seguin development phase ii

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Seguin Development Phase II Seguin Development Phase II

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Page 1: Seguin Development Phase II

Seguin Development Phase IISeguin Development Phase II

Page 2: Seguin Development Phase II

1

C o n t e n t sTable of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Joint Venture Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Key Timing Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Operational Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Locator Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Formation Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Lease Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Structure Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3D Schematic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

History of the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-15

The Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Substantiating Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Key Income Projection Highlights . . . . . . . . . . . . . . . . . . . . . . . 21

Income Conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22-24

Tax Advantages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25-27

Key Personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Offering Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31-33

Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Program Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Page 3: Seguin Development Phase II

3

J o i n t V e n t u r e O b j e c t i v e

To capitalize on the multitude of favorable market conditions

currently presenting themselves, with the aim of providing what

we believe to be an Outstanding Investment opportunity .

Page 4: Seguin Development Phase II

5

K e y T i m i n g H i g h l i g h t s• Crude Oil at relative price threshold seen only 3 times in last 30 Years . Each previous occasion preceded substantial

price rises .

• Optimum market conditions for lease acquisitions .

• Drilling and completion costs currently deeply discounted relative to the 24 months previous .

• Oil price at a 42% discount to the $81 .68 ten year average price, and more than a 71% discount to the $147 .50 highs

seen in 2007 .

• Reuters reported in its October 1st 2015 article that Global Oil demand growing at fastest pace for 5 years .

The recent decline in commodity prices globally has presented us with an excellent opportunity to buy Crude Oil production

at effectively sale prices . The cyclical nature of commodity, and more specifically Crude Oil prices means that we are at a price

threshold which has only presented itself in relative terms three times in the last 30 years . Each time preceded substantial price

increases .

Our extensive relationship network has afforded us a unique opportunity to be able to capitalize on the opportunity at

hand, whereby we are able to produce lucratively at current prices, whilst simultaneously positioning ourselves favorably

in anticipation of a price reversion back in the direction of the 10 year average price of $81 .68 per barrel (taken with data on

10/09/2015)

With proven production, a developed infrastructure and an experienced operational team with a highly successful track record

at maximizing production, the Navarro joint venture opportunity offers the chance to participate in oil production, at levels

whereby value is being acquired at the outset .

Page 5: Seguin Development Phase II

7

O p e r at i o n a l P l a nPurpose:

To acquire oil producing leases in Wilson County, TX and rework and stimulate those existing oil wells contained thereon . The

joint venture will acquire a total of six existing wells with the objective of enhancing current production utilizing modern re-

working and well stimulation methods . Additionally, ENERGON³ Operating will drill and complete four new wells on this lease .

The overall objective is to bring 10 wells into production on this lease .

Project Lease

This lease holds oil production and mineral rights from the Navarro Formation occurring between 1700' and 2000' and the

shallower Glenn Poth Formation occurring between 700' and 900' . The data shows there is an excess of 1 .4 MMBOE in reserves

for these 4 new wells as proven from the production data . Recently, ENERGON³ has developed similar wells and it is our belief

that the production of the six existing wells can be increased by re-working them and using modern stimulation methods . (see

Ward well data on page 19)

Page 6: Seguin Development Phase II

9

L e a s e L o c at i o nsL o c at o r M a p

Wilson County, Texas

Guadalupe County

Bexar County

Guadalupe CountyWilson County

Bexar

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D. & L. OILPRODUCING CO.

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MCMULLANOIL COMPANY

QUEST RESEARCH& DEV. CORP.

SOURCEPETROLEUMINC.

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BOUNDS,ROBERT S.

BOUNDS,ROBERT S.

BOUNDS,ROBERT S.

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BOUNDS,ROBERT S.

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OIL CO.INC.

CAL-WACO OILCO. INC.

FALOR,ALLEN C.FALOR,

ALLEN C. FALOR,ALLEN C.

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LAKE CHEROKEEPRODUCTION,LLC

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LAKE CHEROKEEPRODUCTION, LLC

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TEXAS COASTALRESOURCES LLC

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RAMPAGEEXPLORATION,INC.

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LOTTPRODUCTION

COMPANY

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LAKE CHEROKEEPRODUCTION, LLC

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LAKECHEROKEE PRODUCTION, LLC

LAKE CHEROKEEPRODUCTION,LLC

LAKE CHEROKEEPRODUCTION,

LLC

LAKE CHEROKEEPRODUCTION,

LLC

LAKE CHEROKEEPRODUCTION,

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LAKE CHEROKEEPRODUCTION, LLC

NEZ PERCEOIL CO.,INC.

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MCLAINEXPLORATION,INC.

MCLAIN EXPLORATION,INC.

MCLAINEXPLORATION,

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MCLAIN EXPLORATION, INC.

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AGAPE ENERGY INC.

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RAM OIL& GASCOMPANY

PETRO-SHELL,INC.

LAKE CHEROKEEPRODUCTION, LLC

EAGLEFORD OILCO., INC.

L & LPIPE & SUPPLYINC.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

SUNRISEENERGY

J-ENERGY

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SOUTHERN GULF PETROLEUMCO.

LT OIL LLC

CAL-WACOOIL CO. INC.

CAL-WACO OIL CO. INC.

CAL-WACO OILCO.INC.

CAL-WACOOIL CO.INC.

CAL-WACOOIL CO.

INC.

DOEGE, DONALD

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J.A.G.OIL & GAS

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CALTEX ENERGYCO.

CALTEXENERGY CO.

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MCLAIN EXPLORATION,INC.

MCLAINEXPLORATION,INC.

MCLAINEXPLORATION, INC.

DOEGE,DONALD

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DONOCO OILCOMPANY

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RAMPAGEEXPLORATION,INC.

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RAMPAGE EXPLORATION,INC.

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SOUTHERN GULFPETROLEUM CO.

DOEGE, DONALDDOEGE,DONALD

DOEGE,DONALD

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LT OILLLC

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J.A.G.OIL & GAS

J.A.G. OIL& GAS

BOUNDS,ROBERT S.

TABER,ALAN R.

TABER,ALAN R.

TABER,ALAN R.

GREATPLAINS RESOURCES,INC.

PERKINS,EUGENE O.

DONOCO OIL COMPANY

DOEGE,DONALD

DOEGE,DONALDDOEGE,

DONALD

TEXAS SECONDARYOIL CORPORATION

TEXAS SECONDARYOIL CORPORATION

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CAL-WACOOIL CO.

INC.

CAL-WACOOIL CO. INC.

TEXAS COASTALRESOURCES LLC

KUBENA,JOSEPH A.

KUBENA, JOSEPH A.

KUBENA,JOSEPH A.

KUBENA,JOSEPH A.

HOWARD,CALVIN L.

HOWARD,CALVIN L.

ROSKYDAL,LAVERNE

ROSKYDAL,LAVERNE

ROSKYDAL, LAVERNEROSKYDAL, LAVERNEROSKYDAL, LAVERNE

RAMPAGEEXPLORATION,

INC.

MOORE PETROLEUMCO., INC.

MOORE PETROLEUM CO.,INC.

NEWBEGINNING

NEW BEGINNING

PERKINS,EUGENE O.PERKINS,

EUGENE O.

PERKINS,EUGENE O.

THREE JENERGY,INC.

MCLAIN EXPLORATION,INC.

J.A.G.OIL & GAS

DOEGE,DONALD

DOEGE,DONALD

DOEGE,DONALD

DOEGE,DONALD DOEGE,

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WARNCKE,GLENNWOOD

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RAM OIL& GAS COMPANY

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TRANSUE,JIM

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LOUIS

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W.W.ENERGY

DOEGE,DONALD

DOEGE, DONALD

DOEGE,DONALD

DOEGE,DONALD

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

NEW BEGINNINGNEW BEGINNING

LT OILLLC

LT OIL LLCLT OIL LLC

SEGUIN PUMP

SEGUIN PUMP

MIDSTATESCORPORATION

NEWBEGINNING

NEWBEGINNING

DONOCOOIL COMPANY

DONOCOOIL COMPANY

MIDSTATESCORPORATION

MIDSTATESCORPORATION

MIDSTATESCORPORATION

SEACO PRODUCTIONSEACO PRODUCTION

SEACO PRODUCTION

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PRODUCTION

SEACO PRODUCTION

CALTEXENERGYCO.

CALTEXENERGY

CO.

SOURCEPETROLEUM

INC.

3-LDRILLING

3-L DRILLING

3-L DRILLING3-L DRILLING3-L DRILLING

3-L DRILLING

3-LDRILLING

SOURCEPETROLEUM

INC.

DONOCOOIL

COMPANY

DOEGE,DONALD

DOEGE, DONALD

DONOCO OIL COMPANY

DONOCO OILCOMPANY

DONOCO OILCOMPANY

J&J OIL

LA VERNIAOIL

SOURCEPETROLEUMINC.

SOURCE PETROLEUM INC.SOURCE PETROLEUM INC.

ENERGON3

ENERGON3

ENERGON3

ENERGON3

J.A.G. OIL & GAS

J.A.G. OIL & GAS

SWOBODA,G. M.

SWOBODA, G. M.SWOBODA,

G. M.

SWOBODA,G. M.

SWOBODA,G. M.

THREE J ENERGY,INC.

THREE J ENERGY,INC.

SEACO PRODUCTION

SEACOPRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACOPRODUCTION

SEACO PRODUCTION

SEACOPRODUCTION

SEACOPRODUCTION

LAMBECKPETROLEUM,LLC

LAMBECK PETROLEUM, LLC

J&J OIL

J&J OIL

J&J OIL

DOEGE,DONALD

DOEGE, DONALD

DOEGE,DONALD

J.A.G.OIL & GAS

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SEGUIN PUMP

SEGUINPUMP

SEGUIN PUMP

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SEGUINPUMP

SEGUIN PUMP

SEGUIN PUMP

SEGUIN PUMP

RANKINDRILLINGCOMPANY, INC.

