Late harvest

Late Harvest Lease BankThis information is for general purposes only and is not a solicitation. Information in this document is proprietary and confidential and may not be copied or disclosed to third parties, directly or indirectly, without written permission. Terms are subject to withdrawal and/or change without notice.

Late Harvest Lease Bank Harrison & Marion Counties, TX

In Partnership With New Century Exploration, Inc

Seven Angel Group intellectual data is Private and Confidential.

3102 Maple Avenue Suite 400

Dallas Texas 75201

888.771.6979

Late Harvest Lease Bank

Key PointsLease bank – funds leases and earn carried interests in development project.

Opportunity for the development of shallow oil reserves in historical fields where horizontal drilling and fracking technology have not been used.

Targeted 5-6,000 acre lease acquisition followed by planned sales event with carried interests in development program.

Estimated 45 horizontal wells, reserve potential of 15.5 million BOE in tight under-drilled reservoirs.

Main objectives/shallow reserves: Rodessa I Pettet I Travis Peak I Cotton Valley

Deeper potential: Bossier I Norphlet


Key Personnel

Candyce Ter Haar Communications and Reporting

Phil Martin CEO

Solomon Brown Funding Partner, 7AG

Narda Martin CFO

Duncan DuBroff Exploration Manager

Jeff Grimes Land Manager

C.B. Caire Engineering Manager

Walt Stone Chief Geologist and Geophysicist

Seth JortnerLand Man

Lindsay Holley Contracts and Regulatory

Debbie Wixson Controller


Executive SummaryThe Late Harvest Lease Bank straddles the border between Harrison and Marion County lines in East Texas. Sizable lease blocks are currently commanding premium prices. One recent example is the sale in late 2011 by Hilcorp to Marathon of 141,000 acres in the Eagle Ford Trend for $3.5 billion ($25,000/acre). New Century and Seven Angel’s initial lease target is 5,000 acres, followed by a development program of an estimated 45 horizontal wells with potential estimated reserves of 15.5 million BOE.

Target The main objectives are the Rodessa, Pettet, Travis Peak and Cotton Valley formations - all prolific producers in East Texas. Participants will help fund lease acquisition with the option to join in a sale with cash proceeds and no-risk, no-cost carried interests. Deeper Bossier and Norphlet formations have considerable future potential and add value to the long term outlook.

Competitive Advantage The edge is using new technology - horizontal drilling and fracking - to recover bypassed reserves in historical oil fields with no horizontal development. Horizontal drilling and fracking are extremely effective in tight reservoirs. Reserves and flow rates are often 5-10 times that of vertical wells in similar settings.

Opportunity The timing is ideal to acquire a lease position at Late Harvest before prices go up. 5,000 acres can be leased in 6-12 months and a development program can begin shortly after that. Over 600 Acres have already been acquired and are included in this program. All of the targets are shallow and normally pressured and New Century is experienced in drilling and fracking.

Production The cumulative production of the Rodessa, Pettet, Travis Peak and Cotton Valley trends totals 543 million BO and 35 TCF of natural gas. The Late Harvest area is a sweet spot and local fields have yielded over 35 million BO and 1.4 TCF of gas to date (all from vertical drilling except for some Cotton Valley wells). Productive trend patterns indicate a sizable undrilled reserve potential.

Current Status For all the focus on shale development, horizontal development of tight formations offers much better economics. Wells are less costly, declines are flatter, and pay outs are substantially quicker. A deep Norphlet discovery by Valence 15 miles south has flow rates exceeding 2,000 BOPD and has created much interest. BP is buying leases across the entire western half of Harrison County. Mineral owners 4 miles southeast of Late Harvest turned down $1,000/acre for deep rights only and our data shows our acreage is just as strong with potentially more upside.


Production by TrendTarget Formations

Reserves – Total and Average by Trend

The example combines the Oil production with the Natural gas and illustrates the potential through BOE calculations.

One BOE is roughly equivalent to 5,800 cubic feet of Natural Gas.

Rodessa PettetTravis Peak

Cotton Valley12 10 15 8

Total Production Total Average veritcal well Average horizontal well (5x)

Formation Oil Gas Wells Oil Gas Oil Gas BOE

Rodessa 155,416,107 2,965,368,625 2,795 55,605 BO 1.061 BCF 278,025 BO 5.30 BCF 521,612 BO

Pettet 193,936,067 9,356,475,269 4,569 42,446 BO 2.048 BCF 212,230 BO 10.24 BCF 682,392 BO

Travis Peak 106,132,945 7,224,629,315 9,583 11,075 BO 0.754 BCF 55,376 BO 3.77 BCF 228,465 BO

Cotton Valley 87,472,238 15,362,256,966 17,296 5,057 BO 0.888 BCF 25,287 BO 4.44 BCF 229,210 BO

Total 542,957,357 34,908,730,175 34,243 28,546 BO 1.188 BCF 142,730 BO 5.94 BCF 415,420 BO


