Zaengle Geoscience LLC

Don Zaengle Geologist

P.O. Box 242 14 Chase St.

Worcester N.Y. 12197

Office: 607-397-8513 Cell: 607-434-3166

zaengledn@aol.com

ZGS

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39 Roe Hollow Road, Middlebury Township, Tioga County, PA

Tax ID: 24-PL4-13A (121.15 acres), 24-PL4-12 (119.28 acres), 24-PL4-13-5 (8.976 acres)

Total 249.406 acres

Geologic Summary 12-11-15

DISCLAIMER

The information contained in this presentation was compiled by Zaengle Geoscience LLC. Although this information is believed by Zaengle Geoscience to be complete and accurate in all material respects as of 12/11/15. Zaengle Geoscience LLC disclaim any and all liability for the statements contained herein and make no representation or warranty as to the completeness or accuracy of the enclosed presentation or the information contained herein, or any other written material furnished or information orally transmitted. In particular, Zaengle Geoscience LLC is not making and will not make any representation or warranty of any kind as to the amount of "in place" or recoverable oil and gas reserves (proved, probable or otherwise) attributable to the property, as to geological and engineering interpretations related thereto or as to prices which will be received for production. The purpose of this geologic assessment is to provide a summary of available geologic data for subject property, It is not intended as a valuation for the property. Zaengle Geoscience LLC reserve the right to change materials in this presentation or any other information presented orally at any time, either by revision of existing material or addition of new material.

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Location & Well/Production Statistics 39 Roe Hollow Road, Middlebury Township, Tioga County, PA

Tax ID: 24-PL4-13A (121.15 acres), 24-PL4-12 (119.28 acres), 24-PL4-13-5 (8.976 acres) Total 249.406 acres

Marcellus & Utica Shales under Middlebury township is currently under development by Shell (SWEPI). Townships surrounding the subject property are currently being developed & produced by SWEPI and Talisman.

Tioga County is the sixth highest producing county in PA (cumulative production 924 Bcf as of 10/1/15).

Chatham Township, Tioga County, PA Marcellus Production as of 9/1/15 = ~14 Bcf 9 Active well pads 43 well permits issued (13 Utica) as of 12/1/15 32 wells drilled (spud)

Tioga County, PA sixth highest producing in PA Marcellus Total Production as of 10/1/15 = ~ 924 Bcf

2015 Jan.- Sept. = 149 Bcf, 2014=208 Bcf, 2013=219 Bcf, 2012=202 Bcf, 2011=126 Bcf, 2009/2010= 20 Bcf

Farmington Township, Tioga County, PA Marcellus Production as of 9/1/15 = 0 Bcf 8 Active well pads 9 well permits issued as of 12/1/15 9 wells drilled (spud)

Middlebury Township, Tioga County, PA Marcellus & Utica Production as of 9/1/15 = ~ 7 Bcf 12 Active well pads 23 well permits issued (10 Utica) as of 12/1/15 19 wells drilled (spud)

Delmar Township, Tioga County, PA Marcellus Production as of 9/1/15 = ~ 44 Bcf 33 Active well pads 85 well permits issued (5 Utica) as of 12/1/15 84 wells drilled (spud)

Charleston Township, Tioga County, PA Marcellus Production as of 9/1/15 = ~ 70 Bcf 29 Active well pads 93 well permits issued (4 Utica) as of 12/1/15 91 wells drilled (spud)

Ricnmond Township, Tioga County, PA Marcellus Production as of 9/1/15 = ~ 43 Bcf 25 Active well pads 56 well permits issued (1 Utica) as of 12/1/15 54 wells drilled (spud)

Tioga Township, Tioga County, PA Marcellus Production as of 9/1/15 = ~ 2 Bcf 1Active well pads 1 well permits issued (4Utica) as of 12/1/15 1 wells drilled (spud)

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Tax Map, 39 Roe Hollow Road, Middlebury Township, Tioga County, PA Tax ID: 24-PL4-13A (121.15 acres), 24-PL4-12 (119.28 acres), 24-PL4-13-5 (8.976 acres)

Total 249.406 acres

24-PL4-13A

(121.15 acres)

24-PL4-12

(119.28 acres)

24-PL4-13-5

(8.976 acres)

