Rock Well Petroleum

POWDER RIVER BASIN
Poison Spider and Osage Fields
Operated Producing Wells and Leasehold

POISON SPIDER FIELD – Natrona County

• Current Operations
  • Located ~20 miles from Casper, Wyoming
  • 15 wells producing from the Sundance formation
  • 2 new wells on-stream in 2011 currently producing 40 BOPD and 20 BOPD with >90% oil cut
  • Identified low risk development locations to be drilled
    • 7 wells permitted, surveyed and staked
    • Additional 40 drilling locations available
  • Multiple shallow drilling targets
    • ~$300k completed well costs
    • Expected productivity of 20 BOPD and EUR of 50,000 BO
  • Potential for ASP flood
  • Shallow decline oil production with very low operating costs
  • 100% working interest / 83.5% net revenue interest
  • 118 BOPD (20˚API) gross production (November 2011)
  • PV10 of $18.2MM on PDP reserves
    • 1.4 MMBO of net remaining PDP reserves
  • ~560 gross and net acres
    • 1 HBP federal lease covering all depths
  • Infrastructure in place for 40-well expansion program

OSAGE FIELD – Weston County

• Current Operations
  • Located ~15 miles from Newcastle, Wyoming
  • 4 multi-well secondary recovery units plus non-unit wells
    • Potential for tertiary recovery projects
  • 200+ wells producing from the Newcastle formation
  • 2 development wells waiting on fracture stimulation treatment, expected IP of 20 BOPD
    • Additional 15 offsetting locations, 1 permitted
  • Multiple stacked targets – 7 sands at ~200’ to 4,000’
  • Shallow decline oil production
  • 96.7% working interest / ~77.7% average net revenue interest
  • 137 BOPD (38˚API) gross production (November 2011)
  • PV10 of $6.5MM on PDP reserves
    • 557 MBO of net remaining PDP reserves
  • Battery consolidation project underway to reduce operating costs, increase winter runtimes and reduce oil inventory levels
  • ~ 95% of leases are HBP
  • Seller owned field office and facilities

NOTE: A Confidentiality Agreement (“CA”) must be executed prior to receiving the data package. Meagher will furnish to you a CA for execution prior to any data room visit.

Seller will consider bids on the two separate fields but will give preference to bids on both fields.