Mid-Continent Energy Exchange

ZahorskyOperated Lease in Barton County, Kansas

Sec 14 T20S-R11W

Chase-Silica FieldAt a glance:

99% GWI 82.031250% NRI

Operated by Edison Operating Company LLCCrude purchased by CHS

Oil Gravity: 43

This information is provided by the seller and therefore the information contained is not guaranteed by Mid-Continent Energy Exchange. All buyers are expected to do their own due diligence.

ZAHORSKY LEASE

ZAHORSKY 9 'OWWO'PUMP RAN- TBG PUMPPUMPING UNIT- NATIONAL 228 W/100" STROKEPRIME MOVER- 40 HP ELECTRICGUN BBL- 10'X15'STOCK TANKS- 3 12'X10' STOCK TANKSWATER TANKS- 8'X16' FWKOWATER DIPOSAL- TO CHARLES SESSLER #4A SWD ; N/2 N/2 SW/4 SECTION 24-20S-11W

ZAHORSKY 10PUMP RAN- ELECTRIC SUBMERSIBLEPUMPING UNIT- n/aPRIME MOVER- n/aGUN BBL- 10'X15'STOCK TANKS- 3 12'X10' STOCK TANKSWATER TANKS- 8'X16' FWKOWATER DIPOSAL- TO CHARLES SESSLER #4A SWD ; N/2 N/2 SW/4 SECTION 24-20S-11W

ZAHORSKY 11PUMP RAN- ELECTRIC SUBMERSIBLEPUMPING UNIT- n/aPRIME MOVER- n/aGUN BBL- 10'X15'STOCK TANKS- 3 12'X10' STOCK TANKSWATER TANKS- 8'X16' FWKOWATER DIPOSAL- TO CHARLES SESSLER #4A SWD ; N/2 N/2 SW/4 SECTION 24-20S-11W

ZAHORSKY 12PUMP RAN- 2 ¼” X 4’ METAL PLUNGER (TBG PUMP)PUMPING UNIT- LUFKIN 228 W/ 96” STROKEPRIME MOVER- 40 HP ELECTRICGUN BBL- 10'X15'STOCK TANKS- 3 12'X10' STOCK TANKSWATER TANKS- 8'X16' FWKOWATER DIPOSAL- TO CHARLES SESSLER #4A SWD ; N/2 N/2 SW/4 SECTION 24-20S-11W

ZAHORSKY 13PUMP RAN- ELECTRIC SUBMERSIBLE- SET TO MOVE 800-1200 BTFPDPUMPING UNIT- n/aPRIME MOVER- n/aGUN BBL- 10'X15'STOCK TANKS- 3 12'X10' STOCK TANKSWATER TANKS- 8'X16' FWKOWATER DIPOSAL- TO CHARLES SESSLER #4A SWD ; N/2 N/2 SW/4 SECTION 24-20S-11W

This information is provided by the seller and therefore the information contained is not guaranteed by Mid-Continent Energy Exchange. All buyers are expected to do their own due diligence.

EOC County: Barton Zone: Arbuckle Initial Rate: W.I.: 1.00% Purchaser: NCRA API#: 15-009-24483-0001 #9

Zahorsky 9,10,11,12,13 State: Kansas Perfs: 3268'-3274' #9 10 BOPD NRI: 0.82031250 BTU: n/a 15-009-25167-0000 #10

14-20S-11W Field: Chase-Silica 3272'-3276' #10 15 BOPD Purchase: 9/1/2012 Oil Gravity: 43 15-009-25313-0000 #11

Spud Date: 7/18/1991 3277'-3281' #11 15 BOPD RTD: 3274 15-009-25475-0000 #12

First Sale: 12/1/1935 Zahorsky #1 3264'-3270' #12 12 BOPD KDOR#: 104516 15-009-25598-0000 #13

3262'-3264' #13 12 BOPD CSG 5.5

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 17' Total 16' Total 15' Total 14'

Gross Oil Revenue (100%) $23,214.11 $22,911.94 $24,108.88 $36,452.15 $22,187.63 $28,270.57 $25,724.40 $19,463.32 $20,817.63 $29,344.35 $30,066.51 $42,914.90 $325,476.39 $299,718.14 $580,717.85 $0.00

Gross Oil Prod. Taxes $56.73 $55.48 $57.44 $92.86 $55.05 $73.48 $71.18 $52.40 $54.37 $74.67 $73.80 $96.91 $814.37 $4,462.84 $1,459.09 $22,982.47

