directly resulted in the realization of a 60% profit
on investment for investors in an oil and gas project that had seen poor financial performance for more
than two years prior to his involvement. Additionally Mr. Conley developed an acquisition,
turnaround plan for a publicly traded company. Mr. Conley has developed a detailed understanding of
oil and gas reservoir engineering principles and process/operations enhancement strategies in the oil
and gas business.
Mr. Conley is also a senior design engineer with Intel responsible for technical readiness, micro-
architecture feasibility, and development of flagship microprocessors since 1993 and introduced new
design technologies for high performance designs. He has made significant contributions to over 10
well-known microprocessor design projects – critical flagship products for Intel over the past 21 years.
Mr. Conley received his B.S. in Applied Mathematics, Applied Physics, and Computer Engineering at
U.C. Davis, California in 1987.
4. Partnership Terms:
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Investor Limited Partner Contributions
Minimum Total Cash Investment to Close: US$350,000.00
Northcote Limited Partner Contribution
100% of Northcote Texas LLC’s wellbore level interest in the South
Weslaco Gas Unit ("SWGU") at a Contributed Value of US$350,000.00
Initial Shoats Creek Leasehold at a Contributed Value of US $40,000
Preferred Return
Investor Limited Partners will receive a preferred return of 8.0% per
annum prior to any distribution to either (i) Northcote as a limited
partner; or, (ii) the General Partner. The preferred return is supported by
the cash flows from the SWGU wellbore production.
Distribution of Cash Flow in excess of the Preferred Return
Prior to achieving a 2.0x Payout:
80% to Limited Partners until 2.0x Payout (Payout defined as return of
100% of capital invested or in the case of Northcote, the Contributed Value
of the SWGU)
20% to the General Partner until 2.0x Payout
After achieving a 2.0x Payout:
50% to the Limited Partners
50% to the General Partner
Partnership Participation and Activities:
- The Partnership will own the interest in SWGU and participate in the
cash flows from that established production
- The Partnership will participate in at least four (4) new drill wells at the
Shoats Creek Field at a level appropriate for the capital available to the
Partnership
- The Partnership will have the right, but not the obligation, to participate
in subsequent wells at the Shoats Creek Field where four (4) additional
locations have been identified
SpringerEnergyPartners,LP,ExecutiveSummary,May2015
5. Sources and Uses of Funds
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• The Partnership has a minimum subscription of thirty (30)
units, and a maximum of one hundred (100) units.
• Minimum Subscription of $750,000, Maximum $2,500,000
• Northcote Texas LLC will hold sixteen (16) units, and the
investor Limited Partners would hold fourteen (14) units under
the minimum subscription.
SpringerEnergyPartners,LP,ExecutiveSummary,May2015
6. South Weslaco Gas Unit
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• Operated by Kaler Energy Corp. (RRC# 450261).
• Lease covers 6,329+/- Acres in Juan Jose Hinojosa de Balli
Survey A-54, Hidalgo County, Texas.
• Non-operated Working Interest 25% (NWI 16.510051%) in all
but one well (12.5%).
• Multiple Pay Opportunity (Upper Frio, Willis, Skaggs, Fausek)
at reasonable depths (from 6,000 to 11,200).
• 523 MMCFE Proved Developed Producing Reserves from five
wells.
• 135 MMCFE Proved Developed Behind Pipe Reserves in three
currently producing wells.
• 224 MMCFE Proved Undeveloped Reserves in one undrilled
location.
• 532 MMCFE Probable reserves in 4 undrilled locations.
Reserves estimated by Sojen Petroleum Consulting as of January 1, 2012 with a report dated
February 21, 2012.
• Average net Cash Flow (Recent 6 months) =
$8,000
SpringerEnergyPartners,LP,ExecutiveSummary,May2015
7. Shoats Creek Field Summary
• The Shoats Creek Field was discovered in the 1950’s by random
drilling.
• Shoats Creek has multiple producing formations including the Frio
Sand, Cockfield, and Wilcox.
• More than 2.4 MMBO and 23 BCF have been produced from the
Shoats Creek Field.
• Located approximately 15 miles northwest of DeQuincy, Louisiana
• Has been continuously produced for almost 60 years.
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SpringerEnergyPartners,LP,ExecutiveSummary,May2015
8. Infrastructure and
Resources
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• Shoats Creek is a mature field with
continuous production for more than 50
years.
• Existing roads and central tank battery
have been improved by Northcote since
acquisition in 2014.
• Northcote has agreement with Texas
Gathering LLC for purchase of crude oil.
• Natural gas pipelines and tie in facilities
located on leasehold acreage.
• Existing Salt Water Disposal well located
on property.
