enercom valuation of ssn , page-8

Tonyindo

Hawk Springs

JVT 11277 @160 acre spacing = 70 wells circa 40%WI

SSN 11500 @160 acre spacing= 71 wells 100%WI


Roosevelt

Tranche 1. 20000 @ 160 acre spacing =125 wells 66.67%WI

Tranche 2. 20000 @ 160 acre spacing =125 wells 66.67%WI

Tranche 3. 50000 @ 160 acre spacing = 312 wells 66.67%WI

Even though there are approx 700 wells in total at an average of 66% WI, my calculation of 450 wells was equivalent if they were 100% WI to SSN.

These numbers are based on the acreage performing as expected on 160 acre spacing and all 3 Trenches are purchased.

SSN won't even get close to developing all these wells. All they have to do is prove to the market both Hawk Springs and Roosevelt projects are commercially viable and what numbers will be achieved.

I hope this helps.

Regards Matsim