Introduction

The assets include 44 producing wells (37 operated) on 7,700 gross acres (6,922 net acres), where Sojitz operates 37 wells. A third-party engineering report performed by Netherland, Sewell & Associates, Inc (NSAI), supports a Total Net Proved PV10 of $36,201,400 as of Year-End 2016. An updated reserve report as of YE 2017 will be released early January. Current net production is ~4.0 MMcfed (95% gas) with volumes expected to reach 5.0-6.0 MMcfe/d with the addition of 2 wells to be recompleted late December 2017.

The Taylor Sand (Cotton Valley) has significant upside based on nearby activity. There has been active horizontal drilling offsetting Unit in eastern Rusk County, including the Marks-Poovey #1H which came online in January 2015 at 9.4 MMcfe/d (30 day IP). On Brady/White Gas Unit, there is de-risked infill acreage to drill up to six >5,000’ horizontal Taylor Sand wells (at 1,000’ spacing) which have a normalized 5.3 Bcf EUR/well in the area. Nearby development shows potential of >2 Bcf/1,000’ lateral EUR resulting in 10 Bcf EUR/ well. Additional proved locations via drilling vertical Haynesville Lime infill wells.

Total Proved Reserves: 59.8 Bcfe (YE 2016) • Total Proved PV10: $36.2MM (YE 2016) • 6 Infill Hz Locations for Taylor Sand in “Sweet Spot” in Rusk Co. • Blocky Acreage to Drill >5,000’ Laterals • 1 Haynesville Lime Well Completed Nov. 2017 • 2 Wells to be Recompleted by YE 2017 • Vertical Haynesville Lime D&C $2.0MM delivering EUR of 3.0 Bcf • 2 Roseberry Sand Hz Locations in Panola Co. • SWD Permit in Panola Co. • Anticipated Net Production: 5.0-6.0 MMcfe/d • Offset Well: 9.4 MMcfe/d IP30 • Very Active Buy Area

44-Producing Wells. 6,922 Net Acres. Majority Operated Anticipated Net Production: 5-6 MMcfe/d Proved Infill Hz Locations Ready to Drill Solid Assets to Build Company Proved PV10: $36,201,400