Corporate Presentation

January, 2020

EDWARDS IITHREE WELL DRILLING PROJECT

Petron Energy, Inc.

• THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK AND IS SUITABLE ONLYFOR INVESTORS WITH SUBSTANTIAL MEANS WHO HAVE NO NEED FOR LIQUIDITYIN THEIR INVESTMENTS. NO ONE SHOULD INVEST IN THE SECURITIES WHOCANNOT AFFORD TO LOSE THEIR ENTIRE INVESTMENT.

• IN MAKING ANY INVESTMENT DECISION, INVESTORS MUST RELY ON THEIREXAMINATION OF PETRON ENERGY, INC., A TEXAS CORPORATION ANDACQUISITION TARGETS IN THE TERMS OF THE OFFERING, INCLUDING THEMERITS AND RISKS INVOLVED.

• THIS MEMORANDUM CONTAINS FORWARD LOOKING STATEMENTS CONCERNINGPETRON ENERGY, INC. OR MANAGEMENT PLANS, INTENTIONS, STRATEGIES,EXPECTATIONS, PREDICTIONS AND BELIEFS CONCERNING PETRON ENERGY’SFUTURE ACTIVITIES AND RESULTS OF OPERATIONS AND OTHER FUTURE EVENTSOR CONDITIONS, ACTUAL RESULTS, EVENTS OR CONDITIONS COULD DIFFER,MATERIALLY FROM THOSE PROJECTED BY PETRON ENERGY, INC. DUE TO AVARIETY OF FACTORS, SOME OF WHICH ARE BEYOND THE CONTROL OF PETRONENERGY, INC.

• NEITHER THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SECOR COMMISSION) NOR ANY STATE SECURITIES ADMINITRATOR HAS APPROVEDOR DISAPPROVED THE SECURITIES OFFERED HEREIN NOR HAS THE COMMISSIONOR ANY STATE SECURITIES ADMINISTRATOR PASSED UPON THE ADEQUACY ORACCURACY OF THE DISCLOSURES CONTAINED HEREIN OR THE MERITS OF ANINVESTMENT IN THE SECURITIES OFFERED HEREIN. ANY REPRESENTATION TOTHE CONTRARY IS A CRIMINAL OFFENSE.

• THE SECURITIES OFFERED HEREBY HAVENOT BEEN REGISTERED UNDER THESECURITIES ACT OF 1933, AS AMENDED (THE ACT), OR THE SECURITIES LAWS OFANY STATE AND ARE BEING OFFERED IN RELIANCE UPON CERTAIN EXEMPTIONSFROM REGISTRATION UNDER SUCH LAWS. SUCH EXEMPTIONS IMPOSESUBSTANTIAL RESTRICTIONS ON THE SUBSEQUENT TRANSFER OR SECURITIESSUCH THAT AN INVESTOR HEREIN MAY NOT SUBSEQUENTLY RESELL THESECURITIES OFFERED HEREIN UNLESS THE SECURITIES ARE SUBSEQUENTLYREGISTERED UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR ANEXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

Notice Regarding Forward Looking Statements

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Corporate Strategy

• Acquire and exploit low-risk assets in proven areas of Texas and Oklahoma wheremultiple pay zones exist. Multiple objectives with long life reserves and highlyrepeatable projects.

• Manage development and infrastructure costs associated with bringingadditional production online from producing properties. Emphasis on growththrough the drill bit and acquisitions.

• Implement proven technologies to maximize daily production rates from existingfields.

• Maintain strong economics in core liquid-rich plays.

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Petron Energy, Inc. Management

• Floyd Smith - Chief Executive Officer & President

- Mr. Smith is received his Bachelor of Art in Business Administration from Harding University andhas more than 23 years of experience working in the oil and gas industry. Petron Energy, Inc. wasstarted in 1998 and he has funded, drilled or reworked more than 50 wells in Texas, Louisiana andOklahoma. Mr. Smith is a member of the President’s Council of Harding University.

