West Gilbertown Field

Selma Chalk
Redevelopment Project

Choctaw County

• Alabama’s first oil field discovered in 1944
  • Development over next 60 years done by small operators
  • Lack of technology resulted in production not being optimized
• Tecton acquired fragmented interests and now controls >90% of field
  • 4,500 net acres
  • WI ranges from 54% to 100%
  • Gross NRI averages 80%
• Current operations
  • 3 producing wells (2 new drills and 1 re-entry)
  • ~ 30 BOPD gross production with potential of 750 - 1,000 BOPD
  • SWD system with 7,000 BWPD capacity now operational with
    commercial potential
• Target formations found at ~2,300 - 2,700 feet
  • Structural interpretation confirmed by 2D seismic
  • Primary target formation is the Cretaceous Selma Chalk
    • 40 locations identified on 40-acre spacing
    • Estimated EUR of 78 MBO per well
    • Drill and complete cost of $450,000 - $600,000
  • Secondary target formation is Eutaw Sand
    • 10 locations identified on 40-acre spacing
    • Estimated EUR of 63 MBO per well
    • Drill and complete cost of ~$500,000
• Significant upside opportunities
  • Application of improved drilling and completion techniques
    • Previous wells have never been fracture stimulated
  • 3 shut-in wells available for re-entry or re-completion
  • 10-acre spacing approved by state
    • Field has been developed on 40-acre and 80-acre spacing
  • 3D seismic shoot to verify fracture features
  • Secondary recovery potential
  • Expansion on trend
• Crude sold to local asphalt plant
  • 20 API heavy crude, $12-$20 per barrel deduct to Nymex
• Local infrastructure in place for future development
• Leases cover all depths

NOTE: a Confidentiality Agreement (“CA”) must be executed prior to receiving the data
Package. Upon receipt of this request, Meagher will furnish to you a CA for execution.