Daily Drilling Report

Daily Drilling Report Well Name UTL 38-17-1H Report Date 05/05/2014 Field University Lands Supervisor Nate Baxter Report No. 97 Location 990' FNL & 300' FEL Supervisor 2 Kevin Evans DFS 94 County Ward Rig Phone 432-614-2013 Spud Date 01/31/2014 Rig Name HWD 9 Rig Email jaggedpeakenergy@outlook.com AFE $3,687,000.00 KB 15 Daily Footage Daily Cost $67,731.00 Depth (MD) 13,307 TVD at Bit 11,797 Cum. Cost $6,341,656.71 Estimated TD 16,140 Casing Data Type Size Weight Grade Connection Top Bottom Shoe Test Surface 9-5/8 40.0 J-55 8 round -15' 4,899' Intermediate 7 29.0 P-110 8 round -15' 11,145' Mud Properties Last Survey BHA Type Brine Depth Inc Azi Component Length ID OD Weight 13.6 Drill Bit 0.68' 1.00 6.13 FV 42 Motor 24.04' 1.00 4.75 PV 23 Drilling Parameters MWD Tool 2.68' 2.88 4.75 YP 22 Max WOB 15 Monel Collar 29.80' 2.80 4.75 LCM (ppb) Max RPM 35 Monel Collar 29.79' 2.80 4.75 Chlorides 133000 Max Torque 14000 X-Over 3.40' 2.50 4.75 % Solids 4.8 Max Pull 230000 Daily Losses 417 Bkgrnd Gas Total Losses 4280 Max Gas Cnx Gas Trip Gas Total Length: 90.39 Bit Info Bit # Size Make Type S/N Jets In Out Footage Hrs ROP Grade 10 6.125 Hughes DP505X 714783 5X16 12,260' 13,307' 1,047' 75.0 14.0 CT-Shoulder-1/16--Gauge-To 11 6.125 SMith MSi613 JG6874 6x16 13,307' 13,307' 1-5-BT-T-I--G- 12 6 NOV SKHI613M A176053 6-16's 13,307' ------- ------- From To Hours P / U Summary Wash/Ream F/11655' - T/12113'. GPM: 220 RPM: 75 Torque: 7k-12k WOB: 5k-12k Flare: No Flare Heavy skim of oil @ possum belly on shaker. 6:00 12:30 6.50 Planned 12:30 14:00 1.50 UnPlanned Rig repair. (Code 8/NPT). Coupling on #2 parted. Liner washer pump down on pump #1. TOOH F/12133' - T/11150'. 14:00 16:00 2.00 Planned Pull:230k Circulate bottoms up. Spot 80bbl 15.5 Kill pill @ shoe. 16:00 17:30 1.50 Planned Flare: 25ft 17:30 18:00 0.50 TOOH F/11150 - T/10900'. 18:00 18:30 0.50 Planned Rig service. 18:30 4:00 9.50 Planned TOOH F/10900 - T/100. 4:00 4:30 0.50 Planned Lay down directional tools. No bit, Bit box attached to motor. 4:30 6:00 1.50 Planned Clean rig floor. Lay down motor. Total Hours: 24 24 Hour Activity Summary: TOOH T/11150'. Spotted 80bbls 15.5 ppg kill pill @ casing shoe. TOOH. Bit, Bit-Box motor shaft not attached to mud motor. 24 Hour Plan TIH with fishing tools to retrieve bit,bit-box,motor shaft. Safety Fuel Last BOP Test 05/01/2014 Last BOP Drill 04/23/2014 Last Function Test 5/1/2014 Diesel Used Diesel Recvd Diesel on Loc 1,682

Well Name: UTL 38-17-1H Daily Cost Report Report Date: 05/05/2014 Daily Cost $67,731 Code Description Comments Daily Cum 830.010 Permits, Licenses, ect $1,158 830.020 Staking & Surveying $1,900 830.030 Road, Locations $125,371 830.035 Mobilization/Demobilization $37,500 830.040 Daywork Contract Day Rate For HWD Rig #9.(1.5hrs code 8/Mud Pump $16,875 $1,602,004 830.050 Mouse/Rathole/Conduct Pipe $16,413 830.055 Directional Drilling & Survey Newsco Directional $17,450 $529,641 830.060 Bits, Tools, Stabalizers $214,431 830.065 Fuel, Power $307,396 830.070 Equipment Rental $2,385 $312,672 830.075 Mud & Chemicals $19,985 $942,187 830.080 Mud Logging Final Invoice (Empirica). $5,988 $49,188 830.090 Core Analysis 830.095 Openhole Logging $23,290 830.100 Cement Services $327,721 830.110 Casing Crew & Equipment $91,469 830.120 Contract Labor CWS/Welding Services. $300 $52,287 830.160 Fishing Services $288,747 830.165 Drill Water $1,248 $190,320 830.175 Supervision Kevin Evans, Nate Baxter $3,500 $360,000 830.185 Insurance $33,000 830.190 Legal $10,000 830.195 P&A/TA Costs 840.100 Cement Services (4-1/2" Liner) Total Intangible $67,731 $5,516,695 Code Description Comments Daily Cum 850.010 Conductor Casing - 13-3/8" 850.015 Surface Casing - 9-5/8" $142,026 850.120 Intermediate Casing - 7" $325,038 850.145 Wellhead Equipment $32,877 850.150 Float equipment, Centralizers & DVT $23,384 850.275 Tangible Contingency $301,636 860.030 Production Casing - 4-1/2" 860.035 Liner Hanger - 4-1/2" WellEz Information Management Ver4.21.14bg Total Tangible $824,961 Total Costs $67,731 $6,341,657

Report Date: 05/06/2014 Field: May 6, 2014 Rig Name: Report #: 10 Location: UTL 38-17-1H Supervisor: SHA STEPHENS Daily Cost: $4,895 County: Ward Phone: 505-609-1148 Cum Job: $209,556 State: TX Email: Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $6,574,292 INSTALL SWD FACILITY 6:00 18:00 12.0 INSTALL SWD FACILITY 12.0 HRS 840-060 HOT OILER 840-070 EQUIPMENT RENTAL 840-120 CONTRACT LABOR 840-130 COMPLETION RIG 840-135 COILED TUBING 840-145 PERFORATING/WIRELINE SERV 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Total Intangible $4,300 860-042 WATER PIPELINE $30,000 860-060 SUBSURFACE EQUIPMENT 860-090 NIPPLE/VALVE/FITTING/FLO 860-100 METERING EQP/TELE 860-110 TANK STAIRS & WALKWAYS 860-115 SEPARATORS & TREATERS 860-120 STRUCTURES & INSULATION $33,740 860-150 BUILD BATTERY $4,450 $38,009 860-275 CONTINGENCY $445 $3,371 Total Tangible $4,895 $205,256 Total Daily & Cum Costs $4,895 $209,556

Report Date: 05/07/2014 Field: May 7, 2014 Rig Name: Report #: 11 Location: UTL 38-17-1H Supervisor: SHA STEPHENS Daily Cost: County: Ward Phone: 505-609-1148 Cum Job: $209,556 State: TX Email: Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $6,597,552 6:00 6:00 24.0 NO ACTIVITY FOR FACILITIES 840-060 HOT OILER 840-070 EQUIPMENT RENTAL 840-120 CONTRACT LABOR 840-130 COMPLETION RIG 840-135 COILED TUBING 840-145 PERFORATING/WIRELINE SERV 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Total Intangible $4,300 860-042 WATER PIPELINE $30,000 860-060 SUBSURFACE EQUIPMENT 860-090 NIPPLE/VALVE/FITTING/FLO 860-100 METERING EQP/TELE 860-110 TANK STAIRS & WALKWAYS 860-115 SEPARATORS & TREATERS 860-120 STRUCTURES & INSULATION $33,740 860-150 BUILD BATTERY $38,009 Total Tangible $205,256 Total Daily & Cum Costs $209,556

