GULF COAST SALE PACKAGE

COLORADO, LAVACA & WHARTON, TX

67-Producers. 20,000-Net Acres

WILCOX, YEGUA & FRIO TARGETS

MULTI-BENCH RESERVE BASE

Highly Economic PUD Inventory

PROVEN UPSIDE (>50 Opportunities)

Avg 93% OPERATED WI; 80% NRI (Lease)

Gross Prod: 55 BOPD & 3,450 MCFD

Net Volumes: 40 BOPD & 2,400 MCFD

54-PDNP Opportunities Keep Vols Flat

L3M Net Income: ~$340,000/Mn

PDP PV-10: $18,500,000

Net PDP Reserves: 228 Mbbl & 12.7 Bcf

---DEAL UNDER LETTER OF INTENT

PP 1583DV