Page 14 - Petrospex_Elaine Prospect

Hydrocarbons are present as indicated by commercial oil production and shows in the lease acreage. This
production was extremely underdeveloped. These factors combined with modern completion and
production methods make this prospect a high percentage for further commercial production. Using the
offset wells as a baseline, the initial well has the potential for reserves of ~100,000 BO if all pay zones are
found to have oil production.

All of the data used in creating this prospect was obtained through IHS production data and individual
research.

In summary, all the elements for establishing oil production are present: a trapping mechanism, reservoir
rock and the presences of hydrocarbons. With the numerous reservoirs available in this area this prospect
is a relatively low risk opportunity given the potential for return on investment. Thank you for your time
and feel free to contact me with any questions regarding this prospect in the future.

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