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BUNA CASTILLO FIELD SOF SANDS JASPER COUNTY EAST TEXAS EXHIBIT F CONFIDENTIAL PLACEMENT MEMORANDUM STRATEGIC CASHFLOW OPPORTUNITY FOR RECOMPLETION ON EXISTING PROVEN RESERVES LOCATED IN THE YEGUA SANDS IN JASPER COUNTY EAST TEXAS

EXECUTIVE SUMMARY PHIL MARTIN President CEO New Century Exploration Inc Mr Martin is President and CEO of New Century Exploration Inc an active operator in Texas and Louisiana He began his career at Union Texas Petroleum and has managed many E P programs for over 30 years Phil has presented at many industry groups regarding oil and gas exploration development production and economics especially regardingunconventionalresources Philisamemberofvariousprofessionalorganizations including Houston Producers Forum Houston Energy Finance Group ADAM Houston IPAA and TIPRO AAPL AAPG SIPES and the LSU Foundation Phil earned a Bachelor of Science in Geology from LSU and a Master of Science in Geology from University of Louisiana He is involved with various community and charitable organization and serves on the board of the Pearl Fincher Museum of Fine Arts and the Centrum League RYAN SESSIONS Senior Petroleum Engineer Ryan Sessions Petroleum Engineer is responsible for all of New Century Exploration Inc s drilling completion and production operations He has a Bachelor of Science degree in Engineering from Texas A M and has worked at New Century for 6 years He has significant experience in the Cotton Valley and Haynesville trends of East Texas and North Louisiana the Eagle Ford and Austin Chalk trends of Central Texas and multiple Gulf Coast trends He is expert at most oil industry technology and sofware including PhdWin Kingdom IHS TGS DrillingInfo and Spotfire He is an active member of the Society of Petroleum Engineers ALFREDO MANZUR GONZALEZ President CEO Sof Exploration LLC Mr Alfredo Manzur Gonzalez has been a pivotal leader for over 10 years in the oil and gas exploration field His innovative approach and team leadership mind set has allowed Mr Gonzalez to lay the foundation at Sof Exploration LLC Mr Gonzalez and his industry participation has given him the opportunity to prepare an extensive vetting process in putting quality partnerships together for great potential success His knowledge in the energy sector has diversified him into choosing successful industry partners in many areas of oil and gas 1

OFFERING SUMMARY PARTNERSHIP Sofi Exploration a non operating working interest management company is ready to release it s newest partnership called Sofi Sands The Sofi Sands consist of 8 proven Yegua Sands with 7 yegua sands behind pipe and a direct ownership on our Salt Water Disposal SWD both located in Jasper county East Texas Sofi Exploration is offering 55 W I participation with a 5 override into these proven 8 Yegua sands with potential immediate cash flow INDUSTRY PARTNER OPERATOR AND DRILLER Sof Exploration a non operating working interest management company and New Century Exploration Inc Partnership New Century CONTRACT PURCHASES Exploration Operator RRC 606055 Oil Purchaser CATEGORY Sofi Exploration a non operating working interest management company and New Century Exploration Inc Texas operator RRC 606055 will be Re completing and perforation 7 additional up whole productive oil Yegua sands Our main objective is to perforate each additional pay sands for the possibility to generate grater levels of future oil production New century exploration s Yegua program has been categorized as conventional proven reserves and direct oil production PRODUCTION PROFILE New Century Exploration inc Texas operator RRC 606055 will be strategically re completing production profiles in 7 additional Yegua sands by perforation in the targeted depth s of 6 700 to 7 300 of vertical production New Century will be undertaking calculated manageable risk evaluations by perforating in the areas of interest which show production behind casing located in Jasper county East Texas New Century Exploration inc will be exploring the possibilities to increase higher oil production and generate consistent flow income streams VERTICAL PARAMETERS RECOMPLETION Sofi Exploration a non operating working interest management company will participate in a 7 proven behind pipe oil Yegua sands vertical re completion program Total Vertical Depth is TVD 7 300 on a 45 acre leasehold New Century Exploration inc will be utilizing state of the art perforations designs and entering the depth s between 6 700 to 7 300 to potentially establish higher recoverable estimated reserves VENTURE MAIN OBJECTIVE Sofi Exploration a non operating working interest management company will be delivering a Vertical Re completion program targeting 7 additional proven Yegua pay sands in the heart of Jasper county Texas Sofi Exploration s main goal is to increase commercial recovery with the opportunity to generate immediate cash flow from the lowest zone which is currently producing ENERGY GRADE Sofi Exploration will be targeting 37 degree gravity oil production with the capability to produce from multiple additional zones in the near future 2

