FENTRESS WELL COMPLETION PROJECT - Patriots Energy … · FENTRESS WELL COMPLETION PROJECT ... It...

Executive Summary

FENTRESS WELL COMPLETION PROJECT

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FENTRESS WELL COMPLETION PROJECTFor the 1st time in over 60 years, the U.S. has bragging rights to being the TOP oil pro-ducer in the WORLD! And this does NOT sit well with our “competitors” for this top billing. The Saudi’s (and the rest of OPEC) and Russia are going to do their best to slow things down. But the genie is out of the bottle. So, how did the U.S. finally get a leg up on energy independence? Two words: Technology and Shale.

1) Technology: The act of horizontal drilling has been around for quite a while. How-ever, it’s just over the last 7 - 10 years that technology has made it SAFE and RELIABLE. Way back when, you could end up seeing your drill bit come up in a corn field over a half a mile away! And there went your well! All that money, right down the drain! And then there is the technology and design of products and infusion for advanced “Frack-ing”. “Slick waters” and jells allow for ease of penetration under deep pressurized conditions, un-locking prior hidden reserves.

2) Shale: For many, many years, shale was looked at as a source rock only for natural gas. Since it was considered too dense to hold any quantities of liquids, the fissures and faults DID allow for the migration of natural gas. While that still holds true today, about 8 years ago, that ALL began to change. Using new methods for treating and completing wells, we’re able to tap into this source rock and unlock its treasure, OIL! At one time, the words “Bakken Shale” and the “Eagle Ford Shale” were only names in the minds of the real pioneers and risk takers in the Oil & Gas industry. Being aware of how technology had improved both the drilling AND the stimulation or “fracking”, a few gutsy players staked huge resources on these major “shale plays”. And today, these places are synonymous with the unprecedented growth in energy development for the entire United States!

Now we know, because of what’s been proven ahead of us, that the combination of today’s techniques and extensive “shale plays” can bring HUGE profits when properly exploited.

The Illinois Basin (Illinois, Indiana, and North Western Kentucky) contains one such recently discovered shale play. It’s called the “New Albany Shale” and since 2010, has been attracting drillers and oilmen from all over the country looking to get their “piece” of the next great shale play. What used to be a mediocre gas play has become a huge oil find!

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FROM TRASH TO TREASUREIn 2006, one of the premier independents of the “Appalachian Basin”, Daugherty Petro-leum Inc., was being bought out by another big player in that market, Magnum-Hunter. As these transactions go, the primary interest of the buyer was Eastern and Central Kentucky assets, NOT the area that Daugherty already had drilling commitments in Breckenridge County. So, Daugherty went ahead and DRILLED its commitments in the area. But, be-cause they were headed for easy street, they NEVER COMPLETED THE 12 WELLS THEY HAD DRILLED!!!

When there are no royalties paid on an oil & gas lease, it will lapse and is available to a NEW commitment. It’s HERE that hard work meets opportunity.

Patriots Energy Group, Inc. is a domestic Oil & Gas Company. We hold interests in energy development. With our contacts and relationships, and lots of time, energy and of course capital, we are able to access over 40,000 acres spread throughout this Breckenridge and Meade Counties, Kentucky. In that process, we ACQUIRED the Eugene & Sue Fentress Well, Permit #98674.

This well was originally drilled on January 2nd, 2006. It is a HORIZONTAL well located in Breckenridge County, Kentucky. During its initiation, the well OPENED FLOWED OVER 200 M.C.F of natural gas PER DAY! And here’s the phenomenal news: It was NEVER treated (fracked) and completed, and now we OWN IT! We performed a lot of research and inves-tigation prior to acquisition. The word on this well was that it was possibly the largest gas well on record in all of North West Kentucky!!

COMPLETION OPPORTUNITYPatriots Energy Group, Inc. is offering Direct Interest purchase in this well. We are offer-ing only 30 units worldwide at $50,000 each for a total of $1,500,000 USD. Each “unit” will receive a 2% Net Revenue Interest (see Pro Forma page). The multi-stage “frack” job is cur-rently scheduled for early Summer 2015.