Daily Drilling Report Well Name UTL 38-17-1H Report Date 05/08/2014 Field University Lands Supervisor Nate Baxter Report No. 100 Location 990' FNL & 300' FEL Supervisor 2 Tate Edeler DFS 97 County Ward Rig Phone 432-614-2013 Spud Date 01/31/2014 Rig Name HWD 9 Rig Email jaggedpeakenergy@outlook.com AFE $3,687,000.00 KB 15 Daily Footage Daily Cost $13,806.00 Depth (MD) 13,307 TVD at Bit 11,797 Cum. Cost $6,401,802.71 Estimated TD 16,140 Casing Data Type Size Weight Grade Connection Top Bottom Shoe Test Surface 9-5/8 40.0 J-55 8 round -15' 4,899' Intermediate 7 29.0 P-110 8 round -15' 11,145' Mud Properties Last Survey BHA Type Brine Depth Inc Azi Component Length ID OD Weight 13.6 Sub 0.76' 4.00 5.75 FV 43 Sub 1.55' 4.00 5.75 PV 18 Drilling Parameters Sub 8.81' 4.00 5.75 YP 25 Max WOB 15 X-Over 1.32' 3.50 4.75 LCM (ppb) Max RPM 35 X-Over 1.68' 3.50 4.75 Chlorides 142000 Max Torque Sub 7.75' 2.50 4.75 % Solids 3.66 Max Pull X-Over 1.31' 3.50 4.75 Daily Losses Bkgrnd Gas X-Over 3.40' 3.50 4.75 Total Losses 4280 Max Gas Cnx Gas Trip Gas Total Length: 26.58 Bit Info Bit # Size Make Type S/N Jets In Out Footage Hrs ROP Grade 10 6.125 Hughes DP505X 714783 5X16 12,260' 13,307' 1,047' 75.0 14.0 CT-Shoulder-1/16--Gauge-To 11 6.125 SMith MSi613 JG6874 6x16 13,307' 13,307' 1-5-BT-T-I--G- 12 6 NOV SKHI613M A176053 6-16's 13,307' ------- ------- From To Hours P / U Summary 6:00 11:00 5.00 Planned Wait on wire line and completions to bring out RBP. Rigging down off line cleaning auxiliary pit equip and rigging down misc. in back yard. Start Pre- Move with Red River trucking CO. 11:00 15:00 4.00 Planned Run RBP with Capitan wire line T/10,990' Top of plug @ 10,986' 15:00 18:00 3.00 Planned Pressure Test Plug 2000psi 30 min. Good test. R/D Wire line. Dump and drain pits. Start N/D BOPE. Pre Move Rig Misc. 25 loads hauled of pipe and misc. to new location. Rig release @ 18:00 Total Hours: 12 24 Hour Activity Summary: Run wireline retrievable bridge plug pressure test same. Clean pits. R/D by hand and prepare to move to Trinity 15-33-1H Rig released @ 18:00HRS 24 Hour Plan Secure Well and release rig Safety Fuel Last BOP Test 05/01/2014 Last BOP Drill 04/23/2014 Last Function Test 5/1/2014 Diesel Used Diesel Recvd Diesel on Loc 482

Well Name: UTL 38-17-1H Daily Cost Report Report Date: 05/08/2014 Daily Cost $13,806 Code Description Comments Daily Cum 830.010 Permits, Licenses, ect $1,158 830.020 Staking & Surveying $1,900 830.030 Road, Locations $125,371 830.035 Mobilization/Demobilization $37,500 830.040 Daywork Contract Day Rate For HWD Rig #9 $13,500 $1,644,754 830.050 Mouse/Rathole/Conduct Pipe $16,413 830.055 Directional Drilling & Survey Newsco Directional $531,341 830.060 Bits, Tools, Stabalizers $216,631 830.065 Fuel, Power Credit back fuel $-16,635 $290,761 830.070 Equipment Rental $7,714 $325,306 830.075 Mud & Chemicals $942,187 830.080 Mud Logging $49,188 830.090 Core Analysis 830.095 Openhole Logging $23,290 830.100 Cement Services $327,721 830.110 Casing Crew & Equipment $91,469 830.120 Contract Labor Capitan Wire Line and Kent for cleaning pits $5,727 $58,014 830.160 Fishing Services $288,747 830.165 Drill Water $191,590 830.175 Supervision Tate Edeler, Nate Baxter $3,500 $370,500 830.185 Insurance $33,000 830.190 Legal $10,000 830.195 P&A/TA Costs 840.100 Cement Services (4-1/2" Liner) Total Intangible $13,806 $5,576,841 Code Description Comments Daily Cum 850.010 Conductor Casing - 13-3/8" 850.015 Surface Casing - 9-5/8" $142,026 850.120 Intermediate Casing - 7" $325,038 850.145 Wellhead Equipment $32,877 850.150 Float equipment, Centralizers & DVT $23,384 850.275 Tangible Contingency $301,636 860.030 Production Casing - 4-1/2" 860.035 Liner Hanger - 4-1/2" WellEz Information Management Ver4.21.14bg Total Tangible $824,961 Total Costs $13,806 $6,401,803

Report Date: 05/21/2014 Field: May 21, 2014 Rig Name: Report #: 13 Location: UTL 38-17-1H Supervisor: Bobby Hoffpauir Daily Cost: $11,378 County: Ward Phone: 970-216-1602 Cum Job: $240,070 State: TX Email: bhoffpauir2@hotmail.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $6,641,872 MIRU TEC #6 workover rig make up 4 3/4" shoe 8rd connection would not make up wait on x-over sub started in hole Finish in hole to top of plug rig up slick line retrieve profile plug 6:00 7:00 1.0 no acitivity 7:00 10:00 3.0 MIRU TEC RIG # 6 on well 10:00 13:00 3.0 Off loaded 2 7/8" tbg off trucks onto pipe racks tallied pipe picked up 4 3/4" shoe sub back to 2 7/8" box Would not make up in box under cut thread 13:00 16:30 3.5 Waiting on x-over sub from Cornell Solutions 16:30 20:00 3.5 Made up shoe and started in hole tallying pipe run in hole to 3800' shut well in for night 20:00 6:00 10.0 No activity 840-060 HOT OILER 840-070 EQUIPMENT RENTAL $40 $40 840-120 CONTRACT LABOR $1,320 $1,320 840-130 COMPLETION RIG TEC RIG 6 $7,484 $7,484 840-135 COILED TUBING 840-145 PERFORATING/WIRELINE SERV $6,800 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Bobby Hoffpauir $1,500 $2,800 Total Intangible $10,344 $22,744 860-042 WATER PIPELINE $30,000 860-090 NIPPLE/VALVE/FITTING/FLO 860-100 METERING EQP/TELE 860-110 TANK STAIRS & WALKWAYS 860-115 SEPARATORS & TREATERS 860-120 STRUCTURES & INSULATION $33,740 860-150 BUILD BATTERY $38,009 Total Tangible $215,481 Total Daily & Cum Costs $10,344 $238,225

