PROPERTY SUMMARY

Draft of 10/31/2013 & 11/8/2013

Total Reported Value: $1,400,000.

Date:November 24, 2013

Property:______, ______County, Texas

Depth:______Formation

HBP Status:Seller shows HBP. Verified: RRC shows continuous production on lease. Shut in payments requested 11/12/13. See flow chart covering this property.

Reviewer:Manning Wolfe

Operator:______

Interests:W.I.NRI

Represented Interests100.00000%84.375000%

Reviewed Interests100.00000%84.375000%

Preferential Right of Purchase:None noted.

Calls on Production:None noted.

Reversionary Interests:None noted.

Consents to Assign:None noted.

Title Documents/Instruments/Contracts Reviewed [not reviewed]:

  1. Notice of Lis Pendens dated October 23, 2012 from Replay Energy Co., giving notice of suit filed against Royalty Repository II, LLC in Smith County. Filed for record at D112-56123. Amended Notice advising of similar suit in Jones County, Oklahoma filed at D112-56324. Both cases dismissed. See documents attached to runsheet for disposition of cases and details.
  1. Mineral, Royalty and ORI Conveyance dated September 1, 2005, effective June 1, 2005, from Lock Production Company, Inc. to Royalty Repository 11, LLC. Conveys ARTI in Exhibit A, including Jones OGL @ 254/518. Filed for record on September 19, 2005, at Volume 418, Page 384, OPR, Unknown County, Texas. See Lis Pendens info concerning this conveyance.
  1. Amendment to Farmout Agreement (letter) dated May 8, 2001, executed May 31, 2001, between Lock Production Company, Farmor and Eagle Production, Inc., Farmee,covering the subject property. Amending Farmout dated January 19, 2000, extending time for initial test well from June 1, 2000 to December 31, 2001. Not filed of record.
  2. Title Opinion dated March 28, 2000, effective March 15, 2000, by Darrell R. Garrett of Luck, Patterson, Strain & Miller, LLP for Lock Production Company, Inc., covering the Subject well located on acreage from Jones lease @ 254/518. Showing Lock Production Company owning 100.0000% WI, and 84.375000% NRI. Objection 13 references prior PSA’s not reviewed, or prior opinions. Assumes no violation of the provisions of the subject leases. No indication of curative.
  1. Farmout Agreement dated March 7, 2000, between Lock Production Company, Farmor, and Eagle Production, Inc., Farmee.Provides for initial test well, partial assignment of interest after well completion, reservation of ORRI, etc. Limited to lands covered by Jones lease only as to the S/2 of the S/2 of 284, Block A, less and except the existing Larchmont Cato Jones Unit. Not filed of record.
  1. JOA: Title Opinion indicates not subject to any Operating Agreement. None presented for review.

Leases Reviewed [not reviewed]:

  1. Oil and Gas Lease, dated April 21, 1993, from Kenneth B. Jones and wife, Imogene Jones, Lessor, to Enserch Exploration, Inc., Covering all of Section 284, Block A, H&TC RR Co. Survey. 3 year term, 5/32ndroyalty,no pugh, has pooling provision. No consent to assign.Filed for record on May 2, 1983 at Volume 254, Page 3518, OPR Unknown County, Texas.

Title Problems/Defects Noted:

  1. No material defects, problems, or outstanding title opinion requirements were noted, except as set forth below.
  1. Verify: Title Opinion Objection 15 – regarding additional information in prior title opinions. Not made available for review.

Field Work: See runsheets to be read in conjunction with this summary. Lien check complete.

Title: Verified into Lock.

END

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