RAILROAD COMMISSION OF TEXAS OIL & GAS DIVISION

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1 API No Drilling Permit # SWR Exception Case/Docket No (R37) 4. Lease Name GENERAL INFORMATION 6. Purpose of filing (mark ALL appropriate boxes): APPLICATION FOR PERMIT TO DRILL, RECOMPLETE, OR RE-ENTER This facsimile W-1 was generated electronically from data submitted to the RRC. A certification of the automated data is available in the RRC's Austin office. 1. RRC Operator No. 2. Operator's Name (as shown on form P-5, Organization Report) 3. Operator Address (include street, city, state, zip): 5. Well No. X New Drill Recompletion Reclass Field Transfer Re-Enter X Amended Amended as Drilled (BHL) (Also File Form W-1D) 2H Permit Status: FORM W-1 07/2004 Approved 7. Wellbore Profile (mark ALL appropriate boxes): Vertical X Horizontal (Also File Form W-1H) Directional (Also File Form W-1D) Sidetrack 8. Total Depth 9. Do you have the right to develop the 8000 minerals under any right-of-way? X Yes No 10. Is this well subject to Statewide Rule 36 (hydrogen sulfide area)? X SURFACE LOCATION AND ACREAGE INFORMATION 11. RRC District No. 12. County ANDREWS 13. Surface Location X Land Bay/Estuary Inland Waterway 14. This well is to be located 16.7 miles in a SW direction from Frankel City which is the nearest town in the county of the well site. 15. Section 16. Block Survey UNIVERSITY LANDS 18. Abstract No. A- 19. Distance to nearest lease : 467 ft. 21. Lease Perpendiculars: 330 ft from the SOUTH and 500 ft from the EAST. 22. Survey Perpendiculars: 330 ft from the SOUTH and 500 ft from the EAST. 23. Is this a pooled unit? Yes X No 24. Unitization Docket No: 25. Are you applying for Substandard Acreage Field? Yes (attach Form W-1A) X No Yes Offshore No 20. Number of contiguous acres in lease, pooled unit, or unitized tract: FIELD INFORMATION List all fields of anticipated completion including Wildcat. List one zone per. 26. RRC District No. 27. Field No. 28. Field Name (exactly as shown in RRC records) 29. Well Type 30. Completion Depth 31. Distance to Nearest Well in this Reservoir 32. Number of Wells on this lease in this Reservoir ANDECTOR (WICHITA ALBANY) Oil Well BOTTOMHOLE LOCATION INFORMATION is required for DIRECTIONAL, HORIZONTAL, AND AMENDED AS DRILLED PERMIT APPLICATIONS Remarks [FILER Jun 8, :33 PM]: Amending to add a field. Requesting SWR 37LL administrative exception. Waivers attached. SWR 37BW: will not be produced concurrently with University "B11" "7" #1 (Permit #701172, API ) (see W-1H attachment) Certificate: I certify that information stated in this application is true and complete, to the best of my knowledge. RRC Use Only Page 1 of 2 Rebecca Dunn, Consultant Name of filer (806) Phone Jun, 2011 Date submitted radunn@cableone.net Address (OPTIONAL)

2 Permit Status: Approved The RRC has not approved this application. Duplication or distribution of information is at the user's own risk. APPLICATION FOR PERMIT TO DRILL, RECOMPLETE, OR RE-ENTER This facsimile W-1 was generated electronically from data submitted to the RRC. A certification of the automated data is available in the RRC's Austin office. Form W-1H 07/2004 Supplemental Horizontal Well Information Permit # Approved Date: Jun 14, RRC Operator No. 2. Operator's Name (exactly as shown on form P-5, Organization Report) 3. Lease Name Lateral Drainhole Location Information 5. Field as shown on Form W-1 6. Section 7. Block 8. Survey 9. Abstract 10. County of BHL 7 11 UNIVERSITY LANDS ANDREWS 11. Terminus Lease Line Perpendiculars 467 ft. from the North. and 500 ft. from the East 12. Terminus Survey Line Perpendiculars 467 ft. from the North. and 500 ft. from the East 13. Penetration Point Lease Line Perpendiculars ANDECTOR (WICHITA ALBANY) (Field # , RRC District ) 897 ft. from the South. and 500 ft. from the East 4. Well No. 2H Page 2 of 2

