Double Play Project

Verna Loper and Wathen & Wright Leases

Anderson and Henderson Counties, Texas

B&B is offering prospective partners the opportunity to participate in the Double PlayProject located in Anderson and Henderson Counties, Texas. B&B is offering its investors 100%working interest for the life of the well. The project consists of seven (7) Producing Oil & GasWells and three (3) permitted and working Salt Water Injection wells. The wells are producedfrom multiple formations and have the potential to produce significant quantities of oil andnatural gas for the next 15 to 20 years. After the proposed work-overs are completed, the payoutshould be 9-11 months.

You will be buying into this investment with no markups, commissions, managementfees, organizational fees, or syndication costs. Participants pay only the actual AFE cost and thatis it. The work will be performed on a” Turnkey” basis so there will be no Cash Calls.

Please review the enclosed material as soon as possible. I will be contacting you within the nextcouple of days to go over the information and answer any questions you may have.

Sincerely,

Erica BanksErica Banks

President

erica@bbfinancialllc.com

EXECUTIVE SUMMARY

PROJECT NAME: Double Play

TYPE OF PROJECT: Income Producing with Upside Development Potential

LEASE NAMES: Verna Loper & Wathen Wright LOCATION: Anderson and Henderson Counties,

Texas FIELD: Cayuga

VERNA LOPER LEASE: Loper #1B, (Gas) API # 42-001-32285 Loper #2A, (SWI) API #

42-001-32265

Loper #3, (Oil) API # 42-001-32433

Loper #2, (Gas) API # 42-001-32265

Loper J.D. #1, (Oil) API # 42-001-80537

WATHEN & WRIGHT LEASE: Wathen #1D, (SWI) API # 42-001-00090 (Unitized) Wathen #2, (Oil)

API # 42-001-00046 Wathen #3, (SWI) API # 42-001-30308

Wright #2, (Oil) API # 42-001-00045

Wright #4, (Oil) API # 42-001-30342

TOTAL ACRES: 332.50

PAY ZONES: Woodbine, Upper Rodessa (Hill), Lower Rodessa (Gloyd), Cotton Valley CURRENT

PRODUCTION: 20 BOPD and 170 MCFGPD PROJECTED AFTER RE-WORKING: 50-60

BOPD and 600-1,000 MCFGPD WORKING PAYOUT: 100% (80%NRI)

COST PER 1.61% $16,000 OPERATED BY: ENR Operating, LLC RRC #1078299 FIRST

REVENUE: 30-60 Days CASH FLOW: Monthly Electronic Payments STRUCTURE: Turnkey -

Direct Participation

TAX ADVANTAGES: Intangible Write-Offs – Depreciation – Tax-Free Income

MISSION STATEMENT:

B&B structures our programs with the emphasis on limiting our client’s exposure by pricing our

projects on a low-cost “Turnkey” price structure so their buy-in is a fraction of what most other

companies charge. Also, we assign 100% of the available revenues from the project to our

investors. B&B does not charge any promotional fees, management fees, organizational fees,

syndication costs, or commissions.

PROPOSED ACTIVITIES:

We are very familiar with both the Verna Loper and Wathen & Wright leases because we were

instrumental in putting all of the project wells into production. Three of the ten wells in the project are

saltwater disposal wells, disposal wells are key to producing Woodbine wells economically.

Production on the leases has dropped steadily over the past few years due to poor maintenance and lack of

repairs to the equipment. The previous owners were legally at odds with each other and were not willing to

settle their differences and properly maintain or repair the wells when needed. This project will address

those issues along with some improvements and re-completions that should greatly increase the production

on both leases. There is a varying degree of work that will be required on the wells; a brief description of

the work needed is as follows:

Verna Loper #1B, the 1B well produces from the Lower Rodessa formation and currently produces 170

mcf of gas per day with 1-2 barrels of oil on a plunger lift system. The plunger lift needs a new computer

board and to be reprogrammed. This will allow the well to produce more efficiently and should result in an

increase of 50-70 mcf of gas per day and an additional 2-3 bopd.

Verna Loper #2D (SWD), the 2D is a permitted and working saltwater disposal well and is taking the

produced water from the lease. The well needs to be re-equipped with plastic-lined downhole tubing and a

packer. This will limit repairs and ensure the well is viable disposal for many years.

Verna Loper #3, the #3 well produced from the Woodbine formation, currently, the well is down due to a

hole in the production tubing and one of the motors is out on the submersible pump. After repairs, we can

expect 18 to 22 bopd with 20-30 mcf of gas per day.

J.D. Loper #1, the #1 well currently produced from the Woodbine formation. The well is not a big

producer but should contribute 2-4 bopd.

Verna Loper #2, the #2 is not currently in production but has a productive Cotton Valley lime formation at

10,600’ that should be productive after a frac treatment is performed on the zone. The zone represents a

low-risk opportunity to produce significant natural gas and condensate. Successful completion could result

in 500-1,000 mcf of gas per day with 5-10 bopd.

Wathen #1D SWD, the #2 well is a permitted and equipped saltwater disposal well and is currently taking

the produced water from both leases. The well needs to be re-equipped with plastic-lined downhole tubing

and a packer. This will limit repairs and ensure the well is viable disposal for many years. Wathen #2, the

#2 well currently produces from the Woodbine formation at the rate of 8-10 bopd.

Wathen #3 (SWD), the #3 well is a permitted and equipped saltwater disposal well and is currently taking

the produced water from both leases. The well needs to be re-equipped with plastic-lined downhole tubing

and a packer. This will limit repairs and ensure the well is viable disposal for many years.

Wright #2, the #2 well currently produces from the Woodbine formation at the rate of 8-10 bopd.

Wright #4, the #4 Well needs a new string of production tubing, and the Woodbine in this well would

benefit from an acid clean-up of the perforations. We will perform the acid treatment when we replace the

tubing in the well. After the work is performed Production in the range of 8-10 BO per day can be

expected.

Note: Although all three of the above-mentioned wells have the potential to produce 8-10 bopd each, we can

only produce two of the wells until a second injection pump is installed. We will need to purchase and

install the new injection pump before putting the third well back into production.

CONCLUSION:

The Double Play Project should be considered as a low-risk opportunity to produce significant reserves from

multiple wells and multiple reservoirs. Our target reservoirs have a documented history of long-term

commercial oil & gas production; investors could realize significant returns for the next 15 to 20 years. All

current tax benefits will be available to all participants. The leases are currently “In Pay” so revenue will

begin quickly. We are recommending participation in this project to all of our clients.

B&B Financial Group, LLC

Erica Banks, President

EXAMPLE OF TAX BENEFITS

Each participant’s tax liabilities are different. Consult your tax advisor regarding thepotential benefits of oil and gas joint venture investments.

The example below assumes a self-employed person in a 36% Federal Income Taxbracket. Plus 2.9% Medicare Tax, and a 3% State Income Tax bracket (If Applicable)equal to 41.9% marginal tax rate.

Investment $16,000.00

Intangible Cost and otherdeductible expenses(approximately 80% of investment)

($12,800.00)

Tangible CostCapitalized and Depreciated over

seven years (approximately 20% ofinvestment)

($3,200.00)

Tax Deduction

Tax Savings

Net Investment After One Year

$12,800.00

$5,363.20

$10,636.80

Projections based on full unit participation.

In addition investor may receive 15% depletion allowance deductions against therevenues from oil and gas wells. A depreciation schedule of 7 years can also be realized.

The above examples are provided for general information only. This information is notintended. to be individual tax advice. Each participant should consult his/her personal taxadvisor concerning the applicability and effect on his or her personal tax situation.

Striking Oil Tax BenefitsThe main tax benefits of investing in oil include:

• Intangible Drilling Costs: These include everything but the actual drillingequipment. Labor, chemicals, mud, grease, and other miscellaneous itemsnecessary for drilling are considered intangible. These expenses generallyconstitute 65-90% of the total cost of drilling a well and are 100% deductible in

the year incurred. For example, if it costs $300,000 to drill a well, and if it wasdetermined that 75% of that cost would be considered intangible, the investorwould receive a current deduction of $225,000. Furthermore, it doesn't matterwhether the well actually produces or even strikes oil. As long as it starts tooperate by March 31 of the following year, the deductions will be allowed.

• Tangible Drilling Costs: Tangible costs pertain to the actual direct cost of thedrilling equipment. These expenses are also 100% deductible but must bedepreciated over seven years. Therefore, in the example above, the remaining$75,000 could be written off according to a seven-year schedule.

• Active vs. Passive Income: The tax code specifies that a working interest (asopposed to a royalty interest) in an oil and gas well is not considered to be apassive activity. This means that all net losses are active income incurred inconjunction with well-head production and can be offset against other forms ofincome such as wages, interest, and capital gains.

• Small Producer Tax Exemptions: This is perhaps the most enticing tax break forsmall producers and investors. This incentive, which is commonly known as the"depletion allowance," excludes from taxation 15% of all gross income from oiland gas wells. This special advantage is limited solely to small companies andinvestors. Any company that produces or refines more than 50,000 barrels of oilper day is ineligible. Entities that own more than 1,000 barrels of oil per day, or6 million cubic feet of gas per day, are excluded as well.

• Lease Costs: These include the purchase of lease and mineral rights, leaseoperating costs, and all administrative, legal, and accounting expenses. Theseexpenses must be capitalized and deducted over the life of the lease via thedepletion allowance.

• Alternative Minimum Tax: All excess intangible drilling costs have beenspecifically exempted as a "preference item" on the alternative minimumtax return.

JOINT OPERATING AGREEMENT

DATED: March 1, 2021

PROJECT NAME: Double Play Project as Defined in Exhibit “A” attached hereto

COUNTY: Anderson and Henderson Counties STATE: Texas

OPERATING AGREEMENT

THIS AGREEMENT entered into by and between ENR Operating, LLC (ENR) hereinafterdesignated and referred to as "Operator", and the signatory party other than "Operator”, referred toherein as "Non-Operators."

WITNESSETH:

WHEREAS, the parties are owners of Oil and Gas Leases and/or Oil and Gas Interests in theland identified in Exhibit "A" and the parties hereto have reached an agreement to explore anddevelop these Leases and/or Oil and Gas Interests for the production of Oil and Gas to the extentand as hereinafter provided,

NOW, THEREFORE, it is agreed as follows:

ARTICLE I...DEFINITIONS

As used in this agreement, the following words and terms shall have the meanings here ascribedto them:

A. The term "AFE" shall mean an Authority for Expenditure prepared by a party to thisAgreement to estimate the costs to be incurred in conducting a proposed operation herein r. B. Theterm "Completion or Complete" shall mean a single operation intended to complete a well as aproducer of Oil and/or Gas in one or more zones, including but not limited to, the setting ofproduction casing, perforating, well stimulation, and production testing conducted in suchoperation.

1C. The term "Contract Area" shall mean all of the lands, Oil and Gas Leases, and/or Oil and

Gas Interests intended to be developed and operated for Oil and Gas Purposes under thisAgreement. Such Lands, Oil and Gas Leases,and Oil and Gas Interests are described in Exhibit "A".D. The term "Deepen" shall mean a single operation whereby a well is drilled to an objective zonebelow the deepest zone in an existing borehole as proposed in the associated AFE.

