Athlon Energy (FRA:28A) Deferred Policy Acquisition Costs

Athlon Energy Inc was founded in August 2010 and formed on April 1, 2013 as a Delaware corporation. The Company is an independent exploration and production company engaged in the acquisition, development, and exploitation of unconventional oil and liquids-rich natural gas reserves in the Permian Basin. The Permian Basin spans portions of Texas and New Mexico and is composed of three primary sub-basins: the Delaware Basin, the Central Basin Platform, and the Midland Basin. All of the properties are located in the Midland Basin. The Company's drilling activity is primarily engaged in the low-risk vertical development of stacked pay zones, including the Clearfork, Spraberry, Wolfcamp, Cline, Strawn, Atoka, and Mississippian formations, referred to as the Wolfberry play, and horizontal development of the Wolfcamp. As of December 31, 2013, it had identified 2,232 gross vertical drilling locations on 40-acre spacing and an additional 2,616 gross vertical drilling locations on 20-acre spacing. Only 659 gross of these potential vertical drilling locations were booked as proved undeveloped reserves. As of December 31, 2013, it had also identified 1,065 gross horizontal drilling locations targeting Wolfcamp A, Wolfcamp B, Wolfcamp C, and Cline intervals, which comprise 327 gross, 362 gross, 136 gross, and 240 gross locations, respectively. Its acreage position was 127,840 gross acres at December 31, 2013. As of December 31, 2013, it had 127.3 MMBOE of proved reserves, comprised of 71.2 MMBbls of oil, 30.7 MMBbls of NGLs, and 152.2 Bcf of natural gas. The Company's facilities located at well locations include field gathering systems, storage tank batteries, saltwater disposal systems, oil/gas/water separation equipment, and pumping units. It owns 10 saltwater disposal systems with over 45,700 barrels of water per day capacity and access to over 144 fresh water supply wells throughout its acreage.