SOURCEPETROLEUM

INC.

DONOCO OILCOMPANY

DONOCO OIL COMPANY

DONOCO OIL COMPANY

TEXAS COASTALRESOURCES LLC

XSTORENERGY, LLC

SMALLEY,RICHARD LOUIS

SEACOPRODUCTION

THREE JENERGY,

INC.

THREE JENERGY,INC.

THREE JENERGY,

INC.

TEXASCOASTAL

RESOURCES LLC

J.A.G.OIL & GAS

J.A.G.OIL & GAS

J.A.G.OIL & GAS

J.A.G.OIL & GAS

J.A.G.OIL & GAS

J.A.G.OIL & GAS

J.A.G.OIL &GAS

DOEGE,DONALD

FUEGOENERGY,

LLC

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES

LLC

J-ENERGY

J-ENERGY

J-ENERGY J-ENERGY

J-ENERGY

THOMPSON,TOMMY

DONOCOOIL

COMPANY

DONOCO OILCOMPANY

DONOCO OILCOMPANY

DONOCOOILCOMPANY

DONOCOOIL COMPANY

NOVA ENERGYGROUP, INC.

NOVA ENERGYGROUP, INC.

GREATPLAINS

RESOURCES, INC.

GREAT PLAINSRESOURCES, INC.

GREAT PLAINSRESOURCES,

INC.

GREAT PLAINSRESOURCES, INC.

GREAT PLAINSRESOURCES,INC.

THREE JENERGY, INC.

THREE JENERGY,INC.

EAGLE PETROLEUM

EAGLEPETROLEUM

EAGLE PETROLEUM

CHEATHAM,IRENE

CHEATHAM,IRENE

J.A.G.OIL & GAS

LEVANTENERGY LLC

LEVANTENERGY

LLC

SOURCEPETROLEUM

INC.

J-ENERGY

THREE JENERGY, INC.

THREEJ ENERGY, INC.

THREE JENERGY,

INC.

THREE JENERGY,INC.

CALTEX ENERGY CO. CALTEXENERGY

CO.

CALTEX ENERGY CO.

CALTEXENERGYCO.

CALTEXENERGY

CO.

SEACO PRODUCTION SEACO PRODUCTION

HOWELLCRANE &

RIGGING, INC.

HOWELL CRANE &RIGGING,INC.

HOWELL CRANE& RIGGING,INC.

HOWELL CRANE &RIGGING,

INC.

AUSTIN OIL& GAS CO.

AUSTINOIL &GAS CO.

AUSTIN OIL& GAS CO.

AUSTIN OIL& GAS CO.

AUSTIN OIL &GASCO.

AUSTINOIL & GAS CO.

AUSTIN OIL &GASCO.

HOERMANN,S. E.

HOERMANN,S. E.

J-ENERGY

J-ENERGY

J-ENERGY

J-ENERGY

J-ENERGY

J-ENERGY

J-ENERGY

J-ENERGY J-ENERGY

J-ENERGYJ-ENERGYJ-ENERGY

J-ENERGY

J-ENERGYJ-ENERGY

J-ENERGY

NOVAENERGYGROUP, INC.

J-ENERGYJ-ENERGY

J-ENERGY

DOEGE,DONALD

DOEGE,DONALD

DOEGE, DONALD

DOEGE,DONALD

DOEGE,DONALD

MARTIN,L. T. C.

UNION PACIFICRESOURCESCOMPANY

HICKSONENERGYCORPORATION

HICKSONENERGY

CORPORATION

HICKSONENERGY

CORPORATION HICKSONENERGYCORPORATION

DONOCO OILCOMPANY

DONOCO OILCOMPANY

TEXASCOASTALRESOURCES LLC

TEXASCOASTAL

RESOURCES LLC

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

TEXASCOASTAL

RESOURCES LLC

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES

LLCKOCH,SEBASTIAN H.

HAECKER, JOSEPH HAECKER, JOSEPHHAECKER, JOSEPH

B. &L. OIL

COMPANY

B. & L.OIL COMPANY

B. &L. OIL

COMPANY

B. & L.OIL

COMPANYB. & L. OILCOMPANY

B. & L. OIL COMPANY

HOWELL CRANE& RIGGING, INC.

HOWELL CRANE &RIGGING, INC.

HOWELL CRANE &RIGGING, INC.

HOWELL CRANE &RIGGING, INC.

HOWELL CRANE &RIGGING,

INC.

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTIONSEACO PRODUCTION

SEACO PRODUCTIONSEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACOPRODUCTION

SEACOPRODUCTION

SCHIEVELBEIN,BRYAN O.

AUSTIN OIL& GAS CO.

AUSTIN OIL &GASCO.

BRAC OIL

JSDOIL,LTD.

JSD OIL,LTD.

JSD OIL, LTD.

RUBIN,GUNNAR ASKO

TEXASCOASTAL

RESOURCES LLC

TEXAS COASTALRESOURCES LLC

LT OIL LLC

LT OILLLC

LT OIL LLC

LT OILLLC

LT OILLLC

LT OIL LLC

THREE J ENERGY,INC.

ALCORNENERGY,

L.L.C.

ALCORNENERGY,

L.L.C.

SEACOPRODUCTIONSEACO PRODUCTION

SEACOPRODUCTION

SEACO PRODUCTION

DONELCOINDUSTRY

DONELCO INDUSTRY

DOEGE,DONALD

DOEGE,DONALD

DOEGE,DONALD

DOEGE, DONALD

DOEGE,DONALD

DOEGE,DONALD DOEGE,

DONALD

TEXAS COASTALRESOURCES LLC

TEXASCOASTAL RESOURCES LLC

TEXAS COASTALRESOURCES

LLC

SMITH/A.P.H.VENTURE

SMITH/A.P.H.VENTURE

SMITH/A.P.H.VENTURE

MALONE OILPRODUCTION

MALONE OILPRODUCTION

V & BOIL

V & BOIL V & B

OIL

FUEGOENERGY,

LLC

TEXAS COASTALRESOURCES LLC TEXAS

COASTALRESOURCES LLCROBBINS,

L. C.

ROBBINS,L. C.

ROBBINS,L. C. ROBBINS,

L. C.

ROBBINS,L. C.

LEVANTENERGY LLC

EOGRESOURCES,

INC.

JWCOIL

OPERATOR, LLC

JWCOIL

OPERATOR, LLC

JWCOILOPERATOR, LLC

JWCOIL OPERATOR,

LLC

JWCOIL

OPERATOR, LLC

JWCOILOPERATOR, LLC

JWCOIL OPERATOR,

LLC

JWC OIL OPERATOR,LLC

JWC OILOPERATOR,LLC

JWC OILOPERATOR, LLC

EMERALD BAYENERGY, INC.

LA VERNIAOIL

LA VERNIA OILLA VERNIA OIL

LA VERNIA OILLA VERNIA OIL

LA VERNIAOIL

LA VERNIAOIL

LA VERNIA OIL

LA VERNIA OIL

LA VERNIA OIL

LA VERNIA OIL

LA VERNIA OIL

LA VERNIA OIL

LA VERNIA OIL

LA VERNIA OILLA VERNIA

OIL

LA VERNIAOIL

DONOCO OILCOMPANY

H. & J.DRILLINGCOMPANY

CADDELL WELLSERVICE, INC.

CADDELLWELL SERVICE, INC.

CADDELL WELLSERVICE, INC.

JGC OILCO.

EMBREY OILPRODUCTIONCO.

J-ENERGY

WALKER,HARREL L.

WALKER,HARREL L.

WALKER,HARREL L.

GLENCO OIL& GAS COMPANY

GLENCO OIL &GAS

COMPANY

GLENCO OIL &GAS COMPANY

J&J OIL

LEASE & WELLSERVICE, INC.

HUGHES, DANA. COMPANY,L.P.

G & KOPERATING,LLC

HUGHES, DAN A.COMPANY, L.P.

EMBREY OILPRODUCTIONCO.

GLOVER &COMPANY

KOCH, I.ERNEST

KOCH, I.ERNEST

KOCH, I.ERNEST

KOCH,S. H.

KOCH,SEBASTIAN H.

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

P.S.N.PETROLEUM,

INC.

THREE JENERGY, INC.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

GLENCOOIL & GASCOMPANY

GLEN DOEGEOIL & GAS

GLEN DOEGEOIL & GAS

GLENCOOIL & GASCOMPANY

GLENCOOIL & GASCOMPANY

NEWBEGINNING

GLENCOOIL & GASCOMPANY

J&J OIL

J&J OIL

SMITH/A.P.H.VENTURE

SOURCEPETROLEUMINC.

TERRA LOCUSSERVICES

TERRALOCUS

SERVICES

E-P OIL CO.INC.

H. & J. DRILLINGCOMPANY

H. & J.DRILLINGCOMPANY

HUGHES, DANA. COMPANY,L.P.

HOLUB,VOJT J.

JOHANSONOIL

JOHANSON OIL

UNITED OIL& MINERALS,INC.

OFFSPRINGWELLSALVAGE

OFFSPRINGWELLSALVAGE

TANGLEWOODOIL &GAS CO.

