Here is our ticket.......its down to the geotech now.TEXAS BIRCH...

Here is our ticket.......its down to the geotech now.

TEXAS BIRCH EAGLE FORD

Located in Burleson County, Texas

Primary targets: Eagle Ford Shale & Austin Chalk

Secondary targets: Taylor Sands, Buda & Georgetown formations

Austin completed a $53 mil farm-out program with in 2013

Halcon Resources – Austin free carried for three 10,000 ft. horizontals wells in 2014

PetroMax Operating – Austin free carried for one 10,000 ft. horizontals wells in 2014

Each well costs approximately $10 mil USD

AKK will hold a 30% working interest in approximately 5000 acres post the completion of the farm-out program

Initial production rate from vertical well flowed at 95 BOEPD

160 acre spacing allows for a minimum of 64 horizontal wells to be drilled

Birch #1 drilled in 2011 confirmed thickness of 270 ft section of the Eagle Ford formation which IP rate of 95 BOEPD from a vertical well.

Birch #2 is an excellent candidate for a low risk horizontal well with multiple fracture stages

Birch #3 was successfully drilled to 13, 350ft horizontally into the Austin Chalk with an IP 800,000 SCF of gas and production levels reaching 120 BOD Oil

Independent reserve estimates of approximately 179,000 – 810,000 BO per horizontal well