Sofi Newby : simplebooklet.com

1 EXECUTIVE SUMMARY ALFREDO MANZUR GONZALEZ President CEO Sof Exploration 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 Tristan W McKinney Chief Operating Officer Alan Giradot President CEO Rush Creek Resources Alan Girardot 36 president and CEO of Rush Creek Resources is an independent Texas and Oklahoma energy entrepreneur who established Rush Creek Resources in 2014 during the initial shockwave of the most recent oil crash Prior to establishing Rush Creek Mr Girardot served as a senior executive in both private equity venture management and operations management within the upstream oil and gas sector He founded Rush Creek to capitalize on the bear energy market that he believed would facilitate the largest transfer of mineral wealth Americans have seen in a generation Since 2014 Rush Creek has expanded from an idea to 4 000 mineral acres 125 wellbores and a vertically integrated low cost operating company during an elongated period of basement oil prices Additionally Mr Girardot graduated from Texas Tech University with a B A in political science while simultaneously serving as a United States Marine during Operation Iraqi Freedom Kim Drew Geologist Kim Drew has worked mainly in vertical drilling and improving secondary recovery projects but have also developed several horizontal ideas in new target formations Additional responsibilities include managing regulatory filings such as permitting operations spacing and pooling expert testimony hearings and disposal well applications Alfredo M Gonzalez President C E O Olivia M Gonzalez Executive Director

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3 GEOLOGICAL SUMMARY Kim Drew Geological Opinion First off the sand body appears to nose out to the east and has shaled out both to the north and south This looks to be the case based on the data we have but there are no definitive dry holes to the northeast east or southeast to prove the extent of the field In other words the sand deposit and thus a additional portion of the productive field could lay in any of those directions Regional dip in this area is to the northeast and it looks as if the top of the sand body follows this pattern with the highest structural position being to the east That well the Vanorsdol 2 was originally dry holed as too shaly in 1959 but in 1964 it was reentered and converted into a saltwater injection well For years geologists have prospected by drilling up dip from waterfloods and have found many very good producers where the water has forced oil to bank up in the highest parts of the up dip pinch outs The second thing I noticed is that originally the wells we mostly perforated in just the very cleanest part of the sand body These wells would probably have been fracture treated in the early 1960 s using less than 200 barrels of fluid and 6 000 to 8 000 pounds of sand pro pend Recent work on Skinner sand producers show that perforating the entire sand body and performing larger sand fracture stimulations prove effective in getting additional oil reserves Fracture treatments of 600 barrels or more of fluid with 25 000 to 40 000 pounds of sand are now common in Skinner sand completions It may be possible to perforate additional footage in the producing wells and re frack the wells using much high pump rates and a id flakes to divert the fracture into the less porous but still oil saturated sandstone This may solve the problem of why this waterflood has not produced as much oil as has been calculated to be present and producible This document was issued by Rush Creek Resources

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10 POTENTIAL REVENUE PROJECTIONS Oil Production Estimates 6 68 BPD X 80 534 40 IPD 534 40 IPD X 30 4 Days 16 245 76 IPM 456 91 16 245 76 IPM X 2 8125 N R I 456 91 Gross Oil Proceeds Per Month estimated Oil 6 68 15 Income Monthly Income Gross Does Not Include L O E Monthly Income Gross Does Not Include L O E 25 Monthly Income Gross Does Not Include L O E 50 Monthly Income Gross Does Not Include L O E 80 85 90 456 91 485 47 514 02 1 026 1 090 12 1 154 25 1 710 1 816 87 1 923 75 3 420 3 633 75 3 847 50 Annual return 10 50 Potential Oil Production 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

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16 COMPANY PORTFOLIO TEXAS LOUSIANA Sofi Prescott Joint Venture 2022 Funding Sofi Elite III A P I Operator State Coming Soon New Century Exploration Louisiana A P I Operator State Joint Venture 2022 Finalized Funded Producing 42 203 35452 New Century Exploration Sofi Elite II A P I Operator Joint Venture 2022 Finalized Funded Producing 42 203 35452 New Century Exploration Sofi 7 A P I Operator Joint Venture 2022 Funded Transfer Sofi Gold I II III Joint Ventures 2021 Finalized Funded Producing Sofi Blue Joint Venture 2021 Finalized Funded Producing Sofi Prime Joint Venture 2020 Funded Non Commercial Transfer Not Applicable New Century Exploration A P I Operator 42 239 33959 New Century Exploration A P I Operator 42 239 33958 New Century Exploration A P I Operator 17 015 24570 New Century Exploration East Texas State East Texas State Texas State Texas State Texas State Lousiana

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17 COMPANY PORTFOLIO TEXAS LOUSIANA Sofi Liv Joint Venture 2020 Funded Non Commercial Transfer Sofi Phoenix Joint Venture 2019 Finalized Funded Producing Sofi Tyler A P I Operator State 42 419 314220 New Century Exploration Texas A P I Operator State 42 203 35385 New Century Exploration Texas A P I Operator State Joint Venture 2019 Finalized Funded Producing 42 457 30557 New Century Exploration Sofi Sands A P I Operator Joint Venture 2019 Finalized Funded Producing 42 241 33187 New Century Exploration Sofi Elite I A P I Operator Joint Venture 2018 Finalized Funded Producing Sofi Victoria Marie Joint Venture 2018 Funded Non Commercial Sofi Gold Coast Joint Venture 2017 Funded Non Commercial 42 203 35314 A P I 42 391 33187 New Century Exploration Texas State Texas State Texas Operator State Millennium Exploration Texas A P I Operator State 42 089 32747 Millennium Exploration Texas

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18 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 45 000 x 80 36 000 1 028 57 37 028 57 B C 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 37 028 57 x 35 12 960 Total Deduction estimate Maximum Income Tax Bracket TOTAL FIRST YEAR CASH VALUE OF DEDUCTIONS estimate 45 000 12 960 32 040 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

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19 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

Sofi Newby

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