LAKE CHEROKEEPRODUCTION, LLC

LAKE CHEROKEEPRODUCTION,LLC

LAKE CHEROKEEPRODUCTION,LLC

LAKE CHEROKEEPRODUCTION, LLC

LAKE CHEROKEEPRODUCTION, LLCLAKE CHEROKEE

PRODUCTION,LLC

LAKE CHEROKEEPRODUCTION, LLC

LAKE CHEROKEEPRODUCTION, LLC

CALTEXENERGY

CO.

CALTEXENERGY CO.

CALTEXENERGY

CO.

LAKE CHEROKEEPRODUCTION, LLC

LAKE CHEROKEEPRODUCTION, LLC

BLOUNT, T.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

TEXAS BISONPETROLEUM

DOYLE &DOUGLAS

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MATTKE, PAUL& WITTE,

MELVIN

SOUTHERN GULFPETROLEUMCO.

SOUTHERNGULF PETROLEUM CO.

LIBERTY HEADPETROLEUM, INC.

LIBERTY HEADPETROLEUM, INC.

CALTEXENERGYCO.

CALTEXENERGY

CO.

CALTEXENERGYCO.

J.A.G.OIL & GAS

J.A.G.OIL & GAS

HENDERSONEXPLORATION

HENDERSONEXPLORATION

J.A.G. OIL & GAS

J.A.G.OIL& GAS

MCGAUGHYOIL COMPANY

MCGAUGHYOIL COMPANY

DEAGEN,BILL &

SONS, LTD.

KAYE POTH OILCORP.

KAYE POTHOIL CORP.

3-LDRILLING

3-LDRILLING

RODRIGUEZ,FRANK

METCO OILCORPORATION

METCO OILCORPORATION

CUNNINGHAM,H. T.,TRUSTEE

CUNNINGHAM,H. T.,

TRUSTEE

CUNNINGHAM,H. T.,TRUSTEE

CUNNINGHAM,H. T.,TRUSTEE

GAT-MANPETRO INC.

P.S.N.PETROLEUM,INC.

LIBERTY HEADPETROLEUM,

INC.

3-LDRILLING

3-LDRILLING

EMBREY OILPRODUCTION CO.

EMBREY OILPRODUCTION

CO.

TANGLEWOODOIL &

GAS CO.

TRANSIERRAEXPLORATIONCORP.

TRANSIERRAEXPLORATIONCORP.

TRANSIERRAEXPLORATION CORP.

CROSSROADSMINERALPROD., L.L.C.

BRANNAN,JOHN T. III BRANNAN,

JOHN T. III

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BRANNAN,JOHN T. III

BRANNAN,JOHN T. III

BRANNAN,JOHN T. III

BRANNAN, JOHN T.III

BRANNAN,JOHN T. III

BRANNAN,JOHN

T. III

J.A.G. OIL & GASJ.A.G. OIL & GAS

J.A.G. OIL& GAS

J.A.G.OIL & GAS

J.A.G. OIL & GASJ.A.G. OIL & GAS

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AUTRY, ALLEN

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SEGURO WELLSERVICE,

INC.

KOCH,SEBASTIAN H.

KOCH,SEBASTIAN H.

METCO OILCORPORATION

METCO OIL CORPORATION

LIBERTYHEAD PETROLEUM, INC.

LIBERTY HEADPETROLEUM, INC.

CALTEXENERGYCO.CALTEX

ENERGYCO.

PIERDOLLA,JEFFERY

H. & J.DRILLINGCOMPANY

SAN MIGUELEXPLORATIONCOMPANY

BRITANCO,L.L.C.

SAN MIGUELEXPLORATIONCOMPANY

SAN MIGUELEXPLORATIONCOMPANYSAN MIGUEL

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SAN MIGUELEXPLORATION

COMPANY

JOHANSON OIL

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SYJ OIL &GAS,INC.

SYJ OIL &GAS, INC.

SYJ OIL &GAS, INC.

SYJ OIL &GAS,INC.

CUNNINGHAM,H. T.,TRUSTEE

LA VERNIAOIL CO.

LA VERNIAOIL CO.LA VERNIA

OIL CO.LA VERNIA OIL

CO.LA VERNIAOILCO. LA VERNIA OIL CO.

LA VERNIAOILCO.

BLACK JACK WELLSERVICE,

INC.

BLACK JACK WELLSERVICE, INC.

BLACK JACKWELL SERVICE,INC.

BLACK JACK WELLSERVICE, INC.

SOURCEPETROLEUM

INC.

W DWELLSERVICE

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LA VERNIAOILCO.

LA VERNIAOIL CO.

LA VERNIAOILCO.

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INC.

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DARICO OIL& GAS CO.

EMBREY OILPRODUCTION CO.

DEAGEN,BILL &

SONS, LTD.

AUTRY,ALLEN

JARUTOWICZ, HAROLD

JARUTOWICZ,HAROLD

METCO OILCORPORATION

METCO OIL CORPORATION

RIGHTMER,JOHN W.

TEXAS COASTAL RESOURCESLLC

TEXAS COASTALRESOURCES LLC

METCO OILCORPORATION

METCO OIL CORPORATION

METCO OILCORPORATION

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CORPORATION

SEACO PRODUCTIONSEACO

PRODUCTION

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LA VERNIAOILCO.

LA VERNIA OILCO.

LA VERNIA OIL CO.

LA VERNIAOIL CO.

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EMBREY OILPRODUCTIONCO.EMBREY OIL

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INC

LT OILLLC

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TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

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GLENCOOIL & GASCOMPANY

COPPERHEADOIL & GAS,LTD.

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COPPERHEADOIL & GAS, LTD.

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TRIPLE 3HENERGY, LLC

TRIPLE 3HENERGY, LLC

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WOLFE OILCOMPANY

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TRIPLE3H ENERGY,

LLC

JOHANSON OIL

GEOMEG ENERGYOPERATING CO., LLC

ROLLERTCO.,INC., THE

ROLLERTCO.,INC., THE

JOHANSONOIL

JOHANSON OIL

JOHANSONOIL

JOHANSONOIL

GEOMEG ENERGYOPERATINGCO., LLC

OFFSPRINGWELLSALVAGE

PULLIN LEASESERVICE, INC.

COPPERHEADOIL & GAS, LTD.

COPPERHEADOIL &

GAS, LTD.

COPPERHEAD OIL& GAS, LTD.

COPPERHEADOIL &GAS, LTD.

COPPERHEADOIL &

GAS, LTD.

PETROSE,INC.

METCO OILCORPORATION

METCOOILCORPORATION

LYNCH, WILBURWALDO,ESTATE OF

LYNCH, WILBURWALDO,ESTATE OF

LYNCH,WILBUR WALDO,ESTATE OF

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GAUNTT,INC.

GRAMMER, JOHN,OIL ACCOUNT

GRAMMER,JOHN, OILACCOUNT

GRAMMER,JOHN, OILACCOUNT

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GAUNTT,INC.

GAUNTT,INC.GAUNTT, INC.

GAUNTT, INC.GAUNTT,

INC.

GAUNTT,INC.GAUNTT,

INC.

GAUNTT,INC.

GAUNTT,INC.

GAUNTT,INC.

GAUNTT, INC.GAUNTT,

INC.

GAUNTT,INC.

GAUNTT, INC.GAUNTT,INC.

GAUNTT,INC.

MATTKE, PAUL

MATTKE,PAUL

FORT WORTHNATURALGAS, INC.

FORT WORTHNATURAL GAS, INC.

FORT WORTHNATURAL GAS, INC.

FORT WORTH NATURALGAS,INC.

FORT WORTHNATURALGAS, INC.

FORT WORTHNATURALGAS, INC.

FORT WORTH NATURALGAS,INC.

FORT WORTHNATURALGAS, INC.

FORT WORTHNATURAL GAS, INC.

FORT WORTHNATURAL GAS, INC.

FORTWORTH NATURAL

GAS, INC.FORT WORTHNATURALGAS, INC. FORT WORTH

NATURALGAS, INC.FORT WORTH

NATURALGAS, INC.

FORT WORTH NATURALGAS,INC.

FORT WORTHNATURALGAS, INC.

FORT WORTHNATURAL GAS, INC.

FORT WORTHNATURAL GAS, INC.

FORT WORTHNATURAL GAS, INC.

FORT WORTHNATURAL GAS,

INC.

FORT WORTHNATURAL GAS, INC.

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SOURCEPETROLEUMINC.

HOWELL CRANE& RIGGING, INC.

BOUNDS,ROBERT S.

BOUNDS,ROBERT S.

BOUNDS,ROBERT S.

BOUNDS,ROBERT S.

BOUNDS,ROBERT S.

BOUNDS,ROBERT S.

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CAL-WACO OILCO.INC. CAL-WACO

OIL CO.INC.

CAL-WACO OILCO. INC.

FALOR,ALLEN C.FALOR,

ALLEN C. FALOR,ALLEN C.

FALOR,ALLEN C.

FALOR,ALLEN C.

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LAKE CHEROKEEPRODUCTION,LLC

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TEXAS COASTALRESOURCES LLC

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HICKEY, EUGENE

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CANTUOIL CO.

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INC.

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LLC

LAKE CHEROKEEPRODUCTION,LLC

LAKE CHEROKEEPRODUCTION, LLC

LAKECHEROKEE PRODUCTION, LLC

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LAKE CHEROKEEPRODUCTION,

LLC

LAKE CHEROKEEPRODUCTION,

LLC

LAKE CHEROKEEPRODUCTION,

LLC

LAKE CHEROKEEPRODUCTION, LLC

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NEW BEGINNING

THREE JENERGY,INC.

AGAPEENERGY

INC.

G & J ENERGY

G &J ENERGY

G & J ENERGY

THOMPSON, TOMMYTHOMPSON, TOMMY

THOMPSON,TOMMY

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SEGUINPUMPSEGUIN

PUMP

MCLAINEXPLORATION,INC.