Fish 826 Well Pad

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Topographic Map 39 Roe Hollow Road, Middlebury Township, Tioga County, PA

Tax ID: 24-PL4-13A (121.15 acres), 24-PL4-12 (119.28 acres), 24-PL4-13-5 (8.976 acres) Total 249.406 acres

24-PL4-13A (121.15 acres)

24-PL4-12

(119.28 acres)

24-PL4-13-5

(8.976 acres)

Fish 826 Well Pad

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SWEPI, Fish, W. 826 Unit, 594.599 acres Total acreage in the Fish Unit = 156.626 acres (26.342 %)

118.578 ac (19.943%)

33.349 ac (5.609%)

4.699 ac (0.790%)

Fish 826 Well Pad

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SWEPI, Fish, W. 826 Unit, 594.599 acres, Total acreage in the Fish Unit = 156.626 acres (26.342 %)

Geologic Section Three stacked geologic targets ( Burket/Geneseo, Marcellus, & Utica Shales).

The Geneseo , Marcellus, and Utica Shales produce in the area.

Oswego Sst

Oneida Sst

Marcellus Shale ~ 5,200’, 90’ -110’ thick

Utica/Trenton Shale ~ 11,100’ , 250’ thick

(R. Nyahay, J. Leone, L. Smith, J. Martin, D. Jarvie, 2007) Modified D. Zaengle 10/2008

Burkett/Geneseo Shale ~ 4,100’, 100’ thick

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Fish 826 Marcellus

Gee 832 Marcellus

Utica

Cruttenden 846 Utica

Neal 815 Burket

Marcellus Utica

DCNR 007 Pad K Utica

Watkins 820 Burket

Marcellus Utica

Regional Production (drilling pads green squares, producing formations in red lettering, drilled/permitted formations in black) & Well permits red dots, Plugged wells (blue dots),Transmission pipelines lines (red dashed lines).

39 Roe Hollow Road, Middlebury Township, Tioga County, PA Tax ID: 24-PL4-13A (121.15 acres), 24-PL4-12 (119.28 acres), 24-PL4-13-5 (8.976 acres)

Tennessee 300 Pipeline

Gee 848 Utica

Showalter 822 Marcellus

Utica

Cummings 823 Marcellus

Matz 824 Marcellus

Kalke 819 Marcellus

Costanzo 818 Marcellus

Bieser 833 Marcellus

Davis 841 Utica

Owlett 843 Marcellus

Kinnan 845 Utica

Bauer 849 Marcellus

M. L. Mitchell Trust 554

Marcellus

Hamblin 860 Marcellus

Taft 851 Marcellus

Butler 853 Marcellus

DCNR 007 Pad G

DCNR 007 vertical

Webster 549 Marcellus

Propheta 288 Marcellus

Reese 289 Marcellus

Vandergrift 290 Marcellus

Dominion Pipeline

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Cruttenden 846 1V drilled not producing

3 Utica Shale permits 22H drilled & producing 8/29/14 24H drilled & producing 8/30/14

26H permitted not drilled

Fish 826 1V well drilled No Production

Gee 832 1V drilled, no production

2H drilled, Marcellus Shale production 2V drilled, Utica Shale production 6/20/12

Utica Shale permits 22H, 23H, 24H not drilled

Gee 848 W 4 Utica Shale permits

22H,23H,24H drilled 10/2015 26H not drilled

Kinnan 845 2 Utica Shale Permits not drilled

No production Bauer 849

1V well drilled No production

Production Units & Pipeline in the area surrounding Subject Property Production units surround subject property (Cruttenden 846 Utica Shale production, Gee 832 Marcellus & Utica Shale production).

Tennessee 300 transmission pipeline ~ 1.4 miles south and gathering pipeline nearby at Cruttenden 846 and Gee 832 well pads.

Tennessee 300 pipeline 1.4 miles south

Total Organic Carbon

TOC

Thermal Maturity

Ro

Brittleness

Natural Fractures

Gas in Place

Porosity Permeability

Mineralogy

Depth

Pore Pressure

Thickness

Burket/Geneseo = ? Marcellus: 4-5 % Utica: 2.5- 3.0

Burket/Geneseo: Dry Gas Marcellus: ~ 2.5, Dry Gas Window Utica: Dry Gas ?

Burket/Geneseo: ? Marcellus: ? Utica: ?

Burket/Geneseo: 10 Bcf/sq mile Marcellus: ~ 40 Bcf/sq mile (Newfield Exp.) Utica: 120 Bcf (Range Resources 4/14)

Burket/Geneseo: ? Marcellus: ? Utica: ?

Burket/Geneseo:? Marcellus: ? Utica: ?

Burket/Geneseo: ~ 4,100’ Marcellus Depth: ~ 5,200’ Utica: top 10,850’ target ~11,100’

Burket/Geneseo: ~100’ Marcellus: (High TOC) = 90’ net,(110’ gross) Utica: ~ 250 - 300’

Key Geologic Factors 39 Roe Hollow Road, Middlebury Township, Tioga County, PA

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Utica Shale (Point Pleasant) Wells, Tioga County, PA 26 well pads, 8 well pads producing , 21 wells drilled (drilling) , 48 well permits (12/15/15), SWEPI 43, Seneca Resources 1, Travis Peak(TP) 3, Ultra Resources 1,Talisman 2 (Bradford Cnty)

Miller 394 Spud 12/10/14

Wood 513

Youst 405

Lopatofsky 287 Spud 12/9/14

Watkins 820 producing

Neal 815 producing

Showalter 822 Kinnan 845

Sharretts 805

producing

Synnestvedt 878 producing

Gee 832 producing

Cruttenden 846 producing

DCNR 007 drilled

Burke 285

Shughart 534

Marshlands 2 Ultra Resources

Kreitzer R 505E producing

Baker 128

Delaney J 651 Spud 1/13/14

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Davis 841

Houck 433 spud

Yungwirth 307

Stanley 1106 spud

Painter (TP)

Abplanalp (TP)

Moretz Talisman

Roy Talisman

Gee 848 spud

39 Roe Hollow Road, Middlebury Township, Tioga County, PA

Tioga County, PA, Gas-in-Place Estimates, Range Resources Corporation, Company Presentation April 28, 2014 At similar depths and thicknesses (in the Ohio Utica Shale play) EQT, Range Resources and other operators' are

experiencing excellent production from the Utica Shale. Utica Shale wells are producing at rates ranging from 6.4 mmcf/day – 72.9 mmcf/day. These rates

are in line or exceed with some of the best in class Marcellus Shale wells in Pennsylvania.

39 Roe Hollow Road, Middlebury Township, Tioga County, PA

Gas -in-place = ~120 Bcf/ sq mile

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Utica Shale Depth to Top =

Thickness =

Cruttenden 846 24 H, 117-21725

Utica Shale top = 10,797’ Utica Shale production (22H, 24H, 1V drilled not producing)

3 Utica Shale permits 22H drilled & producing 24H drilled & producing

26H permitted not drilled

Fish 826

10,750’

10,850’

10,800’

250’

300’

Bauer 849

22H 24H

Gee 832 Utica shale production

2V 117-21538 1V drilled, no production

2H drilled, Marcellus Shale production Utica Shale permits 22H, 23H, 24H not drilled

2V

Kinnan 845 2 Utica Shale Permits (24H, 26H)not drilled

No production

22H

23H

24H

24H 26H

Gee 848 W 4 Utica Shale permits 22H,23H,24H drilled 10/2015

26H not drilled, no reported production

26H

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Cruttenden 846 Utica Shale Production

Gee 832 Utica Shale & Marcellus Production

Fish 826 No Production

22H 24H

~ 0.7 miles

Tennessee 300 pipeline 1.4 miles south

2V

Production Units & Pipeline in the area surrounding Subject Property Production units surround subject property (Cruttenden 846 Utica Shale production, Gee 832 Marcellus & Utica Shale production).

Tennessee 300 transmission pipeline ~ 1.4 miles south and gathering pipeline nearby at Cruttenden 846 and Gee 832 well pads.

