Sofi Three Hills Joint Venture : simplebooklet.com

1 EXECUTIVE SUMMARY ALFREDO M GONZALEZ President CEO Sof Exploration Alan Girardot President CEO Rush Creek Resources 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 Girardot 37 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

Page 3

2 GEOLOGICAL SUMMARY Kim Drew Geological Opinion The Three Hills Prospect is a stratigraphic trap play in the Layton Jones Prue Red Fork Bartlesville Gilcrease and Misener sandstones There is also interesting potential in the Oswego Limestone and in the Wilcox sand The prospect consists of eighty acres described as the east half of the Southeast quarter of Section 17 in Township 17 North Range 8 East Creek County Oklahoma A field of this size could easily support four to six vertical wells developed on a conservative development plan With expected reserves of between 20 000 to 70 000 barrels of oil per well this translates into reserves of 80 000 to 280 000 barrels producible from the Three Hills Prospect The Prospect acreage is a gently rolling open field with three small hills across its center Drilling any location on this lease will not present any problems Natural gas sales lines crisscross this area making it possible to sell any gas produced quickly and efficiently Although I don t expect any saltwater with our oil and gas production from these formations there is a commercial saltwater disposal well just over one half mile to the west If we do make any associated saltwater it could be dealt with by trucking or even by laying a short disposal line This area is primarily in the northern end of the Seminole uplift where it abuts the Cherokee Platform This area is the flexure point that created an abundance of small structural anomalies This area of Creek County has had very good oil and gas production from over half a dozen formations ranging from 600 to 4000 feet deep This prospect was identified after a detailed study was conducted covering seventy two square miles All of the newest data as well as the very old well records were analyzed and plotted to create my geologic maps Piecing together this old and new data is in essence a treasure hunt to find the best geologically supported places to drill that are available to lease I have been doing these treasure hunts for over thirty three years and I think highly of the Three Hills Prospect This document was issued by Rush Creek Resources

Page 4

Page 5

Page 6

Page 7

Page 8

Page 9

Page 10

Page 11

Page 12

Page 13

Page 14

13 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 3 80559 N R I 618 24 16 245 76 IPM X 618 24 Gross Oil Proceeds Per Month estimated Oil 6 68 25 Income Monthly Income Gross Does Not Include L O E Monthly Income Gross Does Not Include L O E 50 Monthly Income Gross Does Not Include L O E 100 Monthly Income Gross Does Not Include L O E 75 80 85 579 60 618 24 656 88 2 169 18 2 313 79 2 458 41 4 338 37 4 627 59 4 916 82 8 676 74 9 255 19 9 833 64 Annual return 0 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

Page 15

14 COMPANY PORTFOLIO OKLAHOMA OPERATOR NUMBER OKLAHOMA 734825 TEXAS 23895 Sofi Newby Joint Venture 2023 Funded Drilling Permit ready A P I Operator State Waiting On Permit Rush Creek Resources Oklahoma Sofi Carr III A P I Operator State Waiting On Permit Rush Creek Resources Oklahoma A P I 3503704467 3503704466 Operator State Rush Creek Resources Oklahoma A P I Operator State 3503704457 Rush Creek Resources Oklahoma Joint Venture 2023 Funded Sofi Fox Joint Venture 2022 Funded Awaiting Frac Stimulation Sofi Carr Joint Venture 2022 Finalized Funded Producing Sofi Drake Joint Venture 2022 Finalized Funded Producing A P I Operator State 3503704457 Rush Creek Resources Oklahoma Sofi Michigan A P I Operator State 35037291380000 Rush Creek Resouces Oklahoma Joint Venture 2022 Funded Non Commercial Transfer

Page 16

Page 17

16 COMPANY PORTFOLIO TEXAS LOUSIANA OPERATOR NUMBER LOUSIANA N099 TEXAS 606055 Sofi Elite III A P I Operator 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 State East Texas State East Texas State Texas State Texas State Texas State Lousiana

Page 18

17 COMPANY PORTFOLIO TEXAS LOUSIANA Sofi Liv OPERATOR NUMBER LOUSIANA N099 TEXAS 606055 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

Page 19

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 50 000 x 80 40 000 1 142 86 41 142 86 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 41 142 86 x 35 14 400 Total Deduction estimate Maximum Income Tax Bracket TOTAL FIRST YEAR CASH VALUE OF DEDUCTIONS estimate 45 000 14 400 35 600 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

Page 20

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 Three Hills Joint Venture

Page 1

Page 2