SOLD – Shallow Shale Lease Development Program – ID 1202

04 Oct SOLD – Shallow Shale Lease Development Program – ID 1202

Operator to drill 10 wells to the New Albany Shale (IL Basin) and other units to test shallow vertical depths (less than 5,000’) with 1800’ Hz legs

First Well doing 180 BOPD…second and third awaiting frack

Shale is NATURALLY FRACTURED…estimated 3-4 stage fracking upon good test

Estimated payout of wells of less than 5 months @ $70 oil in shale alone

Estimated monthly break-even is at $25 BO in shale alone

Estimated 5:1 to 15:1 ROI over well lifetime

Natural gas reserves (in contract phase) for added value

Operator has 95% success rate drilling in the Basin

$90k per 1% WI @ 85%NRI for Wells 4-10

$28k per 0.25% WI