Undisclosed Seller

NORTHERN DJ BASIN
Horizontal Niobrara Acreage and Other
Conventional and Unconventional Opportunities
Weld County, Colorado and Laramie County, Wyoming

Excellent opportunity to develop Niobrara oil reserves
in a highly prospective part of the Northern DJ Basin
along with the potential to establish production in
other formations in a historically productive area.

Acreage Setting

• Acreage block located in the center of the Northern DJ drilling activity
• Numerous permitted wells targeting the Niobrara in close proximity to leases
  • Over 600 active Niobrara, Codell and “J” Sandstone
    horizontal permits and producing wells in the DJ Basin
• Greater Wattenberg area emerging as the Niobrara sweet spot
• Seller has received AFE from Carrizo and notice of permit from PDC for
  new wells in spacing units that include portions of the acreage
• Surrounded by experienced operators including EOG, Noble, Anadarko,
  Carrizo, Whiting, SM Energy, Chesapeake and PDC

Leasehold Information

• ~4,657 gross acres / ~2,611 net acres in Weld County and
  ~5,885 gross acres / ~4,390 net acres in Laramie County
  • 100% working interest / 80% net revenue interest
  • Seller controls operatorship in all but two potential spacing units
  • New paid-up fee leases covering all depths
  • Majority of leases have a 5-year term with 3-5 year extensions
  • Operator friendly Surface Use Agreements in place for
    most of leases
  • ~2,000 additional net acres in process in Weld County

Upside Potential

• Horizontal resource play potential in the Niobrara and Codell Formations
  • Multiple horizontal wells per section with down-spacing pending
• Potential in deeper conventional and unconventional targets in the
  Greenhorn and Dakota “J” Formations
• 3D seismic data from shoots completed or in process covering substantially
  all of acreage will be available from 3rd party vendors
• Plentiful “resource play” water supply from surface ponds and municipal
  sources