Huge Mancos Gas Potential San Juan Basin New

Huge Mancos Gas Potential San Juan Basin, New Mexico

SJR Mc. Simms Unit BP 10 Mancos Wells Permitted BH Mancos 1 Mile Lateral; 6. 5 Bcf EUR WPX Mancos 2 Mile Lateral; 13 Bcf EUR 660 Mancos HZ Locations San Juan Resources (SJR) Assets Ø 26 Years in the San Juan Basin Ø 38 operated, 300+ non-op, RI-OR wells ØAcquires acreage, drills, and operates. ØOver 20, 000 acres accumulated in the San Juan Basin since 2011.

130 Tcf Mancos Gas Potential WPX Rosa 640 H 10, 000’ Lat-- 13 mm EUR BP NEBU Mancos NEBU 602 H 13 mmcfd—month sustained (7/17) BH Mancos 1 Mile Lateral; 5. 9 Bcf EUR MCSIMMS UNIT Mancos Dry Gas Resource Play 1910 Sq. Miles (1. 2 Million Acres)

A Mancos Niobrara C Structure Map (CI=50’) Mancos Niobrara A, B & C > 20 Ohms (CI=20’) Mancos Geology SJR Unit: 400’ High Resistivity Sands/Silts Encased in Mancos shale. Subtle Northerly Dip into Basin A’ WPX 640 H 2 Mile Lateral EUR: 13 Bcf A BH Mancos 1 Mile Lateral; 5. 9 Bcf EUR SJR HZ Red, Black & Olive Tests Red Test Red Black Test Black Olive Test A’

Mancos Niobrara C Structure/Olive Top (CI=50’) Mancos Niobrara Total Thickness > 20 Ohms (CI= 20’) SJR Mc. Simms Unit • Mancos Gas Project (Analog WPX & BP) • 5, 428 Gross Acres • SJR Operates unit, Net WI 37% • 32 -10, 000’ Lateral Mancos Wells Planned, Olive & Black Zones, 208 Bcf/Section • 16 Additional Red Wells Zones, 80 Bcf/Section Potential • 416 Bcf Gross Reserves (Olive & Black) • 220 Mmcfd Peak Production (Olive & Black) • NET PV 10 Gross $218 MM (Olive & Black) SJR HZ Red, Black & Olive Tests Mancos Penetrations Only BH Mancos 1 Mile Lateral; 5. 9 Bcf EUR

Rate & Reserves: 5. 8 bcf 5, 000 ft Rosa 634 a to 13. 1 bcf 10, 000 ft. Mc. Simms Decline Curve Analysis of Rosa Unit 634 a § 2010 completion § 5, 000 ft lateral • 5. 8 bcf • Moderate completion 12 frac stages Simulation of 10, 000 ft lateral with 70 frac stages A Mc. Simms 10, 000 ft lateral will produce 13. 1 bcf (Pmean) IP 15 MMcfd flat 8 months Interdisciplinary process allows confident prediction of Mc. Simms rate and reserves Mc. Simms SJR 37% WI Size of Prize: @ GCT= $0. 50 Net Reserves, Bcf: 122 PV 10 , $MM: $55. 6 IRR: 98% Peak Net WI Production, MM/d: 82 7

Huge Mancos Gas Potential San Juan Basin, New Mexico