Overview. The Assets comprise 1,835 wellbores on 106 leases of record, approximately 10,000 acres, in a shallow conventional oil field in Northwest Louisiana, held at a 100% working interest and operated. Current production is approximately 35 BOPD with oil sales continuing; a minimal number of wells are pumping and electrical service to most of the field is disconnected.

Situation. The prior group's capitalization failed, not the wells. Investors consistently underfunded management, and the ownership group could not agree on further capital. The field has operated without a dedicated crew since November 2024. The prior field team is available and has indicated it would continue with the Assets.

Historical performance. In fiscal 2022 the same wellbores produced 294 BOPD on 642 running wells, generating $7.3M of net oil revenue and $2.6M of field operating income before $1.3M of restoration capex. Financial figures are from the company's books, unaudited; fiscal 2025 ledger entries end in April 2025 although production and sales continued.

Restoration case (seller's illustrative case; not a forecast). Reservoir pressure was depleted decades ago; well rates are governed by tubing, pump and surface equipment. Of 996 workovers performed by the prior crew, one resulted in a lower rate. Reconnection of electrical service on new-customer deposits restores 307 wells and approximately 149 BOPD. A $3.2M two-year workover program through existing wellbores, $1.5M contributed at close with the balance funded from field cash flow, restores 908 wells in Year 1 at approximately $2,750 per well and reaches 1,516 running wells and a 493 BOPD plateau in Year 2, approximately $9,300 per BOPD added. The case contains no drilling, exploration or enhanced recovery although many PUD locations are mapped, representing material upside. Cash breakeven is 204 BOPD; each incremental BOPD contributes approximately $1,499 per month; at plateau, revenue covers cash operating cost 2.18x and field cash flow remains positive at approximately $50 WTI. Excluded from the case: 108 drilling locations identified in a 2021 engineering study, and the deeper rights.

Obligations. Plugging obligations attach to the wellbores. The seller's balance sheet carries an asset retirement obligation of $4.35M, approximately $2,400 per wellbore (PV10 basis), orders of magnitude lower than comparably sized fields due to the shallow depth of the formation and small well sizes.

Transaction. Asset sale, as is, where is; structure open. Offers are invited; seller financing is available for a portion of the purchase price. The Assets transfer with equipment, three owned workover rigs, heavy equipment, materials inventory and operating records. The seller's Louisiana operating entity will operate the field for the buyer under an operating agreement from close and wind down as the buyer qualifies as operator of record in its own name. Upon execution of an NDA the seller identifies the Assets and opens the data room; a management call and site visit follow. No deadline has been set for indications of interest.