Oil Well Potential Test, Completion or Recompletion Report, and Log

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1 Tracking No.: Status: Submitted RAILROAD COMMISSION OF TEXAS Oil and Gas Division API No. 42- Oil Well Potential Test, Completion or Recompletion Report, and Log 1. FIELD NAME (as per RRC Records or Wildcat) SHAFTER LAKE, N. (SAN ANDRES) 2. LEASE NAME UL 13 JAFFREY 3. OPERATOR'S NAME (Exactly as shown on Form P-5, Organization Report) RRC Operator No. FORGE ENERGY, LLC ADDRESS IH 10 WEST SUITE 900 SAN ANTONIO, TX If Operator has changed within last 60 days, name former operator This facsimile W-2 was generated electronically from data submitted to the RRC. 6a. Location (Section, Block, and Survey) 6b. Distance and direction to nearest town in this county. 23, 13, UL, A-U415 ANDREWS 12. If workover or reclass, give former field (with reservoir) & Gas ID or oil lease no. FIELD & RESERVOIR SHAFTER LAKE, N. (SAN ANDRES) GAS ID or OIL LEASE # Oil-0 Gas-G Oil Well 13. Type of electric or other log run 14. Completion or recompletion date Gamma Ray (MWD) 01/13/ RRC District No RRC Lease No. 9. Well No. 1W 10. County of well site ANDREWS 11. Purpose of filing Initial Potential Retest Reclass Well record only (Explain In remarks) Well # X SECTION I- POTENTIAL TEST DATA IMPORTANT: Test should be for 24 hours unless otherwise specified infield rules. 15. Date of test 16. No. of hours tested 17. Production method (Flowing, Gas Lift, Jetting, Pumping- Size & Type of pump) 18. Choke size 19. Production during Test Period 20. Calculated 24- Hour Rate Oil - BBLS Oil - BBLS Gas - MCF Gas - MCF Water - BBLS Water - BBLS Gas - Oil Ratio Oil Gravity-API-60 o Flowing Tubing Pressure Casing Pressure 21. Was swab used during this test? 22. Oil produced prior to test (New & Reworked wells) 23. Injection Gas-Oil Ratio Yes No X REMARKS: N/A 0 PSI PSI INSTRUCTIONS: File an original and one copy of the completed FormW-2 in the appropriate RRC District Office within 30 days after completing a well and within 10 days after a potential test. If an operator does not properly report the results of a potential test within the 10-day period, the effective date of the allowable assigned to the well will not extend back more than 10 days before the W-2 was received in the District Office. (Statewide Rules 16 and 51) To report a completion or recompletion, fill in both sides of this form. To report a retest, fill in only the front side. WELL TESTERS CERTIFICATION I declare under penalties prescribed in Sec , Texas Natural Resources Code, that I conducted or supervised this test by observation of (a) meter readings or (b) the top and bottom gauges of each tank into which production was run during the test. I further certify that the potential test data shown above is true, correct, and complete, to the best of my knowledge. Signature: Well Tester Name of Company RRC Representative OPERATOR'S CERTIFICATION I declare under penalties prescribed in Sec , Texas Natural Resources Code, that I am authorized to make this report, that this report was prepared by me or under my supervision and direction, and that data and facts stated therein are true, correct and complete, to the best of my knowledge. FORGE ENERGY, LLC Type or printed name of operator's representative (210) /21/2014 Title of Person Shannon Harman Telephone: Area Code Number Month Day Year Signature

2 SECTION III 24. Type of Completion DATA ON WELL COMPLETION AND LOG (Not Required on Retest) X New Well Deepening Plug Back Other 26. Notice of Intention to Drill this well was filed in Name of FORGE ENERGY, LLC 27. Number of producing wells on this lease in this field (reservoir) including this well Date Plug Back, Deepening, Workover or Drilling Operations: Commenced Completed 31. Location of well, relative to nearest lease boundaries Feet From South Line and West Line of the UL 13 JAFFREY Other DATE 08/09/ Elevation (DF. RKB, RT. GR ETC.) 33. Was directional survey made other than inclination (Form W-12)? Yes X 5268 GR No 34. Top of Pay 35. Total Depth 36. P. B. Depth Is well multiple completion? Yes No 28. Total number of acres in this lease 12/04/ /20/ X 30. Distance to nearest well, Same Lease &Reservoir 37. Surface Casing Determined by 39. If multiple completion, list all reservoir names (completions in this well) and Oil Lease or Gas ID No. FIELD & RESERVOIR N/A 40. Intervals Drilled by: 43. Rotary Tools X Cable Tools 41. Name of Drilling Contractor Field Rules CASING RECORD (Report All Strings Set in Well) 25. Permit to Drill, Plug Back or Deepen Rule 37 Exception Water Injection Permit Salt Water Disposal Permit Recommendation of T.D.W.R. Railroad Commission (Special) GAS ID or OIL LEASE # Oil-0 Gas-G PERMIT NO CASE NO. PERMIT NO. F PERMIT NO. PERMIT NO. Feet from Lease X Dt. of Letter 07/25/2013 Dt. of Letter Well # 42. Is Cementing Affidavit Attached? Yes CASING SIZE WT #/FT. DEPTH SET MULTISTAGE TYPE & AMOUNT HOLE SIZE TOP OF SLURRY VOL. TOOL DEPTH CEMENT (sacks) CEMENT cu. ft. 12 6/ C /8 SURFACE / C /8 SURFACE X No 44. N/A LINER RECORD Size Top Bottom Sacks Cement Screen 45. TUBING RECORD 46. Producing Interval (this completion) Indicate depth of perforation or open hole Size Depth Set Packer Set From N/A To 4 1/ From To From To From To 47. ACID, SHOT, FRACTURE, CEMENT SQUEEZE. ETC. Depth Interval Amount and Kind of Material Used GAL 15% HCI, 1500 GAL 10# BRINE WITH WF130 & ROCK SALT, 5000 GAL 15% HCI, 500 GAL FRESH WATER OVERFLUSH 48. FORMATION RECORD (LIST DEPTHS OF PRINCIPAL GEOLOGICAL MARKERS AND FORMATION TOPS) Formations Depth Formations GRAYBURG LOWER GRAYBURG SAN ANDRES REMARKS: N/A Depth

