What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2021-03-23 compared with 2020-03-16 · 40 added, 50 removed, 250 unchanged (26% of the section changed)

65 unchanged sentences

(2) Boe represents an approximate energy equivalent basis such that one Bbl of crude oil equals approximately six Mcf of natural

However, the value of oil and natural gas fluctuate and the value of reserve volumes of oil and natural gas are often substantially

However, the value of oil and natural gas value and the value of reserve volumes of oil and natural gas are often substantially

different than the amount implied by the Boe ratio.

26 unchanged sentences

Oil (per Bbl)

Natural gas (per Mcf)

Natural gas (per MMBTU)

Changes in Proved Undeveloped Reserves

During the year ended December 31, 2020,

proved undeveloped reserves of the Underlying Properties increased 119 MMBoe due to modest reserve estimate increases for the booked,

non-operated Wolfcamp shale wells in the Permian Basin of west Texas and the Haynesville shale of Louisiana.

Compared to the year

ended December 31, 2018, the same amount of proved undeveloped gross wells were recognized in the reserves of the Underlying Properties

when compared to the year ended December 31, 2019.

The revision increases by Cawley Gillespie are a result of the inclusion of

more recent production history of the ongoing development activity for the Underlying Properties.

The following is a summary of

the changes in quantities of proved undeveloped reserves for the Underlying Properties during the year ended December 31, 2019:

proved undeveloped reserves of the Underlying Properties decreased 1.4 MMBoe due to decrease in the amount of booked, non-operated

Wolfcamp shale wells in the Permian Basin, partially offset by modest increases in the estimated reserves for the booked, non-operated

wells in Haynesville shale of Louisiana.

Compared to the year ended December 31, 2019, a decreased amount of proved undeveloped

gross wells were recognized in the reserves of the Underlying Properties when compared to the year ended December 31, 2020.

decrease in gross wells does not represent a reduction in undeveloped reserves potential, as these reserves are still part of the

Underlying Properties.

However, the reduction was estimated based on an updated market view of third-party operators’

activity given current oil price volatility.

The following is a summary of the changes in quantities of proved undeveloped reserves

for the Underlying Properties during the year ended December 31, 2020.

Underlying Properties

Balance –

30 unchanged sentences

during the last three years:

Ended December 31,

Texas/North Louisiana

Year Ended December 31,

Permian Basin

Development Wells:

Exploratory Wells:

Year Ended December 31,

East Texas/North Louisiana

Development Wells:

Exploratory Wells:

(1) Production of natural gas liquids is immaterial and included

as a component of natural gas production.

Major Producing Areas

10 unchanged sentences

are located primarily in the Permian Basin (measured by Boe reserves at December 31, 2020).

Each of the following fields individually

account for more than 15 percent of the Underlying Properties reserves as of December 31, 2019:

The largest field area in the Permian Basin region is the Eunice Monument field, which primarily consists of the North Monument

Grayburg Unit.

The North Monument Grayburg Unit was discovered in 1929.

Proved reserves attributable to the Underlying Properties

in the Eunice Monument area were 2.7 MMBoe as of December 31, 2019.

The operators of the Eunice

Monument area are Apache Corporation and XTO Energy.

The second largest field in the Permian Basin region is the Lost Tank field operated by Occidental Petroleum.

This unit produces

from the Brushy Canyon and Wolfcamp formations at depths up to 8,500 feet.

Proved reserves attributable to the Underlying Properties

in the Lost Tank field were 1.8 MMBoe as of December 31, 2019.

The following table shows the average sales

price and lease operating expenses for any field that individually accounted for more than 15 percent of the Underlying Properties’

reserves as of the end of the respective period.

The figures presented for the largest fields in the Permian Basin of west Texas

and New Mexico below relate to the amounts included in the net profits calculation for the distributions paid during the years

ended December 31, 2019, 2018 and 2017.

Year Ended December 31,

Eunice Monument Area

Oil Average Sales Price per Bbl

Natural Gas Average Sales Price per Mcf

Average Lease Operating Expense per Boe

Oil Average Sales Price per Bbl

Natural Gas Average Sales Price per Mcf

Average Lease Operating Expense per Boe

The largest field in the Permian Basin

region is the Lost Tank field, which individually accounts for more than 15 percent of the Underlying Properties reserves as of

December 31, 2020.

This unit produces from the Brushy Canyon and Wolfcamp formations at depths up to 8,500 feet.

Proved reserves

attributable to the Underlying Properties in the Lost Tank field were 2.6 MMBoe as of December 31, 2020.

This field is

operated by Occidental Petroleum.

East Texas/North Louisiana Region

2 unchanged sentences

the Elm Grove field, operated primarily

by Aethon Energy Operating, LLC and BHP Billiton Ltd.;

the Kingston field, operated by EXCO Resources and Indigo Resources, LLC;

by Aethon Energy Operating, LLC and Comstock Oil & Gas, LLC;

the Kingston field, operated by EXCO Resources and Indigo Resources,

and the Stockman field, operated by COERT.

Substantially all proved reserves attributable to the Underlying Properties in the East

Texas/North Louisiana region are located in the Haynesville, Cotton Valley, and Hosston reservoirs of the Elm Grove and Kingston

Proved reserves attributable to the Underlying Properties in the Elm Grove and Kingston fields were 1.0 MMBoe and 0.1 MMBoe,

respectively, as of December 31, 2019.

Substantially all proved reserves attributable to the Underlying Properties in

the East Texas/North Louisiana region are located in the Haynesville, Cotton Valley, and Hosston reservoirs of the Elm Grove and

Kingston fields.

Proved reserves attributable to the Underlying Properties in the Elm Grove and Kingston fields were 2.3 MMBoe

and 0.1 MMBoe, respectively, as of December 31, 2020.

Production and Reserves

27 unchanged sentences

Proved Reserves (MBoe)

(1) Production of natural gas liquids is immaterial and included

as a component of natural gas production.

(1) Production of natural gas liquids is immaterial and

included as a component of natural gas production.

Abandonment and Sale of Underlying Properties

74 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties