EXHIBIT 2 OPERATIONS OVERVIEW

Transcription

1 Case CSS Doc Filed 05/05/17 Page 1 of 30 EXHIBIT 2 OPERATIONS OVERVIEW

2 Case CSS Doc Filed 05/05/17 Page 2 of 30 OPERATIONS OVERVIEW

3 Case CSS Doc Filed 05/05/17 Page 3 of 30 Introductory Overview 31 Operating is an independent oil and natural gas company engaged in the exploration, development, and production of oil and gas from properties located in Wyoming, Colorado, Texas, and Louisiana. Each state presents its own unique opportunities to develop existing assets by conducting lease activity in a straight-forward, safe, and efficient workflow.

4 Case CSS Doc Filed 05/05/17 Page 4 of 30 Louisiana Assets (Sibley/Ada) Operating Entity: Carder Oil Company Northwest Louisiana Webster Parish, Bienville Parish

5 Louisiana Assets (Sibley/Ada) Case CSS Doc Filed 05/05/17 Page 5 of 30

6 Case CSS Doc Filed 05/05/17 Page 6 of 30 Carder Oil Company s Properties in Sibley/Ada Sibley Ada

7 Case CSS Doc Filed 05/05/17 Page 7 of 30 Louisiana Assets (Sibley/Ada) Sibley Reservoir: Hosston A/Hosston B Average Producing Depth: Wells (67 Active Producers) Average Wellhead Pressure: 70 psi Production: 1 bopd/ 3,058 mcfpd Ada Reservoir: Hosston A/Hosston B Average Producing Depth: Wells (29 Active Producers) Average Wellhead Pressure: 65 psi Production: 18 bopd / 1,040 mcfpd

8 Case CSS Doc Filed 05/05/17 Page 8 of 30 Louisiana Assets (Sibley/Ada) Sibley and Ada fields are in the Hosston A and Hosston B reservoirs which are characterized as shallow, low-pressure, sweet, gas bearing sandstone reservoirs. Though typically the Hosston reservoirs have high water production associated with the hydrocarbons the Sibley and Ada fields are remarkably dry. Disposal well Tipton A.F. 10#1 Alt SWD - This well is set to go online in October.

9 Case CSS Doc Filed 05/05/17 Page 9 of 30 Louisiana Assets (Sibley/Ada) The previous operator kept the properties and equipment clean and in good working order. The field is being ran by three seasoned employees with years of experience in these particular fields. The bulk of the assets on our locations are comprised of wellbores, wellhead equipment, and associated fluid handling equipment such as gun-barrel separation tanks, oil/water tanks, and leased compressor equipment. The fields also have individual compressor stations that take on third-party gas volumes and utilize nearly 100 miles of gathering lines that are 100% owned by Carder Oil Company.

10 Case CSS Doc Filed 05/05/17 Page 10 of 30 Louisiana Assets (Sibley/Ada) Total Daily Production Gas (our primary target) exhibits a total daily production decline curve that follows the expected hyperbolic-to-exponential as pressure is drawn down throughout the life of the reservoir.

11 Case CSS Doc Filed 05/05/17 Page 11 of 30 Colorado Assets (Rangely) Operating Entity: Lasso Oil & Gas Northwest Colorado Rio Blanco County, Garfield County

12 Case CSS Doc Filed 05/05/17 Page 12 of 30 Lasso Oil & Gas s Properties in Rangely

13 Case CSS Doc Filed 05/05/17 Page 13 of 30 Colorado Assets (Rangely) Reservoir: Mancos Average Producing Depth: Wells (42 Active Producers) Average Wellhead Pressure: 0 psi (oil wells) require artificial lift 30 psi (gas wells) flowing Production: 22 bopd/450 mcfpd

14 Case CSS Doc Filed 05/05/17 Page 14 of 30 Colorado Assets (Rangely) The main target in the Rangely area is the Mancos Shale which is a fractured tight oil play centered in Rio Blanco County, Co. It is a NE trending structure with normal faults and associated fractures cross-cutting the Rangely anticline and NW-trending fractures parallel to the axial trace of the Rangely anticline which began being developed in 1919.

15 Case CSS Doc Filed 05/05/17 Page 15 of 30 Colorado Assets (Rangely) The main play here is shallow oil production at low pressure requiring artificial lift. This is a mature field that produces low, but steady volumes of oil with some associated gas being present in the deeper parts of the play. The tight shale reservoir allows for some open hole completions. The formation itself has high integrity and is largely consolidated. The production holds 19,600 net acres (all depths in some areas).

