On May 7, 2021, Evolution acquired non-operated working interests in the Barnett Shale, a natural gas producing shale reservoir consisting of approximately 21,000 net acres held by production across nine North Texas counties (Bosque, Denton, Erath, Hill, Hood, Johnson, Parker, Somervell, and Tarrant), in the Barnett Shale. The acreage consists of an average net working interest of approximately 17% and associated average net revenue interest of approximately 14% (inclusive of small overriding royalty interests). The oil and natural gas properties are primarily operated by Diversified Energy Company with approximately 10% of wells operated by seven other operators.
For the year ended June 30, 2022, Evolution’s average net daily production from the Barnett Shale properties was 3.5 MBOEPD consisting of 79% natural gas, 20% NGLs, and 1% oil. The producing reservoir is the Barnett Shale, which is also the source rock. Hydrocarbons produced from our Barnett Shale properties are sold to Gulf Coast markets.