Report Date: 05/22/2014 Field: May 22, 2014 Rig Name: Report #: 14 Location: UTL 38-17-1H Supervisor: Bobby Hoffpauir Daily Cost: $18,547 County: Ward Phone: 970-216-1602 Cum Job: $258,616 State: TX Email: bhoffpauir2@hotmail.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $6,660,419 Finished in hole with shoe rig up slickline retrieve profile nipple made several runs unable to pull plug shut down for night Rig up wireline make equalizing prong make run and pick up retrieving tool and pull profile nipple 6:00 11:00 5.0 Finished in hole to 10,997' top of pkr 11:00 14:00 3.0 rigged up Diamond D Slickline made up 15' 1 1/2" bars and spang jars with equalizing prong to 10,958' Beat down with spang jars to burst glass to equalize pooh 14:00 16:30 2.5 Made up retrieving tool went in hole to 10,958' wireline meas with retrieving tool. worked down to plug pooh no recovery 16:30 19:00 2.5 Rigged up pump truck pumped 6 bbls water down tbg working pipe up and washing down to pkr with 10,000# weight rig up slickline went in hole to 10,958' with retrieving tool worked spang jars pooh no recovery 19:00 21:00 2.0 Made up baler went in hole to 10,958' baled pooh recovered 14.0 lb mud rig down shut well in for night 21:00 6:00 9.0 Well shut in for night 840-060 HOT OILER M&W HOT OIL< INC PUMP TRUCK $1,172 $1,172 840-070 EQUIPMENT RENTAL $130 $170 840-120 CONTRACT LABOR $1,320 840-130 COMPLETION RIG $7,178 $14,662 840-135 COILED TUBING 840-145 PERFORATING/WIRELINE SERV $6,880 $13,680 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Bobby Hoffpauir $1,500 $4,300 Total Intangible $16,861 $39,604 860-042 WATER PIPELINE $30,000 860-090 NIPPLE/VALVE/FITTING/FLO 860-100 METERING EQP/TELE 860-110 TANK STAIRS & WALKWAYS 860-115 SEPARATORS & TREATERS 860-120 STRUCTURES & INSULATION $33,740 860-150 BUILD BATTERY $38,009 Total Tangible $215,481 Total Daily & Cum Costs $16,861 $255,086

Report Date: 05/23/2014 Field: May 23, 2014 Rig Name: Report #: 15 Location: UTL 38-17-1H Supervisor: Bobby Hoffpauir Daily Cost: $12,689 County: Ward Phone: 970-216-1602 Cum Job: $271,305 State: TX Email: bhoffpauir2@hotmail.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $6,683,560 Rig up Slickline run in hole with equalizing prong sheared brass on plug at 10,997' unable to pull due to well going on Vaccum 6:00 8:30 2.5 No acitivity 8:30 12:00 3.5 rig up Slickline run in hole with equalizing prong sheared brass, well on vaccum worked spang jars Not able to pull free 12:00 19:00 7.0 Rig up M&W pump truck circ 14 LB mud out of well with fresh water pumping into water transport trucks Total of 360 BBLS bled well to 0 psi 19:00 21:00 2.0 Working with jars to release spear from plug unable close bops on slickline pressured up on packoff 21:00 6:00 9.0 Shut down for night 840-070 EQUIPMENT RENTAL $130 $300 840-120 CONTRACT LABOR $2,822 $4,142 840-130 COMPLETION RIG $7,083 $21,745 840-135 COILED TUBING 840-145 PERFORATING/WIRELINE SERV $13,680 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Bobby Hoffpauir $1,500 $5,800 Total Intangible $11,535 $51,140 860-042 WATER PIPELINE $30,000 860-090 NIPPLE/VALVE/FITTING/FLO 860-100 METERING EQP/TELE 860-110 TANK STAIRS & WALKWAYS 860-115 SEPARATORS & TREATERS 860-120 STRUCTURES & INSULATION $33,740 860-150 BUILD BATTERY $38,009 Total Tangible $215,481 Total Daily & Cum Costs $11,535 $266,621

Report Date: 05/24/2014 Field: May 24, 2014 Rig Name: Report #: 16 Location: UTL 38-17-1H Supervisor: Bobby Hoffpauir Daily Cost: $19,098 County: Ward Phone: 970-216-1602 Cum Job: $290,403 State: TX Email: bhoffpauir2@hotmail.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $6,702,658 Working to free slick line pressure 3800# unable drop 3 cutters to cut line pulled free reheade retrieved #3 cutter Go in hole retrieve #2 cutter and fish wire out of tbg 6:00 8:30 2.5 Waiting on Diamond wireline crew 8:30 11:00 2.5 Worked line trying to free tool pressured to 3800# worked line to get free dropped deer hoof cutter waited 20 min to fall with 1500# pull on line no indication of cut 11:00 12:00 1.0 Pumped 5 bbls water at 2 1/2 bbls min still no cut 12:00 14:30 2.5 Waiting on timer cutter 14:30 17:00 2.5 Dropped cutter waited 60 min no cut tool hand said it would reset in 30 min and cut waited no cut 17:00 19:00 2.0 Dropped E-Brace cutter waited 10 min drop bar no cut worked wire with unit came free pooh Left 1302' of wire in hole reheaded rope socket run in hole retrieve bar 19:00 21:00 2.0 Went in hole retrieved cutter #3 pooh shut well in for night 21:00 6:00 9.0 Shut down for night 840-070 EQUIPMENT RENTAL $130 $430 840-120 CONTRACT LABOR $990 $5,132 840-130 COMPLETION RIG $6,442 $28,187 840-135 COILED TUBING 840-145 PERFORATING/WIRELINE SERV $8,300 $21,980 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Bobby Hoffpauir $1,500 $7,300 Total Intangible $17,362 $68,502 860-042 WATER PIPELINE $30,000 860-090 NIPPLE/VALVE/FITTING/FLO 860-100 METERING EQP/TELE 860-110 TANK STAIRS & WALKWAYS 860-115 SEPARATORS & TREATERS 860-120 STRUCTURES & INSULATION $33,740 860-150 BUILD BATTERY $38,009 Total Tangible $215,481 Total Daily & Cum Costs $17,362 $283,983

Report Date: 05/25/2014 Field: May 25, 2014 Rig Name: Report #: 17 Location: UTL 38-17-1H Supervisor: Bobby Hoffpauir Daily Cost: $39,738 County: Ward Phone: 970-216-1602 Cum Job: $330,141 State: TX Email: bhoffpauir2@hotmail.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $6,742,396 Went in hole with retrieving tool to get cutter went t0 9654' in wire pooh shut well in rig down Slickline Rig up coil tbg to fish wire and cutters inside tbg with baker fishing tools 6:00 8:00 2.0 No acitivity 8:00 10:00 2.0 Went in hole with retrieving tool to get cutter went to 9654' in wire pooh rig slickline down 10:00 6:00 20.0 shut down till 5/26/2014 memorial day 840-070 EQUIPMENT RENTAL $130 $560 840-120 CONTRACT LABOR $5,132 840-130 COMPLETION RIG $3,473 $31,661 840-135 COILED TUBING 840-145 PERFORATING/WIRELINE SERV $31,022 $53,002 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Bobby Hoffpauir $1,500 $8,800 Total Intangible $36,125 $104,627 860-042 WATER PIPELINE $30,000 860-090 NIPPLE/VALVE/FITTING/FLO 860-100 METERING EQP/TELE 860-110 TANK STAIRS & WALKWAYS 860-115 SEPARATORS & TREATERS 860-120 STRUCTURES & INSULATION $33,740 860-150 BUILD BATTERY $38,009 Total Tangible $215,481 Total Daily & Cum Costs $36,125 $320,108