MCLAIN EXPLORATION,INC.

MCLAINEXPLORATION,

INC.

MCLAIN EXPLORATION, INC.

SMITH/A.P.H.VENTURE

SMITH/A.P.H. VENTURE

SMITH/A.P.H.VENTURE

SMITH/A.P.H. VENTURE

SMITH/A.P.H.VENTURE

SMITH/A.P.H. VENTURESMITH/A.P.H.VENTURE

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SOURCEPETROLEUMINC.

STEBARENERGYCORPORATION

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CORPORATION

TERRALOCUS

SERVICES

LOCKER RANCH

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T. W.OIL CO.

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AGAPEENERGY

INC.

AGAPEENERGY

INC.

AGAPE ENERGY INC.

AGAPEENERGY

INC.AGAPEENERGYINC.

AGAPEENERGYINC.

AGAPEENERGY INC.

AGAPEENERGYINC.

RAM OIL& GASCOMPANY

PETRO-SHELL,INC.

LAKE CHEROKEEPRODUCTION, LLC

EAGLEFORD OILCO., INC.

L & LPIPE & SUPPLYINC.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

SUNRISEENERGY

J-ENERGY

J-ENERGY

SOUTHERN GULF PETROLEUMCO.

LT OIL LLC

CAL-WACOOIL CO. INC.

CAL-WACO OIL CO. INC.

CAL-WACO OILCO.INC.

CAL-WACOOIL CO.INC.

CAL-WACOOIL CO.

INC.

DOEGE, DONALD

NEWBEGINNING

NEW BEGINNING

NEW BEGINNING

NEW BEGINNING

J.A.G.OIL & GAS

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CALTEX ENERGYCO.

CALTEXENERGY CO.

CALTEXENERGY CO.

MCLAIN EXPLORATION,INC.

MCLAINEXPLORATION,INC.

MCLAINEXPLORATION, INC.

DOEGE,DONALD

DOEGE, DONALDDOEGE,DONALD

DONOCO OILCOMPANY

DONOCOOIL COMPANY

DONOCO OILCOMPANY

RAMPAGEEXPLORATION,INC.

RAMPAGEEXPLORATION,

INC.

RAMPAGE EXPLORATION,INC.

NEW BEGINNING

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NEW BEGINNING

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LOTTPRODUCTIONCOMPANY

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COMPANY

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LOTTPRODUCTION

COMPANY

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LOTTPRODUCTIONCOMPANY

SOURCEPETROLEUMINC.

SOURCE PETROLEUMINC.

SOUTHERN GULFPETROLEUM CO.

DOEGE, DONALDDOEGE,DONALD

DOEGE,DONALD

DOEGE,DONALD

DOEGE,DONALD

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BOUNDS,ROBERT S.

TABER,ALAN R.

TABER,ALAN R.

TABER,ALAN R.

GREATPLAINS RESOURCES,INC.

PERKINS,EUGENE O.

DONOCO OIL COMPANY

DOEGE,DONALD

DOEGE,DONALDDOEGE,

DONALD

TEXAS SECONDARYOIL CORPORATION

TEXAS SECONDARYOIL CORPORATION

RAINERENERGY, INC.DONOCO OIL

COMPANY

CAL-WACO OILCO.INC.

CAL-WACOOIL CO.

INC.

CAL-WACOOIL CO. INC.

TEXAS COASTALRESOURCES LLC

KUBENA,JOSEPH A.

KUBENA, JOSEPH A.

KUBENA,JOSEPH A.

KUBENA,JOSEPH A.

HOWARD,CALVIN L.

HOWARD,CALVIN L.

ROSKYDAL,LAVERNE

ROSKYDAL,LAVERNE

ROSKYDAL, LAVERNEROSKYDAL, LAVERNEROSKYDAL, LAVERNE

RAMPAGEEXPLORATION,

INC.

MOORE PETROLEUMCO., INC.

MOORE PETROLEUM CO.,INC.

NEWBEGINNING

NEW BEGINNING

PERKINS,EUGENE O.PERKINS,

EUGENE O.

PERKINS,EUGENE O.

THREE JENERGY,INC.

MCLAIN EXPLORATION,INC.

J.A.G.OIL & GAS

DOEGE,DONALD

DOEGE,DONALD

DOEGE,DONALD

DOEGE,DONALD DOEGE,

DONALD

WARNCKE,GLENNWOOD

MCLAINEXPLORATION,

INC.

MCLAIN EXPLORATION,INC.

DONOCO OILCOMPANY

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DONOCOOIL

COMPANY

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DOEGE,DONALD

DOEGE,DONALD

DOEGE,DONALD

DOEGE, DONALD

CALTEXENERGYCO.

RAM OIL& GAS COMPANY

RAMOIL &

GAS COMPANY

J.A.G. OIL & GAS

TRANSUE,JIM

TRANSUE,JIM

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SMALLEY,RICHARD

LOUIS

W.W.ENERGY

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DOEGE,DONALD

DOEGE, DONALD

DOEGE,DONALD

DOEGE,DONALD

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

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MIDSTATESCORPORATION

MIDSTATESCORPORATION

SEACO PRODUCTIONSEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTIONSEACO

PRODUCTION

SEACO PRODUCTION

CALTEXENERGYCO.

CALTEXENERGY

CO.

SOURCEPETROLEUM

INC.

3-LDRILLING

3-L DRILLING

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3-L DRILLING

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SOURCEPETROLEUM

INC.

DONOCOOIL

COMPANY

DOEGE,DONALD

DOEGE, DONALD

DONOCO OIL COMPANY

DONOCO OILCOMPANY

DONOCO OILCOMPANY

J&J OIL

LA VERNIAOIL

SOURCEPETROLEUMINC.

SOURCE PETROLEUM INC.SOURCE PETROLEUM INC.

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J.A.G. OIL & GAS

SWOBODA,G. M.

SWOBODA, G. M.SWOBODA,

G. M.

SWOBODA,G. M.

SWOBODA,G. M.

THREE J ENERGY,INC.

THREE J ENERGY,INC.

SEACO PRODUCTION

SEACOPRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACOPRODUCTION

SEACO PRODUCTION

SEACOPRODUCTION

SEACOPRODUCTION

LAMBECKPETROLEUM,LLC

LAMBECK PETROLEUM, LLC

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J&J OIL

DOEGE,DONALD

DOEGE, DONALD

DOEGE,DONALD

J.A.G.OIL & GAS

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SEGUIN PUMP

SEGUINPUMP

SEGUIN PUMP

SEGUINPUMP

SEGUINPUMP

SEGUIN PUMP

SEGUIN PUMP

SEGUIN PUMP

RANKINDRILLINGCOMPANY, INC.

SOURCEPETROLEUM

INC.

DONOCO OILCOMPANY

DONOCO OIL COMPANY

DONOCO OIL COMPANY

TEXAS COASTALRESOURCES LLC

XSTORENERGY, LLC

SMALLEY,RICHARD LOUIS

SEACOPRODUCTION

THREE JENERGY,

INC.

THREE JENERGY,INC.

THREE JENERGY,

INC.

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RESOURCES LLC

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J.A.G.OIL & GAS

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J.A.G.OIL & GAS

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LLC

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LLC

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THOMPSON,TOMMY

DONOCOOIL

COMPANY

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DONOCO OILCOMPANY

DONOCOOILCOMPANY

DONOCOOIL COMPANY

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NOVA ENERGYGROUP, INC.

GREATPLAINS

RESOURCES, INC.

GREAT PLAINSRESOURCES, INC.

GREAT PLAINSRESOURCES,

INC.

GREAT PLAINSRESOURCES, INC.

GREAT PLAINSRESOURCES,INC.

THREE JENERGY, INC.

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CHEATHAM,IRENE

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J.A.G.OIL & GAS

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LLC

SOURCEPETROLEUM

INC.

J-ENERGY

THREE JENERGY, INC.

THREEJ ENERGY, INC.

THREE JENERGY,

INC.

THREE JENERGY,INC.

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CO.

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CALTEXENERGY

CO.

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RIGGING, INC.

HOWELL CRANE &RIGGING,INC.

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INC.

AUSTIN OIL& GAS CO.

AUSTINOIL &GAS CO.

AUSTIN OIL& GAS CO.

AUSTIN OIL& GAS CO.

AUSTIN OIL &GASCO.

AUSTINOIL & GAS CO.

AUSTIN OIL &GASCO.

HOERMANN,S. E.

HOERMANN,S. E.

J-ENERGY

J-ENERGY

J-ENERGY

J-ENERGY

J-ENERGY

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J-ENERGY

J-ENERGY J-ENERGY

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NOVAENERGYGROUP, INC.

J-ENERGYJ-ENERGY

J-ENERGY

DOEGE,DONALD

DOEGE,DONALD

DOEGE, DONALD

DOEGE,DONALD

DOEGE,DONALD

MARTIN,L. T. C.

UNION PACIFICRESOURCESCOMPANY

HICKSONENERGYCORPORATION

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CORPORATION

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CORPORATION HICKSONENERGYCORPORATION

DONOCO OILCOMPANY

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RESOURCES LLC

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

TEXASCOASTAL

RESOURCES LLC

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES

LLCKOCH,SEBASTIAN H.

HAECKER, JOSEPH HAECKER, JOSEPHHAECKER, JOSEPH

B. &L. OIL

COMPANY

B. & L.OIL COMPANY

B. &L. OIL

COMPANY

B. & L.OIL

COMPANYB. & L. OILCOMPANY

B. & L. OIL COMPANY

HOWELL CRANE& RIGGING, INC.