REASONS TO PARTICIPATE LOCATION Sofi Exploration a non operating working interest management company is excited to be participating on a traditional Vertical Re completion of 7 proven Yegua sands behind pipe located in the Buna Castillo fields in Jasper county East Texas Our proposed location BP 1 is adjacent to our water disposal well FletcherRichardson 1 included in the same 44 acreage leasehold The Buna Castillo fields are known for multiple potential Yegua sands and active oil productive formations opportunities POTENTIAL OPPORTUNITY Sofi Exploration a non operating working management company will be funding 55 W I of a vertical multiple Yegua sand re completion program beginning at the vertical depth s of 6 700 to 7 300 and targeting multiple proven oil Yegua sands reserves behind pipe New Century Exploration inc Texas operator RRC 606055 will be focusing to maximize addition oil production from multiple proven Yegua sands by perforating each additional zone for high oil recovery to increase commercial production and stronger cash flow opportunities PRODUCTION INCREASE New Century Exploration inc and it s industry partners plan to successfully increase oil production flow rates in our BP 1 to generate upwards of 50 BBL s per day by perforating all 7 proven behind pipe Yegua sands individually by adding additional cashflow in the near future New Century Exploration inc strongly believes in excellent market research and great performance that will potentially result in consistent oil productions and long term cash flow opportunities for years to come INDUSTRY PARTICIPATION New Century Exploration inc Texas operator RRC 606055 has taken a significant leadership roll in delivering it s newest cash flow opportunity by contracting well vetted elite oil industry companies to execute great performance with strong values the carry manageable risks and great upside potential New Century Exploration inc and all our industry partners are committed to excellent on site operations for additional oil production and higher commercial recovery 3

DRILLING OBJECTIVE This diagram is used for information purposes only to identify our objectives for our venture This illustration is for informational purposes only This diagram does not guarantee the success execution and any future production on the program 4

EXECUTIVE SUMMARY Buna and Castillo Fields are located 2 5 miles northwest of town site of Buna in Jasper County Texas The fields produce from multiple Yegua sands on low relief four way closures on the southern downthrown side of a regional fault Castillo Field and Buna Field were discovered by British Petroleum BP and have produced 2 443 412 BO and 2 277 673 BO respectively since the 1950 s Modern logs cores and production technology enable the production of significant bypassed reserves remaining in both fields The New Century 1 BP was drilled in 2008 and completed in the Yegua 5 and Yegua 7 sands Y5 and Y7 the deepest productive sands in the well Those co mingled sands have produced 69 458 BO to date and although they are still productive at a low rate New Century plans to add 7 shallower behind pipe sands in order to increase production and cash flow P50 reserves from those uncompleted oil sands are estimated at 105 000 BO based on logs cores and down dip production analysis 37 41 API gravity oil was recovered from 5 of the 7 sands New Century plans to start with the deepest and add additional sands until a desired rate of production in reached These Yegua sands generally produce a combination of oil and a saltwater disposal well the New Century 1 Fletcher SWD is included in the field facilities A pipeline connecting the two wells allow production without the expense of saltwater disposal and transportation costs That SWD well has three 400 barrel tanks and 1 200 barrels of capacity An offer to buy that well has been received from a nearby operator that allows the retention of saltwater disposal by New Century This opportunity includes behind pipe oil reserves complete production facilities and the option to participate in possible future development wells Provided by New Century Exploration 5

NEW CENTURY 1 BP PRODUCTION Provided by New Century Exploration 6

NEW CENTURY 1 BP OIL SANDS YEGUA SANDS OPPORTUNITY Provided by New Century Exploration 7

