1. Growth Capital for Small Production-Based Oil & Gas Ventures

2. WHO WE AREPartnering for 18 years to provide small producers with more than $350 million in small transactions Cathy SlivaTexas A&M Petroleum Engineer Dave Stevens LSU / U of HGeologist / MBA Allen ShookUT / U of H Petroleum Engineer / MBA Scott Abel Texas A&M Petroleum Engineer Lucynda Herrin Florida State CPA Chuck Hallbert OU / Rice CPL / MBA 2 3. OUR HISTORY SINCE 1993Our partners have 30 years in the industry and 18 years togetherStart-UpIPOMerger Start-Up Name ChangeStart-UpTenneco Domain RangeBlackRock BlueRock Energy BlueRock EnergyVenturesEnergy Resources Energy Capital Capital, Ltd.Capital II, LLC (1993-1996) (1996-1998) (1998-2002)(2002-2007) (2007-2009)(2009-Present) 3 4. WHAT IS BLUEROCKS GROWTH CAPITAL?BlueRocks growth capital is a lower-cost alternative to sellingoff your projects working interest to raise equity4 5. HOW IT WORKSBlueRock Deal Characteristics Use of Proceeds: Acquisitions, Development Plans, and Monetizations. Investment size: $1 to $10 million Deal Structure:A non-recourse financial production payment via a limited term over-ride and small permanent overriding royalty after payout. Timing:Simple deal structure results in minimal documentation and the ability to close in less than 30 days. Engineering: No third party reports are required. Closing Costs: Closing costs are nominal. No hidden fees. Hedging: Hedging not required. Area:Lower 48 (USA)5 6. DEAL MATH CREATING TEMPORARY EQUITYA simple example based on $80 oilASSUMPTIONS: 50 bopd $80 oil $30,000 per month LOE 100% WI, 80% NRI Severance Tax = 4.6% 30.4 days per month1. (50 bopd x 30.4 x $80 x 80% x 95.4%) = $92,805 monthly Net Revenue2. ($30,000 LOE / $92,805 revenue) = 32% of revenue3. 32% + 10% cushion = 42% of 80% NRI = 34% NRI to Producer4. 58% of 80% NRI = 46% ORRI to BlueRock until limited term override payout6 7. ADVANTAGES AND DIFFERENTIATIONWe are E&P professionals that understand your business! Investment sizes between $1 and $10MM Client retains upside and control of project Repeatable and expandable Simple deal structure and reporting Provides more capital than a bank No personal or corporate guarantees No 3rd party engineering reports required Team: engineers, geologists and landmen Cost of capital may be tax deductible* Favorable accounting treatment may apply**BlueRock does not advise clients on tax and accounting issues. Please seek independent professional advice for your unique issues.7 8. THE IDEAL CUSTOMERWhat we look for Experienced industry professionals Specific focus, i.e. area, trend or niche Administrative expertise and processes Uncomplicated corporate structure Projects with upside potential Integrity8 9. INFORMATION REQUIREMENTS What we use to evaluate your project Letter of Intent or PSA (if funding an acquisition) Property and deal description, The Story Customers own engineering evaluation of properties Use of proceeds Production history, decline curves, state reports Purchase statements, prior 12 months Lease Operating Expense history, prior 24 months Company financial statements References and resumes9 10. EXAMPLE CASE STUDYLouisiana CompanyBlueRock Rate ofGross Prod. FundingReturnDate(BOPD)($M)(%)Use of ProceedsInitial13774518Retire bank debt / re-activate SI wells11/0219033618Acquire 4 wells5/03 23427518Acquire 3 wells6/03 35994018Acq. 15 producing, 10 SI wells11/0339925018Acquire 2 wells3/04 5381,000185 well drilling program11/046131,50016Acq. 1 well, development of several others2005-066792,06816Working capitalTotal6797,114Balance reduced to $845 M @ payoff 12/0610 11. BLUEROCK CONTACTSGet to know us!Regardless of where you are in your planning process, we encourage you to call or stop by ouroffices and get to know us. You never know when an opportunity may develop! Also connectwith us on Linkedin as we help producers growth their companies.Chuck Hallbert, CPLchallbert@bluerockenergycapital.com Phone 281-376-0111 ext. 305 www.BlueRockEnergyCapital.com 20445 State Highway 249 3 Chasewood Park, Suite 160Houston, TX 7707011