Well Costs, Reserves & EconomicsEstimated Well Costs Study designed by NCE geologist,engineers and land team

Estimated Reserves Horizontal well reserves estimated using 5x recoveries from average trend-wide production per vertical well

Rodessa 12 horizontal wells $2,000,000/well $24,000,000

Pettet 15 horizontal wells $2,000,000/well $33,000,000

Travis Peak 10 horizontal wells $2,000,000/well $25,000,000

Cotton Valley 8 horizontal wells $2,000,000/well $22,400,000

Total Developer Cost $104,400,000

Formation Average BO Average BCF Wells Oil Gas BOE

Rodessa 278,025 5.738 12 3,336,300 BO 68.9 BCF 6,498,213 BOE

Pettet 212,230 3.212 15 3,183,450 BO 48.2 BCF 5,396,022 BOE

Travis Peak 55,376 4.597 10 553,760 BO 46.0 BCF 2,664,437 BOE

Cotton Valley 25,287 2.143 8 202,296 BO 17.1 BCF 989,398 BOE

Total Oil and Gas 45 7,275,806 BO 180.2 BCF 15,548,069 BOE

Estimated value using $4.50/MCF, $100/BO, 75% NRI $545,685,450 $608,011,333 $1,153,696,783

Total estimated value = $1,153,696,783


AMI

Local Production: 6,802,687 BO + 321 BCF Average vertical well: 30,369 BO + 1.4 BCF

No horizontal development (should be >5x)

Field values calculated by avg/total production and a market price of $90 Oil $4.50 MCF

Rodessa Fields Friendship – 31 Rodessa wells 2,885,326 BO + 352 MMFG Av well = 93,075 BO + 11 MMCF Per well = $8,426,250

Vicki Lynn – 24 Rodessa wells 2,352,006 BO + 2.5 BCFG Av well = 98,000 BO + 105 MMCF Per well = $9,292,500

Whelan – 20 Rodessa wells 137,266 BO + 94.3 BCF Av well = 6,863 BO + 4.7 BCF Total = $436,703,940

Woodlawn – 42 Rodessa wells 304,016 BO + 73.5 BCF Total = $358,111,440

Lansing – 98 Rodessa wells 1,060,384 BO + 147.8 BCF Av well = 10,820 BO + 1.5 BC Total = $760,534,560

Gooch – 9 Rodessa wells with great logs but very tight sands and was not fully producible so developers stayed away from our AMI target. 63,689 BO + 2,969 MMCF Av well = 7,077 BO + 330 MMCF


Local Production: 22,148,391 BO + 345 BCF

Average vertical well: 51,628 BO + 803 MMCF


Pettet Fields Rodessa – 27 Pettet wells 909,524 BO + 33.7 BCF Av well = 33,686 BO + 1.2 BCF

Gooch - 23 Pettet wells 820,151 BO + 3.5 BCF Av well = 35,659 BO + 151 MMCF Per well = $3,209,310

Harleton - 23 Pettet wells 700,263 BO + 2.5 BCF Av well = 30,446 BO + 108 MMCF Per well = $3,226,140

Lake Ferrell – 34 Pettet wells 3,171,813 BO + 441 MMCF Av well = 93,289 BO + 13 MMCF Per well $8,396,010

Lansing – 33 Pettet wells 778,463 BO + 7.8 BCF Av well = 23,590 BO + 234 MMCF

Whelan – 40 Pettet wells 2,390,078 BO + 1.8 BCF Av well = 59,752 BO + 46 MMCF Per well = $5,584,680

Hallsville - 58 Pettet wells 6,102,483 BO + 85.3 BCF Av well = 105,215 BO + 1.5 BCF

AMI



Average vertical well: 8,675 BO + 1.2 BCF


Travis Peak Fields

AMI

Rodessa – 49 Travis Peak wells 837,477 BO + 65.9 BCF $166,613,130

Woodlawn – 75 Travis Peak wells 89,182 BO + 42.6 BCF Av well = 1,189 BO + 568 MMCF Primarily Gas in this section

Gooch – 28 Travis Peak wells 364,802 BO + 16.3 BCF Av well = 13,029 BO + 582 MMCF Horizontal development would have opened up muchmore of the reservoir

Lansing - 107 Travis Peak wells 844,524 BO + 85.8 BCF Av well = 7,893 BO + 802 MMCF

Whelan - 165 Travis Peak wells 1,542,021 BO + 276.6 BCF $287,447,670 Lack of oil production here



Average vertical well: 5,388 BO + 536 MMCF

Limited horizontal development (>5x)

Cotton Valley Fields

AMI

Rodessa – 33 Cotton Valley wells 324,587 BO + 6.6 BCF Av well = 9,836 BO + 200 MMCF

Woodlawn – 348 Cotton Valley wells 1,873,141 BO + 211.0 BCF Av well = 5,383 BO + 606 MMCF

Lassater – 38 Cotton Valley wells 466,257 BO + 27.7 BCF Av well = 12,270 BO + 730 MMCF

Lansing – 39 Cotton Valley wells 99,852 BO + 18.0 BCF Av well = 2,560 BO + 461 MMCF

Whelan – 13 Cotton Valley wells 4,002 BO + 1.7 BCF Av well = 308 BO + 128 MMCF Poor porosity from wells an ideal climate for horizontal development


New Century Exploration, Inc.