Report Date: 05/26/2014 Field: May 26, 2014 Rig Name: Report #: 18 Location: UTL 38-17-1H Supervisor: Bobby Hoffpauir Daily Cost: $159 County: Ward Phone: 970-216-1602 Cum Job: $330,300 State: TX Email: bhoffpauir2@hotmail.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $6,742,555 Shut down for weekend Rig up coil tbg to fish wire and cutters inside tbg with baker fishing tools 6:00 6:00 24.0 Shut down memorial day 840-070 EQUIPMENT RENTAL $130 $690 840-120 CONTRACT LABOR $5,132 840-130 COMPLETION RIG $31,661 840-135 COILED TUBING 840-145 PERFORATING/WIRELINE SERV $53,002 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Bobby Hoffpauir $8,800 Total Intangible $130 $104,757 860-042 WATER PIPELINE $30,000 860-090 NIPPLE/VALVE/FITTING/FLO 860-100 METERING EQP/TELE 860-110 TANK STAIRS & WALKWAYS 860-115 SEPARATORS & TREATERS 860-120 STRUCTURES & INSULATION $33,740 860-150 BUILD BATTERY $38,009 Total Tangible $215,481 Total Daily & Cum Costs $130 $320,238

Report Date: 05/27/2014 Field: May 27, 2014 Rig Name: Report #: 19 Location: UTL 38-17-1H Supervisor: Bobby Hoffpauir Daily Cost: $5,712 County: Ward Phone: 970-216-1602 Cum Job: $336,012 State: TX Email: bhoffpauir2@hotmail.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $6,748,267 Rig down TEC rig #6 off well MIRU Halliburton CTU Shut down at noon for memorial day commence tomorrow Rig up CTU on well head and fish slickline tools in 2 7/8" tbg 6:00 7:00 1.0 Well shut in 7:00 8:30 1.5 Rig TEC rig #6 off well 8:30 12:00 3.5 Rigged up Halliburton Coil Tbg on well shut down let hands have rest of day off Memorial Day Commence on the 27th 12:00 6:00 18.0 Shut down till morning 840-070 EQUIPMENT RENTAL $130 $820 840-120 CONTRACT LABOR $5,132 840-130 COMPLETION RIG TEC RIG #6 $3,563 $35,223 840-135 COILED TUBING HALLIBURTON CTU 840-145 PERFORATING/WIRELINE SERV $53,002 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Bobby Hoffpauir $1,500 $10,300 Total Intangible $5,193 $109,949 860-042 WATER PIPELINE $30,000 860-090 NIPPLE/VALVE/FITTING/FLO 860-100 METERING EQP/TELE 860-110 TANK STAIRS & WALKWAYS 860-115 SEPARATORS & TREATERS 860-120 STRUCTURES & INSULATION $33,740 860-150 BUILD BATTERY $38,009 Total Tangible $215,481 Total Daily & Cum Costs $5,193 $325,431

Report Date: 05/28/2014 Field: May 28, 2014 Rig Name: Report #: 20 Location: UTL 38-17-1H Supervisor: Bobby Hoffpauir Daily Cost: $4,639 County: Ward Phone: 970-216-1602 Cum Job: $340,651 State: TX Email: bhoffpauir2@hotmail.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $6,752,906 Rig up Halliburton CTU unit made 2 runs with spears no recovery make a run with retrieving tool to see if a cutter is there Change of plan rig down Halliburton 6:00 7:00 1.0 Shut down 7:00 12:00 5.0 Finished rigging up Halliburton CTU unit 12:00 14:00 2.0 made up spear double prong with gaffs inside 14:00 18:00 4.0 Run in hole to 9670' tagged top of wire worked spear down to 9681' picking up to neutral weight Worked spear several times had indication of wire on spear pooh no recovery 18:00 22:30 4.5 Made up single prong spear with gaffs on the outside went in hole to 9678' worked spear getting a 2500# pull picking up worked spear several times to 9689' pooh no recovery shut down for nightt 22:30 6:00 7.5 No acitivity 840-070 EQUIPMENT RENTAL $2,670 $3,490 840-120 CONTRACT LABOR $5,132 840-130 COMPLETION RIG TEC RIG #6 $35,223 840-135 COILED TUBING 840-145 PERFORATING/WIRELINE SERV $53,002 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Bobby Hoffpauir $1,500 $11,800 Total Intangible $4,170 $114,119 860-042 WATER PIPELINE $30,000 860-090 NIPPLE/VALVE/FITTING/FLO 860-100 METERING EQP/TELE 860-110 TANK STAIRS & WALKWAYS 860-115 SEPARATORS & TREATERS 860-120 STRUCTURES & INSULATION $33,740 860-150 BUILD BATTERY $38,009 Total Tangible $215,481 Total Daily & Cum Costs $4,170 $329,601

Report Date: 05/29/2014 Field: May 29, 2014 Rig Name: Report #: 21 Location: UTL 38-17-1H Supervisor: Bobby Hoffpauir Daily Cost: $72,596 County: Ward Phone: 970-216-1602 Cum Job: $413,247 State: TX Email: bhoffpauir2@hotmail.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $6,825,501 Rig down Halliburton off well MIRU TEC Rig # 6 land tbg nipple down bops NU tree release rig 6:00 7:00 1.0 shut down 7:00 12:00 5.0 Rig Halliburton down off well 12:00 6:00 18.0 Well shut in. rig TEC rig 6 on well 5/29/2014 to ND bops land tbg install tree 840-070 EQUIPMENT RENTAL $8,725 $12,215 840-120 CONTRACT LABOR $16,429 $21,561 840-130 COMPLETION RIG $35,223 840-135 COILED TUBING HALLIBURTON COIL TUBING UNIT $39,300 $39,300 840-145 PERFORATING/WIRELINE SERV $53,002 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Bobby Hoffpauir $1,500 $13,300 Total Intangible $65,954 $180,073 860-042 WATER PIPELINE $30,000 860-090 NIPPLE/VALVE/FITTING/FLO 860-100 METERING EQP/TELE 860-110 TANK STAIRS & WALKWAYS 860-115 SEPARATORS & TREATERS 860-120 STRUCTURES & INSULATION $33,740 860-150 BUILD BATTERY $38,009 Total Tangible $215,481 Total Daily & Cum Costs $65,954 $395,554

Report Date: 05/30/2014 Field: May 30, 2014 Rig Name: Report #: 22 Location: UTL 38-17-1H Supervisor: Bobby Hoffpauir Daily Cost: County: Ward Phone: 970-216-1602 Cum Job: $685,471 State: TX Email: bhoffpauir2@hotmail.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,097,725 6:00 7:00 1.0 Shut down 7:00 14:00 7.0 Rig TEC rig #6 on well landed tbg in well run in hold down buttons ND bops Nu tree Rig down off well Have 115 jts 2 7/8" 8rd tbg on location. 14:00 6:00 16.0 Shut down operations on well all rental equip picked up 840-070 EQUIPMENT RENTAL $12,215 840-120 CONTRACT LABOR $21,561 840-130 COMPLETION RIG $35,223 840-135 COILED TUBING HALLIBURTON COIL TUBING UNIT $39,300 840-145 PERFORATING/WIRELINE SERV $53,002 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Bobby Hoffpauir $13,300 840-275 CONTINGENCY $17,692 Total Intangible $197,765 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE 860-120 STRUCTURES & INSULATION $33,740 860-150 BUILD BATTERY $93,009 Total Tangible $487,705 Total Daily & Cum Costs $685,471