• All necessary Oil Field Services and
Drilling contractors located nearby in Lake
Charles, LA and SE Texas.
• Northcote maintains on site offices and
staff.
SpringerEnergyPartners,LP,ExecutiveSummary,May2015
9. Shoats Creek Geology and
Reservoir Analysis
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The primary objective has been the Middle Eocene Cockfield Formation (CF)
which lies between 8,000 and 9,350ft KB, beginning with the 8,050ft Sand and
ending with the Cockfield 7 (CF-7 or 9,300ft Sand). Most production to date
has been from the 8,950ft CF-5 sand. The Cockfield Formation accumulated in
an open shelf setting with the sands attributed to drawdown following storm
surges. As such they tend to be continuous, albeit thin and laminated, with
bed thicknesses ranging from 2ft to 20ft and generally forming coarsening-up
units. The sands and their host sequences can be tracked from well to well,
though log correlations can be complicated by localized deposition and low
relief erosive events. Only the thick CF-2 and the CF-4 sands can be reliably
mapped on the available 3-D seismic. The initial GOR was 10,000. The source
is older Tertiary oil and gas-prone shales and coals with charging by way of
fault zones.
• The structure is a 3,000 acre
rollover anticline positioned
along the hanging wall of an
east-west trending growth fault,
one of many that track the early
Tertiary Gulf shelf margin. 2,300
acres of this closure including the
crestal region is operated by
Aminex USA.
• Total area of the Shoats Creek
field unit leases is 1,570 acres,
encompassing the highly
productive Cockfield Sands.
• Cockfield oils are light with APIs
> 50˚. The Frio API is 32˚ There
is associated gas, especially in
the Cockfield. A strong water
drive characterizes the Frio.
SpringerEnergyPartners,LP,ExecutiveSummary,May2015
10. Frio Sand Highlights
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• The Frio Formation of Oligocene age has
produced some 130,000 MMBO from three
wells. The API is 32˚, which is considered
LLS (Louisiana Light Sweet Crude). The
sands may be thick (up to 150’). Though
fine grained, the sands are porous, highly
permeable and shallow. Up dip to the
North stratigraphic trapping is envisaged
for successive Frio sand units.
• It is believed that poor primary and
remedial cement jobs in the past have led
to water erosion behind pipe, which in
combination with the high salinities
present, has caused casing collapses and
the premature cessation of production.
• This water drive oil reservoir has shown
historically nominal decline curve
attributes.
• Recent engineering studies indicate EUR’s
of new drills to be approximately 60
MMBO to 120 MMBO.
• Lutcher Moore #16 produced over 96,000
BO in just three years.
SpringerEnergyPartners,LP,ExecutiveSummary,May2015
11. Cockfield Highlights
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• Contains multiple zones for evaluation and
completion with average depth of 8,600’
• Can be completed with vertical holes relatively
inexpensively.
• Plug-back opportunities to additional zones after CF5
is depleted.
• CF 5 is responding to an edge water drive in
southwest portion of lease.
• Evidence of edge water drive in the east and
southeast portions of the field.
• High gravity 50º API Gravity crude oil with 2000-
5600 GOR.
• Under-produced and Un-produced compartments in
South Central and Southeast portion of field in CF 5
found by 3D Seismic data.
• CF 5 Water-flood should sweep +35% additional
OOIP.
• 1,200 acres considered capable of water-flooding.
SpringerEnergyPartners,LP,ExecutiveSummary,May2015
12. Proposed Frio Sand New
Drill
• Proposed drill location is a direct offset “twin” to
the Lutcher Moore #16 well which was drilled in
1981. The LM #16 produced more than 96 MMBO
in approximately 36 months prior to a casing
failure. Production at the time of failure was in
excess of 100 BOPD.
• Reservoir analysis and seismic interpretation
indicate that new drill location will be “up dip”
from previous well, and could provide for an
additional 1 to 2 feet of pay.
• Using modern technology, more robust completion
techniques and improved engineering, it is
expected that issues experienced in previous wells
including casing failure can be eliminated.
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SpringerEnergyPartners,LP,ExecutiveSummary,May2015
13. Drilling Inventory
• A total of 8 drilling locations have been identified and
mapped.
• Cowboy - This is a Twin to the LM-16 well targeting up dip
reserves from the Frio. The LM-16 made over 90MBO in less
than 3 years
• Bronco – This is a well located with Seismic targeting the
Cockfield 2 and 5 sands.
• Raven – This is a test for Multi Pay from the Cockfield. Seismic
work indicates this may be a large unexploited part of the
Reservoir Complex
• Colt – This is a second Low Risk Frio well. That is updip from
production and should tap currently unproduceable reserves.
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SpringerEnergyPartners,LP,ExecutiveSummary,May2015