As an added benefit, Patriots Energy Group, Inc. is also only one of 3 companies in the entire WORLD that qualifies for a “hedge” for its investors. It’s called a “Production Defi-ciency Protection Plan”. This Plan, provided by Petroleum Mutual Inc., is set up so that if the well does NOT recover 100% of the invested capital in 10 years from the initial date, the difference will be 100% refunded to the investors by the PLAN. Given the nature of an already drilled well, the availability of the Protection Plan, and the potential upside, this is truly a once in a lifetime opportunity. An extremely limited downside with an upside that could easily see growth in excess of 25% PLUS!!

Review the enclosed information, ask some questions and get involved in this unique opportunity!!

THE FENTRESS WELL COMPLETION PROJECTThe new technology being used throughout the Oil & Gas industry has been responsible for the re-birth and resurgence of the domestic energy business. Oil production has surged, just in the last 5 years, to once again make the U.S. a world leader in energy production! Where and how did this begin? The secret recipe for fracturing (“fracking”) techniques has re-opened shale production in many pockets throughout the U.S. The most famous of these would be the Bakken Shale (North Dakota) and the Eagle Ford Shale in Texas. This same technology used to generate these shale plays has opened up a number of “Baby Bakken” plays as well. One of the premier areas JUST beginning to be put into production is the Illinois Basin New Albany Shale. This basin encompasses Indiana, Illinois, and Western Kentucky. All these states have a tradition of oil and gas production dating back to the last century, and NOW, their biggest production days are once again in their future!! The wells drilled and completed in this “new” shale play have averaged between 6 and 300 Bbls. per day, with only one dry hole out of more than 25 wells recently drilled.

Patriots Energy Group, Inc. has researched this area over the last 15 months. With strategic partners, we have access to oil & gas rights to 40,000 acres in Breckenridge & Meade Counties. This is the largest single leasehold of any company currently active in this area. There are 11 active companies* with operations and permit applications pending in this area!

Since many thought for years for this to be primarily a “gas play”, the area was home to numerous drilling companies and operators in the gas development business. Being that it is shale, it was a “blanket play”, meaning 9 out of every 10 wells drilled was a commercial producer. The only hold back, at times, was the need to wait on pipeline development resulting in some wells being shut in.

AN “ACCIDENT” OF SUCCESS

One company in the market decided they wanted to see if they could enhance their daily gas delivery rate by using some of the “new” fracking methods that had previously created such great results in other shale plays, so they treated one of their wells. The “treatment”, or frac job, integrates the use of A LOT of water (400 - 700 Bbls). Being low pressure wells, it takes a number of days, sometimes weeks, to “recover” all the treatment water. So, this company put their well on pump and placed a water tank on site to quickly re-trieve the water used in the frac job. After three days of water disposal, they received a call from their water truck operator who said, “You folks probably want to come over and look at your well”. It was making oil!! 33 Bbls per day!! THAT was essentially the beginning of what is becoming one of the fastest and biggest “new” oil plays in the U.S.

There are 26 permits issued JUST for the month of July awaiting drilling activity, with 7 rigs noted on loca-tions.

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“Carmen Well” - is a direct offset which is already producing oil.

TRASH TO TREASURE, OIL IN THE HOLE!

The 40,000 acres under this lease extends over 5 miles and two counties, mostly in Breckenridge, some in Meade County, and is comprised of almost 200 different parcels throughout this entire area. In one cluster of leases, the land man was told that they had been leased out years earlier, but those leases had expired. Title was run, and sure enough, they were clear for us to execute the leases. It was only later that we dis-covered Daugherty Petroleum had drilled 12 wells on these leases. They ALL had “shows”, but were ALL shut in for “future development” and were never produced, thus paid NO royalties! Without royalty payments, leases expired at the end of their term. Subsequently, since Daugherty sold out to Magnum-Hunter, this well was lost in the shuffle and the lease(s) expired which gave us the opportunity to acquire ownership!!

So what we have here is close to $2 Million in drilling monies at today’s costs ALREADY spent!! We have put a rig over 4 of the wells already, and they ALL have oil STANDING in the hole. This is before ANY treatments! Evidence supports the fact that this is the proverbial “birds nest on the ground” scenario. That’s why this is being called the Fentress Well Completion Project. It is ONLY being offered to Accredited and International Investors.

