“Wallace Royalty Interest”

Howard County, Texas

Producing Mineral & Royalty Interest

•   1,271.43 Gross Acres

•   Varying Mineral, Non-Participating & Overriding Royalty Interest

•   3.17 Net Mineral Acres

•   26.76 Net Royalty Acres

•   Operated by Surge Operating, Birch Operations,
CrownQuest Operating & Diamondback E&P

•    Potential Horizontal Objectives:
Middle & Lower Spraberry, Dean, Wolfcamp A &
Wolfcamp B

•    22 Producing Horizontal Wells

•    10 Producing Vertical Wolfberry Wells

•    31 DUC Horizontal Wells

•    16 Permitted Horizontal Wells

•    Average Daily Production:
8,165 BOPD & 9,444 MCFGPD (Gross)
3.01 BOPD & 4.41 MCFGPD (Net)

•    Average Net Income:
$3,940 / Month