Do all transactions look the same?

NO

Transaction – I (closed May 2010)

Purchased 26 current producing vertical and horizontal wells with no new wells drilled/planned
- Initial combined production of all the wells was approximately 200 BPD
- Current total production is approximately 62 BPD

Transaction – II (closed June 2010)

Acquired a lease of approximately 200 acres
Targeted two different production zones over a 24 month period
Drilled and completed three vertical and one horizontal well, with initial combined production of 40 BPD
Current total production is approximately 8 BPD

Transaction – III (closed Dec. 2010)

Acquired three different leases of approximately 1,000 acres
Drilled four vertical and four horizontal wells over 15 month period generating initial production of 175 BPD
Current total production is approximately 51 BPD

Transaction – IV (closed June 2011)

Purchased twelve producing vertical wells producing approximately 35 BPD on 1,000 acre lease
Drilled eight new vertical wells in late 2011 and early 2012
Lease requires significant water injection to increase production, through numerous production zones
- Water-flooding began in October, 2012
- Reserve estimates of 300,000 barrels, however, it’s difficult to determine a recovery period due to the multiple zones and size of the lease until several additional water injection wells are drilled
Sold Transaction IV back to the Operator in December 2013 due to poor performance

Transaction – V (closed Sept. 2011)

Drilling program consisted of 11 new wells (8 vertical and 3 horizontal wells)
- Initial production of new wells has ranged from 30 to 300 BPD
- Current total production is approximately 42 BPD

Transaction – VI (closed July 2012)

Purchased 25 existing wells with approximately 27 BPD of production in October, 2012
Lease consists of over 1,600 acres that sits on a large anticline (the best geologic structure)
No previous wells were drilled in excess of 1,500 feet, nor have any horizontal wells been drilled
Two of the largest prospects near very productive leases (Transaction – V)
Drilling Program: 9-10 new wells
Current total production is approximately 64 BPD

Transaction – VII (closed April 26, 2013)

Purchased 8 existing wells with approximately 13 BPD of production
Drilling Program: 9-10 new wells
- 9 wells (6 Vertical, 3 Horizontal) were drilled and completed in 2013
- 4 wells (all Vertical) were drilled and completed in 2014
Plan to drill 6 more vertical wells in 2015 on one of the leases
- Each well on this lease has had an initial BPD over 80
Current total production is approximately 326 BPD

Transaction – VIII (closed Jan. 15, 2014)

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