“Good News Royalty Interest”

Howard County, Texas

•   3,754.00 Gross Acres

•   Various Overriding Royalty Interests

•   100.1070 Net Royalty Acres

•   Operated by Birch Operations, Inc., SM Energy Company & Oxy USA, Inc.

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

•    37 PDP Vertical Wolfberry Wells

•    34 PDP Horizontal Spraberry & Wolfcamp Wells

•    53 Horizontal Spraberry & Wolfcamp DUCs

•    17 Horizontal Spraberry & Wolfcamp Permits

•    Average Daily Production:
5,226 BOPD & 21,772 MCFPD (Gross)
9 BOPD & 43 MCFPD (Net)

•    Average Net Income:
$14,229 / Month