E. The terms "Drilling Party" and "Consenting Party" shall mean a party who agrees to joinwith the other parties to this Agreement in a proposed operation and pay its share of the costs ofany operation conducted under the provisions of this Agreement.

F. The term "Drilling Unit" shall mean the area fixed for the drilling of one well by order orrule of any state or federal body having authority, or as set by the operator or agreement under theterms of associated oil and gas leases. If the drilling unit is not fixed by any such rule or order, adrilling unit shall be of such size and configuration as established by the pattern of drilling in theContract Area unless fixed by the Operator of the Contract Area.

G. The term "Drill site" shall mean the Oil and Gas Lease or Oil and Gas Interest on which aproposed well is to be located.

H. The term “Initial Well” shall mean the well required to be drilled by the parties hasprovided in Article VI.A.

I. The term "Non-Consent Well" shall mean a well in which less than all parties haveconducted an operation as provided in Article VI.B.2.

J. The terms "Non-Drilling Party" and "Non-Consenting Party" shall mean a party whodoes not participate in a proposed operation.

K. The term "Oil and Gas" shall mean oil, gas, casing head gas, condensate, and/or all otherliquid or gaseous hydrocarbons and other marketable substances produced therewith, unless anintent to limit the inclusiveness of this term is specifically stated. By

L. The term "Oil and Gas Interests” or "Interests" shall mean unleashed fee and mineralinterests in Oil and Gas tracts of landing the Contract Area, which is owned by parties to thisAgreement.

M. The term" shall mean a single operation whereby a deeper zone is abandoned itsattempt at a Completion in a shallower zone.

N. The terms "Re-completion" or "Re-complete" shall mean an operation whereby aCompletion in one zone is abandoned itoCompletion in a different zone within the existingwellbore.

O. The term "Rework" shall mean an operation conducted in the good bore of a well after itis completed to secure, restore, or improve production in a zone which is currently open toproduction in the wellbore. Such operations include, but are not limited to, well stimulationoperations, sidetrack, deepening, completing, re-completing, or plugging back.

P. The term "Zone" shall mean a geological stratum of earth containing, or thought tocontain, a common accumulation of Oil and/or Gas. particular

Q. The term "Administrative Cost" shall mean office expenses, operator employee salaries,operator overhead, and any fees due to the operator as a result of this Agreement. R. The term"Turnkey" shall mean as in the oil drilling industry an operation wherein an operator or contr orundertakes to furnish all materials and labor to perform such operation to its completion for afixed cost agreed upon before its performance.

S. The term "Paying Quantities' ' refers to production from a particula well or particularclient to pay a profit over and above the cost of operations and the cost of production concerningsuch well or lease. Such profit need not be sufficient to provide for payout of a well concerning thecosts of drilling, completion, and production.

2ARTICLE II...EXHIBITS

The following Exhibits, as indicated below and attached hereto, are incorporated in andmade a part hereof:

(1) Exhibit "A" - description of Lands subject to this agreement.(2) Exhibit "B" - Accounting Procedures.(3) Exhibit “C”- Insurance Declaration

If any provision of any exhibit is inconsistent with any provision contained in the body ofthis Agreement, the provisions in the body of this Agreement shall prevail.

ARTICLE III...INTERESTS OF PARTIES

A. Oil and Gas Interests:

If any party owns an Oil and Gas Interest(s) in the Contract Area, that Interest shall betreated for all purposes of this agreement and during the term hereof as if it were covered by theform of Oil and Gas Lease and the interest of the lessee hereunder.

B. Interests of Parties in Costs and Production:

Unless changed by other provisions, all costs and liabilities incurred in operations underthis Agreement shall be borne and paid, and all equipment and materials outlined in operations onthe Contract Area shall be owned by the parties as their interests are outlined in Exhibit "A". In thesame manner other parties shall also own all production of oil and gas from the Contract Areasubject, however, to the payment of royalties and other burdens on production as describedthereafter,

C. Excess Royalties, Overriding Royalties, and Other Payments:

Unless changed by other provisions, if the interest of any party in any lease covered herebyis subject to any royalty, overriding royalty, production payment, or other burdens on productionabove the amount stipulated in Article III.B., such party so burdened shall assume and alone bearall such excess obligations and shall indemnify and hold the other parties hereto harmless on anyand all claims and demands for payment asserted by owners of such excess burden.

D. Subsequently Created Interests:

If any party should hereafter create an overriding royalty, production payment, or anotherburden payable out of production attributable to its working interest hereunder, or if such interestexisted before this Agreement and is not outlined in Exhibit "A", or was not disclosed in writing toall other parties to the execution of this Agreement by all parties, or is not a jointly acknowledgedand accepted obligation of all parties (any such interest being hereinafter referred to as"subsequently created interest" irrespective of the timing of its creation and the party out of whoseworking interest the subsequently created interest is derived being hereinafter referred to as the"burdened party"), and:

31. If the burdened party is required under this Agreement to assign or relinquish to any other party,

or parties, all or a portion of its working interest and/or production attributable thereto,said another party, or parties, shall receive said assignment and/or production free andclear of said subsequently created interest and the burdened party shall indemnify and savesaid other parties, or parties, harmless from claims and demands for payment asserted byowners of subsequently created interest; and

2. If the burdened party fails to pay, when due, its share of expenses chargeable hereunder,all provisions of Article VII.B. shall be enforceable against the subsequently created interestin the same manner as they are enforceable against the working interest of the burdenedparty.

ARTICLE IV...TITLESA. Title Examination:

Title examination shall be made on the Drill site of any proposed well before thecommencement of drilling operations and if a majority in interest of the Drilling Parties so request,or if Operator so elects, title examinations shall be made on the Entire Drilling Unit, or maximumanticipated Drilling Unit, of the well or wells. The operator shall causthe e title to be examined byour attorneys. Copies of all title opinions shall be furnished to each Drilling Party. Costs incurred bythe Operator in producing abstracts, fees paid to outside attorneys, and other direct charges shall beborne by the Drilling Parties in the proportion that the interest of each Drilling Party bears to thetotal interest of all Drilling Parties as such interests appear in Exhibit "A". No well shall be drilled onthe Contract Area until the title has been examined and approved by the examining attorney or ifprevious Title Opinions and leases are still valid.

B. Loss or Failure of Title:Should the examining attorney conclude that there is a Loss or Failure of title on the

Drilling Unit, then no well or wells will be drilled on said Drilling Unit.

C. Loss by Non-Payment or Erroneous Payment of Amount Due:

If through mistake or oversight, any rental, shut-in well payment, minimum royalty or royaltypayment, or other payment necessary to maintain all or a portion of any Oil and Gas Lease orInterest is not paid or is erroneously paid, and as a result, thereof a Lease or Interests terminates,there shall be no monetary liability against the party who failed to make such payment. Unless theparty who failed to make such payment secures a new lease or Interest covering the same interestwithin ninety (90) days from the discovery of the failure to make such proper payment, whichacquisition will not be subject to Article VIII.B., the interests of the parties reflected on Exhibit "A"shall be revised on an acreage basis, effective as of the date of termination of the Lease orerevolvedvolved, and credited with an interest in the Contract Area on account of ownership of theLease Interest which terminated.

If the party who failed to make the required payment shall not have been fully reimbursed t thetime of the loss, from the proceeds of the sale of Oil and Gas attributable to the lost Lease orInterest, calculated on an acreage basis for the development and operating costs previously id onaccount of such Lease or Interest, it shall be reimbursed for un-recovered actual costs previouslypaid by it from so much of the following as is necessary to effect reimbursement: (A) Proceeds ofOil and Gas produced before termination of the Lease or Interest, less operating expenses and l seburdens chargeable hereunder to the entity who failed to make payment, previously accrued to ecredit of the lost Lease or Interest, on an acreage basis, up to the amount number recovered costs.

4

D. Other Losses:All losses of Leases or Interests committed to this agreement, other than those set out

outlined in es IV.B and Articles IV.C above shall be joint losses and shall be borne by all parties inproportion to their interest shown on Exhibit "A". This shall include, but not be limited to, the loss

of any Lease or Interest through failure to develop or because express or implied covenants havenot been performed (other than performance which requires only the payment of money), and theloss of any Lease by expiration at the end of its primary term if it is not renewed or extended. Thereshall be no readjustment of interests in the remaining portion of the Contract Area on account ofany joint loss.

ARTICLE V...OPERATOR

A. Designation and Responsibilities of Operator:

ENR Operating shall be the Operator of the Contract Area, and shall conduct and direct andhave full control of all operations on the Contract Area as permitted and required by, and withinthe limits of this Agreement. In its performance of services hereunder for the Non-Operator,Operator shall be an independent contractor not subject to the control or direction of theNon-Operators except as to the type of operation to be undertaken in accordance with the electionprocedures contained in this agreement, if any. Operator shall not be deemed to be, or hold itselfout as, the agent of the Non-Operators with authority to bind them to any obligation or liabilityassumed or incurred by Operator as to any third party. The operator shall conduct its activitiesunder this Agreement as a reasonable prudent operator, in all operations hereunder shall beperformed in a good and workmanlike manner, with due diligence and dispatch, in accordancewith the applicable law and regulations. Operator shall have the right to hire such experts it deemsnecessary to conduct the operations and non-operators shall pay all such expenses incurred.Non-operators specifically authorize and agree that operators may rely on these experts. However,in no event shall Operator have any liability as Operator to the other parties and/or non-operatorsfor losses sustained or liabilities incurred from the conduct of any such experts or its own conductexcept as may result from willful misconduct.

B. Resignation or Removal of Operator and Selection of Successor:

(1) Operators may resign at any time by giving written notice to Non-Operators. If Operatorterminates its legal existence, no longer owns an interest in the Contract Area subject to thisAgreement, or is no longer capable of serving as Operator, Operator shall be deemed to haveresigned without any action by Non-Operators, except the selection of a successor. Operators may beremoved only for good cause shown and by the affirmative vote of Non-Operators owning amajority interest based on ownership as shown on Exhibit "A" remaining after excluding the votinginterest of the Operator. Such a vote shall not be deemed effective until a written notice has beendelivered to the Operator by a Non-Operator detailing the alleged good cause for removal, andOperator has failed to cure such objections of the Non-Operators within sixty (60) days fromOperator's receipt of such notice. For purposes hereof, "good cause" shall mean not only grossnegligence or willful misconduct, but also the material breach of or inability to meet the standardsof operation contained in Article V.A., or material failure or inability to perform Operator'sobligations under this agreement. A change of corporate name or structure of Operator or transferof Operator's Interest to any subsidiary, parent or successor corporation shall not be the basis forremoval of Operator.

5(2) Selection of Successor Operator: Upon the resignation or removal of Operator under any

provisions of this agreement, a successor operator shall be selected by the parties. The successoroperator shall be selected from the parties owning an interest in the Contract Area at the time suchsuccessor Operator is selected. The successor Operator shall be selected by the affirmative vote oftwo (2) or more parties owning a majority interest based on ownership as shown on Exhibit "A".

