S.T.L. RESOURCES A N A P P A L A C H I A N B A S I N E & P C O M P A N Y. S.T.L. Resources - A Limited Liability E&P Company 1

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1 S.T.L. RESOURCES A N A P P A L A C H I A N B A S I N E & P C O M P A N Y S.T.L. Resources - A Limited Liability E&P Company 1

2 TABLE OFCONTENTS 1. Company Overview 2. TransactionAttributes 3. Appendix: Biography S.T.L. Resources - A Limited Liability E&P Company 2

3 S.T.L. RESOURCES C O M PA N Y O VER VI E W S.T.L. Resources - A Limited Liability E&P Company 3

4 INTRODUCTION TO S.T.L.RESOURCES Description Headquarters S.T.L. Resources, LLC ( STL or the Company ) is an agile E&P company engaged in the acquisition, exploitation and development of Marcellus/Utica assets Pittsburgh,Pennsylvania CompanyValues Ethics Trustedstakeholders Collaborative partners & relationships Health, safety and environmental diligence Accountability Win-Winoutcomes Founded 2014 Integrity Transparency Senior Managem ent On average, 27 years of E&P experience most of which has been in the Appalachian Basin S.T.L. Resources - A Limited Liability E&P Company 4

5 OVERVIEW OF MANAGEMENT TEAM STL is an Appalachian Basin focused E&P company that has combined the technical, operational and strategic expertise from some of the most prolific and seasoned operators in the region Team experience from majors, independents to start-ups Experienced in management of both private and public entities Instrumental in the evolution of the unconventional plays in the Appalachian Basin Participated in over 2,000 unconventional wells being drilled in Basin Involved in the acquisition and management of over 1,000,000 acres, over 500,000 of which were in the Basin Participated in development of over $5B of enterprise value Over 5 Tcf of gas reserves developed S.T.L. Resources - A Limited Liability E&P Company 5

6 INVESTMENT HIGHLIGHTS Key Investment Objectives High Caliber Management Team FavorableBasin Characteristics Ensure management team s interests are aligned with Stakeholders Acquire high quality resource base - in proven domestic basins with solid profit potential maximizeroce Long-Term Vision Scalable BusinessModel Proprietary Pipeline of Investment Opportunities Organic growth through the drill bit along with selective M&Aactivity Strong Financial Profile - maintain a balanced capital structure Disciplined capital program coupled with a very aggressive cost control program to maintain profit margins in the current down market STLhas assembledthe right team to becomethe leadingappalachian Basin focused E&Pcompany S.T.L. Resources - A Limited Liability E&P Company 6

7 MANAGEMENT TEAM ORGANIZATIONAL CHART BillHayward Chairman 34 years of experience / 34 years in the Appalachian Basin Prior work experience: Hayward Natural Resources, Peoples Natural Gas, CNG Development Company, Continental Reserves, Texas Keystone ClintColdren CEO 38 years experience / 5 years in the Appalachian Basin Prior work experience: Director/CEO of Bayou Bend Petroleum (Public) & Coldren Oil & Gas (Private), Founding Member/COO of Energy Partners (Public), Founder/Owner of Cenergy Corporation, Gulf Oil, Chevron, CNG Producing, CNG Development WilliamDressel EVP Land / Founder 11 years of experience / 10 years in the Appalachian Basin Senior GeologicalAdvisor 27 years experience / 27 years in the Appalachian Basin Reservoir Engineer (Outsourced Support) 37 years experience / 35 years in the Appalachian Basin VP of Geoscience 28 years work experience / 7 years in the Appalachian Basin Completion Operations - Contractor 36 years experience / 36 years in the Appalachian Basin Drilling Operations - Contractor 33 years experience / 33 years in the Appalachian Basin S.T.L. Resources - A Limited Liability E&P Company 7

8 S.T.L. RESOURCES T R AN SAC T I O N AT T R I BU T E S S.T.L. Resources - A Limited Liability E&P Company 8

9 TRANSACTION ATTRIBUTES Identify Favorable Rates of Return in Today s CommodityEnvironment Current Production and Cash Flow MultipleHydrocarbon BearingZones Desired Attributes HBP Acreage to Allow for a More Measured Deployment of Capital Substantial Infrastructure in Place Favorable Operating Area with Significant Offset Activity Each opportunity has been sourced on an exclusive basis and the acquisitions have the potential to move towards a purchaseagreementprior to ownersproceedingto a broaderauction process S.T.L. Resources - A Limited Liability E&P Company 9

10 THE STL TRANSACTION STRATEGY Strategic Overview Assets/prospects that will be targeted will exhibit stacked pay potential Midstream factors such as infrastructure and pipelines must be incorporated into the project economics for the well, field and asset When needed, JV Partners will be carefully selected to enhance project performance through technical or operational expertise in the specific area Limit general & administrative expenses Maintain a minimal employee headcount Outsource backroom activities Midstream Specific Strategy STL s Midstream Strategy is to build infrastructure for its E&Peffort Control of project timing, time is of the essence Create subsidiary to carry off these activities Opens door for further movement into midstream activities such as GTL Provides for better product pricing potentially on the E&Pfront Open Discussions with: AMEC, Foster Wheeler, KBR S.T.L. Resources - A Limited Liability E&P Company 10

