Page 12 - Petrospex_Elaine Prospect

It should be noted by Prospective Purchasers that significant risks exist that could prevent an oil
and gas operator from successfully completing a particular well even though test results would
unquestionably compel a prudent operator to attempt to complete such well. The physical acts of
completing and equipping a well for the production of hydrocarbons, and the treatment and
stimulation of subsurface geologic formations are complex, and often require techniques at the
frontiers of applicable science and technology. The mere fact that the Operator may call for a
completion attempt after analyzing the results of drilling and testing the project well should not
be construed as a representation that the well will be a commercial success.

There is no guarantee the prices received for any oil or gas in the future or at the time of
completion will render the well(s) commercial. Furthermore, there is no guarantee the state or
federal government will not institute further price controls or regulations on the wells.

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