RESERVE ESTIMATES PAYZONE 1 8 Provided by New Century Exploration 8

LOGS AND CORES YEGUA DY 1 SAND 6765 6768 PAYZONE 1 Provided by New Century Exploration 9

LOGS AND CORES YEGUA DY 2 SAND 6867 6869 PAYZONE 2 Provided by New Century Exploration 10

LOGS AND CORES YEGUA 2 SAND 6968 6970 PAYZONE 3 Provided by New Century Exploration 11

LOGS AND CORES YEGUA 3 SAND 7027 7034 PAYZONE 4 Provided by New Century Exploration 12

LOGS AND CORES YEGUA 4 SAND 7048 7052 PAYZONE 5 Provided by New Century Exploration 13

LOGS AND CORES YEGUA 4A SAND 7111 7112 PAYZONE 6 Provided by New Century Exploration 14

LOGS AND CORES YEGUA 4B SAND 7132 7134 PAYZONE 7 Provided by New Century Exploration 15

PRODUCED ZONES YEGUA 5 SAND 7136 42 YEGUA 7 SAND 7888 92 PAYZONE 8 16

Jasper County Texas BUNA CASTILLO FIELD P50 OIL RESERVES OIL 118 000 BBL S CASHFLOW OPPORTUNITY NET RESERVE VALUE 4 872 656 Does not include L O E USING TODAY S PRICES AT 50 OIL BASES POINT 17 New Century Exploration RRC 606055 SWD Well Fletcher Richardson 1 API 24100115 GPS Coordinates 30 484559 93 996567

YEGUA SANDS OPPORTUNITY BUNA CASTILLO FIELD TEXAS New Century Exploration RRC 606055 Yegua Sands Multiple Payzone Log API 24130778 Sof Sands BP 1 API 24130778 Newest Recompletion Opportunity 18

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YEGUA SANDS RECOMPLETION OPPORTUNITY BUNA CASTILLO FIELD TEXAS BP AMERICA PRODUCTION COMPANY Acreage Operator RRC 040798 NYSE BP New Century Exploration RRC 606055 SWD Well Fletcher Richardson 1 API 24100115 20 Sofi Sands BP 1 API 24130778 Additional Cashflowing Opportunity

SOF SANDS PLAT Sof Sands Newest Recompletion Opportunity Provided by New Century Exploration 21

ESTIMATED PRODUCTION SUMMARY POTENTIAL RESERVES Single Well Bore hole Estimated Reserves P 90 42 000 BOE Barrels of Oil Potential P 50 118 125 BOE Barrels of Oil Potential P 10 252 000 BOE Barrels of Oil Potential 10 Units 60 000 00 Per Unit Recompletion Facilities Salt Water Disposal Total Project Capitalization 600 000 00 22

Provided by New Century Exploration 23

BP ORIGINAL OIL LEASE Provided by New Century Exploration 24

RESERVES TERMS ECONOMICS Any additional markup or promotion is not officially calculated on these terms You will find the current markup or promotion located in our CIM Provided by New Century Exploration 25

ESTIMATED PARTNERSHIP ECONOMICS WORKING INTEREST PARTICIPATION Working Interest 1 Unit 5 5 Net Revenue 1 Unit 3 75 PARTICIPATION Unit W I N R I FRAC FACILITIES 1 5 5 3 75 60 000 00 3 4 4 125 2 8125 45 000 00 1 2 1 4 2 75 1 375 1 875 0 9375 30 000 00 15 000 00 Drill Completion Frac Facilities Swd 60 000 00 1 Unit TOTAL CAPITALIZATION 600 000 00 26

POTENTIAL MONTHLY REVENUE IP RATES OIL PRODUCTION 50 BPD 2 500 IPD 76 000 IPM 2 850 X X X 50 00 30 4 Days 3 75 Per Unit 10 LOE 2 500 IPD 76 000 IPM 2 850 2 565 00 IPU Cashflow Potential Per Month 2 850 BP AMERICA PRODUCTION COMPANY Acreage Operator RRC 040798 NYSE BP Annual Rate of Return 20 50 Potential black crude oil Payout 18 to 24 month payout These are estimated figures only upon production BPD BARRELS PER DAY MCF MILLION METRIC CUBIC FEET IPD INCOME PER DAY IPM INCOME PER MONTH IPU INCOME PER UNIT These numbers were formulated based on first annual rate of return without expenses and depletion rates 27

