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POTENTIAL REVENUE

This lease with successful new wells has the potential of a high return on
investment. Once new production is established, we will have new
updated data on the upper pay zones using better technologies than in

the past. This will allow a Petroleum Engineer to place a valuation on
this lease.

If the valuation is similar to the statement on the Geologist report, each
well could produce a total of 100,000 BO from all pay zones. If all 5
wells are successful, at the current $53.00 per barrel oil price the lease

could be worth over $19,875,000.00 for 75% NRI (based on potential
reserves of 500,000 BO). However, in order to produce from all zones,
many additional shallower wells would need to be drilled at a lower cost.

On a monthly revenue basis, based on the Initial Production of the older
wells, these 5 new wells could settle in (after higher initial production) at
about 200 to 300 BOPD cumulatively. This would result in a 150 to 225
BOPD net after the 25% royalty. At current oil prices, the return could

be as much as $358,000.00 per month (with 225 BOPD net). At 150
BOPD net, the monthly revenues would be approximately $238,500.00.
Keep in mind that it will take about 3 months to drill and complete all 5

wells.

Should these wells be successful, our recommendation is to have
everyone realize “payout” and hold the field for 2+ years. At that point,

this field could be sold to an entity that purchases producing wells at a
good profit. We have used this model over the past 10 years and it has
made us and our working interest partners a great deal of money.

NOTE: All possible projections are estimates only.

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