Cruttenden 846-S, 22H, 24H,25H, SWEPI, Middlebury Township, Tioga County, PA Utica Shale Wells

Cruttenden 22H Elev. = 1,247’ Utica Shale top = ~ 10,750’ (-9,503’) Trenton Limestone top = NA Utica Shale gross thickness = NA Horizontal length = ~ 5,986’, 22 stage frac. 24 hour open flow 11.149 mmcf/d @3,115 PSI Gas BTU = 1,017, completion date 5/27/15

Gathering pipeline Installation started 8/9/14

Total Production 2,467,062 mcf (2.47 Bcf) , ~ 17.1 mmcf/d

Total Production 1,607,410 mcf (1.61 Bcf), ~ 11.5 mmcf/d

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Cruttenden 846-S, Utica Shale Production Unit, SWEPI, Middlebury Township, Tioga County, PA

22H 24H

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Cruttenden 846-S, 117-21724, 22H, SWEPI, Middlebury Township, Tioga County, PA, Utica Shale

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Cruttenden 22H Elev. = 1,247’ Utica Shale top = ~ 10,750’ (-9,503’) Trenton Limestone top = NA Utica Shale gross thickness = NA Horizontal length = ~ 5,986’, 22 stage frac. 24 hour open flow 11.149 mmcf/d @3,115 PSI Gas BTU = 1,017, completion date 5/27/15

Cruttenden 846-S, 117-21724, 22H, SWEPI, Middlebury Township, Tioga County, PA, Utica Shale

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Cruttenden 846-S, 117-21724, 24H, SWEPI, Middlebury Township, Tioga County, PA, Utica Shale

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Gee C, 832 E-2V, 117-21538, SWEPI, Utica Shale Production Middlebury Township, Tioga County, PA

2/15/15

Gee C. 832-2V, 117-21538, SWEPI, Utica Shale Production Elev. = 1,217’ Utica Shale top = ~ 10,960’ (-9,743’) Utica Shale target = ~ 11,200’ (-9,983’) Trenton Limestone top = ~11,375 (-10,158’) Utica Shale gross thickness = ~ 350’ Horizontal length = ~3,850’ 13 stage frack Gas BTU = 1017 (dry gas) 24 hr open flow test 7.828 mmcf/day 5/8/13 Published IP = 11.2 mmcf/day (Shell 9/3/14) Total Production 9/15/15 = 1.65 Bcf

Total Production 1,646,213mcf (1.65 Bcf)

4.79 mmcf/d

7.97 mmcf/d

2.50 mmcf/d

2.55 mmcf/d

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Gee C. 832, SWEPI, Middlebury Township, Tioga County, PA, Utica Shale

22H 24H

23H 2 V

Producing Utica Shale

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Gee C, 832-2V, Producing, 117-21538, SWEPI, Middlebury Township, Tioga County, PA, Utica Shale

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Gee C. 832-2V, 117-21538, SWEPI, Utica Shale Production Elev. = 1,217’ Utica Shale top = ~ 10,960’ (-9,743’) Utica Shale target = ~ 11,200’ (-9,983’) Trenton Limestone top = ~11,375 (-10,158’) Utica Shale gross thickness = ~ 350’ Horizontal length = ~3,850’ 13 stage frack Gas BTU = 1017 (dry gas) 24 hr open flow test 7.828 mmcf/day 5/8/13 Published IP = 11.2 mmcf/day (Shell 9/3/14) Total Production 9/15/15 = 1.65 Bcf

Utica Shale ~11,025’ (-9,808’), ~350’ thick

Gee C. 832-2V, 117-21538, SWEPI, Utica Shale Production Elev. = 1,217’ Utica Shale top = ~ 11,025’ (-9,808’) Utica Shale target = ~ 11,200’ (-9,983’) Trenton Limestone top = ~11,375 (-10,158’) Utica Shale gross thickness = ~ 350’ Horizontal length = ~3,850’

Gee C, 832-2V, 117-21538, SWEPI, Middlebury Township, Tioga County, PA, Utica Shale Producing (342,697 Mcf, 43 days, ~ 7.97 mmcf/day, IP ~15mmcf/day personal comm.)

