Scurry County Energy Fund ThreeSCEF III

A $15M oil well drilling program in the Permian Basin targeting the Strawn Sand and Penn Black Shale ("PBS")
Adjacent to our SCEF I project with its producing Dessie and Kate horizontal wells in the same Strawn formation
Up to 80% year-one Intangible Drill Cost (IDC) deduction*
IRR greater than 65% @ $45/bbl oil, currently profitable at $30/bbl with anticipated reserves and drilling costs (see following regarding forward looking statements in Disclaimer)
Proven financing program to maximize value
Estimated 26M to 35M bbl of oil in place per square mile in the PBS^†
Seasoned operator with 20 years experience in the Permian

*Please see tax section of PPM
^†NuTech Energy Resources and Schlumberger