JERRY L. CANFIELD, P.A.THOMAS A. DAILY, P.A.WYMAN R. WADE, JR., P.A.DOUGLAS M. CARSON, P.A.ROBERT R. BRIGGS, P.A. †C. MICHAEL DAILY, P.A. † !COLBY T. ROE

† Also Licensed in Oklahoma! Also Licensed in Wyoming & North Dakota

DAILY & WOODSA PROFESSIONAL LIMITED LIABILITY COMPANY

ATTORNEYS AT LAW

KMW BUILDING58 SOUTH SIXTH STREET

P.O. BOX 1446FORT SMITH, AR 72902

TELEPHONE (479) 782-0361FAX (479) 782-6160

______________

Writer’s Direct Dial No. (479) 242-3968

JAMES E. WEST

OF COUNSEL_______

HARRY P. DAILY (1886-1965)JOHN P. WOODS (1886-1976)JOHN S. DAILY (1912-1987)

BEN CORE (1924-2007)

July 29, 2015

Arkansas Oil and Gas Commission2215 West HillsboroEl Dorado, Arkansas 71730

Re: ORDER REFERENCE NO. 097-2015-08

Application of Foundation Energy Management, LLC, Requesting Reinstatementand an Extension to the “Temporary Abandonment” Status for its Swiss FamilyVineyards #1-34 Well, located in Section 34, Township 10 North, Range 26West, Franklin County, Arkansas

Commissioners:

Foundation Energy Management, LLC, 4611 Rogers Avenue, Suite 102, Fort Smith, AR72903, hereby applies as follows to the Arkansas Oil and Gas Commission for anextension to the “Temporary Abandonment” status for its Swiss Family Vineyards #1-34Well, pursuant to Arkansas Oil and Gas Commission General Rule B-7(h)(1).

1. The Swiss Family Vineyards #1-34 Well is operated by the applicant and islocated within Section 34, Township 10 North, Range 26 West, Franklin County,Arkansas. It was administratively granted Temporarily Abandonment status on August1, 2012. That administratively granted status will expire on August 1, 2015, and theApplicant will thus then be required to plug the well unless its Temporarily Abandonedstatus is extended by the Commission pursuant to General Rule B-7(h)(1).

2. Applicant requests an extension to the “Temporary Abandonment Status” for theSwiss Family Vineyards #1-34 Well so that it can attempt a recompletion of the well atthe Paul Barton Formation (approximately 4,070' to 4,100').

3. Swiss Family Vineyards #1-34 Well’s location is well maintained, free of trash orthe possibility of environmental contamination and, therefore, there is no risk involved inallowing it to continue to remain a temporarily abandoned well. The Applicant thereforerequests that the Commission grant a reinstatement and extension of the Swiss FamilyVineyards #1-34 Well’s “Temporary Abandonment” status for an additional six months

from August 1, 2015, in accordance with Arkansas Oil and Gas Commission GeneralRule B-7(h)(1).

4. The names and addresses of parties interested in this proceeding are set forth inExhibit "A" attached hereto and made a part hereof.

5. Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C.,P.O. Box 1446, Fort Smith, Arkansas, 72902, on behalf of applicant.

Very truly yours,

Thomas A. Dailyjmt

PRIDE ENERGY CO PO BOX 701950 TULSA OK 74170-1950

GENE A SANDERS 124 SO JACKSON SUITE 512 MAGNOLIA AR 71753

WILLIAM T &VERA PAULINE LOFTIN PO BOX 49

BLUE EYE MO 65611

ENGLAND INVESTMENTS LTD 1 INNWOOD CIRCLE SUITE 204 LITTLE ROCK AR 72211

KING REAL ESTATE HOLDINGS INC 9221 MOODY ROAD FORT SMITH AR 72903

KAY BROCK BUCHERI PO Box 49 Blue Eye MO 65611

WILLIAM T CAINS SR LLC PO Box 459 Altus AR 72821

GRANT NALLY PO BOX 5354 FORT SMITH AR 72913

CHESAPEAKE OPERATING INC PO Box 203892 Dallas TX 75320-3892

SEECO INC PO BOX 672625 HOUSTON TX 77267-2625

CHESAPEAKE OPERATING INC PO Box 203892 Dallas TX 75320-3892

CHRIS WEISER WEISER BROWN OPERATING CO PO BOX 500

MAGNOLIA AR 71754

WEISER BROWN OIL CO PO BOX 500 MAGNOLIA AR 71754

TAYLOR FAMILY LTD PARTNERSHIP A 3600 GASTON AVE SUITE 458 DALLAS TX 75246

AFE No.: AFE Amount DRILLING

COMPLETIONS

Total (Gross):WI: Total (Net):

