Central TX Offset Lease Development Program

400 acres with existing disposal well and gas pipeline access. Ran by Texaco in 1970’s

Company that has acquired this lease has produced 3 other leases in the area with consistent results

Plan is to drill 5 wells to 2,800’ and test the Marble Falls and the Caddo

Estimated 50-150MBO recoverable with production rate 50-120 BOPD in the MF alone

Estimated Payout conservatively between 6-18 months and 5:1 – 15:1 ROI

Price above for 1%WI in all 5 wells @ 75%NRI before payout and 65.625% APO

ID 1184