• Bob Currier - Chief Financial Officer

– Mr. Currier received his Bachelor of Art in Accounting from Washburn, University and holds aCPA certificate and more than 39 years of experience both in the public accounting and corporatesectors. Since 1987, Mr. Currier has been involved with entrepreneurial ventures in industriesranging from medical to real estate to oil and gas. With these companies, he has been responsiblefor developing financial reporting systems, helping raise capital, implementing internal controlsand budget preparation.

• Gerald Ebanks - Vice President Geology

– Mr. Ebanks received his Bachelor of Science in Geology from Lamar University and his Masters inGeology from the University of Texas. He has worked in various senior level positions in his 50-year career. Mr. Ebanks has extensive experience in East Texas, North Louisiana, Mississippi,Alabama and South Arkansas. In addition, he performed geological evaluations, wellsite planning,mapping seismic planning, seismic oversight and seismic interpretation.

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USE OF PROCEEDS EDWARDS II 3 WELL PROJECT

Subscription proceeds shall be used as follows:

Estimated Use of Proceeds1 Amount Percentage Per Unit Amount

Drilling and Equipping Costs $430,000 86.00% $21,500 Re-entry Costs 50,000 10.00% 2,500 Legal, Accounting and Printing Costs 10,000 2.00% 500 Organization Costs 5,000 1.00% 250 Syndication Costs 2,500 .50% 125 Management Fee 2,500 .50% 125

Totals: $500,000 100.0% $25,000

1All figures used are for turnkey cost structure.

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Pre-Subscription Summary

Name of the Project:

Project Operator:

Participants:

Edwards II – 3 Well Drilling/Re-Entry Project Well Names:Vertical Wells: Edwards# 3A,7 & 8 Wagoner County, Oklahoma

Petron Energy, Inc. 17950 Preston Road, Suite 960 Dallas, TX 75252 (877) 373-8766www.petronenergy.net

Those persons whose subscriptions to purchase the interest(s) described herein are accepted by Petron Energy for amount of $25,000 per Unit and who are subsequently admitted in the program.

Offer and Sale of Interest(s):

Subscrip/Comp:

Proj. Operator:

The offering period for the interest(s) will terminate upon full subscription, or earlier, at either the Minimum Subscription Level or the Maximum Subscription Level, at the sole discretion of Petron.

The Subscription/Completion Amount for drilling, testing and completion for each Unit of interest is $25,000, payable upon subscription.

The Project Operator will contract with the Participants to drill, re-enter, test, complete and equip three wells in the Wilcox Sandstone and Coal Seam Sands in Wagoner County, Oklahoma.

Turnkey Completion: “Completion” occurs after logs and testing indicate commercial production may be obtainable, the wells are

treated, completed and equipped, placed into production and start to pump or flow into the

tanks and/or gas pipeline of a Purchaser.

The completion of Wilcox Sandstone and Coal Seams Sands based upon current technology and methodology, could involve future possible completions in zones such as the Tyner, Burgen, Misner and Woodford Shale based post on well log evaluation.

Risk Factors: Substantial risks are associated with any oil and gas exploration

and no guarantee is given that production of any kind will be found.

Execution of Documents: Each subscriber shall return to the Project Operator a completed Drilling Agreement. Upon acceptance into the project, an executed copy of the signed drilling agreement by the

project operator will be sent to each participant within (15) days of receipt. The executed copy of the drilling agreement by the project operator is confirmation that the participants

position is secured in the Simon II project.

Project Overview

Project Objective Petron Energy proposes to drill, re-enter, test and complete 3 vertical wells in the Wilcox Sandstone and Coal Seam Sands on the Edwards lease in Wagoner County, Oklahoma.

Turnkey Contract

All drilling of one wellbore per well to the depth of the Wilcox Sandstone testing, logging, treating, and completing, and equipping of the Wilcox Sandstone wells will be conducted under the terms of a turnkey agreement.

Long-life Production

Typical Wilcox Sandstone wells continue to produce in economic quantities from a low of 15 years, but commonly up to 25 years. The average cumulative primary production per well is 5,501BO. Primary production operators in this area have confirmed, they typically underestimate initial production rates to protect their lease(s) from other operators intruding on favorable production results. Secondary Recovery is setup in this field and 145,332BO are estimated for recovery from this stage of development by the engineer. Also, the Burgen, Tyner, Misner and Woodford Shale Formations can add significant reserves to the project.

