Introduction

Premier position in the oil core of the Delaware Basin ▪ 2,880 surface acres in Pecos Co., TX ▪ Average 85% operated WI available ▪ Significant running room for horizontal development ▪ Hearing offers on individual horizons (Wolfcamp, Bone Spring, Woodford) Development Potential ▪ Ready to drill, high impact acreage position ▪ Stacked pay intervals of Bone Spring & Wolfcamp for horizontal development ▪ Woodford shale exploration in the area represents significant new development potential Area Activity ▪ Recent optimized completions in the area with promising results. >1.2 MMBOE EUR ▪ Excellent offset IP rates with high oil cut percentage in Bone Spring & Wolfcamp (~1,500 BOED) ▪ Operators such as Jagged Peak are actively derisking the area proving up additional horizons of the Bone Spring & Wolfcamp