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Range Resources 2011 AAPG National Conference Zagorski, Bowman, Emery, Wrightstone 6/13/11

Marcellus Shale Depth Marcellus Shale Gross Thickness

140’

180’

160’

2.5

2.0

3.0

Marcellus Shale Thermal Maturity (Ro) Marcellus Shale Pressure Gradient PSI/ft

0.50

~0.54

Key Geologic Factors 39 Roe Hollow Road, Middlebury Township, Tioga County, PA

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Marcellus Shale Depth to Top =

Thickness =

Cruttenden 846 24 H, 117-21725

Marcellus top 5,233’, base 5318’ thickness 85’

Fish 826

Gee 848 W

Kinnan 845

Bauer 849

5,200’

80’

5,250’

90’ Gee C, 832

2H, 117-21352 Marcellus production

Gee C, 832 2H, 117-21352, SWEPI, Marcellus Shale Production Middlebury Township, Tioga County, PA

Total Production = 0.128 Bcf

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2.26mmcf/d

0.31mmcf/d

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Burket/Geneseo Shale Depth to Top =

Thickness =

Fish 826

Gee 832

Gee 848 W

Kinnan 845

Bauer 849

Cruttenden 846 24 H, 117-21725

Burket/Geneseo Shale Top ~ 4,142’ Base 4,242’

Thickness ~100’

4,200’

100’

110’

4,100’

Total Production = 550,387 Mcf (0.55 Bcf)

0.9 mmcf/day

Neal #815 Production Unit, SWEPI, Chatham Township, Tioga County, PA Burket/Geneseo Shale Production

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2014 114,435 Mcf

0.65 mmcf/day

Watkins 820, SWEPI, Production Unit, Chatham Township, Tioga County, PA Production from the Burket / Geneseo Shale 5HS & Marcellus Shale 5H horizontal wells.

2H,3H,4H, 5H, 6H Marcellus Shale wells have been permitted but not drilled yet. Note gathering pipeline in yellow. Producing Utica Shale from 21H, 23H, 25H.

5H Marcellus

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1V

4H 2H 5H 3H 6H

Merrick Road

Total Geneseo/Burket Production = 406,538 Mcf (0.41 Bcf)

Marcellus

5HS Geneseo/Burket

23H Utica/Trenton 25H Utica/Trenton

21H Utica/Trenton

2014 88,373Mcf

2015 no production

0.4 mmcf/d

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• Three stacked geologic targets. Burket/Geneseo, Marcellus, and Utica Shale (dry gas).

• Excellent Utica Shale (thickness ~200-250’, depth ~11,100’, Gas-in-place estimate = ~120 Bcf/square mile.

• Active Utica Shale drilling & development program occurring in northern Tioga county, PA (near subject property).

• Utica Shale in Tioga County PA (12/1/15), 21 drilled (drilling), 48 permitted/filed, 43 SWEPI, 1 Seneca Resource, 3 Travis Peak, 1Ultra Resources

• Utica Shale production 0.7 miles east at Cruttenden 846, 22H, 24 hour open flow 11.149 mmcf/d @3,115 PSI, Horizontal length = ~ 5,986’, 22 stage frac., Cumulative gas production 2.47 Bcf (as of 9/15/15). Cruttenden 846, 24H, 24 hour open flow 10.33 Mcf/d from horizontal length 5,705’, 21 stage frack. Cumulative gas production 1.60 Bcf (as of 9/15/15).

• Utica Shale production ~ 1.7 miles east at Gee 832, SWEPI, Production Unit (Initial flow ~11.2.0 mmcf/day, from Horizontal length = ~3,850’, 13 stage frack). Cumulative production 1.65cf (as of 9/15/15).

• Marcellus Shale production ~1.0 mile E of subject property at Gee 832 unit.

• Marcellus > 200 API gamma ~ 88’-110’ thick, depth ~ 5,032’. Marcellus Shale Gas- in –place estimate for area ~40 Bcf/square mile.

• Located in the SWEPI, Fish, W. 826 Marcellus Shale production unit (156.626 acres, 26.342 % within unit).

• Burket Shale gas production ~2.6 miles northwest of property at SWEPI Neal 815 & Watkins 820 units.

• Tennessee 300 pipeline ~ 2.0 miles south. Gathering pipelines next to subject property at Gee 832 & Cruttenden 846 well pads.

• Excellent Infrastructure and access.

• Near high-demand northeastern natural gas markets.

• Abundant Water Resources near property. Within Susquehanna River Basin.

Summary 39 Roe Hollow Road, Middlebury Township, Tioga County, PA

Tax ID: 24-PL4-13A (121.15 acres), 24-PL4-12 (119.28 acres), 24-PL4-13-5 (8.976 acres) Total 249.406 acres