Auterra Energy, LLC

Company Profile

Auterra Energy, LLC is a privately held energy company, and is affiliated with the Auterra Group. Auterra Energy was formed in 2013 as a Texas limited liability company, and participates as a non-operating working interest partner in developmental and lower risk exploratory opportunities. The company focuses on the conventional oil and gas producing trends located in Texas and Louisiana.

Auterra Energy is owned by Gerald W. (Jerry) Schlief, who serves as the President and CEO. David R. Wood is Auterra Energy’s Vice President of Exploration and is responsible for evaluating high-quality, lower risk and 3D seismic based, conventional, drilling opportunities for Auterra’s participation as a working interest partner. Mr. Schlief and Mr. Wood each have more than 40 years of experience in the oil and gas industry. Mr. Schlief has an MBA in Finance and a BBA in Accounting, and Mr. Wood has a BS in Geology, is a Licensed Professional Geologist in Texas and Louisiana, and a nationally Certified Professional Geophysicist.

Business Strategy

Auterra Energy’s Strategy is to review and analyze a large number of lower risk drilling opportunities, and to take non-operated working interests in projects that meet the company’s stringent risk profile and economic thresholds. Since inception, Auterra Energy has evaluated hundreds of drilling opportunities and has participated in only a small percentage.

Each prospect is first screened to see if it meets Auterra’s general guidelines and preferences of lower risk oil and gas prospects. Costs and expected reserve estimates must also meet the rate-of-return and return-on-investment thresholds demanded by Auterra.

Risk Parameters Evaluated

STRUCTURAL RISK

The seismic interpretation and the surrounding well log correlations are audited and verified, and a numerical probability is assigned as to whether the reservoir size and trap are mapped properly.

TRAP AND SEAL RISK

Seismic data and well logs are examined to estimate trap timing and seal integrity, and a numerical probability is assigned as to whether the trap was in place at the time of oil migration and whether the trap is still sealing or has been breached.

RESERVOIR RISK

Regional and nearby well logs are examined to evaluate the variability of the targeted reservoir, and a numerical probability is assigned as to whether the reservoir rocks at the well location will be the quality and thickness of the pre-drill estimates.

DRILLING AND COMPLETION RISK

Drilling reports from nearby wells are reviewed to identify any drilling or completion problems that are likely to be encountered in the prospect area, and the estimated drilling or completion costs are increased in the pre-drill economic analysis to account for the risk.

OPERATOR RISK

The company planning to operate the drilling and production of the well is researched to determine if it and its key staff members have the experience and expertise to drill, complete, and produce the oil and natural gas. Further, Auterra will determine if the operator can properly handle the accounting for tangible and intangible drilling costs and the accounting for the production revenue from the project. When Auterra joins in the drilling of a well, Mr. Wood closely monitors each phase of the project and offers guidance and advice throughout the drilling and completion of the project.

PRICE RISK

Auterra maintains relationships with several leading industry professionals who monitor and predict future oil and gas price movements, and Auterra generally uses the most conservative of these predictions to calculate the expected rate-of-return and return-on-investment in the pre-drill economic analysis.

Business Model

Auterra Energy’s philosophy is to focus on the proven conventional oil and natural gas trends and capture the remaining reserves using existing 3D data, advanced geological and geophysical and engineering technologies, and attempt to utilize any existing pipelines and other infrastructure assets when possible.

Executive Management

Portable Cable Tool Drilling Rig (Circa 1915)

Gerald W. (Jerry) Schlief

President and CEO

jschlief@auterraenergy.com

From 1993 through 2007 Mr. Schlief served as the Senior Vice President of ATP Oil & Gas Corporation, an offshore oil and gas development and production company operating in the Gulf of Mexico and in the North Sea. From 2008 to 2012, Mr. Schlief served as a consultant to several companies in the offshore oil and natural gas industry.

Mr. Schlief graduated from Stephen F. Austin State University in 1970 with a BBA in Accounting. Mr. Schlief is a Certified Public Accountant in the state of Texas, and he earned his MBA with a major in Finance from the University of Utah in 1974. Mr. Schlief served in the U.S. Army as a First Lieutenant from 1971 to 1974 and was stationed in Stuttgart, Germany.

David R. Wood

Vice President, Exploration

dwood@auterraenergy.com

Mr. Wood has over 40 years experience in all aspects of Gulf Coast exploration and production. Prior to joining Auterra, Mr. Wood held numerous management positions in geology, geophysics and project management with both major and independent oil and natural gas companies, including Huffco Petroleum Corporation, Gulfstar Energy Corporation, and Fidelity Exploration Company. Mr. Wood maintains dozens of key industry contacts for new drilling opportunities, and for almost twenty years has evaluated hundreds of prospects and placed the companies he worked for in over seventy prospects, with greater than a 50% overall success rate. Mr. Wood holds a BS degree in Geology from Lamar University, and is a Licensed Professional Geologist in Texas and Louisiana, and a nationally Certified Professional Geophysicist.