The former Operator shall promptly deliver all records and data relating to the operationsconducted. Any costs of obtaining or copying this data shall be paid by the successor Operatorprior to receiving this data. Operator may assign its rights and obligations to a designee ofOperator after notice is given to the Non-Operating Parties as provided herein and at such time assaid assignment is made, the responsibilities, rights and obligations of the Operator shall cease.

(3) Effect of Bankruptcy: If Operator becomes insolvent, bankrupt or is placed inreceivership, it shall be deemed to have resigned without any action by Non-Operators, except theselection of a successor Operator.

C. Employees and Contractors:

The number of employees or contractors used by Operator in conducting operationshereunder, the selection of such employees or contractors, and the hours of labor and compensationfor services performed, shall be determined by the sole discretion of the Operator, and all suchemployees or contractors shall be the employees or contractors of the Operator.

D. Rights and Duties of the Operator:

(1) Competitive Rates and Use of Affiliates: All wells drilled on the Contract Area shallbe drilled on a competitive contract basis at the usual rates prevailing in the area wherein suchoperations are being conducted. If it so desires, Operator may employ its own tools andequipment in the drilling of the well(s), but its charges shall not exceed the prevailing rates insuch an area. All work performed or materials supplied by affiliates or related parties ofOperator shall not exceed the prevailing rates in such areas.

(2) Discharge of Joint Account Obligations: Except as herein otherwise specifically provided,Operator shall promptly pay and discharge expenses incurred in the development and operation ofthe Contract Area pursuant to this agreement, and shall charge each of the parties hereto with theirrespective share of the expenses as provided hereto in Exhibit "B". Operator shall keep an accuraterecord of the Joint Account hereunder, showing expenses incurred and charges and credits madeand received. NON-OPERATORS ARE REQUIRED TO PAY THEIR PROPORTIONATE SHARE OFALL OPERATING EXPENSES WITHIN 10 DAYS OF RECEIPT OF THE J.I.B. (JOINT INTERESTBILLING).

(3) Protection from Liens: Operator shall pay, or cause to be paid, as and when they becomedue and payable, all accounts of contractors and suppliers and wages and salaries for servicesrendered and performed, and for material supplied on, to, or in respect of the Contract Area or anyoperations for the Joint Account thereof, and shall keep the Contract Area free from all liens andencumbrances resulting therefrom except for those resulting from a bona fide dispute as to servicesrendered or materials supplied.

(4) Custody of Funds: Operator shall hold for the account of the Non-Operators any fundsadvanced or paid by the Non-Operators or others to the Operator, either in contemplation ofconducting operations hereunder, or as a result of the sale of production from the Contract Area,and such funds shall remain the funds of the Non-Operators for whose account they are advanced

6or paid until used for their intended purpose or otherwise delivered to the Non-Operators orapplied toward the payment of debts as provided in Article VII.B. Nothing in this paragraph shallbe construed as to establish a fiduciary relationship between Operator and Non-Operators for anypurposes other than to account for Non-Operator funds herein for which specific provision is made.

Nothing in this paragraph shall require the maintenance by Operator of separate accounts for thefunds of Non-Operators unless the parties otherwise specifically agree.

(5) Access to Contract Area and Records: Operator, shall, except as otherwise providedherein, permit each Non-Operator or its duly authorized agent, at the Non-Operators sole risk andexpense, full and free access (at reasonable times and upon notice of an intent to make suchinspection) to all operations of every kind and character being conducted for the joint account in theContract Area and to the records relating thereto. Such access rights shall not be exercised in amanner interfering with the Operator's conduct of any operation hereunder and shall not obligateOperator to furnish any geologic or geophysical data of an interpretative nature. Operator willfurnish to each Non-Operator, upon request, a copy of all reports and information concerningproduction and drilling data.

(6) Filing and Furnishing Governmental Reports: Operators will file all operational notices,reports or applications required to be filed by local, state or Federal agencies or authorities havingjurisdiction over operations hereunder.

(7) Drilling and Testing Operations: The following provisions shall apply to each welldrilled hereunder, including but not limited to the initial well or wells: (a) Operator will promptlyadvise Non-Operators of the date on which the well is spudded, or the date drilling operations arecommenced; (b) Operator will send to Non-Operators such reports, test results and noticesregarding the progress of operations on the well as the Non-Operators shall reasonably request,including but not limited to - daily reports, completion reports, dst reports, copy of logs, and coreresults; and (c) Operator shall adequately test all Zones (when drilling) encountered which mayreasonably be expected to be capable of producing oil and/or gas in commercial quantities as aresult of examination of the electric log or other logs or cores or tests conducted.

(8) Cost Estimates: Upon request of any consenting party, Operator shall furnish estimatesof current and cumulative costs incurred for the joint account at reasonable intervals during theconduct of operations pursuant to this Agreement. Operator shall not be held liable for errors insuch estimates as long as the estimates are made in good faith. This article is not pertinent if theOperator has turn-keyed the work to the Non-Operator.

ARTICLE VI...DRILLING AND DEVELOPMENT

A. Subsequent Operations- An A.F.E. will be provided for the costs for all proposedoperations on the lease acreage. Upon receipt of the AGE, each Non-Operator will begiven fifteen (15) days to accept or reject their participation in the proposed operations.Upon acceptance of the A.G.E., each Non-Operator will immediately forward theirproportionate share of the cost to ENR Operating. If any party to whom such noticeelects not to participate in the Proposed Operation, and the total AFE cost for theproposed operation exceeds $50,000.00, then that party shall forfeit his or her workinginterest share in only the well or wells covered by the operation. Non-Participatingparties shall not however, lose or forfeit their rights to the initial well or wells on thesubject property in which such Non-Participating party has participated nor shall thenon-participating party lose his or her right to participate in any future operations. If,

7however, the total cost for the proposed operation is below $50,000.00, then the partyelecting not to participate shall be subject to an additional recoupment amount or add

back of their percentage of the actual costs plus 400% of those costs. That is , theconsenting parties and/or operator, whichever shall pay the non-paying partiesobligations shall be entitled to the amount paid plus 400% from the non-paying partiesrevenue share from the well or wells covered by the operations and only once thatamount is received by the paying party shall the non-paying party be entitled to receivehis or her share.

(b) The entire cost and risk of conducting such operations shall be borne by the ConsentingParties in the proportions they have elected to bear the same under the terms of thepreceding paragraph. Non-Consenting Parties shall keep the leasehold estates involved insuch operations free and clear of all liens and encumbrances of every kind created by orarising from the operations of the Consenting Parties. If such operations result in a dryhole(s), then the Consenting Parties shall plug and abandon the well(s) and restore thesurface location at such Consenting Parties' sole cost, risk and expense. If any well drilled,reworked, reentered, sidetracked, deepened, plugged back or re-completed, under thisArticle results in a well(s) capable of producing Oil and/or Gas in paying quantities, theConsenting Parties shall Complete and Equip the well(s) to produce at such ConsentingParties' sole cost and risk, and the well(s) shall then be turned over to the Operator and shallbe operated by it at the expense and for the account of the Consenting Parties.

ARTICLE VII...EXPENDITURES AND LIABILITY OF PARTIES

A. Liability of Parties:

The liability of the parties shall be several, not joint or collective. Each party shall beresponsible only for its obligations, and shall be liable only for its proportionate share of the costs ofdeveloping and operating the contract area. Accordingly, the liens granted among the parties inArticle VII. B. Are given to secure only the debts of each severally and no party shall have anyliability to third parties hereunder to satisfy the default of any other party in the payment of anyexpense or obligation hereunder. It is not the intention of the parties to create, nor shall thisAgreement be construed as creating a mining or other partnership, joint venture, agencyrelationship or association, or to render the parties liable as partners, co-Venturer’s, or principals.In their relations with each other, under this Agreement, the parties shall not be consideredfiduciaries or to have established a confidential relationship, but rather shall be free to act in anarm's-length basis in accordance with their own respective self-interest, subject however, to theobligation of the parties to act in good faith in their dealing with each other with respect to activitieshereunder.

B. Liens and Security Interest:Each Non-Operator grants to the Operator hereto a lien upon any interest it now owns or

hereafter acquired in Oil and Gas Leases and Oil and Gas Interests in the Contract Area, and asecurity and/or purchase money security interest in any interest it now owns or hereafter acquiredin the personal property and fixtures on or used or obtained for use in connection therewith;

To secure performance of all of each Non-Operator's obligations under this Agreement, includingbut not limited to, payment of operating expenses, interest and fees, the proper disbursement of allmonies paid hereunder, the assignment or relinquishment of interest in Oil and Gas Leases asrequired hereunder, and the proper performance of operations hereunder. Such lien and security

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interest granted by each party hereto shall include such party's leasehold interests, working interest,operating rights, and royalty and overriding royalty interests in the Contract Area now owned orhereafter acquired and in lands pooled or unitized therewith or otherwise becoming subject to thisagreement, the oil and gas when extracted there from and equipment situated thereon or used orobtained for use in connection therewith (including without limitation) accounts arising from gasimbalances or from the sale of Oil and/or Gas at the wellhead or off premises, contract rights,inventory and general intangibles relating thereto or arising there from, and all proceeds andproducts of the foregoing. Each Non-Operator represents and warrants, to Operator hereto that thelien and security interest granted by such party to (Operator) shall be a First and Prior Lien, andeach party hereby agrees to maintain the priority of said lien and security interest against allpersons acquiring an interest in Oil and Gas Leases and Interests covered by this Agreement, by,through or under such party. All parties acquiring an Interest in the Oil and Gas Leases and Oil andGas Interest, covered by this Agreement, whether by assignment, merger, mortgage, operation oflaw, or otherwise, shall be deemed to have taken subject to the lien and security interest granted bythis Article VII.B., as to all obligations attributable to such interest hereunder whether or not suchobligations arise before or after such interest is acquired.

If any Non-Operator does not perform all of its obligations hereunder, and the failure toperform subjects such party to foreclosure or execution proceedings pursuant to the provisions ofthis Agreement, to the extent allowed by governing law, the defaulting party, waives any availableright of redemption from and after the date of judgment, any required valuation or appraisement ofthe mortgaged or secured property prior to sale, any available right to stay execution or to require amarshaling of assets and any required bond in the event a receiver is appointed. In addition, eachNon-Operator hereby grants to Operator a power of sale as to any property that is subject to thelien and security rights granted hereunder, such power to be exercised in the manner provided byapplicable law or otherwise in a commercially reasonable manner.

Each Non-Operator agrees that Operator shall be entitled to utilize the provisions of Oil andGas Lien laws of the state in which the Contract Area is situated in order to secure the payment toOperator of any sum due hereunder for services performed or materials supplied by Operator.

C. Advances:Operator, at its election, shall have the right from time to time to demand and receive from

one or all of the Non-Operators - Payment in advance of their respective shares of the estimatedamount of the expenses to be incurred in operations hereunder during the next succeeding month,which right may be exercised only by submission to each party of an itemized statement of suchestimated expense, together with an invoice for its share thereof, however. Each such statement andinvoice for the payment in advance of estimated expenses shall be submitted on or before the20th day of the next preceding month. Each party shall pay to the Operator its working interestshare of said estimate with fifteen (15) days of receipt of invoice.D. Defaults and Remedies:

If any Non-Operator fails to discharge any obligations under this Agreement, includingwithout limitation the failure to make any advance under the preceding Article VII.C. or any otherprovision of this Agreement, within the period required for such payment hereunder, then inaddition to the remedies provided elsewhere in this Agreement, the remedies specified below shallbe applicable. For purposes of this Article VII.D. all notices and elections shall be delivered by ENR.