Prepared by

Location Cost (Road, Survey, Damages)

Rig Move - Rig Up, Rig Down

Footage Cost

Day Work Cost

Completion / Workover Rig

Bits, Reamers & Stabilizers

Fuel, Lubricants, Water

Trucking, Transportation

Mud and Chemicals

Wireline Services

Electric / Other Logging

Cementing Services

Directional Services

Tubular Inspection / Handling (Pressure Testing)

Mud Logging / MWD

Coring & Analysis

Casing / Other Tangible Crews

Contract Labor

Land / Trade Fees

Equipment Rental

Pollution Control

Camp Expense

Professional Services / Consulting

Acid, Frac, Sand Control

DST, Formation Testing

Fishing Tools & Services

Supervision

Operating Overhead

Other (Waste Disposal)

Damages

Permitting

Insurance

Blowout Insurance

Miscellaneous Service / Supplies

Miscellaneous-(Reclamation)

Conductor Casing

Surface Casing

Intermediate Casing

Production Casing

Tubing

Rods / other art. lift tang.

Flowlines / Valves / Fittings

Heater-Treater & Separators

Compression Facility

Production Equipment - Subsurface (Anchor & Pump)

Christmas Tree / Wellhead equipment

Miscellaneous

Tanks

Separator & heater Treater

Compressor & Dehydator

Metering Equipment

Flowlines & Installation

Fabrication

Pumping Unit, Gas lift equipment, etc.

Miscellaneous Valves, Fittings, Safety Equipment

Installation Costs

Company Supervision

Other

CONTINGENCY

TOTAL COST

APPROVALBy (VP Land/Commercial) Date By (CFO) Date

By (VP Operations) Date By (CEO) Date

JOINT OWNER APPROVALFirm By Title Date

$0 $80,080 $80,080

$0

10% $0 $7,280 $7,280

870.80 -

TOTAL LEASE EQUIPMENT $0 $0

870.17 -

870.70 -

870.21 -

870.14 -

870.24 -

870.53 -

870.42 -

Le

as

eE

qu

ipm

en

tC

os

ts

DESCRIPTION ACCT DRILLING ACCT COMPL. TOTAL870.20 -

870.22 -

870.23 -

840.50 860.50 -

TOTAL TANGIBLES $0 $0 $0

860.12 -

840.25 860.20 -

860.17 -

860.19 -

860.18 -

860.09 -

Various 0.00

0 0.00 860.11 -

860.15 -

-

0 0.00 840.15 860.14

0 0.00 840.20

-

Ta

ng

ible

Co

sts

DESCRIPTION ACCT DRILLING ACCT COMPL. TOTALFEET SIZE

0 0.00 840.10 860.13 -

GRADE $/FT

830.50 850.50 -

TOTAL INTANGIBLES $0 $72,800 $72,800

830.32 850.32 -830.34 850.34 $3,000 $3,000

850.39 -

830.36 850.36 -

830.35 850.35 -

830.38 850.38 -

$4,000 $4,000

830.33 850.33 -

0 days @ $0/day 830.14 850.14

850.26 -

830.20 850.20 -

830.31 850.31 -

830.25 850.25 $25,000 $25,000

830.29 850.29 -

830.30 850.30 -

830.37 850.37 -

830.10 850.10 $9,000 $9,000

830.27 850.27 -

830.28 850.28 $5,000 $5,000

-

830.24 850.24 -

0 days @ $0/day 830.16 850.16

830.19 850.19 -

830.23 850.23 $3,000 $3,000

-

830.18 850.18 -

830.22 850.22 $7,000 $7,000

0 days @ $0/day 830.17

830.15 850.15 $3,000

850.17

$3,000

830.12 850.12 -

830.11 850.11 $3,000 $3,000

830.13 850.13 -

$0.00/ft 830.07 850.07 -

-

0.0 days @ $0/day 850.40 $10,800 $10,800

0 days @ $0/day 830.09 850.09

AFE Description

Paul Barton Re-Completion Juan Posada

Inta

ng

ible

Co

sts

DESCRIPTION ACCT DRILLING ACCT COMPL. TOTAL830.05 850.05 -

830.06 850.06 -

0 feet @

2,400' FNL, 660' FWL 30-10N-26W Cecil/Orr Franklin, AR.