Gross Gas Prod. Taxes $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Gross Oil Revenue $23,157.38 $22,856.46 $24,051.44 $36,359.29 $22,132.58 $28,197.09 $25,653.22 $19,410.92 $20,763.26 $29,269.68 $29,992.71 $42,817.99 $324,662.02 $295,255.30 $579,258.76 $75,631.35

Net Revenue $18,996.29 $18,749.44 $19,729.70 $29,825.98 $18,155.63 $23,130.43 $21,043.66 $15,923.02 $17,032.36 $24,010.28 $24,603.39 $35,124.13 $266,324.31 $242,201.61 $475,173.19 $57,245.38

Expenses (100%)

Overhead & Pumper $1,975.00 $1,975.00 $1,975.00 $1,975.00 $1,975.00 $1,975.00 $1,975.00 $1,975.00 $1,975.00 $1,975.00 $1,975.00 $1,975.00 $23,700.00 $23,700.00 $41,475.00 $6,475.00

LOE $8,821.91 $27,326.65 $30,187.92 $13,139.36 $25,813.41 $19,699.84 $16,351.34 $13,559.96 $79,348.42 $14,016.37 $23,346.53 $15,006.04 $286,617.75 $142,051.25 $506,899.02 $140,170.90

Equipment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $78,405.82

IDC $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Leasehold $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Ad Valorem Taxes $0.00 $0.00 $0.00 $0.00 $0.00 $375.84 $375.84 $375.84 $375.84 $375.84 $375.84 ($706.38) $1,548.66 $4,802.64 $3,097.32 ($16,229.99)

Total Expenses $10,796.91 $29,301.65 $32,162.92 $15,114.36 $27,788.41 $22,050.68 $18,702.18 $15,910.80 $81,699.26 $16,367.21 $25,697.37 $16,274.66 $311,866.41 $170,553.89 $551,471.34 $208,821.73

Operating Net Income $8,199.38 ($10,552.21) ($12,433.22) $14,711.62 ($9,632.78) $1,079.75 $2,341.48 $12.22 ($64,666.90) $7,643.07 ($1,093.98) $18,849.47 ($45,542.10) $71,647.72 ($76,298.15) ($151,576.35)

Expense Item TL R&M R&M ER R&M ER PR 3 x R&M CHEM Operating Lifting Cost $311,866.41 $170,553.89 $551,471.34 $130,415.91

Gross Production:

Oil (bbls) 496 484 499 820 483 652 641 469 483 659 0 829 6,515 8211 11,551 1,018

Oil Price ($/bbl) $46.82 $47.37 $48.34 $44.45 $45.93 $43.36 $40.14 $41.51 $43.09 $44.51 $46.55 $51.76 $49.96 $36.50 $50.27 $15.47

5344 6735 9476 835

Lifting Cost $58.36 $25.32 $58.20 $156.13

Expense Item: RP=rod part; TL=tubing leak; PU=pumping unit repair; ER=engine repair; Hoil=hot oil; Clk=casing leak repair; PCh=pump change;

This information is provided by the seller and therefore the information contained is not guaranteed by Mid-Continent Energy Exchange. All buyers are expected to do their own due diligence.

This information is provided by the seller and therefore the information contained is not guaranteed by Mid-Continent Energy Exchange. All buyers are expected to do their own due diligence.

This information is provided by the seller and therefore the information contained is not guaranteed by Mid-Continent Energy Exchange. All buyers are expected to do their own due diligence.

This information is provided by the seller and therefore the information contained is not guaranteed by Mid-Continent Energy Exchange. All buyers are expected to do their own due diligence.

14 13

23 24

ZAHORSKY

9

SESSLER

4

ZAHORSKY

10

ZAHORSKY

11

ZAHORSKY

12

ZAHORSKY

13

EDISON OPERATING COMPANY

ZAHORSKY LEASES

BARTON COUNTY, KS

REMARKS

LEASEHOLD MAP

By: EOC

January 25, 2018

PETRA 1/25/2018 4:03:48 PM

This information is provided by the seller and therefore the information contained is not guaranteed by Mid-Continent Energy Exchange. All buyers are expected to do their own due diligence.

This information is provided by the seller and therefore the information contained is not guaranteed by Mid-Continent Energy Exchange. All buyers are expected to do their own due diligence.

This information is provided by the seller and therefore the information contained is not guaranteed by Mid-Continent Energy Exchange. All buyers are expected to do their own due diligence.

This information is provided by the seller and therefore the information contained is not guaranteed by Mid-Continent Energy Exchange. All buyers are expected to do their own due diligence.

This information is provided by the seller and therefore the information contained is not guaranteed by Mid-Continent Energy Exchange. All buyers are expected to do their own due diligence.