11 TRANSACTION IDENTIFICATION & SELECTIONSTRATEGY Asset Identification & Selection Acquire assets that offer compelling rates of return in today smarket High deal flow facilitated by STL's extensive industry network of contacts and relationships Each viable opportunity undergoes rigorous technical, commercial and economic screening Innovative approaches and application of fit-for-purpose technologies Consultation with subject matter or regional experts as required Project prioritization and selection based on risk-reward profiles Selected projects have consistent profiles of low geologic risk and high net cash flow Seek assets that have low decline rates, resulting in long lived reserves Land Acquisition Strategy Market conditions are currently more reasonable than at peak of market and offer a more favorable entry point for landacquisition Corporate or Asset Acquisition Public and private operators looking to shed non-core assets to fund development activities and/or service debt Drill to Earn Public and private operators looking to reduce exposure to market risk, HBP acreage and accelerate production growth with minimal capital exposure Farm-Ins Public and private operators looking to reduce capital commitments but still maintain or build production Organic Leasing Lease land from landowner groups, individual land owners and fee mineral owners to enter a play or to enhance a position that company currently holds S.T.L. Resources - A Limited Liability E&P Company 11

12 S.T.L. RESOURCES APPEN D I X : BI O G R APH Y S.T.L. Resources - A Limited Liability E&P Company 12

13 FOUNDER / OWNER / EXECUTIVE BOARD MEMBER / VP ofland William A. Dressel Has over 11 years experience in managerial, entrepreneurial and operational positions in the oil & gas sector Recently founded S.T.L. Resources, LLC an agile, vertically integrated E&P company engaged in the acquisition, exploration and development of natural gas and oil properties in the Lower 48. The company is led by an experienced and diverse management team, seeking to separate itself from competition by applying innovative approaches and technologies to unlock the potential of often unrecognized or underdeveloped hydrocarbon plays Founder and Managing Partner of Iron Will Energy, Inc. which developed the entire land position for Ultra Petroleum in Tioga/Potter County PA; acreage was initially acquired by Bill Hayward. Acquired up to 250,000 acres of oil & gas leases in the Appalachian Basin for companies such as East Resources, Fortuna/Talisman, Chesapeake, Halcon, etc. Over 200 miles of pipeline ROW, and 125,000 acres of renewable energy development. Contracted to run entire land department of publically traded company with 150,000 acres of leases in the Eagle Ford of East Texas. With a new innovative team approach, the publically traded company will save on their land budget and can immediately scale up the short term for land acquisition and other field activities. Completed projects in 12 states Founder and Managing Partner of Front Runner Seismic, Inc. Negotiated land contracts and seismic permits for over 350,000 acres in the Appalachian Basin for seismic acquisitions for drilling/exploration projects along with geomatic survey, design and clearing for drilling locations.completedprojects in 17 states Previous experience was with Destiny Resources, Long Consulting Groupand RedSky Land Services. The companies of IWE and FRS provide services that he personally conducted in the field for the listed companies above Holds a Degree in Advertising from International Academy of Design and Technology in Chicago S.T.L. Resources - A Limited Liability E&P Company 13

14 CHIEF EXECUTIVE OFFICER ClintonW. Coldren Has over 39 years experience in managerial and operational positions in the oil & gas sector Recently has been working on personal investing opportunities in many forms. Main project was to take control of a publicly traded company and ultimately find a reverse merger candidate to create value for the shareholders. The transaction was completed with retention of a significant stock position and Board seat in May of 2015 CEOof Bayou Bend Petroleum Ltd. (public oil & gas company that concentrated on Gulf of Mexico with initial funding of $200MM) Founder and CEO of Coldren Oil & Gas (raised $100MM of private equity and concluded $625MM of acquisitions) Founding member and COO of Energy Partners, Ltd. (public oil & gas company which grew to over $1B in market capitalization) Founder of Cenergy Corporation (oil & gas consulting and project management company) Various operational, drilling and petroleum engineering positions with Gulf Oil Inc, Chevron Inc. and CNG Producing Holds a Bachelor of Science in Mechanical Engineering from Lehigh University and an MBAfrom University of Pittsburgh S.T.L. Resources - A Limited Liability E&P Company 14

15 CHAIRMAN William C. Hayward Has over 34 years of experience in managerial and operational positions in the oil &gas sector Currently serves as Chairman of the Board for S.T.L. Resources, LLC. Mr. Hayward is the architect of the experienced and diverse management team, having personal and working relationships with each individual currently on the team. Throughout his career, he has developed long standing working relationships with each individual through completing projects, discovering fields and executing business deals Founder of Hayward Natural Resources (established multiple partnerships across Pennsylvania, Ohio, West Virginia and Texas and that has resulted in more than 2000 conventional and unconventional wells drilled within the established and provenami prospect areas and receives revenue stream from over 2,750 wells in theappalachian Basin) Mr. Hayward is an acknowledged expert within the Appalachian Basin, and more specifically the Marshlands Field. In 2001, Mr. Hayward and Ultra Petroleum established an AMI in Tioga and Potter Counties in Pennsylvania. The discovery vertical Tuscarora well within the AMI (36,000 acres) was Marshlands Unit #1, and flowed at 50MMcfd, IP at 75MMcfd. This well has produced 5 BCF of natural gas to date. Subsequently Marshlands Unit #2, a 15,000 ft. vertical well produced for three years in the Utica/Point Pleasant Formation until it was shut-in in Currently 36 wells have been drilled in the Marcellus horizontally, one well horizontally in the Geneseo Burkett, and Mr. Hayward has retained an override in all of them and will continue to receive an override in the entire field Using the Ultra Field as an example of a body of work, a few other companies are operating in areas Mr. Hayward has discovered, including, but not limited to Rice, Range, Chevron, and Shell, all currently drilling unconventional wells and operating in the prospect areas and Mr. Hayward is receiving an override in all of these fields. He currently receives a revenue stream from 1/4 to 1/3 of the leased producers in the Basin. Before going into business for himself, Mr. Hayward worked as a Geologist for Peoples Natural Gas, CNG Development Company, Continental Reserves and Texas Keystone Holds a Bachelor of Science and a Master of Science in Geology from the University of Pittsburgh S.T.L. Resources - A Limited Liability E&P Company 15