2012 DUG Eagle Ford Conference

The Pearsall Play

Rusty Shepherd Chief Executive Officer

Momentum Oil & Gas, LLC

October 16, 2012

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The Pearsall Play Presentation Overview

Company Overview

What We Know about the Pearsall Play at This Time

Historical Pearsall Activity [1965-Present]

Log Analysis Across the Trend

Recent Industry Test Results

Predicting Hydrocarbon Windows

Play Outlook

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The Pearsall Play Company Overview

Inception Founded by Rusty Shepherd & Loren Long; Jan 2011

Strategy Acquire Long-Life, Producing Oil and Gas Properties

with Significant, Previously Unrecognized Upside

Funding Kayne Anderson Fund V and Management Team

Highlights 1) Acquired Fashing Field in June 2011 from NFX

2) Commenced Leasing Pearsall Acreage in Jan 2012

Focus Continuing Pearsall Leasing Efforts [~20,000 Acres]

Preparing to Drill First Pearsall Well in 2013

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Company Overview Fashing Field Was Acquired June 2011 from Newfield Exploration

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Company Overview Momentum Core Areas Established with Non-Traditional Approach

FASHING

STAHL

LITTLE

FOUR CORNERS

Momentum Acreage 21,956 Gross Acres 18,885 Net Acres

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The Pearsall Play What We Know about the Pearsall at This Time

Relatively Thick and Lithologically Variable

Capable of Flowing Hydrocarbons

Dry Gas, Gas-Condensate, and Oil Productive Areas Have Been Identified

Regional Log Analysis Project Indicates the Thickest Apparent Net Pay is in SE Atascosa County

Industry Activity is Rapidly Increasing

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What We Know about the Pearsall at This Time Regional Pearsall Stratigraphy

Contains Three Members Which Are Vertically and Laterally Variable:

Bexar Shale Cow Creek / James Limestone Pine Island Shale

Source: Loucks, 2002

AREA OF PRODUCED

DRY GAS

DECREASING RESERVOIR

QUALITY

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What We Know about the Pearsall at This Time Pearsall Interval Gross Isopach Map

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What We Know about the Pearsall at This Time Top of the Pearsall Structure Map (MD)

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Historical Pearsall Activity Locator Map - Pearsall Producing Wells

26 OLDER VERTICAL WELLS

15 HORIZONTAL WELLS WITH GREATER THAN 1 YEAR PROD 14 PRODUCING FOR LESS THAN 1 YEAR

Source: IHS Production Data

FASHING FIELD

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Historical Pearsall Activity Pearsall Production History: Semi-Log Rate vs Time Graph

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10

20

30

40

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1

10

100

1,000

10,000

100,000

Jan-65 Jan-70 Jan-75 Jan-80 Jan-85 Jan-90 Jan-95 Jan-00 Jan-05 Jan-10

His

tori

cal W

ell

Co

un

t

Avg

Dai

ly O

il an

d G

as P

rod

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, B

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or

MC

FPD

Historical Oil and Gas Pearsall Production [1965-2012] Cumulative Oil: 145 MB Cumulative Gas: 11.2 BCF Cumulative Water 785 MB

VERTICAL WELL DEVELOPEMENT HORZ

Source: IHS Production Data

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Historical Pearsall Activity Horizontal Well Performance: Semi-Log Rate vs Time Graph

10

100

1,000

10,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45

Ave

rage

Dai

ly G

as R

ate

, MC

FPD

Months from Production Start

Normalized Individual Well Production Min of 1 Year Prod Start Date Range 4/08 to 3/11

Source: IHS Production Data

Statistics Avg High Low EUR 1.0 Bcf 3.5 Bcf 0.2 Bcf IP 2.3 MM/d 5.0 MM/d 0.4 MM/d Initial Decline 97.6% 89.0% 99.9% Hyperbolic ‘b’ 1.2 2.2 0.7 Yield 0.5 B/MM 28 B/MM 0.0 B/MM

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The Pearsall Play Log Analysis Across the Trend

FASHING FIELD FOUR CORNERS

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Log Analysis Across the Trend Variable Net Pay Seen Across the Trend

FASHING

BEST CALCULATED APPARENT GAS SATURATION IS IN THE FASHING FIELD AREA

FOUR CORNERS

UPPER COW CREEK

PINE ISLAND SHALE

APPARENT PAY DISTRIBUTION IS NOT NECESSARILY STRATIGRAPHICALLY RELATED

LOWER BEXAR

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Recent Industry Test Results Pearsall Producing Wells with Limited Production Information

FASHING FIELD

14 PRODUCING FOR LESS THAN 1 YEAR

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Recent Industry Test Results Non-Maverick Basin Well Tests Summary

11 Wells with Production and/or Test Information Have Been Completed Outside of the Maverick Basin

Liquids Rich Areas Have Been Identified by 9 Gas Condensate Wells & 2 Oil Wells

Three Different Operators Reporting Test Information [Cheyenne, CHK, & EOG]

Too Early to Draw EUR Conclusions Due to Limited Production and/or Test Information, but…

Exciting Test Results with an IP Range of 1.2 to 10.7 Mmcfepd and an Average IP of 4.5 Mmcfepd [Excluding NGLs]

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Recent Industry Test Results Non-Maverick Basin Well Tests Summary

Well Name API # Operator County Status BOPD MCFPD Yield BOE/D

Wilson C 1H 4228332627 Chesapeake LaSalle Comp 190 1,327 143 411

Avant D 1HP 4228332564 Chesapeake LaSalle Prod 91 2,775 33 554

Ralph Edwards E 1H 4231134312 Chesapeake McMullen Prod 135 1,752 77 427

Aline Williams Unit B 1H 4216333447 Cheyenne Frio Comp 197 1,408 140 432

Irvin Family 3H 4228332289 Cheyenne LaSalle Prod 552 6,235 89 1,591

ZCW 1H 4228332435 Cheyenne LaSalle Prod 742 6,281 118 1,789

Cromwell 1H 4228332441 Cheyenne LaSalle Prod 451 4,446 101 1,192

Big Horn 1H 4201334442 EOG Atascosa Prod 155 320 484 208

Kotara Carter Unit 1H 4225532036 EOG Karnes Prod 144 312 462 196

Hindes 1H 4228332626 EOG LaSalle Comp 263 4,376 60 992

Lang 11H 4249332626 EOG Wilson Prod 274 766 358 402

Source: RRC Filings from Operators

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Predicting Hydrocarbon Windows Posted Liquids Test Data and Interpreted Hydrocarbon Type Trends

CONDENSATE YIELD BBLS/MM NATURAL GAS LIQUIDS BBLS/MM API GRAVITY

FASHING FIELD

FOUR CORNERS AREA

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The Pearsall Play Summary and Outlook

The Central Gulf Coast Region Is Currently the Most Exciting Area of the Play

Existing Infrastructure Allows for Rapid Development Missing Ingredient Is Long-Term Well Performance

Multiple “World Class” Operators Are Working the

Play and Should Quickly Identify the Sweet Spot(s)

Due to the Limitation of Available Acreage in the Most Prospective Areas, the Play Will Be Difficult to Enter…

Look for M&A and JV’s to Continue