Known Producing Field

The proposed area is part of a well known trend that extends over a large area in northeast Oklahoma. The fields have been known and active since 1897, with earnest development occurring in the early 1900’s.

Drilling and Completion Cost – 3 Well Project

Prospect Field Name…………………………Edwards II – 3 Well Drilling Project

Well Names…………………………….…………Vertical: Edwards# 3A, 7 and 8

Location…………………………..….….Wilcox Sandstone, Wagoner County, OK

County………………………………….…………………….Wagoner County, OK

State………………………………….…………………………….…..….Oklahoma

Type……………………………………….…………………..………..Oil Possible

Target Depth……………………………………………………….…………..2000’

Unit Cost

Edwards II – 3 Well Drilling Project (Maximum)

Turnkey Drilling, Testing and Completion and Equipment cost/unit…….. $25,000.00 (Includes fracture treatment of the Wilcox Sandstone section of each Vertical Well)

Total Cost Per Unit………………………………………………… $25,000.00

Interest Breakdown (based on Maximum Subscription Level)

Working Interest per Unit…………………………………..………A total of 5.00% W.I. per unit

Net Revenue Interest per Unit…………………………………………...…….3.25% NRI per unit

Number of Units to sell……………………………………………………………………20 Units

Lease Acreage

Edwards II 3 Well Drilling ……………………………………..………..30 Acre Production Unit

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GAS & OILTHREE WELL PROJECT

LOW Example MEDIUM Example HIGH Example

BBLS Oil per Day 60 90 120Price per BBL Oil $30.00 $30.00 $30.00Gross Revenues Per Day $1,800.00 $2,700.00 $3,600.00Days Per Month 30 30 30Gross Revenues per Month $54,000.00 $81,000.00 $108,000.00Net Revenue Interest (NRI) % in EACH ONE UNIT 3.2500% 3.2500% 3.2500%NRI Revenue per Month - 3 Wells $1,755.00 $2,632.50 $3,510.00Serverance Tax ($378.00) ($567.00) ($756.00)Less: Lease Operating Expense (LOE) for 3 Wells at above NRI% ($30.00) ($30.00) ($30.00)NET MONTHLY INCOME (per Unit) $1,347.00 $2,035.50 $2,724.00Annual ROI to CASH 64.66% 97.70% 130.75%Annual ROI to NET CASH 92.14% 139.24% 186.33%Months until Payback to CASH 18.56 12.28 9.18Months until Payback to NET CASH 13.02 8.62 6.44

Projected Cash Flow Potential Per UnitEdwards II - Three Well Project

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Edwards II ProjectEdwards II - 3 Well ProjectPotential Tax Savings per Unit – 5% WI

THREE WELL PROJECT - (ONE UNIT = 3% Working Interest in Each UNIT - Maximum)

$25,000.00 Turnkey Drilling, Completion & Equipping Cost/Unit = $25,000.00 TotalInvestment per Unit

$25,000.00 X 85% Intangible Deduction + $312.50 Tangible Deduction = $21,563.00 Write-Off

$21,563.00 Write Off X 35% Tax Bracket (Federal) = $7,547.00 Tax Savings

$25,000.00 Investment - $7,547.00 in Tax Savings = $17,543.00 Net Cash Invested per Unit

Illustration of Monthly Cash Flow Potential per Unit

Daily Oil and/or Gas Production Cash Flow per Unit* LOW Example per month per Unit (First Year)

[Based upon 60 Bbl/oil/day per Edwards II]

MEDIUM Example per month per Unit (First Year) [Based upon 90 Bbl/oil/day per Edwards II]

HIGH Example per month per Unit (First Year)

$ 2,517.00 per month *

$ 3,790.50 per month *

$ 5,064.00 per month * [Based upon 120 Bbl/oil/day per Edwards II]

LOW MEDIUM HIGH

POTENTIAL ANNUALIZED RETURN TO TOT CASH INVESTED

POTENTIAL ANNUALIZED RETURN TO NET CASH INVESTED

120.81% 181.94% 243.07%

172.17% 259.28% 346.39%

* Cash flow is partially Tax Free (15% of Gross) due to Oil Depletion Allowance; this increases the After Tax Rate of Return.These are only projections and no guarantees are made, nor can be made as to ultimate productivity of any oil and gas lease.

