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1 Executive Summary ALFREDO MANZUR GONZALEZ President CEO Sof Exploration PHIL MARTIN President CEO New Century Exploration Inc Alfredo M Gonzalez is the President and CEO of Sofi Exploration Mr Gonzalez is a sought after influential leader For the last 10 years his forte is offering proficient Good Practice Guidance aligning high production Asset Development opportunities in the Oil and Gas sectors with sophisticated investors who are in the market to expand their Cash Flow and Tax Advantage positions His corporate Vision for Sofi Exploration is to be the energy company most admired for its people partners and performance His corporate mission is to build successful partnerships based on 7 established pillars High Performance Integrity Transparency Trust Verification and Protecting Partners and the Environment His immense knowledge and innovative counsel regarding asset development programs in the industry confirms the confidence of vigorous partnerships and superior offerings from the industry s leading and selective Operators Drilling Corporations and Completion Companies Mr Gonzalez continues to develop an extensive vetting process compelling industry leaders to perform at the highest levels for investor participation and production achievement The corporate goals are capital development drilling completion production success and continuous liquidity development for his associates and partners 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 regarding unconventional resources Phil is a member of various professional organizations 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 the University of Louisiana He is involved with various community and charitable organizations and serves on the board of the Pearl Fincher Museum of Fine Arts and the Centrum League Alfredo M Gonzalez President C E O RYAN SESSIONS Senior Petroleum Engineer Mr 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 an expert at most oil industry technology and software including PhdWin Kingdom IHS TGS DrillingInfo and Spotfire He is an active member of the Society of Petroleum Engineers Tristan W McKinney Cheif Opperating Officer Olivia M Gonzalez Executive Director

2 Executive Summary KEY SUCCESS FEATURES 3D DHL Direct Hydrocarbon Indicator Amplitude Anomaly Shallow gas low risk low cost high return EUR 945 MMCF IRR 5 MCF 111 ROI 389 Payout 11 months The Blue Star Prospect is a shallow 3D seismic gas anomaly similar to the New Century 1 Kallus that has produced over 300 000 MCF of gas since its completion in 2020 with zero declines in 18 months of production 3D seismic is very accurate in identifying shallow gas reserves New Century previously had 100 success with 13 similar 3D seismic anomalies in Lavaca County The 2 closest producers 1 525 southeast to Blue Star produced 348 MMCF from a smaller area 27 acres The Blue Star amplitude anomaly is larger 42 acres and brighter indicating greater sand thickness volume and gas reserves The EUR of the New Century 1 Kallus is 840 MMCF from 35 acres and a similar amplitude This is a low cost opportunity to drill and produce a shallow high return gas well while gas prices are strong and demand high The surrounding area contains dozens of other gas reservoirs with similar seismic attributes

3 OIL GAS LEASE Jackson County

4 Blue Star Amplitude Map

5 Blue Star 1 Vs Kallus 1

6 Seismic Wheel Location

7 Blue Star Map

8 DRILLING COMPLETION AFE Depending upon market conditions Subject to be changed

Reserves Terms Economics This document was issued by New Century Exploration Any additional markup or promotion is not officially calculated on these terms You will find the current markup or promootion located in our CIM

10 Estimated Partnership Economics Working Interest Participation Working Interest W I 40 Net Revenue Interest N R I 22 5 Participation Drill Test D N T Completion Upon Approval C U A Total Capitalization 405 000 240 000 165 000

11 POTENTIAL REVENUE PROJECTIONS RICH NATURAL GAS P 50 Estimated Results 750 MCF X 5 00 3 750 IPD 3 750 IPD X 30 4 Days 114 000 IPM 114 000 IPM X 22 50 N R I 25 650 25 650 2 000 L O E 23 650 IPU 23 650 Gas Proceeds Per Month estimated MCF p d 550 750 950 Income L O E 4 00 5 00 6 00 Monthly Income 15 048 00 18 810 00 22 572 00 Estimated Operating Expenses L O E 2 000 2 000 2 000 Monthly Income 20 520 00 25 650 00 Estimated Operating Expenses L O E 2 000 2 000 Monthly Income 25 992 00 32 490 00 38 988 00 Estimated Operating Expenses L O E 2 000 2 000 2 000 30 780 00 2 000 Annual return 10 50 Potential Premium Natural Gas Liquids Payout 24 month payment 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 L O E LEASE OPERATING EXPENSES these numbers were formulated based on first annual rate of return without expenses and depletion rates These calculations are estimates only and do not reflect any guarantees

