Multi Pay Sands 2 Well Drilling Program – Offset

2 wells to be drilled on separate leases in- 460 acres

Gardner, Morris & Fry Sand Payzone @ 5,000′

Similar wells drilled by Operator in area this summer have paid out 1/2 of raise in less than 5 months

Estimated 60 MBO per well. Ave 60 BOPD first year. Declines typical of sands

Estimated payout under 15 months

20%WI available @ 76%NRI equivalent. Pricing above per point with minimum 2% purchase