Assumptions Write off Tax Bracket Average Price of Oil: 12 mo NYMEX future avg. Severance Tax Oil/Gas Lease Operations (LOE) monthly Days in Production Net Revenue Interest Working Interest

85% of investment (see Tax Article) 35% (combined Federal, State and Local) $44.00 5.0% Each $30 per month per Unit 30 days 3.25% 5.00%

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Tax Benefits of Oil and Gas Investments

For the individual investor not subject to the alternative minimum tax, there are some potentially significant tax advantages arising from development of domestic oil and gas prospects. These benefits are manifested in two distinct tax attributes: the election to expense intangible drilling costs and the percentage depletion expense.

• The election to expense intangible drilling costs helps the individual investor recoup the original cashinvestment by offsetting that expense against other ordinary income. Since a substantial portion of theinvestment in an oil and gas prospect will be intangible drilling cost, this potential benefit can be verysignificant depending on the investors incremental tax rate. This election creates an alternative minimumtax preference item and its effect should be considered in advance of making this election. The balance of aparticipant's investment will fall into two categories: equipment and leasehold improvements, whichshould be depreciated over seven years and amortized over ten years respectively.

• The percentage depletion expense is an expense created upon the successful completion of a well and thesubsequent production. The gross oil and gas revenue from the well will determine this deduction.Currently the percentage of the gross revenue used for calculating the depletion expense is 15% forlight, "sweet crude". This percentage can rise for heavier oil when the price of oil drops below aspecified price. Since the deduction is based on gross revenue, the effective taxable rate on net incomefrom the prospect is much lower than other ordinary income. There is a potential alternative minimum taximpact of percentage depletion that should be considered.

Simplified Summary

1. Intangible Drilling Costs (IDC) are written off 100% against adjusted gross income (taxableincome), thus lowering taxable income. IDC can vary from 65% to 95% of total unit cost.

2. Lease and Well Capital Costs (WC) are principally for equipment such as pumpjacks, tankage,wellheads, etc. and are typically capitalized and depreciated over seven years (illustrated below),unless Section 179 is invoked (Please request the Section 179 Handout concerning Section 179Deductions).

3. Lease Operating Expense (LOE) is a fully deductible business expense with the exception ofadditional capitalized equipment.

4. Oil and Gas Production Income (Depletion Allowance) is 15% TAX FREE INCOME (minimum15%) with the percentage determined annually by the IRS based on average price of crude oil andother factors.

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GEOLOGICAL SUMMARY

The Edwards II Three-well Project is in section 6, Township 17N, Range 15 E, and Section 31, Township 18N, Range 15E. This project is planned to include waterflood secondary recovery and additional drilling activity to fully develop the field. The producing reservoir is the Wilcox sand of Ordovician age that appears to be a completely isolated body of sand with the outline of a misshapen, elongated oval with an almost north-south orientation. The field was discovered in 1987 by the Omoco, Inc., 1A Lynne Edwards. Initial production was 425 BOPD, 425MCFGPD, and 20 BWPD. Open hole logs are not available on that well, but in the nearby C & J Exploration 1 LaNina the Wilcox productive zone is at the depth of 1,798 feet and exhibits thickness of 8 feet and porosity of 12 to 19 percent. Former operator JTC Oil and Gas drilled the 1 Potis well in 2004, initial production was 100BOPD and 75MCFGPD and drilled the 2 TJS well in 2005, initial production was 80BOPD and 100MCFGPD Based on this information, we believe that we should capitalize on what appears to be a “sweet spot” in the broad area of the 1A Lynne Edwards, the 1 Edwards, and the 1 Potis; and we intend to do so by locating the proposed 7 Edwards and 8 Edwards wells in this area. The average cumulative primary production per well is 5,501BO. Primary production operators in this area have confirmed, they typically underestimate initial production rates to protect their lease(s) from other operators intruding on favorable production results. Secondary Recovery is setup in this field and 145,332BO are estimated for recovery from this stage of development by the engineer.