3 BRYCE HARLOW July 25, SC_276868_ _000000_15955.pdf --Measured ft FWL 600 ft FSL MRL:SECTION FORGE ENERGY LLC IH10 W STE 900 SAN ANTONIO TX P-5# ANDREWS UL 13 JAFFREY #1W ND SUR-UL,BLK-13,SEC-23,--[TD=9000], The interval from the land surface to a depth of 300 feet and the ZONE from 1200 feet to 1650 feet must be protected. George Dunfield, P.G. 7/25/2013

4 Witnessed By Josh Hughes Recorded By Raehil Suleman Unit Number Location: 2136 Midland Logger on Bottom Time Circulation Stopped Time 11-Dec :30:00 Max Recorded Temperatures degf BHT BHT Source RMF RMC Pressed Meas Temp Meas Temp degf Meas Temp degf Source of Sample Active Tank MUD Fluid Loss PH 15 cm3 9.5 Density Viscosity 10.3 lbm/gal 30 s Type Fluid In Hole Salt Brine Bit Size 11 in Casing Schlumberger 1805 ft Casing Driller Depth ft Top Log Interval ft Bottom Log Interval ft Schlumberger Depth ft Depth Driller ft Logging Date 11-Dec-2013 Run Number R1_Main County: Field: Location: Well: Company: U415 API Serial No. Section: Block: Abstract: Andrews Shafter Lake, N. (San Andres) 880' FWL & 600' FSL UL 13 Jaffrey 1W Forge Energy, LLC Location: Permanent Datum: Ground Level Elev.: f Log Measured From: Kelly Bushing ft above Perm.Datum Drilling Measured From: Kelly Bushing University Lands Survey D.F ft Sec. 23, Blk. 13, Abs. U415 G.L ft 880' FWL & 600' FSL Elev.: K.B ft Spectral Gamma Ray High Resolution Laterolog Array Platform Express County: Andrews State: Texas Field: Shafter Lake, N. (San Andres) Well: UL 13 Jaffrey 1W Company: Forge Energy, LLC THE USE OF AND RELIANCE UPON THIS RECORDED-DATA BY THE HEREIN NAMED COMPANY (AND ANY OF ITS AFFILIATES, PARTNERS, REPRESENTATIVES, AGENTS, CONSULTANTS AND EMPLOYEES) IS SUBJECT TO THE TERMS AND CONDITIONS AGREED UPON BETWEEN SCHLUMBERGER AND THE COMPANY, INCLUDING: (a) RESTRICTIONS ON USE OF THE RECORDED- DATA; (b) DISCLAIMERS AND WAIVERS OF WARRANTIES AND REPRESENTATIONS REGARDING COMPANY'S USE AND RELIANCE UPON THE RECORDED-DATA; AND (c) CUSTOMER'S FULL AND SOLE RESPONSIBILITY FOR ANY INFERENCE DRAWN OR DECISION MADE IN CONNECTION WITH THE USE OF THIS RECORDED-DATA. 1. Header 2. Disclaimer 3. Contents 4. Remarks and Equipment Summary 5. Depth Summary 6. R1_Main Main Pass 2"=100' 6.1 Integration Summary 6.2 Software Version 6.3 Composite Summary 6.4 Log ( HRLA_2_inch ) 7. R1_Main Main Pass 5"=100' 7.1 Integration Summary 7.2 Composite Summary 7.3 Log ( HRLA_5_Inch ) 7.4 Parameter Listing 8. R1_Main Repeat Analysis 5"=100' 8.1 Composite Summary

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