DV

AUSTIN CHALK RECOMPLETION PROJECT

Drilling Prospects

All Standard Disclaimers Apply & Seller Rights Retained


AUSTIN CHALK RECOMPLETION PROJECT

SOUTH TEXAS RECOMPLETION(S)

1-Immediate Recompletion Plus PDP

AUSTIN CHALK "E" BENCH

EAGLE FORD & BUDA UPSIDE

4-Stacked Austin Chalk Intervals

$2.5MM Modern Slickwater Completion

Seeking NonOp Partner & Capital

Current PDP 34 BOPD & 155 MCFD

13-Wells; 6-7 Recompletion Candidates

<2 Year Payout with Est. ROI of 2.0-5.1

Expected IP 500 BOPD

Single Well Est. Net Rsrvs: ~445 MBO

If Successful. 6-Other ReCompletions

SEEKS PARTNER TO DEVELOP LSES

DV 5064PP

Opportunity Summary
Energy Advisors Group has been retained by Cornerstone Exploration, LLC to source capital from a potential partner interested in funding one to six recompletions in Frio Co., TX targeting the Chalk.

Cornerstone Exploration is looking to develop their leases and is willing to exchange PDP in multiple wells in order to support the investment in an initial recompletion of the Rally 4H well.

Motivated Seller Willing to Negotiate Investment Terms
The Rally 4H will be cased and recompleted in the Austin Chalk "E" Bench with a modern slick water completion design. The total cost of $2,525,000 will be funded by the partner. Cornerstone will be carried for 25% through completion in exchange for delivering 75% nonoperated WI & 55.5% NRI in the Rally 4H with 680-Acres of HBP leasehold.

The Rally 4H was completed in March 2011 by US Enercorp as a horizontal open hole in the Austin Chalk E Bench. The lateral covered 7,000 Ft and initially produced 856 BOPD and 467 MCFD and 261 BWPD. The IP test was run on 34/64 choke with a flowing tubing pressure of 220#. Gravity of the oil is 34 degrees. Despite the high IP the well has only cummd 38,432 BO. Production results indicate the well has minimal natural fractures and is an excellent candidate to be cased and stimulated with a modern multistage intense completion similar to other offset players.

Leverage Investment--
As described above, in consideration for funding the recompletion, Cornerstone is also offering to possibly include 25% nonoperated WI & 18.5% net revenue interests in 6-Existing Producers. The existing producers are currently generating $21,500/Mn Gross.

The opportunity also has potential for follow-on activities to return to production 6-Additional Recompletion Candidates as described below.

Immediate Recompletion Candidate, Ready To Workover
--- $2,525,000 Recompletion of the Rally Petroleum 4H (42-163-33441);
--- Austin Chalk E Bench 20-40 Ft Thick.
--- Delivering 75% NonOperated WI & 55.5% NRI;
--- Current Production: < 1 BOED; Originally IP at 856 BOPD and 467 MCFD (934 Boepd)
--- 12 Month Avg Cash Flow Net to Partner: $(1,204/Mn)

6 Existing Producers:
--- Delivering 25% NonOperated WI & 18.5% NRI
--- Currently producing: 34 BOPD & 155 MCFD from 6 out of 12 wells.
--- The Seller will consider carving out or offering some working interest in the PDP to support the new partners capital commitment.
--- 6 existing producers include: Rally Petroleum 2H and 5H; Rally Eagle 1H; Brundett Eagle Unit 1H; Lang 1H and Kincaid 1H
--- The 6 recompletion candidates include the Rally Petroleum 3H and the Corbin 1H, 2H and the Grossie 1H and the Stout 1H and 2H.
--- These target wells have cummd about 200 MBOE making them good candidates.

The Seller and Prospect Generator would be interested in discussing these opportunities with potential partners and developing a business plan for additional expansion possibilities.

TO LEARN MORE
Energy Advisors Group
Mr. Reed Rightmer
Geologist
5120 Woodway Dr Ste 10010
Houston, TX 77056
USA
Phone: 713-600-0123 and Fax: 713-600-0138 Direct: 713-600-0177
Email: [email protected]


or

Richard S. Martin
Director – Special Projects & Execution
Energy Advisors Group
Formerly PLS Divestment Services
14875 Landmark Blvd, Ste 125
Dallas, TX 75254
---Office – 214-774-2495 or Cell/Text - 469-866-9796
---Email – [email protected]

or

Houston Office----
Ms. Sara Davis
Energy Advisors Group
5120 Woodway Ste 10010
Houston TX 77056
----Call Sara At 713-600-0139 or Cell 713-256-8737 or email [email protected]

