mackey lease proposal

Mackey Lease Project 2014

Caldwell County, Texas

PROJECT INTRO

Drillers logs from 1936

indicate 176 feet of oil (pay zone)

Oil shown in the Dale Lime and Austin Chalk

formations

The Mackey lease is located

in Caldwell County, TX

The lease spans 200 acres

Drilling to a depth of 2,000

feet

Driller’s Log G. Mackey 1936

Depth (ft) Formation Status Thickness (ft)

1620-1640 Broken Lime Showing Oil 20

1640-1684 Serpentine Dry 44

1684-1840 Lime Showing Oil 156

1840-1920 Serpentine Dry 80

1920-2110 Hard

Serpentine

Dry and

abandoned

190

Mackey potential

Key points

Estimated oil reserves = 20k-30k bbl per well

Total reserves of lease estimated at 400-500k bbl

IP = Range between 70-200 bbl per day

Surrounding wells have produced in excess of 20 years

Excellent opportunity for additional 8-15 well expansion

Mackey expenditures

Total well cost = $215,000

Dry hole cost = $136,000

Additional wells*=$165,000 (due to admin costs, legal costs, and lease costs paid during initial well) *wells to the same depth

Expected Returns per MonthAssuming Oil @ $95 per barrel

3% 5% 10% 15%

35 bbl per day

28 bbl per day

21 bbl per day

12k

10k

8k

6k

4k

2k

Project timelines

Drilling to begin mid to late November

Production to begin by Jan.

2015 or sooner

Subsequent wells to be drilled

Spring of 2015 in multiple well

packages

Investor benefits

Expected ROI in 8-12 months

Multipay has operated in Central Texas for over 25 years

Experience with minimizing operation costs to avoid “operating the profits to death”.

Operating costs to range from $800-$1,000 per well per month

Tax benefits 70%-80% deduction of investment in the first year.

Monthly updates and field reports

Future locations

Potential for 8-15 solid producing wells

Next round of drilling to include a minimum of 2-3 wells in a package to maximize investor ROI

The Proposal

79% Lease to the investor

48% Working Interest Available

Minimum investment required =15k for 5% working interest

Multipay background

Multipay is a family owned company that

has been drilling, buying, selling, and

operating wells in Central, Texas for over

25 years.

The goal at Multipay is to drill projects that

have more than 1 strata. Thus, multi pay

zones. Multiple pay zones increase the

probability of a productive well and

increase the total recoverable oil per well.

Contact Info

Phone: Derek Williams 512-964-0750

Email: Derek@MultiPayEnergy.com

Visit our Website at www.MultiPayEnergy.com