Daily Drilling Report Well Name UTL 38-17-1H Report Date 06/07/2014 Field University Lands Supervisor Nate Baxter Report No. 101 Location 990' FNL & 300' FEL Supervisor 2 Tate Edeler DFS 127 County Ward Rig Phone 432-614-2013 Spud Date 01/31/2014 Rig Name HWD 9 Rig Email jaggedpeakenergy@outlook.com AFE $3,687,000.00 KB 15 Daily Footage Daily Cost $18,075.00 Depth (MD) 13,307 TVD at Bit 11,797 Cum. Cost $6,430,329.59 Estimated TD 16,140 Casing Data Type Size Weight Grade Connection Top Bottom Shoe Test Surface 9-5/8 40.0 J-55 8 round -15' 4,899' Intermediate 7 29.0 P-110 8 round -15' 11,145' Mud Properties Last Survey BHA Type Brine Depth Inc Azi Component Length ID OD Weight 13.6 Sub 0.76' 4.00 5.75 FV 43 Sub 1.55' 4.00 5.75 PV 18 Drilling Parameters Sub 8.81' 4.00 5.75 YP 25 Max WOB 15 X-Over 1.32' 3.50 4.75 LCM (ppb) Max RPM 35 X-Over 1.68' 3.50 4.75 Chlorides 142000 Max Torque Sub 7.75' 2.50 4.75 % Solids 3.66 Max Pull X-Over 1.31' 3.50 4.75 Daily Losses Bkgrnd Gas X-Over 3.40' 3.50 4.75 Total Losses 4280 Max Gas Cnx Gas Trip Gas Total Length: 26.58 Bit Info Bit # Size Make Type S/N Jets In Out Footage Hrs ROP Grade 10 6.125 Hughes DP505X 714783 5X16 12,260' 13,307' 1,047' 75.0 14.0 CT-Shoulder-1/16--Gauge-To 11 6.125 SMith MSi613 JG6874 6x16 13,307' 13,307' 1-5-BT-T-I--G- 12 6 NOV SKHI613M A176053 6-16's 13,307' ------- ------- From To Hours P / U Summary Total Hours: 24 Hour Activity Summary: 24 Hour Plan Safety Fuel Last BOP Test 05/01/2014 Last BOP Drill 04/23/2014 Last Function Test 5/1/2014 Diesel Used Diesel Recvd Diesel on Loc 482

Well Name: UTL 38-17-1H Daily Cost Report Report Date: 06/07/2014 Daily Cost $18,075 Code Description Comments Daily Cum 830.010 Permits, Licenses, ect $1,158 830.020 Staking & Surveying $1,900 830.030 Road, Locations $125,371 830.035 Mobilization/Demobilization $37,500 830.040 Daywork Contract Day Rate For HWD Rig #9 $13,500 $1,658,254 830.050 Mouse/Rathole/Conduct Pipe $16,413 830.055 Directional Drilling & Survey Newsco Directional $531,341 830.060 Bits, Tools, Stabalizers $216,631 830.065 Fuel, Power $290,761 830.070 Equipment Rental $1,075 $326,381 830.075 Mud & Chemicals $942,187 830.080 Mud Logging $49,188 830.090 Core Analysis 830.095 Openhole Logging $23,290 830.100 Cement Services $327,721 830.110 Casing Crew & Equipment $91,469 830.120 Contract Labor $58,014 830.160 Fishing Services $299,198 830.165 Drill Water $191,590 830.175 Supervision Tate Edeler, Nate Baxter $3,500 $374,000 830.185 Insurance $33,000 830.190 Legal $10,000 830.195 P&A/TA Costs 840.100 Cement Services (4-1/2" Liner) Total Intangible $18,075 $5,605,368 Code Description Comments Daily Cum 850.010 Conductor Casing - 13-3/8" 850.015 Surface Casing - 9-5/8" $142,026 850.120 Intermediate Casing - 7" $325,038 850.145 Wellhead Equipment $32,877 850.150 Float equipment, Centralizers & DVT $23,384 850.275 Tangible Contingency $301,636 860.030 Production Casing - 4-1/2" 860.035 Liner Hanger - 4-1/2" WellEz Information Management Ver4.21.14bg Total Tangible $824,961 Total Costs $18,075 $6,430,330

Report Date: 06/08/2014 Field: June 8, 2014 Rig Name: Report #: 24 Location: UTL 38-17-1H Supervisor: Trevor Jones Daily Cost: $3,774 County: Ward Phone: 970.640.1804 Cum Job: $697,542 State: TX Email: trevor.jones777@icloud.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,127,872 Set up equipment and Rig up the rig 6:00 8:00 2.0 No activity 8:00 12:00 4.0 Spot in rig mat, pump and tank. Rig up rig. Spot in cat walk and pipe racks. 12:00 6:00 18.0 840-070 EQUIPMENT RENTAL $12,215 840-120 CONTRACT LABOR $21,561 840-130 COMPLETION RIG Falcon $2,320 $37,543 840-145 PERFORATING/WIRELINE SERV $53,002 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Trevor Jones $1,300 $15,900 840-275 CONTINGENCY $154 $18,000 Total Intangible $3,620 $202,993 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE 860-150 BUILD BATTERY $93,009 Total Tangible $494,549 Total Daily & Cum Costs $3,620 $697,542

Report Date: 06/09/2014 Field: June 9, 2014 Rig Name: Report #: 25 Location: UTL 38-17-1H Supervisor: Trevor Jones Daily Cost: $1,454 County: Ward Phone: 970.640.1804 Cum Job: $698,996 State: TX Email: trevor.jones777@icloud.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,129,326 No activity Set up equipment. ND well head NU BOPs. Pick up drill pipe. TIH. Fish wire. POOH. 6:00 6:00 24.0 Wait on Greco tools. 840-070 EQUIPMENT RENTAL $12,215 840-120 CONTRACT LABOR $21,561 840-130 COMPLETION RIG $37,543 840-145 PERFORATING/WIRELINE SERV $53,002 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Trevor Jones $1,300 $17,200 840-275 CONTINGENCY $154 $18,154 Total Intangible $1,300 $204,447 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE 860-150 BUILD BATTERY $93,009 Total Tangible $494,549 Total Daily & Cum Costs $1,300 $698,996

Report Date: 06/10/2014 Field: June 10, 2014 Rig Name: Report #: 26 Location: UTL 38-17-1H Supervisor: Trevor Jones Daily Cost: $26,986 County: Ward Phone: 970.640.1804 Cum Job: $725,982 State: TX Email: trevor.jones777@icloud.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,194,357 Rack tbg. Tally. ND well head. NU BOPs. MU tools. Wait on parts. TIH. Wait on parts. MU x-over. TIH. Latch onto fish. POOH. 6:00 7:00 1.0 7:00 7:30 0.5 Safety meeting discuss nippling around. 7:30 10:00 2.5 Nipple down well head and nipple up BOPs. Rig up work floor and tools. Rack and tally drill pipe. Build hard line to the well. 10:00 11:30 1.5 Wait on tong dies and mud cross for BOPs. 11:30 13:00 1.5 Nipple up mud cross and rig floor back up. 13:00 14:30 1.5 Make up tools, jars, bumper sub, modified wire spear. Try to run tools into the hole. Tool is getting hung up in the 2 7/8" by 5" x-over. Run grinder on tool to lessen the OD. Check tool with 2.875" pup joint. Try to run tool in hole. Top of tool is hanging up in the cross over. Change out tool and run in with pigs tail style center rope spear. 14:30 16:30 2.0 TIH. 16:30 17:00 0.5 Crew put on cross over from BAASH ROSS threads to MT and changed torque on tongs with tongs in low gear and spread the top of the cross over. Order new cross over. 17:00 17:30 0.5 Wait on parts. Secure the well and clean up location. 17:30 6:00 12.5 SDFN 840-070 EQUIPMENT RENTAL $17,144 $29,359 840-120 CONTRACT LABOR $1,125 $22,686 840-130 COMPLETION RIG $4,950 $42,493 840-145 PERFORATING/WIRELINE SERV $53,002 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Trevor Jones $1,300 $18,500 840-275 CONTINGENCY $2,467 $20,621 Total Intangible $24,519 $231,433 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE 860-150 BUILD BATTERY $93,009 Total Tangible $494,549 Total Daily & Cum Costs $24,519 $725,982

