Gilbreath 32-1 and Goodman Wells

1. Structure Map of Cache Creek
(Note: South Cache Creek is only one of the three
structures) Confidential Data (NDA)

2. Gilbreath 32-1 Well Seismic
Data
Confidential Data (NDA)
The Gilbreath 32-1 well
shown on the seismic
data.
The structure of the oil
reservoir is shown with
the red line

3. Cache Creek
Prospect
Confidential Data (NDA)
The Gilbreath 32-1 well
had oil shows in over
900 feet of the well
starting at about 6700’
depth.

4. Well Logs
Confidential Data (NDA)
 Well logs on the
Gilbreath 32-1 well.
There is at least 130+
feet of oil pay zone at
approximately 6800’
deep.
 Reserves estimated at
38,000,000 barrels of oil.

5. Gilbreath Gilbreath 32 No. 1 Well
Mud Volume in Percent Oil in Volume Oil in Chlorides in
Depth bbls Mud bbls Mud Weight Mud
Well Mud 6,456
6,730
1,356
1,398
0.0000
0.0000
0
0
8.5
8.5
500
500
Logs 6,797
6,902
7,133
1,408
1,425
1,354
0.0000
0.0000
0.0100
0
0
14
8.7
8.8
8.8
1500
1800
1800
7,315 1,368 0.0050 7 9.0 1100
7,626 1,392 0.0025 3 9.0 1300
7,757 1,402 0.0000 0 9.1 1200
7,861 1,411 0.0000 0 9.0 1300
8,113 1,427 0.0000 0 8.9 1400
8,190 1,478 0.0000 0 8.8 1400
8,240 1,432 0.0200 29 8.8 1600
8,455 1,447 0.0150 22 8.9 1700
8,551 1,455 0.0200 29 9.1 2000
8,804 1,475 0.0150 22 9.1 1900
8,969 1,487 0.0250 37 8.7 1800
8,982 1,488 0.0200 30 9.2 2100
9,047 1,493 0.0200 30 9.2 2000
9,227 1,505 0.0150 23 9.0 2400
9,317 1,520 0.0150 23 8.9 2300
9,438 1,528 0.0200 31 9.1 2300
9,770 1,567 0.0150 24 9.1 2300
9,876 1,574 0.0150 24 9.1 2300
10,000 1,585 0.0200 32 9.1 2400
10,111 1,594 0.0150 24 9.2 2400
10,283 1,609 0.0200 32 9.3 2400
10,288 1,609 0.0200 32 9.3 2400

6. Well Logs
Confidential Data (NDA)
 Well logs on Goodman
14-1 well. There is at
least 50+ feet of oil
pay zone at 5850’
deep.

7. Cache Creek Prospect
Confidential Data (NDA)
Orange denote S&S
identified prospects.
Cache Creek Prospect

8. Cache Creek Prospect
Exploratory Wells
Confidential Data (NDA)
1st: Develop South Cache
Creek with a re-entry on
the Gilbreath 32-1 well.
(130’+ column of oil in
structure)
2nd: Re-enter the Goodman
14-1 well. (50’+ column
of oil)
3rd: Drill an exploratory well
on the North Cache
Creek Prospect.
Note: Development wells on
South Cache Creek may
precede exploration or
development in the
Central Fault Block or in
the North Cache Creek
field.

9. Cache Creek Prospect
S&S Leased Acreage
Confidential Data (NDA)
Yellow shows sections where leases are
held. The number of acres held per section
is noted on each section. Oklahoma law is
very different on nominating wells. We want
to have 100% leasing in as many sections
as possible to secure our position. Of the
approximately 4200 acres on the South
Cache Creek Prospect, 559 are leased. An
additional leasing of the remaining 3650
needs to be done before drilling is
commenced. Leasing costs and landman
costs are estimated to be approximately
$100-150 per acre.
The budget for additional leasing on South
Cache Creek should be at least $500,000.
An additional 10,000 acres should be leased
on the North Cache Creek prospect and in
the area around the Gilbert well.

10. Cache Creek Prospect
Cache Creek Investment Costs
$150 estimated cost of leasing per acre (rents &landman)
$500,000 lease 3650-5000 acres on South Cache Creek
$300,000 lease 2000 acres on Cache Creek Central Fault Block
$1,200,000 Lease 8000 acres on North Cache Creek
$2,000,000 Leasing costs on Cache Creek
$1,200,000 Re-enter Gilbreath 32-1 well, kickout at 4000' and drill new well
$800,000 Re-enter Goodman well, drill out cement plugs and perforate oil zone
$4,000,000 Leasing and two well development
Estimated Returns
300 Daily production on Gilbreath 32-1 well (barrels of oil)
100 Daily production on Goodman 14-1 well (barrels of oil)
400 total taily production from two wells
320 80% NRI daily production to Working Interest Owners (WI)
$80 Assumed price of oil
$768,000 Monthly WI income
6 Number of months to payout
Monthly income after payout on ONE
$576,000 well
(75% WI, S&S back in for 25%)
Note: the above numbers are approximations of production, costs and returns (if wells are

11. South Cache Creek Prospect
South Cache Creek Field Development Costs
$500,000 lease 3650-5000 acres on South Cache Creek
$1,200,000 Re-enter Gilbreath 32-1 well, kickout at 4000' and drill new well
$26,000,000 Drill 13 additional development wells (estimated at $2M each)
$27,700,000 Cost of acquisition and development
Note: Development can be financed or paid through production
300 Assumed daily production per well (barrels of oil)
$80 Assumed price of oil
14 Total number of wells on South Cache Creek Field
$720,000 Monthly income per well
$6,048,000 80% NRI, 75% WI, monthly income
Does not account for development time and production decline rate

12. PV10 on South Cache Creek
South Cache Creek Field Potential If Reserves and Production Estimates are Correct
Leasing & 1st South
$1,700,000 Cache Creek Well
Development
$26,000,000 Costs
$319,507,102
PV10

13. Cache Creek Field Investment
 $2,000,000 initial investment on leasing
 $1,200,000 estimated drilling costs in 3 months on South
Cache Creek
 $800,000 estimated drilling costs in 3 months on Central
Fault Block
 Total $4M Initial Investment