POTENTIAL REVENUE PROJECTIONS IP RATES OIL Average BO p d 25 50 75 100 50 00 55 00 60 00 Monthly Income 1 282 50 1 410 75 1 539 00 Estimated Operating Expense 142 50 156 75 171 00 Annual Rate of Return 25 28 30 Monthly Income 2 565 00 2 821 50 3 078 00 Estimated Operating Expense 285 00 313 50 342 00 Annual Rate of Return 51 56 61 Monthly Income 3 847 50 4 232 25 4 617 00 Estimated Operating Expense 427 50 470 25 513 00 Annual Rate of Return 76 84 92 Monthly Income 5 130 00 5 643 00 6 156 00 Estimated Operating Expense 570 00 627 00 684 00 Annual Rate of Return 102 112 123 Price of BOPD Spreadsheet has been rounded off to the nearest decimal These numbers were calculated on first annual rate of return minus expenditures and without any depletion rates 28

CERTIFICATE OF LIABILITY INSURANCE NEWCENT 02 NSEITZ CERTIFICATE OF LIABILITY INSURANCE DATE MM DD YYYY 10 15 2019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER S AUTHORIZED REPRESENTATIVE OR PRODUCER AND THE CERTIFICATE HOLDER IMPORTANT If the certificate holder is an ADDITIONAL INSURED the policy ies must have ADDITIONAL INSURED provisions or be endorsed If SUBROGATION IS WAIVED subject to the terms and conditions of the policy certain policies may require an endorsement A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement s CONTACT NAME PHONE A C No Ext E MAIL ADDRESS PRODUCER Houston Alliant Insurance Services Inc 5444 Westheimer Rd 9th fl Houston TX 77056 FAX A C No 832 832 485 4000 INSURER S AFFORDING COVERAGE INSURER A Markel INSURED 485 4001 NAIC International Insurance Company Limited 00000 INSURER B New Century Exploration Inc 20008 Champion Forest Drive Suite 701 Spring TX 77379 INSURER C INSURER D INSURER E INSURER F COVERAGES CERTIFICATE NUMBER REVISION NUMBER THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REQUIREMENT TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS EXCLUSIONS AND CONDITIONS OF SUCH POLICIES LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS INSR LTR A X ADDL SUBR INSD WVD TYPE OF INSURANCE POLICY EFF POLICY EXP MM DD YYYY MM DD YYYY POLICY NUMBER COMMERCIAL GENERAL LIABILITY CLAIMS MADE X JCGL101683 OCCUR 6 21 2019 6 21 2020 GEN L AGGREGATE LIMIT APPLIES PER PROX POLICY LOC JECT A A AUTOMOBILE LIABILITY X X UMBRELLA LIAB X EXCESS LIAB DED JCGL101683 SCHEDULED AUTOS NON OWNED AUTOS ONLY X MED EXP Any one person PERSONAL ADV INJURY GENERAL AGGREGATE PRODUCTS COMP OP AGG OTHER ANY AUTO OWNED AUTOS ONLY HIRED AUTOS ONLY LIMITS EACH OCCURRENCE DAMAGE TO RENTED PREMISES Ea occurrence 6 21 2019 6 21 2020 COMBINED SINGLE LIMIT Ea accident BODILY INJURY Per person JUMB101443 CLAIMS MADE 6 21 2019 6 21 2020 EACH OCCURRENCE AGGREGATE RETENTION ANY PROPRIETOR PARTNER EXECUTIVE OFFICER MEMBER EXCLUDED Mandatory in NH If yes describe under DESCRIPTION OF OPERATIONS below A Control of Well A Equipment Floater 1 000 000 BODILY INJURY Per accident PROPERTY DAMAGE Per accident OCCUR WORKERS COMPENSATION AND EMPLOYERS LIABILITY 1 000 000 100 000 5 000 1 000 000 2 000 000 2 000 000 PER STATUTE Y N OTHER E L EACH ACCIDENT N A 15 000 000 15 000 000 E L DISEASE EA EMPLOYEE JCOW11172 JCOW11172 6 21 2019 6 21 2019 E L DISEASE POLICY LIMIT 6 21 2020 All Wells 6 21 2020 Limit 15 000 000 1 506 661 DESCRIPTION OF OPERATIONS LOCATIONS VEHICLES ACORD 101 Additional Remarks Schedule may be attached if more space is required In regards to the New Century 1 BP well Jasper County Texas CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS For Information Only AUTHORIZED REPRESENTATIVE ACORD 25 2016 03 1988 2015 ACORD CORPORATION All rights reserved The ACORD name and logo are registered marks of ACORD Provided by New Century Exploration 29

