Matrix Energy LLC NW/4 Sec 36, T2S, R63W, Adams County, Colorado – Quail Field, J Sand

1. Matrix Energy LLC NW/4 Sec 36, T2S, R63W, Adams County, Colorado – Quail Field, J Sand

2. Matrix Energy LLC, NW/4 Sec 36, T2S, R63W, Adams County, Colorado – Quail Field, J Sand Matrix Energy engaged Peterson Energy Management (PEMI) to identify the most promising new drill J Sand well in the NW/4 of Section 36, T2S, R63W. Initially PEMI reviewed a location in the NE/NW of Section 36. At first, it appeared that this area was most likely to be undrained. However, after further analysis, it was determined that area calculated to be drained and was near a dry hole. The dry hole was wet with no show of oil according to a DST. The conclusion was that this area was risky to spot a well. Subsequently Peterson Energy reviewed the SE/NW, which appeared to be a lower risk than the NE/NW. A new well location at 1960’ FWL, 2040’ FNL Section 36, T2S, R63W was determined. This location was determined by krigingIP’s and calculating drainage radius’ from well log analysis. The South of Section 36 has not been analyzed for new locations in the J Sand.

3. AOI Area of Interest – Matrix Energy LLC, NW/4, Sec 36, T2S, R63W, Adams County, Colorado – Quail Field, J Sand

4. C’ B A’ A C B’ Cross Sections – NW/4, Sec 36, T2S, R63W

5. Base Map Drainage – NW/4, Sec 36, T2S, R63W

6. Base Map Production – NW/4, Sec 36, T2S, R63W

7. Wet D&A New Permit –J sand 33,940/217,014/383 PR @EUR DST – H2O D&A 30,439/191,841/107 P&A 16,309/193,181/47 P&A 57,160/2,689,173/408 PR @EUR 34,454/91,902/27 P&A 11,256/191,750/60 P&A Cumulative Production Oil – bbl /Gas - MCF/Months Produced

8. 5288’ , 7392’ – 7456’ , 64’ 5280’ , 7562’ – 7572’ , 10’ Permitted D&A – H2O 37/4486/55 6/80000/ 5288’ , 7552’ – 7566’ , 14’ 5297’ , 7504’ – 7585’ , 81’ 50/4500/18 D&A – H2O 18/68889/H2O 5297’ , 7402’ – 7463’ , 61’ 5316’ , 7488’ – 7532’ , 44’ 5304’ , 7490’ – 7522’ , 32’ 157/6133/30 78/2564/12 184/19533/50 5316’ , 7467’ – 7517’ , 50’ 5317’ , 7448’ – 7482’ , 34’ 5310’ , 7548’ – 7570’ , 22’ 263/4562/29 63/7143/21 37/27027/dry IP BO/GOR/BW, GL, Perfs, Gross Interval

9. A- A’ Cross Section Payzone Only Phi = 8% Phi = 8% Phi = 8%

10. B- B’ Cross Section Including Upper Sand Phi = 15% Phi = 12% Phi = 8% Phi = 8%

11. C- C’ Cross Section Including Upper Sand Phi = 10% Phi = 8%

12. 63515 BOE – P&A 44316 BOE – P&A 910’ 943’ 567’ 50299 BOE – P&A Calculated Drainage Radius of Wells – Well Log Analysis – 35% Recovery Factor – Rw = .14@T

13. IP – BOEPD , contour interval = 50 BOEPD

14. Data Set X,Y = Feet 5800 cubic feet gas = 1 BOE

15. New Drillsite IP – BOEPD , contour interval = 50 BOEPD with new drillsite spotted

16. 44316 BOE – P&A 50299 BOE – P&A 943’ 63515 BOE – P&A 567’ New Drillsite 1775 FWL, 1910 FNL 468’ 128,278 BOE – PR 929’ Calculated Drainage Radius of Wells – Well Log Analysis – 35% Recovery Factor – Rw = .14@T. Cumulative production noted. Drainage Radius of New Well is 409’.

19. State of Colorado #4 and #2 . Shaley Sand Analysis – Volumetrics – Rw = .14 ohm*m at Reservoir Temperature