9(1) Suit for Damages: Operator may sue (at joint account expense) to collect the amounts in

default, plus interest accruing on the amounts in default.(2) Costs and Attorney’s Fees: In the event Operator is required to bring legal action to

enforce any financial obligation of a party hereunder, Operator shall be entitled to recover all courtcosts, costs of collection, and a reasonable attorney's fee, which the lien provided for herein shallalso secure.

E. Rentals, Shut-In Well Payments and Minimum Royalties:

Rentals, shut-in well payments and minimum royalties which may be required under theterms of any lease shall be paid by the parties to this agreement in their proportionate share whendue.

F. Taxes:

Beginning with the first calendar year after the effective date hereof, Operator shall renderfor ad valorem taxation all property subject to this agreement, which by law should be rendered forsuch taxes. Operators shall bill each party for their proportionate share of all tax payments in themanner provided in Exhibit "B". Each Party shall pay, or cause to be paid, all production, severance,gathering and other taxes imposed upon or with respect to the production or handling of suchparty's share of the Oil and Gas produced under the terms of this Agreement.

ARTICLE VIII...ACQUISITION, MAINTENANCE OR TRANSFER OF INTEREST

A. Surrender of Leases:

The leases covered by this Agreement, insofar as they embrace acreage in the Contract Area,shall not be surrendered in whole or in part unless ENR Operating, LLC (operator) consents (inwriting) thereto.B. Renewal or Extension of Leases:

If some, but less than all parties elect to participate in the purchase of a renewal orreplacement lease, such renewal or replacement lease shall be owned by the parties who elect toparticipate therein, in a ratio based upon the relationship of their respective percentage ofparticipation in the purchase of the renewal or replacement lease.C. Assignment; Maintenance of Uniform Interest:

For the purpose of maintaining uniformity of ownership in the Contract Area in the Oil andGas Leases, Oil and Gas Interests, wells, equipment and production covered by this Agreement -No party shall sell, encumber, transfer or make other disposition of its interest in the Contract Areaor in wells, equipment or production without prior (written) notification to Operator, and unlesssuch disposition covers the entire interest of the party in ALL of the Oil and Gas Leases, Oil andGas Interest, wells, equipment and production in the contract area. Every sale, encumbrance,transfer or other disposition made (by any party) shall be made expressly subject to this Agreementand shall be made without prejudice to the right of the other parties. No assignment or otherdisposition of interest by any party shall relieve said party hereunder with respect to the interesttransferred, including without limitation the obligation of a party to pay all costs attributable to anyoperation conducted hereunder in which said party has agreed to

10participate prior to making such assignment and the lien and security interests granted by Article

VII.B. shall continue to burden the interest transferred to secure payment of any such obligation (s).D. Preferential Right to Purchase:

Should any party desire to sell its interest subject to this Agreement, or its rights andinterests in the Contract Area, it shall promptly give written notice to Operator, via Certified Mail,with full information concerning its proposed disposition, name and address of the prospectivetransferee, purchase price and all other terms of the offer. Operators shall then have sixty (60) daysafter notice is received, to purchase such interest for the stated consideration on the same terms andconditions set forth by the party wishing to sell its interest.

ARTICLE IX...INTERNAL REVENUE CODE ELECTION

If, for federal income tax purposes, this Agreement and the operations hereunder areregarded as a partnership, and if the parties have not otherwise agreed to form a tax partnershippursuant to other agreements between them; each party thereby affected elects to be excluded fromthe application of all of the provisions of Subchapter "K", Chapter 1, Subtitle "A", of the InternalRevenue Code of 1986, as amended ("Code"), as permitted and authorized by Section 761 of theCode and the regulations promulgated thereunder. Operator is authorized and directed to executeon behalf of each party hereby affected by such evidence of this election as may be required by theSecretary of the Treasury Regulations 1-761. Should there be any requirement that each party herebyaffected give further evidence as may be required by the Federal Internal Revenue Service or as maybe necessary to evidence this election. No such party shall give any notices or take any other actioninconsistent with the election made hereby. If any present or future income tax laws of the UnitedStates contain provisions similar to that provided by Section 761 of the Code, each party herebyaffected shall make such election as may be permitted or required by such laws. In making theforegoing election, each said party states that the income derived by such party from operationshereunder can be adequately determined without the computation of partnership taxable income.

ARTICLE X...CLAIMS AND LAWSUITS

Operators may settle any single uninsured third party damage, claim or suit arising fromoperations hereunder, if such expenditure does not exceed twenty thousand dollars ($20,000.00),

and if the payment is in complete settlement of such claim of suit. If the amount required forsettlement exceeds the above amount, the parties hereto shall assume and take over the furtherhandling of such claim or suit, unless such authority is delegated to Operator. All costs andexpenses of handling, settling, or otherwise discharging such claim or suit shall be at the JointExpense of the parties listed in Exhibit "A" pursuant to their proportionate share and as workinginterest owners of the Oil and Gas Leases and Oil and Gas Interests.

ARTICLE XI...FORCE MAJEURE

If any party is rendered unable, wholly or in part, by force majeure, to carry out itsobligations under this agreement, other than the obligation to indemnify or make monetarypayments or furnish security, that party shall give to all other parties prompt written notice of theforce majeure with reasonable full particulars concerning it, thereupon, the obligations of the partygiving the notice, so far as they are affected by the force majeure, shall be suspended during, but nolonger than, the continuance of the force majeure. The term "force majeure", as here employed, shallmean an act of God, strike, lockout, or other industrial disturbance, an act of the public enemy,

11war, blockade, public riot, lightning, fire, storm, flood or other act of nature, explosion,

governmental action, governmental delay, restraint or inaction, unavailability of equipment, andany other cause, whether of the kind specifically enumerated above or otherwise, which is notreasonably within the control of the party claiming suspension. The affected party shall use allreasonable diligence to remove the force majeure as quickly as practicable.

ARTICLE XII... NOTICES

All notices authorized or required between the parties by any of the provisions of thisagreement, unless otherwise specifically provided, shall be in writing and delivered in person or bythe certified United States Mail, return receipt requested, UPS, Federal Express, Express Mail,Telegram, Fax, Telex or Courier Service. "Receipt” for purposes of this agreement concerning awritten notice delivered hereunder shall be actual delivery of the notice to the address of the partyto be notified specified following this agreement or to the telecopy, facsimile, or telex machine ofsuch party.

ARTICLE XIII...TERM OF AGREEMENT

This agreement shall remain in full force and effect as to the Oil and Gas Leases and/or Oiland Gas Interests subject hereto for as long as any of the Oil and Gas Leases subject to thisagreement remain or are continued in force as to any part of the Contract Area, whether byproduction, extension, renewal or otherwise.

The termination of this agreement shall not relieve any party hereto from any expense,liability, or other obligation or any remedy therefore which has accrued or attached before the dateof such termination.ARTICLE XIV...COMPLIANCE WITH LAWS AND REGULATIONS

A. Laws, Regulations, and Orders:

This agreement shall be subject to the applicable laws of the state in which the ContractArea is located to the valid rules, regulations, and orders of any duly constituted regulatory bodyof said state; and to all other applicable federal, state, and local laws, ordinances, rules,regulations, and orders.B. Governing Law:

This agreement and all matters pertaining thereto, including, but not limited to matters ofperformance, non-performance, breach, remedies, procedures, rights, duties, and interpretation orconstruction shall be governed by the laws of the State of Texas.

C. Regulatory Agencies:

Nothing herein contained shall grant, or be construed to grant, Operator the right orauthority to waive or release any rights, privileges, or obligations which Non-Operators may haveunder Federal or State laws or under rules, regulations, or orders promulgated under such lawsabout oil, gas and mineral operations, including the location, operation, or production of wells, ontracts offsetting or adjacent to the Contract Area. Concerning the operations hereunder,Non-Operators agree to release Operator from any losses, damages, injuries, claims, and causes ofaction arising out of, incident to or resulting directly or indirectly from

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Operator's interpretation of the application of rules, rulings, regulations or orders of theDepartment of Energy or Federal Energy Regulatory Commission or Texas Railroad Commission,or any other agency of any State in which operations are being conducted, or predecessor orsuccessor agencies to the extent such interpretation or application was made in good faith and doesnot constitute gross negligence. Each Non-Operator further agrees to reimburse Operator for suchNonOperator's share of production or any refund, fine, levy, or other governmental sanction thatOperator may be required to pay as a result of such an incorrect interpretation or application,together with interest and penalties thereon owing by Operator as a result of such incorrectinterpretation or application.

ARTICLE XV...MISCELLANEOUSA. Execution:

This Agreement shall be binding upon each Non-Operator when this Agreement or acounterpart thereof has been executed by such Non-Operator and Operator notwithstanding thatthis Agreement is not then or thereafter executed by all of the parties to which it is tendered orwhich are listed on Exhibit "A" as owning an interest in the Contract Area or which own, in fact, aninterest in the Contract Area.

B. Successors and Assigns:

This Agreement shall be binding upon and inure to the benefit of the parties hereto andtheir respective heirs, devisees, legal representatives, successors, and assigns, and the terms hereofshall be deemed to run with the Leases or Interests included within the Contract Area.

C. Counterparts:

This Agreement may be executed in any number of counterparts, each of which shall beconsidered an original for all purposes.D. Severability:

To assume or reject this Agreement as an executory contract according to Federalbankruptcy laws, this Agreement shall not be severable, but rather must be assumed or rejected inits entirety, and the failure of any party to this Agreement to comply with all of its financialobligations provided herein shall be a material default. IN WITNESS WHEREOF, this agreementshall be effective as of the _____day of ______________, 2021

Signature of Non-Operator

_____________________________________

________________________________________Printed Name

EXHIBIT "A"

Attached to and made a part of that certain Joint Operating Agreement datedMarch 1, 2021, between Operator and Non-Operator

DESCRIPTION OF LAND AND WELLS:Verna Loper Lease

Oil, Gas and Mineral Lease dated December 10, 1957, between Mrs. Verna Loper, a widow, as Lessor, and Travis Ward, as Lessee, 140 acres more orless out of the acreage covering the South 40 acres of the North 120 acres of a 320-acre tract in Anderson County, Texas, out of the James WilsonSurvey, said lands being in said lease fully described, which said lease is recorded in Volume 570, Page 32 of the Deed Records of Anderson County,Texas.

Oil, Gas and Mineral Lease dated December 9, 1957, between Mrs. Verna Loper, a widow, as Lessor, and Travis Ward, as Lessee, covering the South23.56 acres out of 103.56 acres in the James Wilson Survey, in Anderson County, Texas, said lease fully described, which said lease is recorded inVolume 570, Page 37 of the Deed Records of Anderson County, Texas.