3 FIELD NAME ACRES DEPTH WELL # DIST LEASE NAME NEAREST LEASE NEAREST WE ** ANDECTOR (WICHITA ALBANY) ,300 2H WELLBORE PROFILE(s) FOR FIELD: Horizontal RESTRICTIONS: This well cannot be produced concurrently from the same reservoir as: University "B11" "7" #1 Permit This is a hydrogen sulfide field. Hydrogen Sulfide Fields with perforations must be isolated and tested per State Wide Rule 36 and a Form H-9 filed with the district office. Fields with SWR 10 authority to downhole commingle must be isolated and tested individually prior to commingling production. Lateral: TH1 Penetration Point Location Lease Lines: F SOUTH L Terminus Location BH County: ANDREWS Section: 7 Block: 11 Abstract: Survey: UNIVERSITY LANDS Lease Lines: Survey Lines: PERMIT TO DRILL, DEEPEN, PLUG BACK, OR RE-ENTER ON A REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION PERMIT NUMBER DATE PERMIT ISSUED OR AMENDED DISTRICT (AMENDED) Jun 14, 2011 API NUMBER FORM W-1 RECEIVED COUNTY Jun, 2011 ANDREWS TYPE OF OPERATION OPERATOR NEW DRILL LEASE NAME LOCATION Section, Block and/or Survey WELLBORE PROFILE(S) Horizontal F NORTH L F NORTH L ACRES NOTICE This permit and any allowable assigned may be revoked if payment for fee(s) submitted to the Commission is not honored. District Office Telephone No: (432) WELL NUMBER 2H DISTANCE TO SURVEY LINES DISTANCE TO LEASE LINES DISTANCE TO NEAREST LEASE LINE 467 ft. DISTANCE TO NEAREST WELL ON LEASE See FIELD(s) Below FIELD(s) and LIMITATIONS: * SEE FIELD DISTRICT FOR REPORTING PURPOSES * ** THIS PERMIT IS GRANTED PURSUANT TO STATEWIDE RULE 37(h)(2)(B) ** CASE NO TOTAL DEPTH 16.7 miles SW direction from FRANKEL CITY 8000 SECTION 7 BLOCK 11 ABSTRACT SURVEY UNIVERSITY LANDS * Page 3 of 4

4 PERMIT TO DRILL, DEEPEN, PLUG BACK, OR RE-ENTER ON A REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION PERMIT NUMBER DATE PERMIT ISSUED OR AMENDED DISTRICT (AMENDED) Jun 14, 2011 API NUMBER FORM W-1 RECEIVED COUNTY Jun, 2011 ANDREWS TYPE OF OPERATION OPERATOR NEW DRILL LEASE NAME LOCATION Section, Block and/or Survey WELLBORE PROFILE(S) Horizontal ' ** ' PRECEDING FIELD NAME INDICATES RULE (R37) ACRES NOTICE This permit and any allowable assigned may be revoked if payment for fee(s) submitted to the Commission is not honored. District Office Telephone No: (432) WELL NUMBER 2H DISTANCE TO SURVEY LINES DISTANCE TO LEASE LINES DISTANCE TO NEAREST LEASE LINE 467 ft. DISTANCE TO NEAREST WELL ON LEASE See FIELD(s) Below FIELD(s) and LIMITATIONS: * SEE FIELD DISTRICT FOR REPORTING PURPOSES * ** THIS PERMIT IS GRANTED PURSUANT TO STATEWIDE RULE 37(h)(2)(B) ** CASE NO THE FOLLOWING RESTRICTIONS APPLY TO ALL FIELDS This well shall be completed and produced in compliance with applicable special field or statewide spacing and density rules. If this well is to be used for brine mining, underground storage of liquid hydrocarbons in salt formations, or underground storage of gas in salt formations, a permit for that specific purpose must be obtained from Environmental Services prior to construction, including drilling, of the well in accordance with Statewide Rules 81, 95, and TOTAL DEPTH 16.7 miles SW direction from FRANKEL CITY 8000 SECTION 7 BLOCK 11 ABSTRACT SURVEY UNIVERSITY LANDS FIELD NAME ACRES DEPTH WELL # DIST LEASE NAME NEAREST LEASE NEAREST WE * Page 4 of 4

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