Black Diamond Minerals, LLC

COLORADO PICEANCE BASIN
Tepee Park Ranch Development Program

Tepee Park Ranch Development Drilling Program

• Joint Venture Opportunity
  • Black Diamond is seeking a partner to jointly develop 580 acres located within its Tepee Park Ranch in Colorado’s Piceance Basin
  • Black Diamond management team with extensive operational and geological expertise in the Piceance Basin will act as operator
  • Drilling Program
    • Will include drilling, completing, and producing Williams Fork natural gas wells
    • Planned start of drilling program is July 1, 2010 and it will continue through 2013 to drill 58 wells on 10-acre spacing
    • Construction of two well pads has been completed
    • Estimated net production is expected to peak in 2013 at 22.6 MMCFEPD and develop 79 BCFE of reserves (8/8’s)
    • Estimated total project capital expenditures is $121.7 million (8/8’s) with ~$73.7 million funded from cash flows
    • Black Diamond owns surface to facilitate permitting process
  • Up to 50% working interest available
  • 85% delivered net revenue interest
  • Land title evaluation is complete
  • Program could be expanded to include an additional 1,080 acres of adjacent acreage upon mutual agreement of parties
  • Potential partners will be required to submit proposals including an upfront well commitment and/or cash payment

                           Tepee Park Ranch Acreage