Well Recompletion Program

Since mid-2016, Molori Energy has been active in restoring to production over 165 producing (PDP) wells and an inventory of approximately 202 non-producing (PDNP) wells in Hutchinson County, Texas. The Company has been returning to production (“RTP”) the PDNP wells by performing simple re-works or re-completions. As a result, the Company has realized an average work-over expense per well of approximately USD $12,000. These RTP’s have demonstrated average increases of 2.4 BOEPD/PDNP, resulting in an average cost per flowing barrel of USD $5,000. When these assets were initially acquired in June 2016, the aggregate production was 40 BOEPD. However, as of April 2017, production had increased to approximately 400 BOEPD through the RTP program and limited acquisitions. The assets are approximately 50% oil and 50% liquid rich gas (HIGH BTU premium gas) and are primarily located in Carson, Gray, and Hutchinson Counties of District 10, Texas.

Molori Energy