Report Date: 06/11/2014 Field: June 11, 2014 Rig Name: Report #: 27 Location: UTL 38-17-1H Supervisor: Trevor Jones Daily Cost: $15,783 County: Ward Phone: 970.640.1804 Cum Job: $741,765 State: TX Email: trevor.jones777@icloud.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,210,140 RI hole. Latch onto fish. Jar up hole. POOH. 6:00 7:00 1.0 7:00 10:30 3.5 MU x-over and TIH. 10:30 13:30 3.0 Tag up fish @ 9726' turn on pipe to grab slick line. Run in hole to 9907' and turn pipe again to wrap up slick line on tool. Pull up. Dragging something up-hole pulling +/- 4000 over string weight. Pull 4 joints to +/- 9780'. Fish appears to have hung up in a tbg collar. We were able to move it up-hole 60 more feet to 9720'. Fish hung up in collar again. Jar on fish to work free. 13:30 18:30 5.0 Fish comes free and moves up-hole another 30' to 9690'. Jar on fish to work free. Work up to 9650'. 18:30 19:00 0.5 Secure the well and clean up location. 19:00 6:00 11.0 840-070 EQUIPMENT RENTAL $5,271 $34,630 840-120 CONTRACT LABOR $1,125 $23,811 840-130 COMPLETION RIG Falcon $5,620 $48,113 840-145 PERFORATING/WIRELINE SERV $53,002 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Trevor Jones $1,300 $19,800 840-275 CONTINGENCY $2,467 $23,088 Total Intangible $13,316 $247,216 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE 860-150 BUILD BATTERY $93,009 Total Tangible $494,549 Total Daily & Cum Costs $13,316 $741,765

Report Date: 06/12/2014 Field: June 12, 2014 Rig Name: Report #: 28 Location: UTL 38-17-1H Supervisor: Trevor Jones Daily Cost: $15,763 County: Ward Phone: 970.640.1804 Cum Job: $757,528 State: TX Email: trevor.jones777@icloud.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,225,903 Change drill line. Back out 1 1/4 drill pipe. Lay down drill pipe. Change rams. Un-land well. Wait on weight indicator. Try to un-set packer. Stand tag in the derrick. Strip out of the hole. Continue to strip out of the hole. 6:00 7:00 1.0 7:00 8:00 1.0 Change out drill line. Pull on drill pipe to see if there is any change. Still stuck. Try to back drill pipe off down hole. Pipe keeps spinning free to the left. Try tightening it back up and set jars a couple of times. Pulled one more joint out of the hole. Try to back off again. Broke drill pipe 41 joints down. Lay down 41 joints. 8:00 11:30 3.5 11:30 13:00 1.5 13:00 14:30 1.5 14:30 18:30 4.0 18:30 19:00 0.5 19:00 6:00 11.0 Pull BOPs off and pull stabbing guide out of the hanger. Nipple BOPs back up. Change out pipe rams. Un-land the well. Well un-lands at 45,000 lbs. We pulled to 120,000 tubing is still not moving. Wait on line scale indicator and discuss next plan of action. Confirmation to pull to 130,000. Turn tubing to the right to try to unset the packer and pull 128,000 lbs and tbg starts to drag up-hole. Stand back 21 stands of 2.875 tbg. Continue to strip out of the hole. Total 1 1/4" drill pipe laid down 114 joints and 54 joints of 2.875 out of the hole 9300'. Secure the well and clean up location. SDFN 840-070 EQUIPMENT RENTAL $5,271 $39,901 840-120 CONTRACT LABOR $1,125 $24,936 840-130 COMPLETION RIG Falcon $5,600 $53,713 840-145 PERFORATING/WIRELINE SERV $53,002 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION Trevor Jones $1,300 $21,100 840-275 CONTINGENCY $2,467 $25,555 Total Intangible $13,296 $262,979 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE 860-150 BUILD BATTERY $93,009 Total Tangible $494,549 Total Daily & Cum Costs $13,296 $757,528

Report Date: 06/13/2014 Field: June 13, 2014 Rig Name: Report #: 29 Location: UTL 38-17-1H Supervisor: Trevor Jones Daily Cost: $18,927 County: Ward Phone: 970.640.1804 Cum Job: $776,455 State: TX Email: trevor.jones777@icloud.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,244,830 Continue stripping out of the hole. Lay down tools. RU slick line. Spool slick line. POOH. SDFN. TIH w/spear. Latch onto fish. POOH. 6:00 7:00 1.0 7:00 7:30 0.5 Safety meeting discuss stripping out and possible pressure control situations. Casing is on a vacuum and nothing on the tubing. 7:30 16:00 8.5 Continue to strip out of the hole. 16:00 16:30 0.5 LD the last of the 1 1/4" drill pipe. Cross over and the top of the jar came out with the drill pipe. Bottom of the jar, bumper sub and center rope spear are still inside of the 2.875 tubing. POOH to slick line. 90' of the slick line is above the fishing tools. Tools are jammed in side of the tubing with slick line along the side of it. Slick line is broken off below tools. Pull one more joint. Slick line is standing inside of the tubing. 16:30 17:30 1.0 RU slick line. Clamp line. Spool slick line onto truck. Measured out +/- 1260' of slick line. RD slick line. 17:30 18:00 0.5 POOH with rest of 2.875. Guide on bottom of tubing. 18:00 18:30 0.5 Secure well clean up location. SDFN 18:30 20:30 2.0 20:30 5:00 8.5 5:00 6:00 1.0 840-070 EQUIPMENT RENTAL $7,177 $47,078 840-120 CONTRACT LABOR $1,125 $26,061 840-130 COMPLETION RIG Falcon $5,600 $59,313 840-145 PERFORATING/WIRELINE SERV $3,725 $56,727 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION DTC Energy $1,300 $22,400 840-275 CONTINGENCY $25,555 Total Intangible $18,927 $281,906 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE 860-150 BUILD BATTERY $93,009 Total Tangible $494,549 Total Daily & Cum Costs $18,927 $776,455

Report Date: 06/14/2014 Field: June 14, 2014 Rig Name: Report #: 30 Location: UTL 38-17-1H Supervisor: Trevor Jones Daily Cost: $11,039 County: Ward Phone: 970.640.1804 Cum Job: $785,624 State: TX Email: trevor.jones777@icloud.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,253,998 MU fishing tools. TIH. Turn on wire. POOH. TIH. Turn on wire. POOH RU wireline. Run impression block. RI with grapple and try to catch fish. 6:00 7:00 1.0 7:00 7:30 0.5 Safety meeting. Discuss tripping in the hole with tools and latching onto the fish. 7:30 8:30 1.0 Un-load and gauge the fishing tools. MU jars, bumper sub and spear with outside prongs. 8:30 10:30 2.0 TIH with tools and 2.875 L-80 8rnd 6.5# eue. 10:30 11:30 1.0 Top of packer is @ 10,971' tools are 28' in length + 40' of slick line.top of tools @ 10,943'. Top of wire +/- 10,903'. Trip in hole to 10,905'. We picked up 1 joint with 10' sub on top and went in turning the tubing every 5' to 10,940. We saw the weight indicator take 500-1000 lbs of weight while turning. PU on tubing and pulled over 2000 lbs. Lower tubing to 10,940' try again. Pulled over 2000 lbs again twice as we came up like we had ahold of something. 11:30 14:30 3.0 POOH. 14:30 15:00 0.5 We did not recover any fish. 15:00 16:30 1.5 TIH with the same configuration of tools. 16:30 17:00 0.5 Rotate 2 joints and a 10' pup joint into the hole down to 10,956'. We saw a slight tag and tubing torqued up pull up about 4' and turned tubing to wrap wire around spear. We didn't se any over pull coming up so we tried it again with the same results. 17:00 19:30 2.5 POOH. 19:30 20:00 0.5 We didn't recover any fish. Secure the well and clean up location.sdfn 20:00 22:00 2.0 22:00 6:00 8.0 840-070 EQUIPMENT RENTAL $2,618 $47,826 840-120 CONTRACT LABOR $1,125 $27,186 840-130 COMPLETION RIG Falcon $5,946 $65,259 840-145 PERFORATING/WIRELINE SERV $56,727 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION DTC Energy Group $1,350 $23,750 840-275 CONTINGENCY $25,555 Total Intangible $11,039 $291,075 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE 860-150 BUILD BATTERY $93,009 Total Tangible $494,549 Total Daily & Cum Costs $11,039 $785,624