HERE’S THE BREAKDOWN:

Thirty (30) units at $50K each for a total of $1,500,000. This is ALL asset aquisition (well ownership) and completion monies. Expenses to include logging, running 4 ½ steel pipe, cement, rods, tubing, pump jacks, motors, road work, site reclamation, separators, flow lines, electric lines, tank pads, rock base, tanks, and most important a 5-8 stage “horizontal” frac job!!

100% Working Interest is 75% Net Revenue Interest, 60% to the Interest Owners (each “unit” equals approxi-mately 2% Net Revenue Interest).

This is truly a once in a lifetime opportunity to see annual gains of 30% (see pro forma) or better and to have a secondary income for years to come! This is by far a 5-Star Recommendation! ACT NOW!

Action in the Area:* Anderson, CountryMark Energy Resources, LLC., Endeavor Energy Resources, LP., GTC Land and Energy Technologies, LLC., Halls WellService, Inc., Hard Rock Drilling Co., Henning Construction, Inc., Pioneer Oil Co., Sargent Oil Co., Leland Energy, Inc.,Sunshine Oil & Gas, LLC, B & J Oil Co., Patriots Energy Group, Inc.

Left: Aldridge Well - Flowing Gas and Oil

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Above: Kevin Tucker #15

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THE HISTORY OF THE ILLINOIS BASIN

The first oil and gas boom experienced in the Illinois basin (an approximately 60,000 square mile area that covers parts of southern Illi-nois, southwest Indiana and northwest Kentucky) was in the early 1900s.

By the 1930s, seismic tech-nology became available and improved the process enough to provide a second boom in the basin. This sec-ond period of success lasted through the 40s and 50s, with a peak production in 1940 at 147.6 million barrels of oil.

Over the years, 4 billion bar-rels of oil and 4 trillion cubic feet of natural gas have been produced in Illinois using conventional methods. However, many people believe there is much more to uncover beneath this basin, and the reason lies in the geologic formation known as the New Albany Shale.

Major oil plays have come from shale formations such as the Woodford Shale under the Anadarko Basin, the Marcellus Shale under the Appalachian Basin, the Antrim Shale under the Michigan Basin, the Eagle Ford Shale in Texas and the Williston Basin in North Dakota.

These have formed the reputation of some of the most prolific source rocks on the continent.

In 2002, a study showed that the New Albany Shale was deep enough to have generated an estimated 300 billion barrels of oil. This means that even if only a fraction of that oil can be recovered, this basin has the potential to become a massive horizontal play. Again, using conventional methods, there have been almost 90,000 wells drilled in the Illinois basin, 32,000 of which are still producing today! The next step in developing the potential of this area is to move to an unconventional method known as horizontal drilling.

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DRILLING METHODS

First patented in 1891 by Robert E. Lee, Horizontal drilling is not a new concept. However with advances in technology and necessity to meet rising demand, there is an increased focus on accessing less accessible reservoirs, and therefore constant improvements on the process of horizontal drilling.

Now accounting for 5 – 8% of active onshore wells in the United States, and increasing every year, horizontal drilling has become an extremely important technology.

Horizontal wells increase the exchange surface between the well and reservoir rock and create a longer drain hole, and because of this, horizontal wells can produce up to ten times more than vertical wells.

The Illinois Basin contains many productive Lower Mississippian Carbonate reservoirs, much like the Appalachian Basin, that are ideal for horizontal development. When practiced along-side hydraulic fracturing, horizontal drilling can convert unproductive shale structures into fantastic reservoir rocks.

C. G. COLLINS PETROLEUM CONSULTANTP.O. Box 380

Campbellsville, KY 427192 70-789-7969

May 7, 2014

Re: Black Shale Oil Production

At your request, I have evaluated the reserves of the Shale on your acreage inBreckenridge and Meade Counties in Western Kentucky. This writer doing theevaluation has reviewed all the available records at the Kentucky Geological Survey;also, utilized my files and other operators in the area.

GENERAL

There are several operators in the area with large amounts of acreage. Thesecompanies have drilled as many as 300 Shale Gas wells in this area of interest but itwasn’t until the summer of 2013 that anyone had Frac’ ed the upper section of theShale.

Endeavor Energy re-entered one of the original gas wells, Whifill #5, and Frac’ed thetop porosity section from 1852 to 1860. After Frac’ing the well produced 33 BBL ofoil per day and has made in excess of 8,000 BBLs to date.