INDUSTRY PARTNERS REFERENCES New Century Exploration PHIL MARTIN PRESIDENT CEO PHONE AVAILABLE UPON REQUEST ALFREDO MANZUR GONZALEZ PRESIDENT CEO DIRECT 469 802 0332 REFERENCES PROJECT GENERATOR DAVID MASON CHIEF EXECUTIVE OFFICER PHONE AVAILABLE UPON REQUEST JOSEPH M COX JOE COX BRACEWELLLAW COM WWW BRACEWELL COM 214 468 3800 KITTELSON A S S O C I AT E S DOUG KITTELSON DOUG KITTELSONLAW COM WWW KITTELSONLAW COM 214 734 2700 KAREY REBELLO KREBELLO HENSLEYCPAS US WWW HENSLEYCPAS US 214 390 9071 MINDY GAYER BUSINESS DEVELOPMENT MANAGER MGAYER THEENTRUSTGROUP COM 615 569 9122 Sof Exploration LLC memorandum does not constitute any accuracy or any guarantees of present or future success of this venture Sof Exploration LLC is not responsible for the outcome or the performance of the venture This memorandum is for illustration purposes only 30

INDUSTRY TERMS Acreage Land leased for oil and gas exploration and or land for which Millennium Exploration owns the mineral rights Anticline A convex upward formation of rock layers which may form a trap for hydrocarbons Barrel of Oil Equivalent A measure used to aggregate oil and gas resources for production with one BOE being approximately equal to 6 000 cubic feet of natural gas Basin A large natural depression on the Earth s surface in which specimins brought by water accumulate Borehole A hole in the earth made by a drilling rig British Thermal Unit BTU The heat required to raise the temperature of a one pound mass of water by one degree Fahrenheit Casing Thick walled steel pipe placed in wells to isolate formation fluids such as fresh water and to prevent borehole collapse Coal Bed Methane CBM Natural gas extracted from coal beds Completion The process of making a well ready to produce natural gas or oil Completion involves installing permanent equipment such as a wellhead and often includes hydraulic fracturing Condensate Mixture of hydrocarbons which as in a gaseous state under reservoir conditions and when produced become liquids at the temperature and pressure is reduced Conventional Resources Discrete accumulations of hydrocarbons contained in rocks with relatively high matrix permeability which normally have relatively high recovery factors Developed Acreage The number of acres that are allocated to assignable to productive wells or wells capable of production Developed Reserves Reserves that can be expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well and if extraction is by means other than a well through installed equipment and infrastructure operational at the time of the reserves estimate Development Well A well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic horizon known to be productive Directional Drilling The application of special tools and techniques to drill a wellbore at a predetermined angle Horizontal drilling is a form of directional drilling where the wellbore is ultimately drilled at 90 degrees to the vertical direction Drilling Rig The machine used to drill a wellbore Dry Gas Dry gas is almost pure methane and occurs in the absence of liquid hydrocarbons or by processing natural gas to remove liquid hydrocarbons and impurities Dry Hole A well incapable of economically producing saleable hydrocarbons in suffucuent quantities to justify commercial exploitation E P Exploration and Production Economically Producible A resource that generates revenue that exceeds or is reasonably expected to exceed the costs of the operation Enhanced Oil Recovery One or more of a variety of processes that seek to improve recovery of hydrocarbon from a reservoir after the primary production Environmental Assessment phase A study that can be required to assess the potential direct indirect and cumulative environmental impacts of a project Estimated Ultimate Recovery The sum of reserves remaining as of a given date and cumulative production as of