And certain wells located on the lease as follows:

Well Name RRC Well ID Number Status

Verna Loper #1B API # 42-001-32285 Oil & Gas Well

Verna Loper #2A

Verna Loper #2

API # 42-001-32290 Salt Water Disposal (SWD)

API # 42-001- 32265 Oil & Gas Well

Verna Loper #3 API # 42-001-32243 Oil & Gas Well

J.D. Loper #1 API # 42-001-80537 Oi Well

Ben H. Wathen Lease

Oil & Gas Mineral Lease dated August 31, 1933, Ben H. Wathen, et ux, Elizabeth, as lessor did execute and deliver to W.H. Roeser, Inc., as lessee, anoil, gas, and mineral lease, recorded in Volume 185 at page 409 of the Deed Records of Henderson County, Texas, covering certain land brieflydescribed as 71.00 acres out of the A.J. Allen Survey, Abstract 93, which is the second track described in the said lease, County of Anderson, State ofTexas, said land being more fully described in the said lease, reference to said lease and to the record thereof being here made for all purposes; and,

Oil & Gas Mineral lease dated of July 1, 1969, Mrs. Ben H. Wathen, as Lessor, did execute and deliver to Vernon E. Faulconer, as Lessee, an oil, gas,and mineral lease, recorded in Volume 637 at Page 620 of the Deed Records of Henderson County, Texas, covering certain land briefly described ascovering 2.20 acres of land out of the A.J. Allen Survey in Anderson and Henderson Counties, Texas, said land being more fully described in the saidlease, reference to said lease and the record thereof being made here made for all purposes.

Well Name RRC Well ID Number Status

Ben H. Wathen #1D API # 42-001-30090 Salt Water Disposal (SWD)

Ben H. Wathen #2 API # 42-001-00046 Oil & Gas Well

Ben H. Wathen #3 API # 42-001-30308 Salt Water Disposal (SWD)

C.D. Wright Lease

Oil & Gas Mineral Lease dated September 15, 1933, C. Duke Wright, et ux. Lula Frances, as Lessor did execute and deliver to J.M. Hayner, asLessee, an oil, gas, and mineral lease, recorded in Volume 16 at Page 78 of the Deed Records of Henderson County, Texas, and Volume 230 at Page236 of the Deed Records of Anderson County, State of Texas, insofar and only insofar as said lease covers formations lying between the surface of theearth and the base of the Woodbine Formation in and under certain land briefly described as 99.3 acres out of the Isaac Clendennen Survey, Abstract154, of Henderson County, State of Texas, and covering certain land briefly described as covering four (4) acres in the R.H. Pierson Survey, Abstract626 of Henderson County, State of Texas, said land being more fully described in the said lease, reference to said lease and to the record thereof beinghere made for all purposes.

Well Name RRC Well ID Number Status

C.D. Wright #2 API # 42-001-80103 Oil & Gas Well

C.D. Wright #4 API # 42-001-30342 Oil & Gas Well

*There are no depth restrictions associated with the leased acreage.

EXHIBIT B

ACCOUNTING PROCEDURES - JOINT OPERATIONS

(1) Definitions:

"The Agreement" shall mean the Joint Operating Agreement to which this Exhibit 'B' is attached."Joint Property" shall mean the real and personal property subject to the Agreement to which thisExhibit "B" is attached."Joint Operations" shall mean all operations necessary or proper for the development,operation, protection, and maintenance of the Joint Property."Joint Account" shall mean the account showing the charges paid and credits received in theconduct of the Joint Operations and which are to be shared by the partners. "Operator" shall meanthe party designated to conduct the Joint Operations. "Non-Operators" shall mean the parties tothis agreement other than the Operator. "Parties" shall mean Operator and Non-Operator. "FirstLevel Supervisors" shall mean those employees whose primary function in Joint Operations is thedirect supervision of other employees and/or contract labor directly employed on the JointProperty in a field operating capacity."Technical Employees" shall mean those employees having special engineering, geological, orother professional skills needed for a task on the Joint Property."Personal Expenses" shall mean travel and other reasonable reimbursable expenses of OperatorsEmployees.

(2) Statement and Billing:

The operator shall deduct from revenues, as received, the Non-Operator's proportionateshare of the Joint Account for the preceding month. Such deductions will be accompanied by astatement (J.I.B.) which identifies the A.F.E., lease or facility, all charges, and credits andsummarized by appropriate classifications of investment and expense except that times ofcontrollable material and unusual charges and credits shall be separately identified and fully

described.

(3) Compensation and Expenses

The operator shall receive a 6.25% of 8/8th’s overriding royalty interest as compensation foroperating the Joint Property. The operator shall receive no other compensation for said operations.However, Operator shall be entitled to receive reimbursement for all expenses incurred directly inthe operations of the Joint Property including, but not limited to, mileage, supplies, and all othermonies paid by Operator in operations of the Joint Property.(4) Advances and Payments by Non-Operators:

Unless otherwise provided for in the Agreement, the Operator may require theNon-Operators to advance their share of the estimated cash outlay for the succeeding month’soperations. Operators shall adjust each monthly bill to reflect advances received from theNon-Operators. Each Non-Operator shall pay its proportionate share of all bills within fifteen (15)days after receipt. If payment is not received within said time frame please refer to Article XVI (1)of the Agreement for details.

(5) Adjustments:

Payment of any such bill shall not prejudice the right of any Non-Operator to protest orquestion the correctness thereof; provided, however, all bills and statements rendered toNon-Operator during any calendar year shall conclusively be presumed to be true and correctafter six (6) months following the end of the said calendar year.

(6) Audits:

Non-Operators, upon providing forty (40) days’ notice in writing, may request an audit.The entire costs, as deemed by the Operator, for the audit will be borne solely by the Non-Operatorrequesting a said audit. Every reasonable effort should be made to cause a minimum ofinconvenience to the operator.

(7) Approval by Non-Operator:

Where approval or other agreement of the Parties of Non-Operators is expressly requiredunder other sections of this Accounting Procedure and if the agreement to which this is attachedcontains no contrary provisions in regard thereto; Operator shall notify all Non-Operators of theOperators proposal and the agreement or approval of a majority in interest of the NonOperators shall be controlling all Non-Operators.

II. DIRECT CHARGES

Operators shall charge the Joint Account with the following items:

(1) Rentals, Delay Rentals, and Royalties: Lease rentals and royalties paid by Operators for theJoint Operations.

(2) Labor: (a) Salaries and wages of Operators field employees directly employed on the JointProperty in the conduct of the Joint Operations. Salaries of First Level Supervisors in the field.Salaries and wages of Technical Employees directly employed on the Joint Property. (b)Expenditures or contributions made according to assessments imposed by the governmentalauthority apply to Operators costs chargeable to the Joint Account. (c) Personal Expenses of thoseemployees whose salaries and wages are chargeable to the Joint Account under Para. 2(a) of thissection.(3) Material: Material purchased or furnished by Operator for use on the Joint Property. Only suchmaterial shall be purchased for or transferred to the Joint Property as may be required forimmediate use. The accumulation of surplus stock shall be avoided.

(4) Transportation: All transportation charges directly related to the Joint Property shall be chargedto the Joint Account.

(5) Services: The costs of contract services, equipment, and utilities provided by outside sources,professional consulting services, and contract services of technical personnel directly engagedon the Joint Property.

(6) Equipment and Facilities Furnished by Operator: Operator shall charge the Joint Account foruse of Operator owned equipment and facilities at rates commensurate with costs of ownership andoperation. Such rates shall not exceed the average commercial rates prevailing in the immediatearea of the Joint Property.

16(7) Damages and Losses to Joint Property: All costs or expenses necessary for the repair or

replacement of Joint Property made necessary by fire, flood, storm, theft, accident, or other cause,except those resulting from Operators gross negligence or willful misconduct. The operator shallfurnish Non-Operator written notice of damages or losses incurred as soon as practicable after areport thereof has been received by Operator.

(8) Legal Expenses: Expenses of title examination, handling, investigating, and settling litigation orclaims, discharging of liens, payment of judgments, and amounts paid for settlement of claimsincurred in or resulting from the operations under the agreement or necessary to protect or recoverthe Joint Property.

(9) Taxes: All taxes of every kind and nature assessed or levied upon or in connection with the JointProperty, the operation thereof, or the production therefrom, and which taxes have been paid by theoperator for the benefit of the Parties.

(10) Insurance: Net Premiums paid for the insurance required by law or in the best interest of andfor Joint Operations as determined by the Operator.

(11) Railroad Commission. All Texas Railroad Commission charges, levies, fines, and otherexpenses.

(12) Other Expenditures: Any other expenditure not covered or dealt with in the foregoingprovisions of this Section II, or in Section III, and which is incurred, by the Operator, in thenecessary and proper conduct of the Joint Operations.

III. PLUGGING LIABILITY

(1) Operator shall reserve ten percent (10%) of all net revenue from the properties covered bythis agreement and hold said revenues in reserve for potential plugging liability for the propertiessubject to this agreement until said time, in the sole discretion of the operator, the potentialplugging liabilities of these properties are sufficiently covered. Operators may also in theirdiscretion call upon the owners of the properties to pay in proportion to their respectiveownership, the potential plugging liability for these properties.(B) Amendment of Rates:

The Overhead Rates provided for in this Section III may be amended, from time to time, ifthe rates are found to be insufficient or excessive.IV. PRICING OF JOINT ACCOUNT MATERIAL PURCHASES, TRANSFERS, ANDDISPOSITIONS;

Material purchased shall be charged at the price paid by Operator. In case of Material foundto be defective or returned to the vendor for any other reason, credit shall be passed to the JointAccount when an adjustment has been received by Operator.

The operator does not warrant the Material furnished. In case of defective Material, creditshall not be passed to the Joint Account until adjustment has been received by the Operator fromthe manufacturers or their agents.

17Whenever necessary, or as Operator may deem expedient, Operator shall sell or dispose of

any unused or unnecessary material at the best available price thereof at the time of suchdisposition, without being charged with the responsibility of holding such material for any periodsolely to obtain a higher price.

V. Inventories

The Operator shall maintain records of Controllable Material. At a reasonable interval,Inventories shall be taken by the Operator of the Joint Accounts Controllable Material.Non-Operators may be present at this inventory. The expense of conducting periodic inventoriesshall be charged to the Joint Account.

VI . Overhead - Fixed Rate Basis

(1) Operator shall charge the Joint Account at the following ratesper well per month:

Monthly Production Report Filing (RRC) $ 750.00For all three leases.

(Prorated for less than a full month)

Producing Well Rate $ 300.00INITIALS

RE-WORK AND RE-COMPLETION SCHEDULE

The first item on our list will be to install the new injection pump on the Wathen & Wright leases. Thepump can be delivered set and hooked up in a couple of days and will be the fastest way to increase ourcurrent production. The additional pump will allow us to inject all of our produced water and to put allthree (3) of the Wathen & Wright oil producers into production. Having all 3 well into production shouldincrease our daily oil production to over 30 BO per day. We will also go through the entire oil productionand saltwater injection facilities and replace all of the old valves, fitting, and connection. The road intothe oil tanks is in very bad shape, we will need to bring in several loads of rip rock and crushedlimestone to make the road passable so we can get our oil out in any weather conditions. The road workshould take about 4-5 days so we should be able to get the preliminary work completed on

the leases in about 7 days.