Questions Regarding This Asset? Email Reed Rightmer or call EAG at 713-600-0123
Virtual Data Room

SOUTH TEXAS RECOMPLETION(S)

1-Immediate Recompletion Plus PDP

AUSTIN CHALK "E" BENCH

EAGLE FORD & BUDA UPSIDE

4-Stacked Austin Chalk Intervals

$2.5MM Modern Slickwater Completion

Seeking NonOp Partner & Capital

Current PDP 34 BOPD & 155 MCFD

13-Wells; 6-7 Recompletion Candidates

<2 Year Payout with Est. ROI of 2.0-5.1

Expected IP 500 BOPD

Single Well Est. Net Rsrvs: ~445 MBO

If Successful. 6-Other ReCompletions

SEEKS PARTNER TO DEVELOP LSES

DV 5064PP

Opportunity Summary
Energy Advisors Group has been retained by Cornerstone Exploration, LLC to source capital from a potential partner interested in funding one to six recompletions in Frio Co., TX targeting the Chalk.

Cornerstone Exploration is looking to develop their leases and is willing to exchange PDP in multiple wells in order to support the investment in an initial recompletion of the Rally 4H well.

Motivated Seller Willing to Negotiate Investment Terms
The Rally 4H will be cased and recompleted in the Austin Chalk "E" Bench with a modern slick water completion design. The total cost of $2,525,000 will be funded by the partner. Cornerstone will be carried for 25% through completion in exchange for delivering 75% nonoperated WI & 55.5% NRI in the Rally 4H with 680-Acres of HBP leasehold.

The Rally 4H was completed in March 2011 by US Enercorp as a horizontal open hole in the Austin Chalk E Bench. The lateral covered 7,000 Ft and initially produced 856 BOPD and 467 MCFD and 261 BWPD. The IP test was run on 34/64 choke with a flowing tubing pressure of 220#. Gravity of the oil is 34 degrees. Despite the high IP the well has only cummd 38,432 BO. Production results indicate the well has minimal natural fractures and is an excellent candidate to be cased and stimulated with a modern multistage intense completion similar to other offset players.

Leverage Investment--
As described above, in consideration for funding the recompletion, Cornerstone is also offering to possibly include 25% nonoperated WI & 18.5% net revenue interests in 6-Existing Producers. The existing producers are currently generating $21,500/Mn Gross.

The opportunity also has potential for follow-on activities to return to production 6-Additional Recompletion Candidates as described below.

Immediate Recompletion Candidate, Ready To Workover
--- $2,525,000 Recompletion of the Rally Petroleum 4H (42-163-33441);
--- Austin Chalk E Bench 20-40 Ft Thick.
--- Delivering 75% NonOperated WI & 55.5% NRI;
--- Current Production: < 1 BOED; Originally IP at 856 BOPD and 467 MCFD (934 Boepd)
--- 12 Month Avg Cash Flow Net to Partner: $(1,204/Mn)

6 Existing Producers:
--- Delivering 25% NonOperated WI & 18.5% NRI
--- Currently producing: 34 BOPD & 155 MCFD from 6 out of 12 wells.
--- The Seller will consider carving out or offering some working interest in the PDP to support the new partners capital commitment.
--- 6 existing producers include: Rally Petroleum 2H and 5H; Rally Eagle 1H; Brundett Eagle Unit 1H; Lang 1H and Kincaid 1H
--- The 6 recompletion candidates include the Rally Petroleum 3H and the Corbin 1H, 2H and the Grossie 1H and the Stout 1H and 2H.
--- These target wells have cummd about 200 MBOE making them good candidates.

The Seller and Prospect Generator would be interested in discussing these opportunities with potential partners and developing a business plan for additional expansion possibilities.

TO LEARN MORE
Energy Advisors Group
Mr. Reed Rightmer
Geologist
5120 Woodway Dr Ste 10010
Houston, TX 77056
USA
Phone: 713-600-0123 and Fax: 713-600-0138 Direct: 713-600-0177
Email: [email protected]


or

Richard S. Martin
Director – Special Projects & Execution
Energy Advisors Group
Formerly PLS Divestment Services
14875 Landmark Blvd, Ste 125
Dallas, TX 75254
---Office – 214-774-2495 or Cell/Text - 469-866-9796
---Email – [email protected]

or

Houston Office----
Ms. Sara Davis
Energy Advisors Group
5120 Woodway Ste 10010
Houston TX 77056
----Call Sara At 713-600-0139 or Cell 713-256-8737 or email [email protected]

Questions Regarding This Asset? Email Reed Rightmer or call EAG at 713-600-0123