Well / Battery Prospect Name Total Depth Est. Start Date

Swiss Family 1-34 Sedna 4,770' 8/1/2015

37.0% NRI: 88.0% AFE Date: 6/25/2015 $29,630

Location Sec-Twn-Rng Producing Horizon County & State

Foundation Energy Management, LLCDrilling - Completion - Workover - Facilities

AFE

$0

AFE Type: Re-Completion $80,080

AFE Category: CAPEX $80,080

Juan Posada

2900 W Pittsburg St. Broken Arrow, OK. 74012 ♦ (918) 766-1552 ♦ jposada@foundationenergy.com

EDUCATION The University of Tulsa - Tulsa, OK Graduation Date: May 2011 B.S., Petroleum Engineering Minor in Geosciences

WORK EXPERIENCE Foundation Energy Management July 2013 – Present Operations Engineer

• Support the operations of 390+ wells in Arkansas & Oklahoma (Arkoma Basin) and Colorado (DJ Basin). Oversee their production and take preventive and corrective measures to maintain target production.

• Asses key wells at an individual basis to find ideal production method. Involved in optimization techniques.

• Evaluate rod pump efficiency with the use of dynamometers to diagnose problems such as gas interference, bad pumps, fluid pounding, among others.

• Design workover procedures to increase or bring back lost production, including acid stimulation, re-perforations, and wellbore fixes. Involved in the design and implementation of stimulation work overs

• Maintain constant communication with field personnel to strengthen team work and improve the workover’s efficiency.

CPVEN - Colombian Branch Sept. 2011 – Oct. 2012 Cementing and Stimulation Engineer

• Designed operational procedures for cementing and acid stimulation pumping operations for both vertical and horizontal wells (over 60 wells)

• Managed an abandonment plug campaign (22 wells) that represented over $450,000 of gross income

• Led several working crews (up to 25 people) during field service operations • Prepared and presented roughly $19MM worth of various projects and economic proposals for

potential clients; out of which $7MM came to fruition • Attended weekly meetings with various clients to have an overlook of the services being

presented, hear their feedback and strengthen relationships SUMMARY OF QUALIFICATIONS Professional skills

• Working experience in cementing, stimulation with acid, fracturing, completions fluids and coil tubing; working knowledge of production and completions operations, wellbore mechanics and fracturing

• Field operations, HSE management and applications, engineering services experience • Project development and economic feasibility proposals • Quality and reliability assurance of cementing and stimulation oil field services • Budget and resource optimization and monitoring, without compromising the integrity of the

operation

Software

• O&G related software: PHDwin, Aries, Rod Star, Echometer, Total Asset Management, Qrod, Echometer Gas Separator Simulation, Production Explorer, OpenWells, CemPro.

• Office Suites: most Microsoft and Mac Office Suites • Programming: Visual Basic (2+yrs.)

Professional certificates

• OSHA – 10 hrs. certified • H2S Awareness certification. • Artificial lift – oilandgastraining.com • Gas well testing – oilandgastraining.com

Personal

• Effective interpersonal skills to work within multi-disciplinary teams to achieve project-related goals • Languages: Spanish (native), English (fluent), French (basic) • Teamwork oriented, proactive, accountable, hard worker.

ORGANIZATIONAL INVOLVEMENT Society of Petroleum Engineering Jan. 2007 - Present President - “La Tertulia”, Organization for language development students Aug. 2009 - May 2011 Treasurer - “One Pound of Hope”, University of Tulsa community service Aug. 2009 - Jan. 2011 "Big Brothers Big Sisters of Oklahoma", Youth Mentoring Organization June 2007 - Aug. 2008

References Available Upon Request.