The open-hole well log of the 2 LaNina well, located at the southern end of this field indicate the presence of several thin, porous, potentially gas-productive coal beds between 600 and 1,200 feet. In reviewing the gamma ray-neutron log in the 3A Edwards well, Petron’s reentry prospect, which is located north-northwest of the 2 LaNina there appears to be potentially gas-productive coal beds at the same depth span seen in the 2 LaNina. Coal Bed sands appear to be prominent throughout all three Edwards’s leases.

The Wilcox typically is a clean, permeable sand deposit which usually performs as a very attractive reservoir. The sand is deposited by open-shelf marine currents. Some Wilcox reservoirs are structural accumulations, but this one and others are simple closed bodies of sand. Reservoir energy in accumulations like this often rapidly lose their reservoir energy, resulting in excellent secondary and tertiary development to extend production life in the field. Petron is already engaged in secondary recovery operations in the field. In this part of the state many operators prematurely leave their producing property, leaving behind attractive projects like this one.

Petron has performed downhole maintenance on all 12 currently and formerly productive wells in the field, with the intent of instituting a waterflood, plus possible tertiary recovery. Petron plans to drill at least nine additional wells, which will be used as producing wells to complete the development in the field.

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Petron Energy, Inc. Oil and Gas Drilling Well Results

Well Name Depth (feet) Drilled Producing Wells Dry Holes

Grambling #1 10,800 1 Grambling #2 10,800 1 Daniels #1 10,800 1 Daniels #2 10,800 1 Talley Bottoms #1 10,800 1 Talley Bottoms #2 10,800 1 Talley Bottoms #3 10,800 1 Brooks #1 10,800 1 Brooks #1 10,800 1 Grimes #1 10,800 1 Braswell #1 10,800 1 Braswell #2 10,800 1 Braswell #3 10,800 1 Braswell #4 10,800 1 Frost #1 10,800 1 Frost-Watkins #1 11,500 1 Choice #1 10,800 1 Hudman #4 10,800 1 Hudman #5 10,800 1 Hudman #6 10,800 1 Hudman #7H 12,000 1 Hudman #8H 12,000 1 Walling #1 9,800 1 Anderson #1 10,800 1 Anderson #2 10,800 1 Crawford #1 10,800 1 Rio #1 10,800 1 Rio #2 10,800 1 Rio #3 10,800 1 Jones #1 10,800 1 Freeman #1 10,800 1 Reese #1H 12,000 1 Gerner #2 2,000 1 Barron #1 2,000 1 Gerner Trust #2 2,000 1 Gerner #3 2,000 1 Gerner Trust #3 2,000 1 Simon #1-13 1,000 13 Edwards #1-12 2,000 12

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Principle Address:

Phone Number: Facsimile Number:

Years in Business:

Principle Business Activity:

Tax I.D. Number:

Bank Reference:

Business References:

17950 Preston Road, Suite 960 Dallas, Texas 75252

877.373.8766 972.485.1324

23 years

Oil and Gas development, exploration and production

75-2791904

Stacey L. Connelly Vice President Branch Bank & Trust 2720 Beltline Road Garland, TX 75044 469.304.3947

Jerry W. Line Sr. W.P. Oil and Gas 23660 E. 148th Street S. Coweta, OK 74429 918.698.2207

Jimmie Turner Turner Financial Group, Inc. 1701 N. Market Street #121 Dallas, TX 75202 214.720.0642

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Glossary of Oil and Gas Terms and Abbreviations

AFE Authorized For Expenditure

BBL or BBLS Barrel or Barrels [A Barrel is 42 U.S. gallons]BOPD Barrels of Oil per DayBcf Billion Cubic Feet of GasB/Mcf Barrels per Thousand Cubic Feet of GasB/MMcf Barrels per Million Cubic Feet of GasBC Barrels of Condensate [liquid hydrocarbons separated from gas]BCPD Barrels of Condensate per Day [Condensate is a high gravity crude oil generally

associated with gas wells]BHP Bo om Hole PressureBHSIP Bo om Hole Shut-In PressureBTU British Thermal Unit – The amount of heat required to raise the temperature of

one pound of water on degree Fahrenheit .erutarepmet dna erusserp fo snoitidnoc dradnats rednu

