Energy Hunter Resources EHR $8.00-$10.00 4.83 million shares Underwriters: Stifel, B. Riley, FBR Co-Managers: Northland Capital Markets, Drexel Hamilton, Coker & Palmer Inc. Proposed trade date of 11/2. They are an independent oil and gas company focused on the acquisition, drilling and production of oil and natural gas properties and prospects within the United States.

Not a full write-up because of the offering’s short term prospects.

Energy Hunter Resources EHR

• 4,830,000 shares to be offered between $8.00-$10.00 per share
• Underwriters: Stifel, B. Riley, FBR Co-Managers: Northland Capital Markets, Drexel Hamilton, Coker & Palmer Inc.
• Proposed trade date of 11/2
• Rating = 2

Click here to view the prospectus.

https://www.sec.gov/Archives/edgar/data/1679073/000156761917002219/s001817x8_1aa.htm

Energy Hunter is an independent oil and gas company with its core focus on the acquisition, drilling and production of oil and natural gas properties and prospects within the West Texas Permian Basin and the South Texas Eagle Ford Shale Trend. They were founded in May 2016 by their Chairman and Chief Executive Officer, Gary C. Evans, a successful oil and natural gas operator and company builder with more than 35 years of energy industry experience. Their management team has a proven track record within each of these core geographic focus areas and utilizes the most recent horizontal drilling and fracture completion technology available today in order to optimize the development of hydrocarbons from these areas. Their primary mission is to target these areas and use their expertise to carefully select properties or prospects with attractive return potential to take advantage of what they believe to be a meaningful growth opportunity in an effort to deliver significant value to their shareholders.

Immediately upon the closing of this offering, they will acquire the San Andres Acreage (approximately 9,413 net acres) within the historically prolific Slaughter-Levelland field on the geological feature known as the Northwest Shelf.  Following the closing of the San Andres Acreage acquisition, their core properties and focus will be located in Cochran County, Texas within the Slaughter-Levelland Field of the San Andres formation in the Northwest Shelf of West Texas. In addition, they are focused on certain areas of the Eagle Ford Shale Trend within South Texas, particularly Karnes County, Texas, the most productive oil producing region in the Eagle Ford Shale.

The San Andres formation is one of the most prolific conventional vertical plays in the United States and throughout the Permian Basin. To date, there exist only a few publicly-traded exploration and production companies active in the San Andres horizontal play as well as a large number of privately held independent operators. This unique area, its existing infrastructure, combined with numerous horizontal drilling locations, highly profitable recompletion opportunities, and the ability for horizontal re-development of the substantial reserves in place, provide significant growth opportunities for their shareholders. The San Andres formation has many of the same economic characteristics as the active and highly competitive re-development of the Spraberry and Wolfcamp formations within the Midland and Delaware Basins of West Texas and Southeast New Mexico, but in some cases, at a fraction of the drilling and completion costs compared to nearby formations. Each of these formations has large volumes of oil and gas in place, but hydrocarbons are not easily produced by conventional methods. Operators are now utilizing horizontal drilling and completion technologies to fully develop and/or re-develop these vast remaining reserves, thus creating an economically valuable opportunity.

Because of the much shallower formation depth of approximately 4,500 to 5,500 feet, average well and completion costs in their region within the San Andres formation are approximately $2.2 - $3.0 million, depending on lateral length, compared to $6 - $10 million in the deeper Permian and Delaware Basin properties being drilled today. In the Eagle Ford, all of their current acreage is located in Karnes County, Texas along the Edwards Trend in the heart of the Eagle Ford Shale play. According to monthly production data compiled by the Railroad Commission of Texas, Karnes County continues to be the top crude oil producing county in the State of Texas by volume. The Eagle Ford Shale play overlying the Edwards Trend is currently one of the most prolific liquids producers and currently generates some of the best economics in the Eagle Ford, even at recent commodity prices. Rating = 2