The second item is to replace the computer for the Plunger Lift system on the Verna Loper #1B well. Thenew computer will allow the plunger system to operate more efficiently, this should increase the well’sproduction from 170 mcf of gas per day and 1-3 BO to 200+ mcf of gas per day with 3-5 BO per day. Thisis an easy one-day fix that should increase the well’s production by over 20%.

The next item will be to deliver, set, and hook up the new saltwater injection pump for the Loper lease.The pump will inject all of our produced water on the lease and allow us to put the Loper #3 well backinto production after its repairs have been completed. At the same time, we will replace all of the oldvalves, fittings, and connections on the production and water injection facility.

The next is the Verna Loper #3 that has been offline because the submersible pump motor burned outdue to a hole in the production tubing. Our plan for this well is to remove the old tubing from the welland replace it with new internally plastic coated (IPC) tubing to prevent corrosion and install a newSchlumberger REDA variable speed submersible pump system. The new pump system will allow us toproduce 200 - 800 barrels of fluid per day. The last report on the #3 well indicated oil cuts from 10-15%.If the REDA pump is running at its minimum capacity of about 200 barrels of fluid per day, the wellshould produce around 20-30 barrels of oil per day with 50 to 75 mcf of gas per day.

The next is the J.D. Loper #1 which needs some minor electrical work that can be repaired in a day. Thewell is not a big producer but should contribute 2-5 BO per day. The well has a potentially productiveWoodbine zone up hole that we can attempt completion on once we have depleted the current zone.The final well in the program will be the Verna Loper #2 deep gas well. The #2 was originally completedin the Travis Peak formation in early 1998 and was completed using a small sand frac. The well averaged803,940 cfg per day in its first year and fell to 267,110 cfg per day in year two before dropping to lessthan 17,000 cfg in its final 4 years (see documents enclosed).

Our plan is to seal off the Travis Peak formation and move down the hole and attempt a completion inthe Cotton Valley Lime. The Lower Cotton Valley is developed from 10,920’- 11,092’ The mud log has

shown of gas (see enclosed Logs) from 10,924’-10,938’up to 40 unit shows, gas shows from10,962-11,020’ up to 300 units of gas, shows from 11,032’-. 11,040’ up to 250 units and gas shows from11,068’-11,078 up to 350 units. We plan to perforate and perform a “Slick Water” and sand frac on theCotton Valley. If a successful frac is performed, daily production from 500,000 to 1,000,000 cfg per daywith 10-20 BO per day can be expected.We expect the proposed work to take less than 30 days to complete. Once all of the workovers andrepairs are completed, we will clean up, paint, and now both lease areas and turn the wells over to thepumpers.

VERNA LOPER LEASECAYUGA FIELD

Anderson County, Texas

LOCATION

The Loper lease consists of five (5) wells the JD Loper #1, Verna Loper #1B, Verna Loper #2, VernaLoper #3 oil & gas wells, and the Verna Loper #2A saltwater disposal well (SWD) located in theEast

Texas Basin and can be found in the James Wilson Survey, Abstract 793 in the prolific Cayuga Field inAnderson County, Texas (see figure 1). The Cayuga Field is located near the town of Cayuga in theNorthwest corner of Anderson County. The prospect is situated on the West flank of the East Texasbasin down dip from the Luling-Mexia-Talco Fault System (see figure 2).

OPERATIONS

The Verna Loper lease was previously operated by Worldwide Exploration whose sole proprietor is Mr.Travis Ward. Mr. Ward had operated the lease since the early 2,000’s but over the last 10 to 15 years putlittle if any money into the wells or equipment. Over the last 5 years, the lease has been owned by agroup of investors and contract operated by ENR Operating. The leases have been held by production(HBP’d) by V. Loper #1B. B&B recently purchased the leases from the investor group and contracted ENROperating, LLC to operate the leases and manage the completion of the wells. B&B and ENR plan tore-work complete and re-equip the Loper wells and to put all them back into production over thecoming months.

REGIONAL GEOLOGY:

The Verna Loper Lease lies within the Cayuga Field which was discovered in 1934 and continues toproduce to this day. The production sits on a north-south striking anticline with a steep dip to the eastwith a more gradual dip on the western flank. The anticline appears to be present at the Travis Peak,Pettet, and Rodessa levels as well as the Woodbine sand level. This is an indication that the upperproducing intervals are draped over a much larger and deeper structure thus making the shallowerbeds oil & gas productive. At the Woodbine Sand level, there appears to be some faulting mainly on the

eastern side of the structure.

Tide Water Oil Co. and Texas Seaboard Oil Co. discovered the Cayuga Field in 1934 while drilling the J. N.Edens #1 to the Woodbine Sand. The well was drilled to a depth of 4088. The Woodbine Sand formationhas produced 211 BCFG and 75,701,216 BO up to November 1, 2013. In 1935 these same operatorsdrilled the Nannie N. Wills #21 to a depth of 7395' and discovered the Rodessa Limestone formation tobe productive. The operator gave this productive reservoir a local name, Trinity, for the Trinity River thatruns through part of the field on the southwest, however, this reservoir is known geologically over theEast Texas Basin as the Rodessa Limestone. There are multiple zones in the Rodessa series that areproductive. The Rodessa field has produced 156 BCFG and 4,799,470 BO up to January 1, 2021. The fieldappears to cover as much acreage as the Woodbine sand production which it covers + 12,600 acres. ThePettet and Cotton Valley Limestone formations also produce in the area. The cumulative production forthis field from December 1, 1964, to January 1, 2021, is 67 BCFG and 1,626,022 BO.

PRODUCING ZONES

Commercial production has been found from all four zones in the Woodbine series at varying depths inthe Cayuga field. The four producing sections are the Robertson, Bower, Tubbs, and Edens sands.Although Robertson is present on the prospect the Bowyer, Tubbs, and Edens sands represent amajority of the shallow production in the prospect area. The deeper pays are primarily gas withcondensate and include the Bossier sands, Cotton Valley lime, Travis Peak sands, Pettet sands, andRodessa Limestone. All of the listed deeper gas zones have also produced commercially in the Cayugafield and are present in the Verna Loper #2 well. Our primary targets for the lease are the lowerWoodbine sections in the two shallow wells and the Travis Peak, Pettet, and Rodessa sections in the twodeep wells.

Production from the Woodbine in the Cayuga field can range from 39,063 BO as seen in the Texaco V.Wortham #1 well to our northwest to as high as over 225,000 barrels of oil as evident on Chevron'sHarper & Turner Lease where 6 wells produced over 1,373,610 northeast of our location.

The deeper gas producer in the proposed wells will be produced from the Pettet and Rodessaformations. Although the Pettet and Rodessa produce all around our prospect area there are severalnotable Rodessa wells to reference: the Tidewater Davey #1D just 2,000’ to our north and eastproduced 2.2 BCF of gas with 32,608 BO the Texaco Rampy #7D off our south lease

line produced 1.2 BCF of gas with 17,988 BO, the Tidewater Edens #1D 1 mile to our southwestproduced 7.1 BCF of gas with 110,744 BO and the Tidewater Edens #15 just 2 miles due west of ourlocations produced 6.2 BCF of gas with 125,830 BO as of June of 2013. The Pettet formation producesin many of our offset wells, production ranges from a low of about .25 BCF of gas with 500 BO up to ahigh of 3.7 BCF of gas with 55,000 BO. Both the Rodessa and Pettet zones appear productive in theVerna Loper #2 well.

MARKETING

There is a gas pipeline that runs across the lease that is operated by Increasing Gas Gathering. We havea contract with Increased to buy our gas; we are currently tapped into the line and selling gas producedby the V. Loper #1B. We have a contract with Plains Marketing LP. to buy the oil and condensateproduced by the Verna Loper lease, Plains is currently purchasing the oil from our Wathen Wright lease

in the northern part of the Cayuga field.CONCLUSIONThe Verna Loper program offers a low-risk opportunity to achieve significant deep and shallow oil & gasproduction with little or no drilling risk. The wells are in a proven field and have been producedcommercially prior to going down due to the loss of a suitable saltwater disposal well. With theattractive $60 plus per barrel oil prices and natural gas prices.

DOUBLE PLAY PROJECTANDERSON AND HENDERSON COUNTIES, TEXAS

THIS AGREEMENT (“Agreement”) is made and entered by and between B&B Financial Group, LLC whoseaddress is 5700 Tennyson Pkwy. Ste. 300, Plano, TX. 75024, hereinafter sometimes called “Seller” and_________________________________________________________________ whose address is_____________________________________________________hereinafter sometimes called “Buyer”.

WITNESSETH:

WHEREAS Seller desires to sell, and Buyer desires to buy, an undivided interest in the Double PlayProject contained therein, covering a total of 332.50 acres more or less, hereinafter referred to as “TheLeases”, covering lands in Anderson and Henderson Counties, Texas, being more fully shown on Exhibit “A”attached hereto and made a part hereof for all purposes, and (hereinafter referred to as “the Leases”).

I. TERMS OF SALE1.01 Interest to be Sold. Subject to the terms, conditions, and reservations contained in this

agreement, Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller, the following interests,to-wit:

(a) An undivided _________% working interest in the 332.50 acre leasehold around the prospectwell, as described and set forth on Exhibit A, subject to the reservations contained herein.

(b) Buyer shall assume its undivided interest and the undivided interest acquired herein shall besubject to its proportionate share of the following:

(1) The terms, conditions, and reservations contained in any oil and gas leases, seismicpermits, lease option agreement, farm-out, farm-in and other contracts andagreements concerning or contained within the Prospect area.

(2) The terms, conditions, and reservations contained in this Agreement.

(3) The terms and conditions, contained in the Operating Agreement, hereinafter referred toas “Operating Agreement”, a copy of which is attached hereto and incorporatedherein by reference for all purposes.

1.02 Consideration. Buyer agrees to pay $_____________of the actual total costs to re completethe prospect well on the Double play Project, as defined and set forth in Exhibit “A” to earn a________ %working interest and a _______% net interest the prospect and the amount will be paid upon execution ofthis agreement.

2

1.03 Assignment. Provided the Prospect well is completed as a commercial well and provided Buyerhas timely and completely paid its share of all costs associated with the completion of the Prospect well, andafter buyer has received 100% of its investment back, Seller will execute and deliver to Buyer a recordableassignment covering one hundred feet (100’) below the stratigraphic equivalent to the deepest depth drilledwith good and merchantable title.

1.04 Seller’s Obligation – Permit. For and in exchange for the consideration to be paid pursuant toSection 1.02, Seller shall (a) negotiate, acquire and pay for all necessary contracts, oil and gas leases, leaseoption agreements permits & farmout agreements.

1.05 Assignment. Upon completion of the program, Buyer shall be entitled to an assignment of itsproportionate share of all leases, options, farmouts and other agreements. Any assignment shall be madepursuant to the terms of the leases, or other controlling agreements, and will be in a form and on termsapproved by the lessors, if lessors have retained the right to consent to assignments of the leases.

II. AREA OF MUTUAL INTEREST

2.01 It is agreed that the lands and depths described on Exhibit "A", attached hereto shall constitutean Area of Mutual Interest, hereinafter sometimes referred to as the "AMI," between the parties hereto, whichshall remain in force and effect for the life of the well of this Agreement.