Report Date: 06/15/2014 Field: June 15, 2014 Rig Name: Report #: 31 Location: UTL 38-17-1H Supervisor: Trevor Jones Daily Cost: $1,350 County: Ward Phone: 970.640.1804 Cum Job: $786,974 State: TX Email: trevor.jones777@icloud.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,255,348 Wireline can't rig up. Be ready for tomorrow. RU WL. RI impression block. RI fishing tools. 6:00 7:00 1.0 7:00 8:00 1.0 Wireline says they can't rig up without an operator for the rig. Un-able to locate an operator and keys for the rig. Wireline has the wrong size of lubricator. SDFN. Be ready first thing in the morning. 8:00 6:00 22.0 Make sure everything is ready and make up a good plan to move forward. 840-070 EQUIPMENT RENTAL $47,826 840-120 CONTRACT LABOR $27,186 840-130 COMPLETION RIG $65,259 840-145 PERFORATING/WIRELINE SERV $56,727 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION DTC Energy Group $1,350 $25,100 840-275 CONTINGENCY $25,555 Total Intangible $1,350 $292,425 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE 860-150 BUILD BATTERY $93,009 Total Tangible $494,549 Total Daily & Cum Costs $1,350 $786,974

Report Date: 06/16/2014 Field: June 16, 2014 Rig Name: Report #: 32 Location: UTL 38-17-1H Supervisor: Trevor Jones Daily Cost: $12,925 County: Ward Phone: 970.640.1804 Cum Job: $799,899 State: TX Email: trevor.jones777@icloud.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,268,273 RU wireline. Run impression block. Release wireline. Run in with over socket. Latch onto fish. POOH. 6:00 7:00 1.0 7:00 8:00 1.0 Safety meeting. Discuss running in the hole with the impression block. Start up and spot in equipment. 8:00 9:00 1.0 MIRU wireline. 9:00 10:00 1.0 RIH with 5.50" impression block. Tagged fluid @ 500'. Tagged fish @10,946. Impression block shows tools are laying against the casing. No visible sign of wire on the impression block. 10:00 10:30 0.5 The overshot wireline needed to use is a 5 1/2". The only lubricator big enough for this size is 10K. The full weight of the lubricator was going to be over 6000 lbs. The rig wench line is only rated for 2500 lbs. We cannot safely run wireline tools in the hole with the rig over the well. Release wireline and pressure control company. RDMO 10:30 6:00 19.5 Plan fishing job for Monday morning with the rig. 840-070 EQUIPMENT RENTAL $47,826 840-120 CONTRACT LABOR $27,186 840-130 COMPLETION RIG $65,259 840-145 PERFORATING/WIRELINE SERV $11,575 $68,302 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION DTC Energy Group $1,350 $26,450 840-275 CONTINGENCY $25,555 Total Intangible $12,925 $305,350 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE 860-150 BUILD BATTERY $93,009 Total Tangible $494,549 Total Daily & Cum Costs $12,925 $799,899

Report Date: 06/17/2014 Field: June 17, 2014 Rig Name: Report #: 33 Location: UTL 38-17-1H Supervisor: Trevor Jones Daily Cost: $14,718 County: Ward Phone: 970.640.1804 Cum Job: $819,333 State: TX Email: trevor.jones777@icloud.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,287,707 TIH with over socket. Latch onto fish. POOH. 6:00 7:00 1.0 7:00 7:30 0.5 Safety meeting. Discuss running in with over socket. 7:30 10:30 3.0 MU fishing tools. TIH with jars, bumper sub and over socket. 10:30 14:30 4.0 Tag up 10,954'. Try to turn over fish with tongs. Cannot fall over fish. Rig up power swivel and try to turn over fish. Still not falling over fish. Rig up stripping head and pump on well down the casing and up the tubing @ 5.5 bbls/min to try to stand fish up. Still taking weight but got EOT down to 10,963'. 14:30 17:00 2.5 RD power swivel and stripping head. POOH. 17:00 17:30 0.5 LD fishing tools. Pulled out deer hoof cutter. Stacked out on weight bar and milled a flat spot on guide. Wait on new tools. 17:30 18:00 0.5 Secure the well and clean up location. SDFN. 18:00 20:00 2.0 20:00 5:00 9.0 5:00 6:00 1.0 840-070 EQUIPMENT RENTAL $7,618 $56,680 840-120 CONTRACT LABOR $1,125 $28,311 840-130 COMPLETION RIG Falcon $4,625 $73,364 840-145 PERFORATING/WIRELINE SERV $68,302 840-165 COMPLETE FLUID-FRESH WTR $4,300 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION DTC Energy Group $1,350 $27,800 840-275 CONTINGENCY $25,555 Total Intangible $14,718 $324,784 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE 860-150 BUILD BATTERY $93,009 Total Tangible $494,549 Total Daily & Cum Costs $14,718 $819,333

Report Date: 06/18/2014 Field: June 18, 2014 Rig Name: Report #: 34 Location: UTL 38-17-1H Supervisor: Trevor Jones Daily Cost: $16,354 County: Ward Phone: 970.640.1804 Cum Job: $838,257 State: TX Email: trevor.jones777@icloud.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,306,632 MU fishing tools. TIH. Latch onto fish. POOH. No fish. MU new fishing tools. TIH. Latch onto fish. Jar. POOH. POOH. MU RI with tools for next fish. 6:00 7:00 1.0 7:00 7:30 0.5 Safety meeting. Discuss possible pressure on back side while pulling out of the hole. 7:30 8:00 0.5 MU fishing tools. Same configuration as yesterday. Jars, bumper sub, 1 joint and over socket. 8:00 9:30 1.5 TIH. 9:30 10:30 1.0 Tag up @ 10,963'. Pick up and rotate tubing down to fish and 10,965'. Latch onto fish. Pick up on tubing. Tubing pulls over 5000 lbs then back down to string weight. Stack out again and pulls over 2000 lbs then back to string weight. 10:30 13:30 3.0 POOH. 13:30 14:00 0.5 We didn't have anything in the grapple. There are definite marks inside the guide that we had something in there. MU new guide. Mu fishing tools. 14:00 16:30 2.5 TIH. 16:30 18:00 1.5 Establish pump rate. 4 bbls/min @ 700 psi. Work tubing over fish. PU. Tubing pulls over 20,000#s then pulls off. Pump rate is the same. Repeat action several times. Check pump rate with fish inside of the tool pump rate doesn't change. (The bumper sub has ports in the side of it. We may just be pumping through them.) Pull over 20,000#s and get jars to fire. Pull over 5000 more and loose weight back to string weight. Either we are pulling off of it and we need a different tool or it is on there. 18:00 19:00 1.0 POOH. 19:00 19:30 0.5 Secure the well and clean up location. SDFN 19:30 5:00 9.5 5:00 6:00 1.0 840-070 EQUIPMENT RENTAL $7,618 $64,298 840-120 CONTRACT LABOR $1,440 $29,751 840-130 COMPLETION RIG Falcon $5,946 $79,309 840-145 PERFORATING/WIRELINE SERV $68,302 840-165 COMPLETE FLUID-FRESH WTR $6,871 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION DTC Energy Group $1,350 $29,150 840-275 CONTINGENCY $25,555 Total Intangible $16,354 $343,708 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE 860-150 BUILD BATTERY $93,009 Total Tangible $494,549 Total Daily & Cum Costs $16,354 $838,257