HOWELL CRANE &RIGGING, INC.

HOWELL CRANE &RIGGING, INC.

HOWELL CRANE &RIGGING, INC.

HOWELL CRANE &RIGGING,

INC.

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTIONSEACO PRODUCTION

SEACO PRODUCTIONSEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACOPRODUCTION

SEACOPRODUCTION

SCHIEVELBEIN,BRYAN O.

AUSTIN OIL& GAS CO.

AUSTIN OIL &GASCO.

BRAC OIL

JSDOIL,LTD.

JSD OIL,LTD.

JSD OIL, LTD.

RUBIN,GUNNAR ASKO

TEXASCOASTAL

RESOURCES LLC

TEXAS COASTALRESOURCES LLC

LT OIL LLC

LT OILLLC

LT OIL LLC

LT OILLLC

LT OILLLC

LT OIL LLC

THREE J ENERGY,INC.

ALCORNENERGY,

L.L.C.

ALCORNENERGY,

L.L.C.

SEACOPRODUCTIONSEACO PRODUCTION

SEACOPRODUCTION

SEACO PRODUCTION

DONELCOINDUSTRY

DONELCO INDUSTRY

DOEGE,DONALD

DOEGE,DONALD

DOEGE,DONALD

DOEGE, DONALD

DOEGE,DONALD

DOEGE,DONALD DOEGE,

DONALD

TEXAS COASTALRESOURCES LLC

TEXASCOASTAL RESOURCES LLC

TEXAS COASTALRESOURCES

LLC

SMITH/A.P.H.VENTURE

SMITH/A.P.H.VENTURE

SMITH/A.P.H.VENTURE

MALONE OILPRODUCTION

MALONE OILPRODUCTION

V & BOIL

V & BOIL V & B

OIL

FUEGOENERGY,

LLC

TEXAS COASTALRESOURCES LLC TEXAS

COASTALRESOURCES LLCROBBINS,

L. C.

ROBBINS,L. C.

ROBBINS,L. C. ROBBINS,

L. C.

ROBBINS,L. C.

LEVANTENERGY LLC

EOGRESOURCES,

INC.

JWCOIL

OPERATOR, LLC

JWCOIL

OPERATOR, LLC

JWCOILOPERATOR, LLC

JWCOIL OPERATOR,

LLC

JWCOIL

OPERATOR, LLC

JWCOILOPERATOR, LLC

JWCOIL OPERATOR,

LLC

JWC OIL OPERATOR,LLC

JWC OILOPERATOR,LLC

JWC OILOPERATOR, LLC

EMERALD BAYENERGY, INC.

LA VERNIAOIL

LA VERNIA OILLA VERNIA OIL

LA VERNIA OILLA VERNIA OIL

LA VERNIAOIL

LA VERNIAOIL

LA VERNIA OIL

LA VERNIA OIL

LA VERNIA OIL

LA VERNIA OIL

LA VERNIA OIL

LA VERNIA OIL

LA VERNIA OIL

LA VERNIA OILLA VERNIA

OIL

LA VERNIAOIL

DONOCO OILCOMPANY

H. & J.DRILLINGCOMPANY

CADDELL WELLSERVICE, INC.

CADDELLWELL SERVICE, INC.

CADDELL WELLSERVICE, INC.

JGC OILCO.

EMBREY OILPRODUCTIONCO.

J-ENERGY

WALKER,HARREL L.

WALKER,HARREL L.

WALKER,HARREL L.

GLENCO OIL& GAS COMPANY

GLENCO OIL &GAS

COMPANY

GLENCO OIL &GAS COMPANY

J&J OIL

LEASE & WELLSERVICE, INC.

HUGHES, DANA. COMPANY,L.P.

G & KOPERATING,LLC

HUGHES, DAN A.COMPANY, L.P.

EMBREY OILPRODUCTIONCO.

GLOVER &COMPANY

KOCH, I.ERNEST

KOCH, I.ERNEST

KOCH, I.ERNEST

KOCH,S. H.

KOCH,SEBASTIAN H.

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

P.S.N.PETROLEUM,

INC.

THREE JENERGY, INC.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

GLENCOOIL & GASCOMPANY

GLEN DOEGEOIL & GAS

GLEN DOEGEOIL & GAS

GLENCOOIL & GASCOMPANY

GLENCOOIL & GASCOMPANY

NEWBEGINNING

GLENCOOIL & GASCOMPANY

J&J OIL

J&J OIL

SMITH/A.P.H.VENTURE

SOURCEPETROLEUMINC.

TERRA LOCUSSERVICES

TERRALOCUS

SERVICES

E-P OIL CO.INC.

H. & J. DRILLINGCOMPANY

H. & J.DRILLINGCOMPANY

HUGHES, DANA. COMPANY,L.P.

HOLUB,VOJT J.

JOHANSONOIL

JOHANSON OIL

UNITED OIL& MINERALS,INC.

OFFSPRINGWELLSALVAGE

OFFSPRINGWELLSALVAGE

TANGLEWOODOIL &GAS CO.

LAKE CHEROKEEPRODUCTION, LLC

LAKE CHEROKEEPRODUCTION,LLC

LAKE CHEROKEEPRODUCTION,LLC

LAKE CHEROKEEPRODUCTION, LLC

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PRODUCTION,LLC

LAKE CHEROKEEPRODUCTION, LLC

LAKE CHEROKEEPRODUCTION, LLC

CALTEXENERGY

CO.

CALTEXENERGY CO.

CALTEXENERGY

CO.

LAKE CHEROKEEPRODUCTION, LLC

LAKE CHEROKEEPRODUCTION, LLC

BLOUNT, T.

L & L PIPE &SUPPLY INC.

L & L PIPE &SUPPLY INC.

TEXAS BISONPETROLEUM

DOYLE &DOUGLAS

GLENCOOIL & GASCOMPANY

GLENCOOIL & GASCOMPANY

GLENCOOIL & GASCOMPANY

MATTKE, PAUL& WITTE,

MELVIN

SOUTHERN GULFPETROLEUMCO.

SOUTHERNGULF PETROLEUM CO.

LIBERTY HEADPETROLEUM, INC.

LIBERTY HEADPETROLEUM, INC.

CALTEXENERGYCO.

CALTEXENERGY

CO.

CALTEXENERGYCO.

J.A.G.OIL & GAS

J.A.G.OIL & GAS

HENDERSONEXPLORATION

HENDERSONEXPLORATION

J.A.G. OIL & GAS

J.A.G.OIL& GAS

MCGAUGHYOIL COMPANY

MCGAUGHYOIL COMPANY

DEAGEN,BILL &

SONS, LTD.

KAYE POTH OILCORP.

KAYE POTHOIL CORP.

3-LDRILLING

3-LDRILLING

RODRIGUEZ,FRANK

METCO OILCORPORATION

METCO OILCORPORATION

CUNNINGHAM,H. T.,TRUSTEE

CUNNINGHAM,H. T.,

TRUSTEE

CUNNINGHAM,H. T.,TRUSTEE

CUNNINGHAM,H. T.,TRUSTEE

GAT-MANPETRO INC.

P.S.N.PETROLEUM,INC.

LIBERTY HEADPETROLEUM,

INC.

3-LDRILLING

3-LDRILLING

EMBREY OILPRODUCTION CO.

EMBREY OILPRODUCTION

CO.

TANGLEWOODOIL &

GAS CO.

TRANSIERRAEXPLORATIONCORP.

TRANSIERRAEXPLORATIONCORP.

TRANSIERRAEXPLORATION CORP.

CROSSROADSMINERALPROD., L.L.C.

BRANNAN,JOHN T. III BRANNAN,

JOHN T. III

BRANNAN,JOHN T. III

BRANNAN,JOHN T. III

BRANNAN,JOHN T. III

BRANNAN,JOHN T. III

BRANNAN, JOHN T.III

BRANNAN,JOHN T. III

BRANNAN,JOHN

T. III

J.A.G. OIL & GASJ.A.G. OIL & GAS

J.A.G. OIL& GAS

J.A.G.OIL & GAS

J.A.G. OIL & GASJ.A.G. OIL & GAS

H. & J.DRILLINGCOMPANY

AUTRY, ALLEN

MATTKE,PAUL

MATTKE,PAUL

LYNCH,W. W.

SEGURO WELLSERVICE,

INC.

KOCH,SEBASTIAN H.

KOCH,SEBASTIAN H.

METCO OILCORPORATION

METCO OIL CORPORATION

LIBERTYHEAD PETROLEUM, INC.

LIBERTY HEADPETROLEUM, INC.

CALTEXENERGYCO.CALTEX

ENERGYCO.

PIERDOLLA,JEFFERY

H. & J.DRILLINGCOMPANY

SAN MIGUELEXPLORATIONCOMPANY

BRITANCO,L.L.C.

SAN MIGUELEXPLORATIONCOMPANY

SAN MIGUELEXPLORATIONCOMPANYSAN MIGUEL

EXPLORATIONCOMPANY

SAN MIGUELEXPLORATION

COMPANY

JOHANSON OIL

W.W.ENERGY

W.W.ENERGY

W.W.ENERGY

SYJ OIL &GAS,INC.

SYJ OIL &GAS, INC.

SYJ OIL &GAS, INC.

SYJ OIL &GAS,INC.

CUNNINGHAM,H. T.,TRUSTEE

LA VERNIAOIL CO.

LA VERNIAOIL CO.LA VERNIA

OIL CO.LA VERNIA OIL

CO.LA VERNIAOILCO. LA VERNIA OIL CO.

LA VERNIAOILCO.

BLACK JACK WELLSERVICE,

INC.

