Moya Little, President
Western Divestments
Suite 105, 214 - 11 Avenue SE,
Calgary, Alberta, Canada
T2G 0X8

Phone: (403) 543-4080

> Economics

SBJ ZAVALA COUNTY CAPEX AND
ECONOMICS STAGES ONE AND TWO

STAGE 1 – 4 DRILLED WELL PROGRAM – SIDTRACK, RE-COMPLETE AND TIE IN

BUDA (4 LATERALS)

CAPEX/WELL             $2.0 MM
IP                                  440 BOPD (5% WC)
5YR EUR/WELL          260 MBO

PAYOUT                        1 YEAR
NPV10/WELL              $4.6 MM
IRR                                61%

EAGLE FORD AND AUSTIN CHALK (4 LATERALS)

CAPEX/WELL              $2.0 MM
IP                                   740 BOPD (5% WC)
5YR EUR/WELL          438 MBO
PAYOUT                        <1 YEAR
NPV10/WELL              $7.6 MM
IRR                                 91%

STAGE 2 – 10 WELL DEVLOPEMENT PROGRAM

EAGLE FORD               (20 LATERALS)
CAPEX/WELL              $2.7 MM
IP                                   450 BOPD (5% WC)
5YR EUR/WELL           258 MBO

PAYOUT                        < 2 YEARS
NPV10/WELL              $5.1 MM
IRR                                60%