Report Date: 06/19/2014 Field: June 19, 2014 Rig Name: Report #: 35 Location: UTL 38-17-1H Supervisor: Trevor Jones Daily Cost: $17,389 County: Ward Phone: 970.640.1804 Cum Job: $858,346 State: TX Email: trevor.jones777@icloud.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,326,720 POOH. LD fish. TIH. Latch onto fish. POOH. No fish. MU overshot. TIH. TIH. Latch onto fish. POOH. 6:00 7:00 1.0 7:00 7:30 0.5 Safety meeting. Discuss laying down fishing tools. 7:30 10:00 2.5 POOH. 10:00 11:00 1.0 Came out with 3 weight bars and the 6" top of the jars. Rest of the jars, eq prong and the kinley cutter are still in the hole. 11:00 13:30 2.5 MU 1 1/4" - 1 3/4" over socket, jars and bumper sub. Same configuration as before. TIH. 13:30 14:00 0.5 RI to 10,977' initial tag on fish. Work tubing down to 10,981'. PU no over pull. Work tubing down again to see if there is any different result. No over pull. Try rotating tubing down over the fish. Tag same place. No over pull. 14:00 17:00 3.0 POOH. 17:00 17:30 0.5 No fish inside of the over socket. MU 1 3/8" grapple in 5 3/4" over shot with jars and bumper sub. 17:30 18:30 1.0 TIH 18:30 19:00 0.5 Secure the well and clean up location. 19:00 21:00 2.0 21:00 5:00 8.0 5:00 6:00 1.0 840-070 EQUIPMENT RENTAL $7,618 $71,916 840-120 CONTRACT LABOR $1,125 $30,876 840-130 COMPLETION RIG Falcon $5,946 $85,255 840-145 PERFORATING/WIRELINE SERV $68,302 840-165 COMPLETE FLUID-FRESH WTR $6,871 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION DTC Energy Group X 2 $2,700 $31,850 840-275 CONTINGENCY $25,555 Total Intangible $17,389 $361,097 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE $2,700 860-150 BUILD BATTERY $93,009 Total Tangible $497,249 Total Daily & Cum Costs $17,389 $858,346

Report Date: 06/20/2014 Field: June 20, 2014 Rig Name: Report #: 36 Location: UTL 38-17-1H Supervisor: Dana Phillips Daily Cost: $10,693 County: Ward Phone: 970-570-7455 Cum Job: $869,039 State: TX Email: tdphillips_7@msn.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,337,413 RIH w/os, engage fish. POOH w/os, recover Kinley Cutter. RIH w/os, engage fish. Begin POH w/os. Finish POH w/os. RIH w/retrieving tool and attempt to retrieve Pkr. 6:00 7:00 1.0 7:00 7:30 0.5 PJSM - Discussed trip Tbg & general house keeping on Loc. 7:30 9:00 1.5 Open well. No pressure on Tbg or Annulus. Finish RIH w/5 3/4" OS dressed w/1 3/8" grapple. Tag fish @ 10,977' MDKB. 9:00 9:30 0.5 Work OS down over fish f/10,977' to 10,981'. P/U on string w/no over pull. set down & tag @ 10,977' work back down to 10,981' and set 10K wt on fish. P/U on string w/no over pull. Set down and tag up @ 10,981' and stack 10K on fish. P/U on string w/no over pull. 9:30 13:00 3.5 POH w/os f/10,981' MDKB. Recovered Kinley Cutter. L/D Kinley Cutter in OS (did not remover fish f/os due to possible live charge in Cutter). 13:00 14:30 1.5 Greco sourced another OS for next fish run. 14:30 16:00 1.5 M/U & RIH w/5 3/4" OS dressed w/1 1/2" grapple. Tag fish @ 10,981' MDKB. Topped up hole w/1 bbl. TIW valve installed in top jnt. 16:00 16:30 0.5 Worked OS over fish f/10,981' to 10,982'. No over pull when P/U on string. 16:30 17:00 0.5 L/D 4 jnts & POH to 9,345' MDKB. 17:00 17:30 0.5 Secure well & clean Loc. SDFN 17:30 19:30 2.0 19:30 5:00 9.5 5:00 6:00 1.0 840-070 EQUIPMENT RENTAL $2,618 $74,534 840-120 CONTRACT LABOR $1,125 $32,001 840-130 COMPLETION RIG Falcon $5,600 $90,855 840-145 PERFORATING/WIRELINE SERV $68,302 840-165 COMPLETE FLUID-FRESH WTR $6,871 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION DTC Energy Group $1,350 $33,200 840-275 CONTINGENCY $25,555 Total Intangible $10,693 $371,790 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE $2,700 860-150 BUILD BATTERY $93,009 Total Tangible $497,249 Total Daily & Cum Costs $10,693 $869,039

Report Date: 06/21/2014 Field: June 21, 2014 Rig Name: Report #: 37 Location: UTL 38-17-1H Supervisor: Dana Phillips Daily Cost: $9,943 County: Ward Phone: 970-570-7455 Cum Job: $883,982 State: TX Email: tdphillips_7@msn.com Job AFE: $4,916,220 Total Well AFE: $8,603,220 Cum Well Cost: $7,352,356 POH w/5 3/4" OS w/1 1/2" grapple. No fish recovered. RIH w/short Catch OS w/1 1/16" grapple to catch broken spang jar forks. 6:00 7:00 1.0 Crew Travel 7:00 7:30 0.5 PJSM, discussed POH w/tbg & fishing tools. Check well for pressure, Tbg & Csg = 0 psi. 7:30 10:00 2.5 Finish POH f/9,345' MDKB w/5 3/4" OS dressed w/1 1/2" grapple. No fish recovered. 10:00 10:30 0.5 Secure well. Clean Loc. SDFN. (1 1/16" grapple & short catch OS being sourced from Greco) 10:30 12:30 2.0 Crew Travel 12:30 5:00 16.5 No activity while fishing tools being sourced. 5:00 6:00 1.0 Crew Travel. 840-070 EQUIPMENT RENTAL $5,118 $84,652 840-120 CONTRACT LABOR $575 $32,576 840-130 COMPLETION RIG Falcon $2,900 $93,755 840-145 PERFORATING/WIRELINE SERV $68,302 840-165 COMPLETE FLUID-FRESH WTR $6,871 840-167 COMPLETE FLUID-BRINE 840-175 WELLSITE SUPERVISION DTC Energy Group $1,350 $34,550 840-275 CONTINGENCY $25,555 Total Intangible $9,943 $386,733 860-090 NIPPLE/VALVE/FITTING/FLO $55,291 860-100 METERING EQP/TELE $2,700 860-150 BUILD BATTERY $93,009 Total Tangible $497,249 Total Daily & Cum Costs $9,943 $883,982