BLACK JACK WELLSERVICE, INC.

BLACK JACKWELL SERVICE,INC.

BLACK JACK WELLSERVICE, INC.

SOURCEPETROLEUM

INC.

W DWELLSERVICE

W D WELL SERVICE

BURKROYALTYCOMPANY

LA VERNIAOILCO.

LA VERNIAOIL CO.

LA VERNIAOILCO.

LUNDELLS,INC. LUNDELLS,

INC.

LUNDELLS,INC.

DARICO OIL& GAS CO.

EMBREY OILPRODUCTION CO.

DEAGEN,BILL &

SONS, LTD.

AUTRY,ALLEN

JARUTOWICZ, HAROLD

JARUTOWICZ,HAROLD

METCO OILCORPORATION

METCO OIL CORPORATION

RIGHTMER,JOHN W.

TEXAS COASTAL RESOURCESLLC

TEXAS COASTALRESOURCES LLC

METCO OILCORPORATION

METCO OIL CORPORATION

METCO OILCORPORATION

METCO OILCORPORATION

METCO OILCORPORATION

METCOOIL CORPORATION

METCOOIL

CORPORATION

SEACO PRODUCTIONSEACO

PRODUCTION

SEACOPRODUCTION

GEOMEG ENERGYOPERATINGCO., LLC

AUTRY,ALLEN

TEXASCOASTAL RESOURCES LLC

H. & J.DRILLINGCOMPANY

SEACOPRODUCTION

SEACOPRODUCTION

SEACO PRODUCTION

METCOOIL CORPORATION

T & T OIL CO.

LA VERNIAOILCO.

LA VERNIA OILCO.

LA VERNIA OIL CO.

LA VERNIAOIL CO.

H. & J.DRILLINGCOMPANY

EMBREY OILPRODUCTIONCO.EMBREY OIL

PRODUCTION CO.

BJT OILCOMPANY,INC

BJT OILCOMPANY,

INC

LT OILLLC

LT OILLLC LT OIL

LLCLT OILLLC

LT OILLLC

EMBREY OILPRODUCTION

CO.EMBREY OILPRODUCTION

CO.

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

TEXAS COASTALRESOURCES LLC

GAUNTT,INC.

GLENCOOIL & GASCOMPANY

COPPERHEADOIL & GAS,LTD.

COPPERHEADOIL &

GAS, LTD.

COPPERHEADOIL &GAS, LTD.

COPPERHEADOIL &GAS, LTD.

COPPERHEADOIL & GAS, LTD.

SEACOPRODUCTION

SEACO PRODUCTIONSEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

SEACO PRODUCTION

LT OILLLC

LT OILLLC

LT OILLLC

H &P PARTNERSHIP

LT OIL LLC

LT OILLLCLT OIL

LLCLT OILLLC

H. & J.DRILLINGCOMPANY

EMBREY OILPRODUCTIONCO.

EMBREY OILPRODUCTION

CO.

CASTILLOOIL

COMPANY LLC

CASTILLOOIL COMPANY LLC

T & TOIL CO.

JARUTOWICZOILCOMPANY

SEGURO WELLSERVICE,INC.

TRIPLE 3HENERGY, LLC

TRIPLE 3H ENERGY,LLC

TRIPLE 3HENERGY, LLC

TRIPLE 3HENERGY, LLC

STELLER ENERGY& INVESTMENT CORP

STELLER ENERGY &INVESTMENT CORP

STELLER ENERGY &INVESTMENT CORP

STELLERENERGY &INVESTMENT CORP

STELLER ENERGY &INVESTMENT CORP

GLENCOOIL & GASCOMPANY

G & KOPERATING,LLC

G & KOPERATING,LLC

METCO OILCORPORATION

ABRAXAS PETROLEUMCORPORATION

CALTEXENERGYCO.

EMBREY OILPRODUCTIONCO.

EMBREY OILPRODUCTION CO.

WOLFE OILCOMPANY

WOLFE OILCOMPANY

WOLFE OILCOMPANY WOLFE OIL

COMPANY

WOLFEOILCOMPANY

WOLFE OIL COMPANY

WOLFE OILCOMPANY

WOLFE OIL COMPANY

WOLFE OILCOMPANY

CASTILLOOIL COMPANYLLC

H & P PARTNERSHIP

TRIPLE3H ENERGY,

LLC

JOHANSON OIL

GEOMEG ENERGYOPERATING CO., LLC

ROLLERTCO.,INC., THE

ROLLERTCO.,INC., THE

JOHANSONOIL

JOHANSON OIL

JOHANSONOIL

JOHANSONOIL

GEOMEG ENERGYOPERATINGCO., LLC

OFFSPRINGWELLSALVAGE

PULLIN LEASESERVICE, INC.

COPPERHEADOIL & GAS, LTD.

COPPERHEADOIL &

GAS, LTD.

COPPERHEAD OIL& GAS, LTD.

COPPERHEADOIL &GAS, LTD.

COPPERHEADOIL &

GAS, LTD.

PETROSE,INC.

METCO OILCORPORATION

METCOOILCORPORATION

LYNCH, WILBURWALDO,ESTATE OF

LYNCH, WILBURWALDO,ESTATE OF

LYNCH,WILBUR WALDO,ESTATE OF

LYNCH, WILBURWALDO,

ESTATE OF

LYNCH,WILBUR WALDO,ESTATE OF

LYNCH, WILBURWALDO,ESTATE OF

LYNCH,WILBUR WALDO,

ESTATE OF

GAUNTT,INC.

GAUNTT,INC.

GAUNTT,INC.

GRAMMER, JOHN,OIL ACCOUNT

GRAMMER,JOHN, OILACCOUNT

GRAMMER,JOHN, OILACCOUNT

GRAMMER,JOHN, OILACCOUNT

GAUNTT,INC.

GAUNTT,INC.

GAUNTT,INC.GAUNTT, INC.

GAUNTT, INC.GAUNTT,

INC.

GAUNTT,INC.GAUNTT,

INC.

GAUNTT,INC.

GAUNTT,INC.

GAUNTT,INC.

GAUNTT, INC.GAUNTT,

INC.

GAUNTT,INC.

GAUNTT, INC.GAUNTT,INC.

GAUNTT,INC.

MATTKE, PAUL

MATTKE,PAUL

FORT WORTHNATURALGAS, INC.

FORT WORTHNATURAL GAS, INC.

FORT WORTHNATURAL GAS, INC.

FORT WORTH NATURALGAS,INC.

FORT WORTHNATURALGAS, INC.

FORT WORTHNATURALGAS, INC.

FORT WORTH NATURALGAS,INC.

FORT WORTHNATURALGAS, INC.

FORT WORTHNATURAL GAS, INC.

FORT WORTHNATURAL GAS, INC.

FORTWORTH NATURAL

GAS, INC.FORT WORTHNATURALGAS, INC. FORT WORTH

NATURALGAS, INC.FORT WORTH

NATURALGAS, INC.

FORT WORTH NATURALGAS,INC.

FORT WORTHNATURALGAS, INC.

FORT WORTHNATURAL GAS, INC.

FORT WORTHNATURAL GAS, INC.

FORT WORTHNATURAL GAS, INC.

FORT WORTHNATURAL GAS,

INC.

FORT WORTHNATURAL GAS, INC.

Bexar

Atascosa

Wilson

Gonzales

Karnes

DeWitt

Goliad

Guadalupe

Comal CaldwellKendall

Frio

Medina

BeeLive Oak

HaysFayette

Bandera

Victoria

McMullen

Lavaca

. 0 3,900 7,800 11,700 15,6001,950Feet

0 1 20.5 Miles

LegendProducing Wells

7 mile buffer

Leasehold

Page 7: Seguin Development Phase II

11

3 - D S c h e m at i cS t r u c t u r e M a p

Bexar County

Atascosa County

DeWitt County

Gonzales County

Frio County

Goliad County

Medina County

Wilson County

Karnes County

Victoria County

Guadalupe County

Lavaca County

Comal County

Bee County

Caldwell CountyFayette County

McMullen CountyLive Oak County

La Salle County

Bandera County

Kendall County

Refugio County

Kerr County Hays CountyBastrop County

Jackson County

Calhoun County

Webb

Frio

Kerr

Duval

Uvalde

Bee

Bexar

Zavala

Dimmit

Kimble

La Salle

Medina

Travis Lee

Real

DeWitt

Lavaca

Hays

Goliad

Atascosa

Wharton

Fayette

Edwards

Gillespie

Llano

Live Oak

Wilson

McMullen

Victoria

Bastrop

Gonzales

Nueces

Colorado

Austin

Karnes

Blanco

Refugio

Jackson

Grimes

Matagorda

Bandera

Mason Williamson

Kendall

Comal

Milam

Waller

Maverick

Burleson

Burnet

Jim Wells

Kinney

Brazos

Guadalupe

Caldwell

San Patricio

Sutton

Washington

Fort Bend

Calhoun

Aransas

Harris

Menard

Kleberg

Brazoria

Montgomery

Walker

Calhoun

Calhoun

Schleicher

Aransas

Robertson

Nueces

Bell

Kleberg

Calhoun

Calhoun

.

