Quick Start Guide

Viewing Properties

Users are required to create a Buyer account in order to view properties, but you do not need to submit a Buyer’s Agreement or bank information to view listings or watch the auction.

To view properties, log in using the Buyer ID (username) and password you chose when you created your account. When you’re logged in, click the “Listings” link in the navigation bar at the top of the site to view current listings.

How Do I Buy

First you must create a Buyer account and electronically submit your Buyer’s Agreement. For government offerings, you must instead agree to the Bidding Terms Agreement, as well as specific terms and conditions for the individual government sale.

Establish a Bid Allowance

After creating a Buyer account and submitting your relevant agreement, you will need to provide bank information to establish a bid allowance. Please be sure to let your banker or private equity contact know in advance that we will be calling to confirm your financial wherewithal. Efficient Markets will confirm or adjust the requested bid allowance amount after talking with your banker. You will be notified by email when you have been authorized to bid, and you may immediately begin bidding. The bid allowance will also be displayed on the Buyer’s Homepage.

Submit Your Bid

You will be authorized to bid only after you have created an account, submitted your Buyer’s Agreement and bank information, and received a bid allowance. When you want to bid on a property, go to the property’s bid page via your computer or mobile application. You will enter your maximum bid amount and then confirm your account password.

Remember: Prior to bidding, please review all the information the seller provides to your satisfaction. You must complete your due diligence so that important information is not overlooked. Neither Efficient Markets nor the seller is responsible for incorrect information.

Please enter your bid amount carefully and double-check your entry. Bids cannot be retracted once they are submitted.

Maximum Bid

By placing a maximum bid (proxy), you are instructing the Efficient Markets auction engine to bid automatically on your behalf, up to the amount specified as your maximum bid. Bids will be placed at the minimum amount necessary to maintain your status as high bidder.

For example, let’s say you would like to bid on a property with a current high bid of $300,000 and a bid increment of $10,000. If you enter a maximum bid of $1,000,000 on this property, a new bid will be placed automatically at $310,000, the next minimum increment, to make you the new high bidder. The system will continue to increase your bid whenever you are outbid, but it will only bid up to, and including, the $1,000,000 limit you specified.

The maximum bid mechanism is an invaluable tool to maintain your bidding status as high bidder. Because it operates automatically based on the parameters you set, you don’t need to be online during the remainder of the auction, and you don’t need to manually place additional bids. This feature can be very helpful when bids increase faster than you can respond manually, or if you must be away from your computer or mobile application during the auction.

Critical Note About Refreshing Your Browser

Bid information is updated across the Efficient Markets platform instantly, but your web browser must be “refreshed” to see current results as time passes. The browser will not automatically refresh the bid history tables, auction status, or other events. The information shown is only as current as the last time the page was loaded or refreshed.

To see if new bids have been entered, a page refresh is required. Modern web browsers may be refreshed by pressing the F5 key on the keyboard while viewing the browser page or by refreshing the screen on your mobile application. The individual browser may also have a “refresh” or “reload” button at the top of the page.

Sealed Bids

When bidding on a sealed bid lot, upon entering a bid amount, the bid calculator will display the total cost for the asset. To submit the bid, you will be prompted to enter your password. A notification banner will appear confirming receipt of the sealed bid, and an email will be sent to the email address on file to confirm the bid has been accepted. Please note that sealed bids are encrypted, so the bid amount will not be listed in the email, nor will it be visible in your account activity. It is recommended that you take a screenshot of the page once the bid has been placed. Bids may not be withdrawn, retracted, or reduced.

How Do I Sell

All types of properties sell daily on the Efficient Markets platform, including producing fields, operated working interests, non-operated working interests, overriding royalty interests, royalty interests, mineral interests, leasehold interests, real estate properties, and alternative energy assets. Properties with well-documented production information and due diligence, supported by sufficient financial and ownership information, sell best in an Efficient Markets auction. The more information that is available, the more comfortable a buyer becomes with bidding on the property.

The first step is to create a Seller account and electronically submit your Seller’s Agreement, including Exhibit A of the contract, to Krysta.Turner@efficientmarkets.com and Lisa.Weiss@efficientmarkets.com. Once your account has been created, log in and check the “Keep Me Logged In” box to prevent your session from timing out while you enter property data.

Steps to List an Asset for Sale

Please read this information carefully before creating your lot.

In an Efficient Markets auction, Lots must contain one or more Properties, which are assets for sale. Users bid on assets by bidding on the entire Lot. Therefore, it is important to group all assets you wish to be sold as a package together under a single Lot.

To list a lot, you will need to input your property data using the following procedure:

1. Click on “Create New Lot” on your Seller’s Homepage.
2. Provide a summary description of the entire lot, reserve price, primary location, etc. Select the type of property (asset) being sold, then click “Create Lot”.
3. Add properties to the lot by selecting a property type from the drop-down menu and clicking “Add Property”.
4. Complete the property data sheet. You may save your work periodically by clicking the button at the bottom of the form.
5. You may include additional properties to this lot, if you are selling multiple properties in this package. You may also add a new, separate lot by following the appropriate links on your Seller’s Homepage.

Efficient Markets staff members are available to help you complete any portion of the form or assemble your documentation prior to the sale. Please feel free to contact your business development representative, listed on your Seller’s Homepage, at any time if you have questions.

Once your lot has been submitted, the Technical Services Team will review the information provided and send a request for any additional data. Once all data has been received, the offering will go live. This timeframe typically takes 5-7 business days.

As part of this review, you will be connected to a business development representative, who may determine that a sealed bid (negotiated) sale process should be employed. This is typically reserved for properties that have significant complexities, value, and upside potential. It is a great approach should you prefer to offer the asset package to the market in a more flexible manner than the auction format. Negotiated sales are also typically employed when the property package needs more in-depth engineering, geological, and advisory services to obtain maximum value.

Fees and Commissions

The only cost to the seller is a commission if the property sells, so long as we agree on the minimum reserve price. We do not charge marketing fees, and we do not charge if your property is not sold. A listing fee will be charged on lots containing only non-producing leasehold. The full commission schedule can be found in the Seller’s Agreement.

• Commissions are charged only if the property sells
• Listing fees up to $1,500 may be charged for properties containing only non-producing leaseholds, or assets with an estimated value under $25,000
• Listing fees are charged if a property listing exceeds Efficient Markets pricing guidelines, and Efficient Markets and the Seller do not agree on the reserve price set by the Seller
• Listing fees are deducted from commissions (only a listing fee or commission is paid, not both)

Minimum Reserve

Your business development representative will utilize current listing guidelines based on recent comparable asset sales to assist in formulating a reserve price for your asset. They will also help identify any value degradation factors and the potential value discount that might impact the reserve price of your asset.

Your reserve price is confidential and is never revealed to prospective buyers. However, there will be a notification once bids have met or exceeded your minimum reserve price, letting them know that the auction is now absolute.

Documents to Provide for a Property Listing

Please send your executed outgoing assignments or deeds to our office at:

Efficient Markets, LLC
7201 I-40 West, Suite 319
Amarillo, Texas 79106

Conveyance documents may be emailed to Conveyancing@efficientmarkets.com. Please send all other supporting data to your business development representative.

If you have any questions on documentation, contact our support staff for assistance toll free at (877) 351-4488.