2.02 The terms of the AMI will be binding upon all parties to the Operating Agreement, and theAMI terms and conditions are contained in and are more particularly set forth in the Operating Agreement.

III. OPERATING AGREEMENT

3.01 Operating Agreement. Except as otherwise set forth herein, the rights and obligations of theBuyer and Seller with respect to operations on the Leases, shall be governed and controlled by the OperatingAgreement. The execution of this Agreement shall be considered as acceptance and ratification of theOperating Agreement made a part hereof. In the event a conflict or ambiguity between the terms andconditions of the Operating Agreement and this Agreement, then the terms and conditions of this Agreementshall prevail and control.

IV. ARBITRATION

4.01 Arbitration Clause. The parties hereto agree that all disputes between them arising out of or inconnection with this Agreement shall be resolved by arbitration as provided herein. This agreement toarbitrate shall survive the rescission or termination of this Agreement. Arbitration shall be conducted pursuantto the Commercial Arbitration Rules of the American Arbitration Association. If available, the panel usedshall be selected from arbitrators having at least ten (10) years of oil and gas experience and employed by theAmerican Arbitration Association and the decision of the arbitrators shall be final and binding on all parties.All arbitration proceedings shall be undertaken pursuant to the Federal Arbitration Act, where applicable, andthe decision of the arbitrators shall be enforceable in any court of competent jurisdiction. In any dispute inwhich any party seeks in excess of $50,000.00 in damages, three arbitrators shall be employed. All costsattendant to the arbitration, including attorney’s fees, shall be borne by the losing party. In resolving alldisputes between the parties, the arbitrator(s) shall apply the law of the State of Texas, excluding its conflict oflaws principles. The arbitrators are by this Agreement directed to conduct the arbitration hearing no later thansix (6) months from the service of

the statement of claim and demand for arbitration unless good cause is shown establishing that the hearingcannot fairly and practically be so convened.

V. RELATIONSHIP OF THE PARTIES

5.01 All liability arising out of or related to this Agreement shall be separate and several, not joint orcollective and shall be in proportion to each party's interest in and to the applicable well, lease or prospect. Itis not the purpose of this Agreement, and this Agreement shall not operate or be construed to create apartnership in law or fact, commercial partnership, mining partnership, partnership for a specific purpose,joint venture, or any other relationship that would render the parties liable as partners, associates, or jointventurers.

5.02 The parties hereto agree that they do not hereby intend to create a partnership for tax purposesor otherwise and to the extent permitted by law, the parties hereto expressly negate the existence of apartnership. Further, each party to this Agreement elects to be excluded from the application of all of theprovisions of Subchapter “K”, Chapter 1, Subtitle “A”, of the Internal Revenue Code (IRC) of 1986, asamended, as permitted and authorized by IRC Section 761 and the regulation promulgated thereunder.

VI. REPRESENTATIONS BY SELLER

6.01 Seller represents and warrants to Participant as of the Effective Date of this Agreement thefollowing:

a. There are no bankruptcy, reorganization or arrangement proceedings pending, being contemplatedby, or to the actual knowledge of the officers of Seller, and threatened against Seller.

b. There are no demands, suits, actions or other proceedings pending or to Seller’s knowledge,threatened before any court or governmental agency that might result in any impairment orloss of Seller’s title to the Leases or any portion thereof.

c. Except for the royalties provided for therein, there are no other burdens or encumbrances affectingthe Leases that would serve to reduce the net revenue interest to be delivered to Buyerprovided for herein.

d. Seller has received no written notice of any violations (alleged or acknowledged) by Seller of anyapplicable rules, regulations or orders of any governmental agency having jurisdiction overthe Leases.

e. Seller is a duly formed organization in good standing under the laws of the State of Texas4VII. REPRESENTATIONS BY BUYER

7.01 Buyer represents and warrants to Seller as of the Effective Date of this Agreement the

following:

a. There are no bankruptcy, reorganization, or arrangement proceedings pending, being contemplatedby or, to the actual knowledge of the officers of Buyer, threatened against Buyer.

b. Buyer is knowledgeable and experienced in the evaluation, acquisition and operation of oil and gasproperties, and is aware of the risks inherent therewith, and Buyer is aware that it could loseall or substantially all of its investment in the Prospect and Leases, and has relied solely on itspersonal knowledge, inspections of the Prospect, and the advice of counsel, and Buyer hasnot relied upon any statement or representation by Seller, whether oral, written, express orimplied, with respect to the condition or value of the Prospect.

c. BUYER FULLY UNDERSTANDS: A) INVESTMENT IN OIL AND GAS DRILLING ANDPROPERTIES IS OF A HIGHLY SPECULATIVE NATURE; B) THE RISKSINVOLVED IN SUCH ACTIVITIES, ALL OF WHICH ARE EXPRESSLY ASSUMEDBY BUYER; AND C) SELLER HAS IN NO WAY OR MANNER MADE ANYGUARANTEES, WARRANTIES, REPRESENTATION OR PROMISES OFCOMMERCIAL SUCCESS OF THE PROSPECT OR REGARDING THECERTAINTY OF THE ORIGIN, QUANTITY, QUALITY, CONDITION,MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, OREXISTENCE OF ANY RESERVES OR FUTURE VALUES TO BE DERIVED FROMTHE PROSPECT; AND D) BUYER HAS HAD AN OPPORTUNITY TO MAKE ANINDEPENDENT EVALUATION AND EXAMINE ALL RECORDS RELATING TOTHE PROSPECT TO ITS SATISFACTION.

d. Buyer represents, among other things, that it has such knowledge and experience in financial andbusiness matters that it is capable of evaluating the merits and risks of investing in theProspect.

e. Buyer is acquiring an interest in the Prospect for its own account and not for distribution or resalein any manner that would violate any state or federal securities law, rule, regulation ororder.

f. Buyer understands that the available interest in the Prospects is not being registered under theSecurities Act of 1933, as amended (the “1933 Act”) on the grounds that the issuance thereofis exempt under the applicable provisions of the 1933 Act as a transaction by an issuer notinvolving any public offering, and that reliance on such exemptions is predicated in part onthe truth and accuracy of the Buyer’s representations and warranties. Buyer further representsthat it meets the requirements to be an ”Accredited Investor” as that term is defined in Rule501 of Regulation D promulgated under Section 4(2) of the 1933 Act, as amended.

VIII. TERM OF AGREEMENT

8.01 This Agreement shall terminate upon termination of all of the Operating Agreement to whichBuyer is a party related to the Leases, unless terminated earlier in whole or part as provided for herein. Uponsuch termination, all rights and obligations by and between the parties hereto shall terminate, provided thatthe parties shall not be relieved of any obligations which have accrued or attached prior to the date oftermination of this Agreement. All representations and warranties provided herein shall survive termination ofthis Agreement.

IX. CONFIDENTIALITY

9.01 Buyer expressly acknowledges the confidential and proprietary nature of the data andinformation reviewed by and to be reviewed by Buyer related to the Prospects and the wells to be drilledunder this Agreement, and Buyer hereby agrees to maintain and preserve the confidential nature of suchinformation. The term “Confidential Information” shall include, but shall not be limited to certain seismicdata in the possession of Seller, together with associated maps and interpretation of such data which has beenperformed by Seller and its consultants; the terms and provisions contained in any and all seismic licensingagreements, leases, lease option agreements, and other agreements covering the Prospects; all well files, logs,cores, well data and similar analyses attributable to wells previously drilled on or near the Prospects and towells to be drilled pursuant to this Agreement; and any and all associated information related to the Prospectswhich is owned, controlled or possessed by Seller. However, the Confidential Information does not includeinformation, if any, which (a) becomes generally available to the public, other than as a result of a disclosureby Seller or by other parties, including employees and agents, to whom Buyer has disclosed information; (b)was known by Buyer on a non-confidential basis prior to its disclosure to Buyer by Seller; (c) has beenindependently developed by Buyer without violation of any of the provisions of this Agreement; or (d)subsequently becomes available to Buyer on a non-confidential basis from a source other than Seller,provided that such source is not bound by a confidentiality agreement with Seller.

9.02 Prior to making any disclosures to persons authorized to receive such disclosures pursuant tothis Agreement, Buyer shall obtain from each such person a written undertaking of confidentiality containingobligations of confidentiality no less strict than those contained in this Agreement.

9.03 Notwithstanding anything to the contrary contained herein, Buyer may disclose ConfidentialInformation to working interest owners in the Leases, or to third parties to the extent such information isrequired to be disclosed under applicable law, rule or regulation of any governmental entity havingjurisdiction over such matters. Furthermore, Buyer may disclose Confidential Information toprospective purchasers of Buyer, or to prospective third party participants in any exploration activities ofBuyer, so long as the party to whom such disclosure is made executes a confidentiality agreement ascontemplated herein.

9.04 The confidentiality obligations provided for in this section shall extend for the duration of thisAgreement, and for a term of one (1) year following termination of this Agreement. Due to the inadequacy ofremedies at law for the breach of the confidentiality obligations contained in this section, Seller and Buyeragree that a disclosing party shall be entitled to injunctive relief to enforce such confidentiality provisions.

6X. FORCE MAJEURE

10.01 If any party is rendered unable, wholly or in part, by force majeure to carry out its obligationsunder this Agreement, other than the obligation to indemnify or make money payments (except moneypayments triggered by force majeure conditions affecting production volumes or sales thereof) or furnishsecurity, that party shall give to all other parties prompt written notice of the force majeure with reasonablyfull particulars concerning it; thereupon, the obligations of the party giving the notice, so far as they areaffected by the force majeure, shall be suspended during, but no longer than, the continuance of the forcemajeure. The term "force majeure," as here employed, shall mean an act of God, strike, lockout, or otherindustrial disturbance, act of the public enemy, war, blockade, public riot, lightening, fire, storm, flood orother act of nature, explosion, governmental action, governmental delay, restraint or inaction, unavailability ofequipment or oilfield services, and any other cause, whether of the kind specifically enumerated above orotherwise, which is not reasonably within the control of the party claiming suspension. The affected party

shall use all reasonable diligence to remove the force majeure situation as quickly as practicable. Therequirement that any force majeure shall be remedied with all reasonable dispatch shall not require thesettlement of strikes, lockouts, or other labor difficulty by the party involved, contrary to its wishes; how allsuch difficulties shall be handled shall be entirely within the discretion of the party concerned.

XI. ASSIGNMENT

11.01 Unless expressly stated herein to the contrary, the rights, duties and obligations of the Partiesunder this Agreement are freely assignable provided that any and all such assignments are made expresslysubject to this Agreement and its terms and conditions. Any attempted assignment of any interest, rights,duties or obligations within an AMI subject to this Agreement that are not made expressly subject to thisAgreement shall be null and void in all respects.

XII. OTHER PROVISIONS

12.01 Further Assurance. Buyer and Seller shall execute and deliver any and all such other andadditional instruments and do any and all further action as may be reasonably necessary to fully andeffectively carry out the purposes of this Agreement.