that date Exploratory Well A well drilled to find a new field or a new reservoir in a field previously found the be productive of oil or gas in another reservoir Farm In The acquisition of part or all of an oil natural gas or mineral interest from a third party Farm Out The assignment of part or all of an oil natural gas or mineral interest to a third party Field An area consisting of a single hydrocarbon reservoir or multiple geologically related reservoirs all grouped or related to the same individual geological structure or stratigraphic condition Flaring The burning of natural gas for safety reasons or when there is no way to transport the gas to the market to use the gas for other beneficial purposes such as EOR or reservoir pressure maintenance The practice of flaring is being steadily reduced as pipelines are completed and in response to environmental concerns Formation A rock layer which has distinct characteristics e g rock type geologic age Fossil Fuel A fuel source such as oil condensate natural gas liquids or coal formed in the earth from plant or animal remains Heavy Oil Crude oil with an API gravity less than 20 degrees Heavy oil generally does not flow easily due to its elevated viscosity Horizontal Drilling A drilling technique whereby a well is progressively turned from vertical to horizontal so as to allow for greater exposure to an oil or natural gas reservoir Horizontal laterals can be more than a mile long In general longer exposure lengths allow for more oil and natural gas to be recovered from a well and often can reduce the number of wells required to develop a field thereby minimizing surface disturbance Horizontal drilling technology as been extensively used since the 1980s and is appropriate for many but not all developments Hydraulic Fracturing Hydraulic fracturing also referred to as frac ing or fracking is an essential completion technique in use since the 1940s that facilitates production of oil and natural gas trapped in low permeability reservoir rocks The process involves pumping fluid at high pressure into the target formation thereby creating small fractures in the rock that enable hydrocarbons to flow into the wellbore Hydraulic Fracturing Fluids Mixture of water and proppant along with minor amounts of chemical additives used to hydraulically fracture low permeability formations Water and sand typically compromise 99 5 of the mixture Hydrocarbons An organic compound containing only carbon and hydrogen and often occurring in nature as petroleum natural gas coal and bitumens or in refined products such as gasoline and jet fuel Improved Oil Recovery Term used to describe methods employed to improve the flow of hydrocarbons from the reservoir to the wellbore or to recover more oil or natural gas Enhanced oil recovery would be one form of IOR Infill Wells Wells drilled into the same reservoir as know producing wells so that oil or natural gas does not have to travel as far through the formation thereby helping to improve or accelerate recovery Jack up Rig An offshore rig with retractable steel legs that are placed on the ocean floor to raise the rig above the water line Joint Operating Agreement An agreement governing the rights and obligations of co owners in a field or undeveloped acreage which defines amongst other things how costs and revenues are to be shared among the parties and who is the operator Lease A legal document executed between a mineral owner and a company or individual that conveys the right to explore for and develop hydrocarbons and or other products for a specific period of time over a given area Liquefied Natural Gas Natural gas that has been converted to a liquid by refrigerating it to 260 degrees Fahrenheit Liquefying natural gas reduces the fuel volume by 600 times enabling it to be shipped economically from distant producing areas to markets 31

