The Project

The proposed well is to be drilled at a location which offsets, to the Northeast by +/- 1,538’ (feet), the Popnoe #1A During the Popnoe well’s 24-hour Initial Production (IP) test, it flowed 111 BO of 42 gravity oil, 425,000 cubic feet (MCF) of natural gas and 2 barrels of saltwater, through a 16/64th choke @ 335 PSI. During its productive life, the well produced +/- 64,000 BOE. Also, the new well's location is 225’ South of the West Taylor #112. A prior operator of the lease drilled through the Ellenburger Formation in this well. It purportedly tested in excess of 100 BOE per day. For reasons unknown to Novco Operating Co. and Eagle Island LLC. The operator did not complete the well in the Ellenburger. The mud log of the well indicates at least 32’ of potentially productive formation (see Exhibit “B”, a partial Mud Log Well #112). Well #112 was completed in, and still produces from, the Gardner Sandstone formation, +/- 600’ above the Ellenburger formation. A plat of the proposed new well location is set forth on Exhibit “C”. A 2024 Geological Survey has concluded that fractured segments in this Ellenburger Formation should yield between 50 to 100 Barrels of Oil (BO) per acre foot. Based upon this yield the 32’ of indicated fractures encountered in Mud Logs from West Taylor #112 should produce between 64,000 and 120,000 BO, depending upon the areal extent of the drainage (20-40 acres).