Golden State Oil and Gas, LP

CURRENT OPERATIONS

• Seller is operator of entire project area (contracted to WEO)
• Ashley Valley Unit – 1080 acre federal development unit
  • Weber/Park City formations unitized in 2008
  • 12 unit wells at an average depth of 4,100 feet
  • 87.87% working interest / 74.80% net revenue interest
• 2 Entrada formation wells at an average depth of 2,000 feet
  • 100% working interest / 81.25% net revenue interest
• Projected March 2010 production / cash flow
  • 3,445 gross BO / 2,589 net BO
  • $93,461 net monthly cash flow

UPSIDE POTENTIAL

• CO2-EOR growth opportunity project
  • Analogous to successful Weber/Tensleep CO2 projects at Rangely and Lost Soldier Fields (located SE and NE of Ashley Valley Field)
  • Ashley Valley Unit reservoir identified in DOE report as a qualified Rocky Mountain region miscible CO2-EOR project
  • Initial testing and monitoring of reservoir characteristics in process
  • CO2 pipeline with excess capacity within six miles of Ashley Valley Field
  • 20 plugged wells available for reentry / redevelopment to expand project
  • Surface discharge system has capacity for additional produced water
• Production optimization opportunities for unit and non-unit wells
  • Completion modifications
  • Pump installations
  • Reactivation of idle wells