16 Case CSS Doc Filed 05/05/17 Page 16 of 30 Colorado Assets (Rangely) Total Daily Production As previously noted, both the gas and the oil production is extremely flat as expected in late development production. The value in this field is maintaining production while keeping expenses low.

17 Case CSS Doc Filed 05/05/17 Page 17 of 30 Wyoming Non-Op Assets (Madden Deep) Operator: Conoco Phillips Central Wyoming Fremont County

18 Case CSS Doc Filed 05/05/17 Page 18 of Operating s Non-Op Properties in Madden Deep Madden Deep

19 Case CSS Doc Filed 05/05/17 Page 19 of 30 Wyoming Assets (Madden) Reservoir: Mesaverde, Cody, Lance & Fort Union Average Producing Depth: 5,800 Ft. Union 9,000 - Lance 213 Wells Net Production: 3 bopd/1,000 mcfpd Additional Assets: Own 2.4% of 300 miles of gathering lines Own 2.4% of water gathering/injection system

20 Case CSS Doc Filed 05/05/17 Page 20 of 30 Wyoming Assets (Madden Deep) Operators Identified Potential Opportunities Continued focus operating expense reduction Artificial lift optimization Compressor installation/optimization Acidizing for scale Return idle wells to production

21 Case CSS Doc Filed 05/05/17 Page 21 of 30 Texas Assets (Panza, Sugarkane, Geo-Vest) Operating Entity: 31 Operating Colorado, Cherokee, Live Oak Counties

22 Case CSS Doc Filed 05/05/17 Page 22 of 30 Panza Field Cochran #1 31 Operating purchased the Cochran #1 well which is currently shut in due to scale in the tubing. Engineering is evaluating the cleanout opportunity to restore 250 mcfpd of production along with associated oil and condensate. The well produces from the Wilcox sand interval at 11,200 which exhibits steady gas production that is rich in condensate. Once the well is put back online we expect production rates to continue as they did before the well went down.

23 Case CSS Doc Filed 05/05/17 Page 23 of 30 Sugarkane Field Dena Forehand 2H, Hamman 1H, Kellam 2H 31 Operating purchase three wellbores and 2250 net acres in the Eagleford Shale play. These wells are currently producing 2,400 mcfpm on an exponential decline Future opportunities for production may include production optimization and pressure decline management in order to maximize total recoverable reserves.

24 Case CSS Doc Filed 05/05/17 Page 24 of 30 Geo-Vest Field Berryhill #1, Miller Heirs #1, Mandy #1, Mandy #2, Fain Heirs #1 31 Operating purchased five wells completed in the both the Hosston/Travis Peak reservoir (the same reservoir that the company produces from in the Louisiana properties) and also the more shallow Rodessa reservoir. The production and optimization of these five wells will be similar to the Sibley/Ada field optimization plan where engineering identifies maximum potential based on historical production and field decline and then targets any zone behind pipe to boost production.

25 Case CSS Doc Filed 05/05/17 Page 25 of 30 Production and Development 2016/2017 Development Outlook Current Status Well work Lift Upgrades Economic Evaluation

26 Case CSS Doc Filed 05/05/17 Page 26 of 30 Production Development Outlook 2016/2017 While the surface equipment and the wells themselves have been looked after, there are several wells with high production potential that have not been utilized to their maximum potential in the past. forecast

27 Case CSS Doc Filed 05/05/17 Page 27 of 30 Production Development Outlook 2016/ Operating plans to critique the high potential producers and run a campaign of relatively inexpensive surface projects and some light well work on the low pressure producers.

28 Case CSS Doc Filed 05/05/17 Page 28 of 30 Production Development Outlook 2016/2017 Many of these wells cannot flow on their own and require some sort of artificial lift to deliver fluids to the surface. The bulk of the work in the coming year will be to workover these wells in order to restore or boost production. Needs Velocity String 50+ mcfpd forecast

29 Case CSS Doc Filed 05/05/17 Page 29 of 30 Production Development Outlook 2016/2017 All work will be done with certain agreed upon economic hurdles in mind which will include lease profitability, project returns, and acquisition/divestment opportunities.

30 Case CSS Doc Filed 05/05/17 Page 30 of 30 Summary of Assets Louisiana 163 wells Gathering lines and compression 19 bopd / 4,100 mcfpd Colorado 62 wells 19,600 net acres 22 bopd / 450 mcfpd Wyoming 213 wells Gathering lines, injection, and compression 3 bopd / 1,000 mcfpd Texas 5 wells 2250 net acres in the Eagleford play 80 mcfpd Significant workover opportunity