0 38,000 76,000 114,000 152,00019,000Feet

Scull & Grun Leasehold

Eagle Ford Shale DRY GAS

OIL

WET GAS/ CONDENSATESeguin

Development Phase II Multiple Horizons Future Redrill Potential

Montgomery Willingham

Carrizo

Poth

Navarro

Anacocho

Austin Chalk

Buda

Eagle Ford

Page 8: Seguin Development Phase II

13

h i s t o r y o f t h e P r o j e c tWilson County:

Wilson County (N-16) is on the upper coastal plain of South Texas . The county seat and largest city is Floresville, which is thirty

miles southeast of San Antonio . Four major highways serve the county, U .S . highways 87 and 181 and State highways 97 and

123 . Transportation needs are also served by the Southern Pacific Railroad . Wilson County covers 807 miles with an elevation of

300 to 600 feet above sea level . The terrain is nearly flat to gently undulating, surfaced by deep loamy soils with clayey subsoils

that support grasses, mesquiteqv, blackjack, post oak, live oak, thorny shrubs, and cacti . Between 31 and 40 percent of the land

in the county is considered prime farmland .

Oil was discovered in 1941, but only one well was in production in 1946 . Since that time, however, the oil business has

expanded gradually . Between 1941 and January 1, 1991, the county produced 37,111,560 barrels of crude oil . In 1990

production of crude was 1,973,734 barrels, and in the early 1990s oil, gas, and oilfield services still formed an important segment

of the county’s economy . Between 1890 and 1930 the population of Wilson County grew steadily .

Leading industries included agribusiness, oil and gas field services, and the manufacture of structural clay products and

fabricated metal plate work .

Wilson County (809 sq miles) is in the liquids-rich Eagle Ford Shale Play of South Texas . Generally, drilling activity targets the oil

window of the Eagle Ford in the southeastern half of the county where well economics are enhanced by the production of oil .

The formation is found at depths between 4,000 ft and 8,000 ft as you move southeast through the county . The deeper portions

of the county are considered more prospective as the formation is also thicker in this area of the play .

The county’s oil and gas production previously exploited the Austin Chalk and conventional formations, but recent activity has

shifted to the Eagle Ford Shale Oil Play .

Page 9: Seguin Development Phase II

15

h i s t o r y o f t h e P r o j e c t ( c o n t i n u e d )Major Operators in Wilson County

EOG Resources and Marathon Oil are the largest producers with operations targeting the Eagle Ford Shale Oil Play .

EOG Resources’ well results are very positive as the company has reported IPs at its Borgfeld #3H and Casares #1H leases

averaged initial production rates (IP rates) in excess of 800 bbls/d and almost 400 mcfd .

Marathon Oil also has a considerable operated acreage position in the county .

Oil and gas have been produced in every township in Wilson County . Oil was first discovered in the county near Neodesha in

1890 (Haworth, 1908, p . 24) . Neodesha was supplied with gas on Ju1y 4, 1894 . More than 40 wells were producing gas in this

area by the close of 1894 . Oil and gas were produced near the towns of Fredonia, Benedict, and Buffalo in 1900 . Neodesha,

Altoona, Fredonia, Buffalo, and Vilas are nearly surrounded by producing areas . The oil and gas resources of Wilson County

were described by Moore and Boughton (1921); and the subsurface geology of the county was described by Stryker (1925) .

These reports are useful both in reference to early developments and in possibilities of new discoveries or in reference to water

flooding in present fields .

In 1952, 67,271 barrels of oil were produced in Wilson County . Gas production recorded for 1952 was 185,316 thousand cubic

feet .

Page 10: Seguin Development Phase II

17

T h e P r o j e c tPhase II Production Joint Venture – Wilson County, Texas:

Introduction: The company has recently acquired an oil and gas lease covering an 1,073-acre tract, which is out of a larger

oil and gas lease that was taken in 1925 and covered 1,920 acres of land .

Lease Production History: The previous lease owner returned from WW2 to the Seguin, Texas area and began working for

Union, exploring for Austin Chalk oil . In 1948, he helped discover the La Vernia field, and went on to own 75% of the

30,000 acre Navarro field . Over the years, his projects grew bigger and bigger, from the Woodbine of East Texas to the

West Texas Permian Basin to the Eagle Ford Shale and finally the Bakken Shale . At 90 year old, he decided he was ready

to retire, and in his own words, “I just ran out of time .” He had already sold all his oil rights, except for the Navarro, which

was the last of his personal oil projects . Even though he kept this lease as a personal development project, he had been

working with a local operator over the last 4 years, Energon³, to produce and rework several of his other properties . Due

to the like minded approach to developing oil wells on both a personal and professional level, he felt that it was time to

turn over the reigns of one of the most sought after leases in the South Texas Navarro field to someone he trusted and

knows will develop it to its highest potential .

Productive Zones: Based on electric log and core analysis we believe there are 8 productive zones in these wells . The first zone

is a shallow Montgomery/Willingham occurring at just a few hundred feet . The core analysis indicates the zone to be oil

productive . Following are the Carrizo, Poth, Navarro, Anacocho, Austin Chalk, Buda, and Eagle Ford zones . All of which

have a long track record of being commercially producible .

Page 11: Seguin Development Phase II

19

P r o v e n S u c c e s sENERGON³ has extensive experience in both drilling new wells and reworking existing wells in South Texas, with special focus in

Wilson and surrounding counties . Their new-drill wells have an average IP of 50 BOPD . (barrel of oil per day) Currently, they hold

the field record for well production rates . (IP) Additionally, the ENERGON³ team has decades of experience in secondary well

production with both water and gas injection techniques . Both have proven to be very effective ways of producing significantly

more oil from older wells .

ENERGON³ has worked closely with industry insiders to

develop some of the best rework programs designed to

stimulate existing wells . They are able to achieve such

high success rates and significant production increases

with their proprietary chemical treatment process . As

shown in the graph, the Ward well, which is only 4 miles

from the joint venture wells, presents a good example of

that success by taking a non-commercially productive

well and turning it into a 50 BOPD producer (IP) in the

Navarro formation .

Ward Well60

50

40

30

20

10

0

Bar

rels

of O

il p

er D

ay

Production before rework Production after rework

Page 12: Seguin Development Phase II

21

P r o j e c t S u m m a r yKey Project Highlights

• Existing storage and pipeline infrastructure already in place, requiring relatively minimal overhaul and additions .

• Developmental project of Offset drilling to proven reserves .

• 4 Wells to be drilled to the productive Navarro Formation .

• Proof of Concept to Navarro formation achieved in multiple Energon³ operated Leases

• Estimated Pulling Cost at 200 bopd of $2 .75 per barrel

• Energon3 has proven Well optimization expertise

• Lease currently producing 10 bopd . As part of the project, in addition to the new drills these will be optimized to an

anticipated increase to between 16-24 bopd .

• The lease has its own water disposal well, thus substantially reducing production expenses .

• Prolific production - Lease has been commercially productive since being developed in the 1950’s

NOTE: Even when factoring in the lowest oil price from the last 11 years, $35.12 per barrel, the return of principle is still less than 36

months.

Page 13: Seguin Development Phase II

23

I n c o m e C o n v e r s i o n I n c o m e C o n v e r s i o nFigures are calculated at a cost of $140,000 per unit, earning a 3 .5% Net Revenue Interest in the ten (10) wells . Figures are rounded to the nearest dollar amount .

This economic analysis is a theoretical model based on historical data and current market conditions; it in noway guarantees or suggests guaranteesconcerning the outcome of program participation . Actual profits resulting from participation in the program willvary over time due tochanging economic and unforeseen geologic and or engineering eventsoutside of the company’scontrol .

Note: The original investment is still in the wells and the reservevalue of the NRI will mostlikely retain its presentvalue or increase in the future . These wells can produce for many yearsand some are still in production after 50 years .

Income projection showing the 10 year average Crude Price of $81.68 per barrel (Data taken on 10/09/2015)

NOTE: None of the Income Conversion tables take into account the tax savings of both the 100% tax write off of the initial investment or that 20% of the profits are income tax free every year . (It is recommended that you verify these tax savings with your personal CPA or tax advisor)

Page 14: Seguin Development Phase II

25

Ta x A d va n ta g e sOil & Gas Investments

Congressional Incentives Encourage Domestic Petroleum Development: Oil and Natural gas from domestic reserves

helps to make our country more energy self-sufficient by reducing our dependence on foreign imports . In light of this,

Congress has provided tax incentives to stimulate domestic natural gas and oil production financed by private sources .

Drilling projects offer many tax advantages and these benefits greatly enhance the economics . These incentives are not

“Loop Holes” — they were placed in the Tax Code by Congress to make participation in oil and gas ventures one of the

best tax advantaged investments .

Intangible Drilling Cost Tax Deduction: The intangible expenditures of drilling (labor, chemicals, mud, grease, etc .) are usually

about (65 to 80%) of the cost of a well . These expenditures are considered “Intangible Drilling Cost (IDC)”, which is 100%

deductible during the first year . For example, a $100,000 investment would yield up to $80,000 in tax deductions during

the first year of the venture . These deductions are available in the year the money was invested, even if the well does not

start drilling until March 31 of the year following the contribution of capital . (See Section 263 of the Tax Code.)

Tangible Drilling Cost Tax Deduction: The total amount of the investment allocated to the equipment “Tangible Drilling

Costs (TDC)” is 100% tax deductible . In the example above, the remaining tangible costs ($25,000) may be deducted as

depreciation over a seven-year period . (See Section 263 of the Tax Code.)

I n c o m e C o n v e r s i o n

NOTE: This income projection at the low price of the last 11 years shows the economic viability of the project with a re-turn of principle at mid-point expected production in less than 36 months .

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Ta x A d va n ta g e s ( c o n t i n u e d )Active vs. Passive Income: The Tax Reform Act of 1986 introduced into the Tax Code the concepts of “Passive” income and

“Active” income . The Act prohibits the offsetting of losses from Passive activities against income from Active businesses .

