Presentation from 2011 used as SAMPLE of a real deal.

1. Gold Creek Prospect
Niobrara Oil Shale Acreage
For Sale
35,002.58 Net Mineral
Acres

2. Price Points:
•The Lease bonus prices in the area are currently $2000-$2500/ac.
With Royalties being paid from 18.75 - 20%
This brings evolution to the price action points. The minerals in this area started
at a Lease Bonus price of $25 per acre with royalties being paid at 1/8th which
was the average market price less than 5 years ago. This development shows how the
play has moved swiftly in regards to price. This will continue at an even greater pace
in the next three years due to the fact that larger companies are taking a stake in the
area with fast proposals to drill test wells. Budget allocation is being reviewed by one
of the larger companies leasing in this area. One of the main players is aggressively
moving ahead with their budget confidently being spent, and fund allocation larger
than any. This will bring a large amount of activity to the area which will only heighten
the value of the leasehold.

3. •Activity just North of Area in Weld County’s well completions show extremely
promising Residual production
Weld County’s newest wells are producing 100-200 barrels of Oil a day. Which will
only drive the price of the marketable production South of this area up.
•DEVELOPMENT Around Area for Sale
The area has positive potential for further development of leasing around the
acreage for sale. I have strategies that are proven to lease the area quickly, expediting
the production of the area. Establishing the wellsites prior to the negotiating of leasing
minerals in the area will give us a substantial advantage. We can establish the location
of the wellsites and include “no drill” clauses in the leases for the rest of the section. Wh
still including a “surface use” clause in our lease form for any easements needed in the
future. There is no minimum acreage needed in Colorado to apply for a drilling permit,
and Unitization can be set up to 1280 acres.

4. My experience in the industry as well as my beneficial contacts could be used to consult
on your behalf as a Project Manager in this area which would include but not
limited to; the hiring of a crew to lease and run all the title in our ventures in leasing
around the area for sale after purchase.
This 3 year Development strategy would greatly increase the return on your investment.
This proposal would include the following area:
An Estimated 15 Townships around the area for sale that would be available for leasing
and further profits from potential production. This area is currently able to handle up to
100 oil wells, driving the marketability of this block exponentially above other
leaseholders in the area.
Leases could be taken at rates of $800-$1000 an acre if negotiated correctly. This
means if we set a “re-sale” goal of $3,000 per acre our profit will be $2000-$2200 per
acre. So, the 35,002 net acres would potentially gross in the range of $98,005,600$105,006,000 when the current lease bonus market price moves from $2,000-$2,500 pe
acre to $2,800-$3,000 price, which I foresee happening within the next 3 years.

5. •Smaller Acreage Blocks
The area can also be split into smaller blocks and still be purchased. I
would suggest implementing the same proposal of development for the
area as stated above. As you can see with this strategy in place you are
still making a profit of $2,000-$2,200 an acre based on my knowledge of
this market. The next slide shows numbers for the entire 35,002 net
mineral acres sold but you can break those figures down as you wish if
youdecide to purchase a smaller portion.

6. Price Point Range Negotiation Suggestions
Low End Price Points
~$800-$1,200/NMA
~$28,001,600-$42,002,400
Estimated Price Spent on Lease Bonuses
by Current Owner
~$14,000,800 - $21,001,200
Mid Range Price Points
~$1,500-$2,000/NMA
~$52,503,000-$70,004,000
High End Price Points
~$2,200-$3,000/NMA
~$77,004,400-$105,006,000
Estimated Current Value of Leasehold in
Regard to Lease Bonuses being paid
~$63,003,600

7. Maps and Back Up
There are seven maps, geology information and a Cross Section Diagram, that
can be viewed in more detail when negotiations commence. This package also
includes all the title memorandums for verification of ownership, along with a
Leasing Schedule and Sample Lease form used in the purchase of all the
leasehold. I can oversee the co-ordination of the completion of any Due
Diligence that you will require to protect our investment. I also have a personal
client base in the area that will propel our efforts, if you plan to develop.
Thank You