Langdon Development, LLC

MISSISSIPPIAN OSAGE HORIZONTAL OIL PLAY
135,000 Acres of Contiguous Leasehold, 100% WI
Reno, Rice and McPherson Counties, Kansas

• Cash sale of Langdon Development, LLC, Membership Interests
• LLC sole asset –
  • 135,000 geologically targeted contiguous net acres of new leases with at least 82.5% NRI, 100% WI
  • Favorable lease terms – 8 ½ years remaining including right of first refusal to 3rd party lease terms
  • Leases include lessor approval of voluntary pooling and horizontal spaced drilling
• Mississippian Osage formation
  • Log analysis equivalent to the most successful Mississippian completions in Woods Co., OK
  • Unique reservoir characteristics, differentiated from Oklahoma Mississippi Lime
  • Formation depth 3,500' to 4,000'; 50' pay thickness
• Prime candidate for horizontal drilling, stage fracking and modern produced water management techniques
  • Oilfield infrastructure readily available - rural electric, gas pipelines, and wellsite services
  • Excellent frac containment by Penn shale above and Kinderhook shale below
  • Arbuckle water disposal zone at 5,000'
• Expected recovery 250,000 bbl oil and 1 BCF gas per 320 acre unit
  • Adjacent Osage fields produced 60 million bbl oil with conventional vertical wells
    

NOTE: A Confidentiality Agreement ("CA") must be executed prior to scheduling a Technical Presentation.