INDUSTRY TERMS Natural Gas Naturally occurring hydrocarbon gases found in porous rock formations Its principal component is usually methane Non hydrocarbon gases such as carbon dioxide and hydrogen sulfide can sometimes be present in natural gas Natural Gas Liquids A general term for highly volatile liquid products separated from natural gas in a gas processing plant NGLs include ethane propane butane and condensate Net Acres The percentage that a company owns in an acreage position with multiple owners For example a company that has a 50 interest in a lease covering 10 000 acres owns 5 000 net acres Oil Sands Geologic formation comprised predominately of sand grains and bitumen a highly viscous form of crude oil Operator The entity responsible for managing operations in a field or undeveloped acreage position Permeability The permeability of a rock is the measure of the resistance to the flow of liquid through the rock High permeability means fluid passes through the rock easily Play An areas in which hydrocarbon accumulations or prospects with similar characteristics occur such as the Lower Tertiary plan in the deepwater Gulf of Mexico or the Marcellus play in the eastern United States Porosity The measure of a rock s ability to slow a fluid Porosity is normally expressed as a percentage of the total rock which is taken up by pore space Possible Reserves Additional reserves that are less certain to be recovered than probable reserves Probably Reserves Additional reserves that are less certain the be recovered than proven reserves but which together with proved reserves are as likely as not to be recovered Produced Water Water produced in connection with oil and natural gas exploration and development activities Productive Well A well that is capable of producing hydrocarbons in sufficient quantities to justify commercial exploitation Proppant Sand or man made sand sized particles pumped into a formation during a hydraulic fracturing treatment to keep fractures open so that oil and natural gas can flow through the fractures to the wellbore Proved Developed Reserves Proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well Proven Reserves Proved oil and gas reserves are those quantities of oil and gas which by analysis of geosciences and engineering date can be estimated with reasonable certainty to be economically producible as defined by the US Securities and Exchange Commission regulations and the Millennium Exploration Policy for Reserves Estimation Accounting and Reporting Recompletion The process of entering an existing wellbore and performing work designed to establish production from a new zone Reserves Estimated remaining quantities of oil and gas related substances anticipated to be economically producible as of a given date by application of development projects to know accumulations In addition there must exist or there must be a reasonable expectation that there will exist the legal right to produce or a revenue interest in production installed means of delivering oil and gas related substances to market and all permits and financing required to implement the project Reservoir A porous and permeable underground formation containing a natural accumulation of producible il and or gas that is confined by impermeable rock or water barriers and is individual and separate to other reservoirs Resources Quantities of oil and gas estimated to exist in naturally occurring accumulations A portion of the resources may be estimated to be recoverable and another portion may be considered to be unrecoverable Resources include both discovered and undiscovered accumulations Shale A very fine grained sedimentary rock that is formed by the consolidation of clay mud or silt and that usually has a finely stratified or laminated structure Certain shale formations such as the Eagle Ford and the Barnett contain large amounts of oil and natural gas Sour Gas Sour gas is a natural gas or other gas containing significant amounts of hydrogen sulfide Spacing The distance between wells producing from the same reservoir Spacing is often expressed in terms of acres and is often established by regulatory agencies Steam Assisted Gravity Drainage A process used to recover butimen that is too deep to mine A pair of horizontal wells is drilled from a central well pad In a plant nearby steam generators heat water and transform it into steam The steam then travels through above ground pipelines to the wells It enters the ground via the steam injection well and heats the bitumen to a temperature at which it can flow by gravity into the producing well The resulting bitumen and condensed steam emulsion is then piped from the producing well to the plant where it is separated and treated The water is recycled for generating new steam Sweet Gas Natural gas that contains little or no hydrogen sulfide Tight Gas Natural gas produced from relatively impermeable rock Getting tight gas out usually required enhances technology applications like hydraulic fracturing The term is generally used for reservoirs other than shale Unconventional Reservoirs Reservoirs with permeability so low generals less than 0 1 millidarcy that horizontal hydraulically fractured stimulated wells or other advanced completion techniques must be utilized to extract hydrocarbons at commercial rates Shale reservoirs such as the Eagle Ford and Barnett as well as tight reservoirs like the Bakken and Three Fork both are examples of unconventional reservoirs Undeveloped Acreage Acreage on which wells have not been drilled or completed to a point that would permit the production of commercial quantities of oil and gas regardless of whether or not the acreage contains proved reserves Unit The joining interests in a reservoir or field to provide for development and operations without regard to separate properly interests Also the area covered by a unitization agreement Waterflood An improved oil recovery technique that involves injecting water into a producing reservoir to enhance movement of oil to producing wells Wellbore The hole drilled by a drilling rig to explore for or developed oil and or natural gas Also referred to as a well or borehole Wet gas Produced gas that contains natural gas liquids Working Interest The right granted to the lessee of a property to explore for produce and own oil gas or other minerals The working interest owners bear the exploration development and operating costs 32

PARTNERSHIP PROCESS 33

NOTES 34

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