The Tax Code specifically states that a Working Interest in an oil and gas well is not a “Passive” Activity, therefore,

deductions can be offset against income from active stock trades, business income, salaries, etc . (See Section 469(c)(3) of

the Tax Code .)

Small Producers Tax Exemption: The 1990 Tax Act provided some special tax advantages for small companies and individuals .

This tax incentive, known as the “Percentage Depletion Allowance”, is specifically intended to encourage participation

in oil and gas drilling . This tax benefit is not available to large oil companies, retail petroleum marketers, or refiners that

process more than 50,000 barrels per day . It is also not available for entities owning more than 1,000 barrels of oil (or

6,000,000 cubic feet of gas) average daily production . The “Small Producers Exemption” allows 15% of the Gross Income

(not Net Income) from an oil and gas producing property to be tax-free .

Lease Costs: Lease costs (purchase of leases, minerals, etc .), sales expenses, legal expenses, administrative accounting, and

Lease Operating Costs (LOC) are also 100% tax deductible through cost depletion .

Consult Your Tax Advisor: The above examples are for general information only and are not intended as individual tax advice .

Consult your personal tax advisor concerning the applicability and effect of oil and gas investments on your personal

tax situation . This information was current as of the date this document was first printed . However, tax laws change from

time to time and there can be no guarantee of the interpretation of the tax laws .

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K e y P e r s o n n e lAs the operator, ENERGON³ has a direct presence in the target area . Our intimate knowledge of this region can create significant

advantages for our program . Our staff and consultants, with years of field experience, provide a direct benefit for investors . Our

participating agreements limit the investor financial commitment to the amount of the fixed, turnkey cost .

ENERGON³, LLC is a Texas Limited Liability Company .

Russell Montgomery, Jr., Program Manager: Mr . Montgomery serves as Manager and Lead Engineer or ENER GON³ . He has

served as the Chief Operating Officer for multiple companies with oil and gas leases in East Texas, South Texas, and the Texas

Gulf Coast . He has supervised all aspects of drilling and field operations; hired and trained field personnel and supervisors; and

directly participated in the analysis and acquisition of new oil and gas development projects in those areas . He has managed

20 mobile field locations as Director of Operations of the Deep East Texas Region of Geosearch Logging, Inc . and became

proficient in log evaluation and production analysis . Mr . Montgomery brings with him the knowledge and ability to increase

the productivity and profitability of oil drilling and recompletion projects while reducing costs by utilizing efficient and

proprietary field processes and operations .

Raymond Ward, Chief Drilling Engineer: Mr . Ward has

27 years of experience in drilling, work over, and completion in the Navarro

Formation and the Poth Formation in Guadalupe, Wilson, and Caldwell Counties

with 3J Energy and La Vernia Oil . Mr . Ward brings with him intimate knowledge of

the area and of the oil-bearing formations located within . He is a welcome

addition to the team and his involvement bodes well for the success of this

project .

Torchwood 1 Drilling Rig – Our main drilling rig features a 71 foot derrick and twin 1000 horsepower engines from Caterpillar.

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O f f e r i n g S u m m a r yJoint Venture Name: Phase II Production Joint Venture

Manager of Joint Venture: Poplar Royalty, LLC will serve as the “Joint Venture Manager” . Joint Venture Manager’s address is

6500 River Place Blvd ., Bldg . 7, Suite 250, Austin, TX 78730 .

Joint Venturers: Those persons whose Subscriptions to purchase Units of Joint Venture Interest (“Units”) offered hereby are

accepted by the Joint Venture Manager in an amount aggregating $3,360,000 (24 Units) who are subsequently

admitted to the Joint Venture .

Joint Venture Objective: The primary investment objective of the Joint Venture is the acquisition of 100% of the Working

Interest, which is a 60% Net Revenue Interest in 6 existing oil wells and 4 new oil wells to be drilled on oil producing

leases in Wilson County, TX . The Joint Venturers will be entitled to those tax advantages, if any, which may accrue them

as a result of such activites by the Joint Venture .

Subscription for Interests: The subscription price for each Unit is $140,000 payable upon subscription .

Offer and Sale of Interests:The offering period for the Units will terminate on December 31,2017,or earlier if all interests are sold .

. At the sole discretion of the Joint Venture Manager, the offering period may be extended for up to an additional 90 days

Term of the Joint Venture: The Joint Venture was organized under the laws of the State of Texas as of October 1, 2017, and shall continue until May 30, 2049, on which date the Joint Venture shall dissolve, unless sooner terminated or upon

the occurrence of any events of dissolution as described in the Joint Venture Agreement . 2017

Subscription Documents: Each subscriber shall return an executed set of Subscription Documents along .

Capitalization: The Joint Venture will have $3,393,600 in available funds if the full subscription amount is raised . Of the full

amount, $3,360,000 will be contributed by the Joint Venturers and $33,600 by the Joint Venture Manager .

Joint Venture Manager’s Compensation: The Joint Venture Manager and its affiliates will receive compensation of costs and expenses that may be significant in the aggregate .

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O f f e r i n g S u m m a r y ( c o n t i n u e d )Proceeds: All funds representing Subscriptions from the Joint Venturers will be placed in a segregated account in the name of

Poplar Royalty, LLC, Seguin Development Phase II Joint Venture account at Frost Bank, A ustin, TX . There is no

minimum subscription amount . If subscriptions for the subscription amount have not been accepted prior to the end

of the offering period, no interests will be sold, and all subscriptions will be returned without interest or deduction . The

Joint Venture Manager may subscribe for Units .

Operator of Record: The operator of record shall be ENERGON³, its successors or assigns, pursuant to a Standard Form of

Operating Agreement .

Turnkey Drilling Agreement: The Joint Venture will enter into a Turnkey Drilling and Completion Agreement with ENERGON³

to purchase and re-work 6 existing wells, and to drill, equip, and complete 4 new wells in Wilson County, TX .

ENERGON³ or its assignee, will act as operator of record of the Joint Venture wells pursuant to the terms of a Standard

Operating Agreement .

Risk Factors: There are substantial risks associated with

the purchase of an interest in the Navarro Joint Venture .

Additional Documents: A copy of Form AAPL610 Sample Standard Operating Agreement will be provided to

prospective investors upon request .

Project Name: Seguin Development Phase II

Project Location: Wilson County, Texas

Number of Wells: 4 new drills and 6 rework wells

Objective Leases: S & G Lease

Turnkey Cost: $3,360,000

Number of Units: 24

Unit Cost: $140,000

Working Interest: 4.17% - Per Unit

Net Revenue Interest: 2.5% - Per Unit

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F i n a n c i a l sUSE OF PROCEEDS

Subscription proceeds shall be used as follows:SOURCE OF FUNDS AMOUNT PERCENTAGE

Joint Venture Manager’s Capital Contribution $33,600 1%

Joint Venturers’ Capital Contributions $3,360,000 99%

TOTALS: $3,393,600 100%USE OF PROCEEDS - ESTIMATED AMOUNT PER UNIT TOTAL AMOUNT PERCENTAGE

Purchase of Leases & Existing Wells $8,400 $201,600 6%

Geology, Surveying, & Engineering $14,000 $336,000 10%

Drilling & Completion Costs $85,400 $2,049,600 61%

Site Preparation $11,200 $268,800 8%

Management & Administrative Fee $14,000 $336,000 10%

Legal, Accounting, Printing, & Organization Costs $7,000 $168,000 5%

TOTALS: $140,000 $3,360,000 100%

Use of Proceeds does not include the Joint Venture Manager’s Capital Contribution .All figures used represent our best estimate and are subject to adjustment .

COMPENSATION

The intent of this table is to inform the prospective investor of the types and amounts of compensation in which the Joint Venture Manager will receive from the Joint Venture .

ESTIMATED COMPENSATION JOINT VENTURE MANAGER’S COMPENSATION

Management & Admin . Fee equal to 10% of Capital Contributions . $336,000

Legal, Accounting, Printing and Organization Costs associated with the Joint Venture equal to 5% of the Capital Contributions .

$168,000

A 15% Net Revenue Interest in each of the Joint Venture Wells . Indeterminate

PROGRAM DISTRIBUTION

This table describes the percentage allocation of the Working Interest and the Net Revenue Interest in the SD Ph II JV Wells .OWNERSHIP WORKING INTEREST NET-REVENUE

Joint Venturers 100% 60%

Poplar Royalty LLC 0% 7.5%

ENERGON³ LLC 0% 7.5%

Landowner & Overriding Royalty Interest 0% 25%

TOTALS: 100% 100%

Each of the Joint Venturers’ Units represents approximately a 4.167% Working Interest and a 2 .5% Net Revenue Interest in each of the oil producing wells . Poplar Royalty LLC , the Joint Venture Manager, purchases a 1% interest in the Joint Venture .

PARTICIPATION IN COSTS AND REVENUES

This table describes the percentage allocation of Joint Venture costs and revenues between the Joint Venturers and the Joint Venture Manager .

CAPITAL EXPENDITURES JOINT VENTURERS JOINT VENTURE MANAGER

Purchase of Leases 99% 1%

Engineering, Equipment, and Completion Costs 99% 1%

Legal, Accounting, Printing and Organization Costs 99% 1%

Management Fee 99% 1%

All Other Costs 99% 1%REVENUES

Revenues from Oil Wells 99% 1%

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DISCLAIMER

This Executive Summary should not be construed as an offer to sell a Security . Such an offer

can only be made by furnishing an offeree with a complete Private Placement Memorandum

obtained from the issuer of such securities .

This Executive Summary is simply a brief recitation of the information necessary to reach an

informed understanding of the nature of the investment opportunity and does not contain all

of the facts or the cautionary information contained in a Private Placement Memorandum .

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