(GIP) 42,500,000 MCFG + Drilling Program (Goliad County, TX)

Yegua Formation prospect in South Texas; 4 wells drilled/completed classified as Yegua gas producers. Production ceased due to completion/casing design issues (not depletion per materials). Plan focuses on solving casing issue to extend life and maximize recovery. Estimated capital for lease + D&C + LOE + manage 30 wells: +/- $50MM (per materials).