Focus Low-risk development of historical, shallow oil fields where new technology can free up previously inaccessible reserves (with a smaller footprint). Many older fields with tight (low permeability) reservoirs were uneconomic and abandoned due to the small drainage areas and flow rates of vertical wells. This happened frequently during times of low oil prices, but these old fields are being rejuvenated with the new technology and high oil prices. Horizontal drilling, fracking and enhanced oil recovery can increase flow rates and recoverable reserves dramatically with a lot less risk.

Opportunity A great opportunity is presented while much of the industry’s attention is on shale plays.

Horizontal drilling in tight formations offers the same low risk and extensibility of shale plays, but at lower cost, faster pay outs and robust cash flows (vs. 90% declines over the first year of most shale wells). Oil is also much easier to target and produce in tight reservoirs, in addition to a greater life expectancy and flatter declines.

Edge The edge is a motivated team using the latest technology along with the traditional skills and experience vital to growth of the company’s oil and gas reserves. The key personnel have a long record of working together on successful

projects. They include licensed geologists, geophysicists, engineers, and land men, empowered by an expert administrative staff handling all permitting, budgeting, marketing, reporting, regulatory, insurance, accounting and tax related issues.

New Century and Seven Angel have successfully acquired thousands of attractive acres over the last year. The companies reach is further extended by long lasting and strong relationships with the best service companies, including Schlumberger, Baker Hughes, BJ Services, Halliburton, Pathfinder, Frac Tech, NuTech Energy, Scandrill, IHS, Ely & Associates, Seismic Micro-Technology, and others.

New Century Exploration, Inc. is a privately-held, licensed and bonded, energy company with operations in Texas and Louisiana. We have joined forces with Seven Angel Group and their innovation has been played a large role in our future acreage expansion. NCE has a long, safe, and successful record of exploring, developing and producing oil and natural gas resources. The company is expert in all aspects of oil and gas production, from prospect to pipeline and we look forward to a profitable future with you.


Economic Potential Economic potential illustrated at 1.5% working interest.

Profit Model A) Share in the proceeds from the sale of the leases 5000 acres for an avg of $2,500 an acre = $12,500,000

$187,000 share in lease profits (1.5% of 12,500,000) B) After placing the leases we will retain interest. Planned negotiation is a “25% carry” so a 1.5% working interest

will equate to .375% carried interest in the field. (1.5% of 25 = .375%)

Potential over 15 million BOE based on 5x recovery from horizontal development

The preceding projections above and on the next slide were prepared using assumptions that are deemed to be reasonable and intended only as an estimate of what income may be derived from the project under certain favorable conditions. There is no assurance, expressed or implied, that any of the economic projections will be realized, or that any of the assumed favorable conditions will be achieved by the prospect. Actual results may differ materially from the projected results. The economic forecast should not be relied upon for any purpose other than an illustration of the income that may be derived under certain favorable conditions, which in fact may not occur.

Total Production Price of Oil Gross rev (75% NRI) .375% interest

1,000,000 BOE $90 $67,500,000 $253,125

2,000,000 BOE $90 $135,000,000 $506,250

4,000,000 BOE $90 $270,000,000 $1,012,500

8,000,000 BOE $90 $540,000,000 $2,025,000

16,000,000 BOE $90 $1,080,000,000 $4,050,000Illustration does not include the lease operating expenses The example combines the Oil production with the Natural gas and illustrates the potential

through BOE calculations. One BOE is roughly equivalent to 5,800 cubic feet of Natural Gas.


Economic Potential Economic potential illustrated at 1.5% working interest.

Example of monthly and yearly cash flow potential from the well development. A) Developmental wells = 45 . B) Retained interest per 1.5% ownership @ 25% carried interest post placement = .375% carried interest in

production acreage generates within the AMI. (Late Harvest Leases.)

Production example

Daily Production Rate Price of Oil # of Wells prod/total (30 days)

Cash Flow (monthly)

Cash Flow (yearly)

25 BOE per day $90 20/15,000 BOE $3,796 $45,552

50 BOE per day $90 20/30,000 BOE $7,592 $91,104

50 BOE per day $90 40/30,000 BOE $15,184 $182,208

75 BOE per day $90 40/60,000 BOE $22,776 $273,312

100 BOE per day $90 40/90,000 BOE $30,368 $364,416


Notes

Investor Relations

Late harvest