12.02 Headings for Convenience. The paragraph headings used in this Agreement are inserted forconvenience only, and shall be disregarded in construing this Agreement.

12.03 Severability. In the event any one or more covenants, clauses or provisions of this Agreementshall be held invalid, unenforceable or illegal, such invalidity or unenforceability shall not affect any otherprovisions of this Agreement. The waiver by one party or the failure of the other party to perform any of itsobligations under this Agreement shall not be deemed to be a waiver of any subsequent nonperformance ofsuch obligation, or the waiver of any other obligation of the other party. The failure by either party to enforceat any time or for any period any of the terms of this Agreement shall not be deemed to constitute awaiver of rights to enforce any other continuing or subsequently arising obligation.

12.04 Warranties. Seller agrees to warrant title to the working interest and net revenue interestdelivered to Buyer in and to the Leases from and against the claims of all third parties by, through and underSeller, but not otherwise. Except for the foregoing, Seller makes no warranties with respect to the matterscovered by this Agreement.

12.05 Time. The parties hereto stipulate and agree that time is of the essence of the performance ofall terms, duties, obligations and provisions of this Agreement.

712.06 Binding Effect. The terms and provisions of this Agreement shall be covenants running with

the land affected hereby and shall insure to the benefit of and be binding upon the parties hereto, theirrespective heirs, devisees, personal representatives, successors, and assigns.

12.07 Entire Agreement. The terms and conditions and reservations contained in the instrumentsreferred to in Section 1.01, including the Leases and the Operating Agreement, and all of their attachmentsand exhibits are incorporated herein by reference for all purposes hereof. All of the terms and conditions ofthis Agreement and the agreements and the instruments reflected in Section 1.01 hereof collectively constitutethe entire agreement between the parties hereto. The foregoing sets forth the entire agreement between theparties hereto, and there are no verbal or oral agreements between the parties, in connection with the LeasedPremises, not set out herein in writing. All written or oral agreements or representations of either party in

connection with the Leased Premises, which were made prior to the date this Agreement is executed by bothparties, are hereby superseded and replaced by this Agreement. This Agreement may not be amended exceptby subsequent writing expressly denominated as an amendment to this Agreement, that is executed by bothBuyer and Seller.

12.08 Execution. Buyer shall indicate Buyer’s approval and acceptance of the terms and conditionsherein set forth by signing this Agreement in the space provided below, and returning one (1) fully executedoriginal of this Agreement to Seller at its McKinney, Texas offices along with the required cash considerationas set forth herein. Facsimile signatures to this Agreement shall be deemed to have the same binding effect asoriginal signatures.

12.09 Effective Date.

The Effective Date of this Agreement is ___________________, 2021

SELLER: B&B Financial Group, LLC

By: Erica BanksPresident

By:_______________________________________________________

BUYER:

By:_______________________________________________________

Print Name:________________________________________________

Whose address is:__________________________________________________________

TIN or SS# _________________ State: ____

Phone: ____________________________________________________

E-mail:_____________________________________________________

ARTICLE XV...MISCELLANEOUS

A. Execution:

This Agreement shall be binding upon each Non-Operator when this Agreement or acounterpart thereof has been executed by such Non-Operator and Operator notwithstanding thatthis Agreement is not then or thereafter executed by all of the parties to which it is tendered orwhich are listed on Exhibit "A" as owning an interest in the Contract Area or which own, in fact, aninterest in the Contract Area.

B. Successors and Assigns:

This Agreement shall be binding upon and inure to the benefit of the parties hereto andtheir respective heirs, devisees, legal representatives, successors and assigns, and the terms hereofshall be deemed to run with the Leases or Interests included within the Contract Area.

C. Counterparts:

This Agreement may be executed in any number of counterparts, each of which shall beconsidered an original for all purposes.

D. Severability:

For the purposes of assuming or rejecting this Agreement as an executory contract pursuantto Federal bankruptcy laws, this Agreement shall not be severable, but rather must be assumed orrejected in its entirety, and the failure of any party to this Agreement to comply with all of itsfinancial obligations provided herein shall be a material default.

IN WITNESS WHEREOF, this agreement shall be effective as of the _____day of______________, 2021

__________________________Signature of Non-Operator

________________________________________Printed Name

EXHIBIT "A"

Attached to and made a part of that certain Joint Operating Agreement datedMarch 1, 2021 between Operator and Non-Operator

DESCRIPTION OF LAND AND WELLS:Verna Loper Lease

Oil, Gas and Mineral Lease dated December 10, 1957, between Mrs. Verna Loper, a widow, as Lessor, and Travis Ward, as Lessee, 140 acres more orless out of the acreage covering the South 40 acres of the North 120 acres of a 320 acre tract in Anderson County, Texas, out of the James WilsonSurvey, said lands being in said lease fully described, which said lease is recorded in Volume 570, Page 32 of the Deed Records of Anderson County,Texas.

Oil, Gas and Mineral Lease dated December 9, 1957, between Mrs. Verna Loper, a widow, as Lessor, and Travis Ward, as Lessee, covering the South23.56 acres out of 103.56 acres in the James Wilson Survey, in Anderson County, Texas, said lease fully described, which said lease is recorded inVolume 570, Page 37 of the Deed Records of Anderson County, Texas.

And certain wells located on the lease as follows:

Well Name RRC Well ID Number Status

Verna Loper #1B API # 42-001-32285 Oil & Gas Well

Verna Loper #2A API # 42-001-32290 Salt Water Disposal (SWD)

Verna Loper #2 API # 42-001- 32265 Oil & Gas Well

Verna Loper #3 API # 42-001-32243 Oil & Gas Well

J.D. Loper #1 API # 42-001-80537 Oi Well

Ben H. Wathen Lease

Oil & Gas Mineral Lease dated August 31, 1933, Ben H. Wathen, et ux, Elizabeth, as lessor did execute and deliver to W.H. Roeser, Inc., as lessee, anoil, gas and mineral lease, recorded in Volume 185 at page 409 of the Deed Records of Henderson County, Texas, covering certain land brieflydescribed as 71.00 acres out of the A.J. Allen Survey, Abstract 93, which is the second tract described in said lease, County of Anderson, State ofTexas, said land being more fully described in said lease, reference to said lease and to the record thereof being here made for all purposes; and,

Oil & Gas Mineral lease dated of July 1, 1969, Mrs. Ben H. Wathen, as Lessor, did execute and deliver to Vernon E. Faulconer, as Lessee, an oil, gasand mineral lease, recorded in Volume 637 at Page 620 of the Deed Records of Henderson County, Texas, covering certain land briefly described ascovering 2.20 acres of land out of the A.J. Allen Survey in Anderson and Henderson Counties, Texas, said land being more fully described in saidlease, reference to said lease and to the record thereof being made here made for all purposes.

Well Name RRC Well ID Number Status

Ben H. Wathen #1D API # 42-001-30090 Salt Water Disposal (SWD)

Ben H. Wathen #2 API # 42-001-00046 Oil & Gas Well

Ben H. Wathen #3 API # 42-001-30308 Salt Water Disposal (SWD)

C.D. Wright LeaseOil & Gas Mineral Lease dated September 15, 1933, C. Duke Wright, et ux. Lula Frances, as Lessor did execute and deliver to J.M. Hayner, asLessee, an oil, gas and mineral lease, recorded in Volume 16 at Page 78 of the Deed Records of Henderson County, Texas, and in Volume 230 at Page236 of the Deed Records of Anderson County, State of Texas, insofar and only insofar as said lease covers formations lying between the surface of theearth and the base of the Woodbine Formation in and under certain land briefly described as 99.3 acres out of the Isaac Clendennen Survey, Abstract154, of Henderson County, State of Texas, and covering certain land briefly described as covering four (4) acres in the R.H. Pierson Survey, Abstract626 of Henderson County, State of Texas, said land being more fully described in said lease, reference to said lease and to therecord thereof being here made for all purposes.

Well Name RRC Well ID Number Status

C.D. Wright #2 API # 42-001-80103 Oil & Gas Well

C.D. Wright #4 API # 42-001-30342 Oil & Gas Well

*There are no depth restrictions associated with the leased acreage.

INITIALS:

This document will be attached to and made part of the certain JOA dated March 1, 2021

(B) Amendment of Rates:

The Overhead Rates provided for in this Section III may be amended, from time to time, ifthe rates are found to be insufficient or excessive.

IV. PRICING OF JOINT ACCOUNT MATERIAL PURCHASES, TRANSFERS ANDDISPOSITIONS;

Material purchased shall be charged at the price paid by Operator. In case of Material foundto be defective or returned to the vendor for any other reason, credit shall be passed to the JointAccount when adjustment has been received by Operator.

Operator does not warrant the Material furnished. In case of defective Material, credit shallnot be passed to the Joint Account until adjustment has been received by Operator from themanufacturers or their agents. Whenever necessary, or as Operator may deem expedient, Operatorshall sell or dispose of any unused or unnecessary material at the best available price thereof at thetime of such disposition, without being charged with the responsibility of holding such material forany time period solely for the purpose of obtaining a higher price.

V. Inventories

The Operator shall maintain records of Controllable Material. At a reasonable interval,Inventories shall be taken by the Operator of the Joint Accounts Controllable Material.Non-Operators may be present at this inventory. The expense of conducting periodic inventoriesshall be charged to the Joint Account.

VI . Overhead - Fixed Rate Basis(1) Operator shall charge the Joint Account at the following ratesper well per month:

Monthly Production Report Filing (RRC) $ 750.00(Prorated for less than a full month) Producing Well Rate $ 300.00

TURNKEY AGREEMENT

In consideration of the “Turnkey” program price, ENR Operating, LLC agrees to re-equip, re-work and re-complete andattempt to put into production, by all means, necessary all ten (10) well outlined in the Verna Loper, Ben H. Wathen,and C.D. Wright lease located in Anderson and Henderson Counties, Texas. This Agreement covers a single zonecompletion in each assigned well and production facilities.

The responsibilities of the Company shall comprise the following:

1. Permit the prospect well for re-completion.

2.Build the necessary roads and prepare locations.

3. Dig all pits necessary for re-working and re-completing, backfill pits, and restore surface. 4.) Pay

for all damages to surface buildings and crops as necessary.

5. Use best efforts to secure and maintain adequate insurance coverage against liabilities arising out of re-completionactivities and construction of facilities on the leases.

6. Furnish an adequate work-over rig, water, fuel, bits, and other related items necessary to re-complete the LowerRodessa Formation.

7. Run all Logs and tests that a responsibly prudent company would perform to properly assess the wells ability toproduce commercially.

8.) Furnish all services and equipment necessary to treat and or stimulate the Lower Rodessa Formation.

9. Provide the necessary engineering services to complete and equip the well.

10. Arrange for the expedient hook-up of the prospect well.

11. Collect and disburse all revenues due to participants. ENR agrees there will be no “Cash Calls” for any operationalcosts, repairs or expenses incurred on the well. Any expense that occurs in excess of non-operators revenues from the

well will be paid out of future revenues with no interest or penalties charged.

12. Relay all drilling reports and pertinent information pertaining to the daily production of the

wells. Agreed to on this __________ Day of _________________________, 2021.

Print Name:____________________________________

Participant/Non-Operator

__________________________________________