12 TAX INCENTIVES Congressional Incentives Encourage Domestic Petroleum Development Oil and Natural Gas from domestic reserves helps to make our country more energy self sufficient by reducing our dependence on foreign imports In light of this Congress has provided tax incentives to stimulate domestic natural gas and oil production financed by private sources Drilling projects offer many tax advantages and these benefits greatly enhance the economics The incentives are not Loop Holes they were placed in the Tax Code by Congress to make participation in oil and gas ventures one of the best taxadvantaged investments Intangible Drilling Cost Tax Deduction The intangible expenditures of drilling labor chemicals mud grease etc are usually about 65 to 80 of the cost of a well These expenditures are considered Intangible Drilling Costs IDC which are 100 deductible during the first year For example a 100 000 investment could yield up to 80 000 in tax deductions during the first year of the venture These deductions are available in the year the money was invested even if the well does not start drilling until March 31 of the year following the contribution of capital See Section 263 of the Tax Code Tangible Drilling Cost Tax Deduction The total amount of the investment allocated to the equipment Tangible Drilling Costs TDC is 100 tax deductible In the example above the remaining tangible cost 25 000 may be deducted as depreciation over a seven year period See Section 263 of the Tax Code Active vs Passive Income The Tax Reform Act of 1986 introduced into the Tax Code the concepts of Passive income and Active income The Act prohibits the offsetting of losses from Passive activities against income from Active businesses The Tax Code specifically states that a Working Interest in an oil and gas well is NOT a Passive Activity therefore deductions can be offset against income from active stock trades business income salaries etc See Section 469 c 3 of the Tax Code Small Producers Tax Exemption The 1990 Tax Act provided some special tax advantages for small companies and individuals This tax incentive known as the Percentage Depletion Allowance is specifically intended to encourage participation in oil and gas drilling This tax benefit is not available to large oil companies retail petroleum marketers or refiners that process more than 50 000 barrels per day The Small Producers Exemption allows 15 of the Gross Income not Net Income from an oil and gas producing property to be tax free Lease Costs Lease costs purchase of leases minerals etc sales expenses legal expenses administrative accounting and Lease Operating Costs LOC are also 100 tax deductible through cost depletion Alternative Minimum Tax Prior to the 1992 Tax Act working interest participants in oil and gas ventures were subject to the normal Alternative MinimalTax to the extent that this tax exceeded their regular tax This Tax Act specifically exempted Intangible Drilling Cost as a Tax Preference item Alternative Minimum Taxable Income generally consists of adjusted gross income minus allowable Alternative Minimum Tax itemized deduction plus the sum of tax preference items and adjustments Tax preference items are preferences existing in the Code to greatly reduce or eliminate regular income taxation Included within this group are deductions for excess Intangible Drilling and Development Costs and the deduction for depletion allowable for a taxable year over the adjusted basis in the Drilling Acreage and the wells thereon

13 TAX BENEFITS EXAMPLE THE BASIC TAX CONSIDERATIONS INVOLVED IN AN OIL GAS INVESTMENT 1 INTANGIBLE DRILLING COSTS Up to 80 of the investment amount constitutes what is known as intangible Drilling Costs IDC and is deductible against active passive or portfolio income in the first year incurred This includes all labor related costs for the prospect well Including but not limited to drilling contractors professional services and others The total amount of IDC is reported to each participant at the end of the year Please consult with your tax advisor for further details 2 TANGIBLE DRILLING COSTS Approximately 20 of the amount of costs to drill the well constitutes Tangible Drilling Costs TDC This includes but is not limited to all well equipment piping storage tanks wellhead equipment lease expenses and others The exact amount will be determined after the well is drilled This portion of an investment is depreciated over a seven year period Please consult with your tax advisor for further details ESTIMATED TAX INVESTMENT EXAMPLE A B C 240 00 x 80 192 000 5 486 197 486 Investment Amount Intangible Drilling Costs estimate 1st year deductions of intangible drilling costs estimate 1st year depreciation deduction estimate 91 000 x 20 divided by 7 years TOTAL FIRST YEAR TAX DEDUCTIONS estimate 197 486 x 35 69 120 Total Deduction estimate Maximum Income Tax Bracket TOTAL FIRST YEAR CASH VALUE OF DEDUCTIONS estimate 240 000 69 120 170 880 Investment Amount Actual Cash Savings from Tax Deductions estimate AFTER TAX CASH INVESTMENT estimate 3 DEPLETION ALLOWANCE Currently the depletion allowance is 15 This means that fifteen cents of every dollar is tax free Please consult with your tax advisor for further details 4 STATE INCOME TAXES State income taxes could add substantial additional savings however they may vary from state to state Please consult with your tax advisor for further details

14 K 1 FORM EXAMPLE

15 K 1 FORM EXAMPLE

16 VENTURE PROCESS

17 CERTIFICATE OF LIABILITY INSURANCE

18 Industry Partners References New Century PHIL MARTIN Exploration Inc PRESIDENT CEO PHILMARTIN NEWCENTURYEXP COM O 281 684 7000 D 713 857 0119 ALFREDO MANZUR GONZALEZ PRESIDENT CEO ALFREDO SOFIEXPLORATION COM O 469 802 0332 D 214 514 9022 REFERENCES KITTELSON LAW OFFICE DOUG KITTELSON DOUG KITTELSONLAW COM WWW KITTELSONLAW COM O 214 734 2700 C 214 704 5721 CATHY GRUEN CATHY HENSLEYCPAS US WWW HENSLEYCPAS US O 214 390 9071 C 972 977 5678 MINDY GAYER BUSINESS DEVELOPMENT MANAGER MGAYER THEENTRUSTGROUP COM O 615 569 9122

19 Industry Terms

20 Industry Terms

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