Casinghead Gas Gas found naturally in oil and produced with the oil.Christmas Tree The system of pipes, valves, gauges and related equipment that is located on

CFG or Standard CFG Cubic Foot of Gas - As a unit of volume, 1.728 cubic inches; As applied to water, 7.48 gallons; As applied to natural gas, the volume of gas which, when saturated with water vapor at 60°F and at a pressure of 30 inches of mercury occupies one cubic foot of volume. PBIC Cast Iron Bridge Plug

Field Area of oil and gas production with at least one common reservoir for the entire area.

Formation A separate layer of rock or group of intermingled beds.FT Formation TestFP Flowing PressureFTP Flowing Tubing PressureFBHP Flowing Bo om Hole PressureFrac High pressure or explosive method of fracturing rock formations.

HBP Held By ProductionHenry Hub Located in Erath, LA, the Henry Hub is a pipeline interchange and the delivery

point for the New York Mercantile Exchange NYMEX) active natural gas futures contracts. Natural gas from the Gulf of Mexico moves through the Henry Hub onto interstate pipelines serving the Midwest and the Northeast.

IBHFP Initial Bo om Hole Flowing PressureIDC Intangible Drilling Cost (encompasses all costs that are not tangible, i.e. pipe,

used as a reference point on logs to calculate depth.LOE Lease Operating Expense

the well at ground level and that controls the fl ow of gas and other petroleum products produced from the well.

tanks & other physical equipment)ISIP Initial Shut-in PressureKB Kelly Bushing – Drilling rig equipment that fi ts inside the rotary table and is also

Horizontal Drilling A well which is not vertically drilled as dee med in TRC rules.

Casing Casing Pipe cemented in the well to seal off formation fluids or keep the hole from caving in.

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Mcf Thousand Cubic Feet - Gas is sold on an Mcf basis; The price of gas is quoted “Per Mcf”.

stated MMcf if production is less than a Bcf (Billion Cubic Feet). Sometimes, however, it is stated a percentage of Billion Cubic Feet. For example: .575 Bcf is the same as: 575 MMcf or even possibly 575,000 Mcf.)

McfPD or McfGPD Thousand Cubic Feet of Gas Per DayNGL Natural Gas Liquids

Surface Casing Outer casing cemented in upper portion of wellbore to protect fresh water formations from contamination.

Tank Battery Tanks for oil storage before delivery to a re� nery.TD Total Depth of well

petroleum-bearing reservoir.Disposal Well used for disposal of saltwater into an underground formation.Exploratory Any well drilled for the purposes of securing geological or geophysical

information to be used in the exploration or development of oil, gas, geothermal, or other mineral resources, except coal and uranium.

Mud Drilling fl uid used to lubricate the drill string, line the walls of the well MMcf Million Cubic FeetMMcfG Million Cubic Feet of Gas - Cumulative production of gas from a well is generally

PBTD Plugged back total depthPDP Proved Developed ProducingPUD Proved UndevelopedPerforations Holes through casing and cement into the productive formation.Permeability Ability of rock to transmit fl

operations.P&A Plugged and Abandoned – seal off formations to isolate fl uids.Porosity Percentage of the rock volume that can be occupies by oil, gas, etc.PSI Pounds per Square Inch – term measuring pressure on a 1” area.

Types of Wells:Developmental A well drilled to a known producing formation in a previously discovered fi eld.Discovery The fi rst oil or gas well drilled in a new fi eld to reveal the actual presence of a

Wildcat A well drilled to discover a new fi eld or reservoir.Tubing String of pipe set inside the well casing, through which the oil or gas is produced.Zone Interval of subsurface formation.

uids through pore spaces.Pit Hole dug next to drillsite for temporary storage of fl uids during drilling

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Contact

For More Information, Please Contact: Floyd L. Smith

Petron Energy, Inc. 17950 Preston Rd.

Suite 960, Dallas, Texas 75252 Tel: 972-272-8190

fsmith@petronenergy.net

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