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      Bergeron Recomplete - AFE Consent/Non-Consent Needed by June 20, 2024

      Bergeron Recomplete - AFE Consent/Non-Consent Needed by June 20, 2024

      The Bergeron #1 is currently at its economic limit.

      Recommendation: It is recommended to recomplete the Bergeron #1 well to the Breaux Sand from perforations 3968-80’ & 4008-23’. The reserves for the Breaux Sands are estimated at 15,000 bbls of oil. The expected daily rate is +/- 25 bbls of oil per day. Based on these rates and $75/bbl oil price yields a payout in less than a year for the expenditure of $149,000 (plug & Abandonment Included).

      See the Attached Division of Interest for your share of the AFE Costs.

      A Yes is needed to Consent to this work or a No to Non-Consent this AFE (AFE attached). The cost of the workover including plug & abandonment is $149,000.

      An Election is due on or before July 4, 2024 (30 Days). However, to procure a rig for July, a response is requested by June 20, 2024.

      No Response is an Election to Not Participate.

      Pursuant to Article XVI.A of the JOA (Required Wells or Operations) a Non-Consent Election will be forfeiture of interest in the Well.

      Discussion: The Bergeron No. 1 was completed in March 2011 and has made over 37,000 bbls of oil (Summary Graph attached) from several Patin Stray Sand intervals since that time. Currently the well is producing oil on average at 5-6 bbls of oil per day. The well is barely economic at these rates and attempts to increase production have been unsuccessful. However, there are several plug back sands in this wellbore which were indicated by a cased hole log run when this well was re-entered in March 2011. Geologist, Andy Vodika and Petro-physicist, George Pena, have reviewed the Open Hole and Pulsed Neutron logs (see attached Breaux Sand Montage) and recognize that there are still remaining potential oil bearing sandstones in this wellbore. Based on their analysis and analogs in the area it is recommended that the Bergeron No. 1 be recompleted and perforated from 3968-80’ (12’) and 4008-23’ (15’). Estimated rate and reserves are 25 bod and 15,000 bbls of oil . The cost of the workover is estimated at $74,000 plus a future plug and abandonment of $75,000. Economics were run using $75/bbl of oil and reserves of 15,000 bbls of oil. Resulting in a payout of less than a year with a 3.1/1 undiscounted return on investment.

      Cash Call: Should you elect to Participate in the Recompletion, please forward a Check in the amount set out in the Division of Interest by July 4, 2024 to Shelf Energy, LLC, 3639 Ambassador Caffery Parkway, Suite 202, Lafayette, Louisiana 70503.

      Additional Upside potential exists in the Lower Patin, Martin and Castile Sands. In the future, the Bergeron can either be side-tracked from the existing wellbore or drilling a new well with remaining potential reserves of 75,000 to 100,000 bbls of oil. The well was originally spud on July 17, 1940 and drilled to a TD of 4,845ft. The well logged 160’ net oil in the Upper Martin and Patin sands. The well was initially completed in the Patin Sand from perforations 4,734-735ft at a rate of 370 bbls of oil per day. In October, 1943 the subject well was deepened to a TD of 5,456ft penetrating salt at 5,444ft. An additional 150’ of net oil was logged in multiple sand intervals in the Castille and Martin Sand intervals. The well was then completed as a dual. The long string was completed in the Martin sand at perforations 5,292-302ft at a rate of 240 bbls of oil per day. An up dip well would drain these reserves.

      All data comes from Shelf Energy, you should also have received an email with the same information, as well as instructions on what you as an investor should do.

      Thank you, EnerGyne Resources