Fountainhead Resources, Ltd

DJ BASIN
Wattenberg Field
Producing Wells and Leashold

The Fountainhead Wattenberg Field acquisition opportunity includes an
existing production base with identified conventional upside potential
and significant unconventional upside potential in the Niobrara Oil Play

• Current Operations
  • 27 operated wells / 10 non-operated wells
    • Non-operators include Anadarko, Noble, Petroleum Management and HRM Resources
  • Majority of operated wells are 100% working interest
  • Projected August 2011 production / cash flow
    • 6,159 BOE gross production
    • 2,583 BOE net production
    • $130,095 net monthly cash flow
  • Production from the Codell/Niobrara at ~7,000 feet
  • ~1,960 gross acres / ~1,705 net acres
    • All fee HBP leases
    • Offering is from surface to base of Codell
• Upside Potential
  • Low risk PUD’s
    • 22 20-acre offset locations and 40 undrilled locations
    • $705,000 average drilling and completion cost
  • Inexpensive, repeatable refracs
  • Notice has been received from non-operators of 7 proposed wells for spacing units that include portions of seller’s acreage