SHELF#4 PROJECT - OPERATOR UPDATE MARCH 25TH - 2026

We have had some bumps in the road on the four-well purchase with extra costs popping up unexpectedly. Here are some explanations and encouraging news.

1. Hayes #2 - The rods parted and had to be fished and a few replaced. Ran back in hole, lowered the pump by 500' and put the well on production. Production fell off and the rig had to repull the downhole pump. After it was all said and done we spent +/- $42,000. However, we did get production up from 7-8 bod to 10-12bo..

2. Brookshire #1. Gas increased from the 120's to +/- 150 mcf/d. In January we got $8.50 for the cold weather that caused a temporary shortage in gas supply due to high demand. The well revenue was +/- $29,000 in January.

3. Bergeron #1 - Production has increased a little. We are making 10-11 bod. We will reduce our monthly propane by using gas from an adjacent site. We will also be recompleting a well next to the Bergeron #1. Once completed successfully we will send the production to our Facility and saltwater disposal well. This will also decrease SWD costs and increase revenue.

4. LL&E #1 - The production is steady at 18-19 bod, but we have had a plethora of mechanical issues on our rental engine for our unidraulic pump. This rental is $1,644.75/mon. We will get riid of this rental and put another rental engine replacement @ $1050/mon. With better run time we will increase revenue and lower expenses.

Tom