Structure Map of Cache Creek (Note: South Cache Creek is only one of the three

structures) 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

Gilbreath 32-1 Well Seismic

DataConfidential Data (NDA)

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.

Well LogsConfidential 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.

Gilbreath

Well Mud

Logs

Gilbreath 32 No. 1 Well

DepthMud Volume in

bblsPercent Oil in

MudVolume Oil in

bbls Mud WeightChlorides in

Mud

6,456 1,356 0.0000 0 8.5 500

6,730 1,398 0.0000 0 8.5 500

6,797 1,408 0.0000 0 8.7 1500

6,902 1,425 0.0000 0 8.8 1800

7,133 1,354 0.0100 14 8.8 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

Well LogsConfidential Data (NDA)

Well logs on Goodman

14-1 well. There is at

least 50+ feet of oil

pay zone at 5850’

deep.

Cache Creek ProspectConfidential Data (NDA)

Orange denote S&S

identified prospects.

Cache Creek Prospect

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.

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 landmancosts 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.

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

$576,000 Monthly income after payout on ONE well (75% WI, S&S back in for 25%)

Note: the above numbers are approximations of production, costs and returns (if wells are successful.) Actual numbers may vary drastically from these estimates.

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

PV10 on South Cache Creek

South Cache Creek Field Potential If Reserves and Production Estimates are Correct

$1,700,000

Leasing & 1st South

Cache Creek Well

$26,000,000 Development Costs

$319,507,102PV10

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