Hard Rock Drilling perforated and Frac’d their James Pullen #1 and its InitialProduction was at 49 BOPD and 100 MCFGPD. The James Pullen #1 hasaccumulated approximately 9,000 BBLs of oil to date. There are other producingwells in this area but the writer does not have enough reliable information at thistime.

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C. G. COLLINS PETROLEUM CONSULTANTP.O. Box 380

Campbellsville, KY 427192 70-789-7969

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RESERVE CATEGORY

Most of the reserves in this report are classified as Potential Undeveloped; however,in the offset location, I have classified it as Proved Undeveloped.

CLASSIFICATION OF RESERVES OIL/BBLS

POTENTIAL UNDEVELOPED RESERVES OVER 42,000 ACRES 32Million (+/-)

PROVED DEVELOPED RESERVES 46,000 bbl PER WELL

The writer is independent with respect to this project, as provided in the StandardsPertaining to Estimating and Auditing of Oil and Gas Reserves informationpromulgated by the Society of Petroleum Engineers.

It should be understood that this report does not constitute a complete reserve studyof this property, as we have not attempted to calculate any gas reserves.

Reserve estimates are strictly technical judgments. This accuracy of any reserveestimate is a function of the quality of data available and this petroleum consultant’sinterpretation; however, the reserve estimates presented herein are believed to beaccurate evaluation of the reservoir.

SUMMARY

After studying the information concerning this Shale Project, it is the opinion of thiswriter that this area will develop into a major oil and gas play. Hopefully drilling willcontinue at the present level in this area of Kentucky because it is greatly needed. Itappears that both oil and gas will be produced. Pipelines are already in place andcriss-cross the area of production in both Breckenridge and Meade Counties.

Respectfully submitted,

C. G. CollinsPetroleum Consultant

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Oil, Gas and Consumable FuelsCompany Overview of Kentucky USA Energy, Inc.

Executive Profile

C. G. CollinsVice President of Engineering & Development and Director, Kentucky USA Energy, Inc.

BackgroundMr. C. G. Collins has been Vice President of Engineering & Development of KentuckyUSA Energy, Inc. since May 2008. Mr. Collins experience ranges from equipmentoperator in 1960 to manager-in-charge with Dowell, a division of Dow Chemical. Heserves as President of both the Tennessee Oil and Gas Association and the KentuckyOil and Gas Association. He served as in charge of completion and re-completion of oiland gas wells from 1965 to 1969. He served as manager-in-charge for the eastern halfof Michigan for Dowell. Mr. Collins serves as Director of Kentucky USA Energy, Inc. Hehas been named Oil Man of the Year - Tennessee; and affiliated with the AmericanInstitute of Mining, Metallurgical and Petroleum Engineering, the American PetroleumInstitute, and the Society of Petroleum Engineers. He holds a Bachelor of ScienceDegree in Chemistry from Campbellsville University and a Bachelor of Science degreein Petroleum Engineering from the University of Texas.

Corporate Headquarters321 Somerset RoadLondon, Kentucky 40741

United States

Board Members MembershipsVice President of Engineering & Developmentand Director

Kentucky USA Energy, Inc.

EducationBS – The University of Texas System

BS – Campbellsville University Inc

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Phillips Well # 1Permit No 42190TD 1134; Elog, Elev 565SCTGol Base 145 to 175Jx 175 to 215Brlw 240 to 250Bethel 360 to 375Renault 375st Louis 680 to 968

NALB Cored-Pipe SetTesting NALB & FT PayneReported not to be a good Well

NALB Cored-Pipe SetFraced Testing NALB-Good Gas

NALB PerferoatedScheduled to be Fraced

Ben Taul Well-NALB Perferoatedand Fraced

Pipe set through the NALBWaiting to be completed

NALB Pipe SetTested NALB Reported not to be a good Well

NALB Pipe SetReported to be a good FT Payne well

#2-NALB Pipe Set & FracedIP 10 to 12 BOPD NALBReported to be a good FT Payne show

#1-NALB Pipe Set & FracedSee Video-Bring Frac back

Scheduled to be drilled in Sept 2014



Good NALB Oil Wwll40 BOPD


Reported to be Good Ft Payne Well200 BOPD or No good-Pipe set




HARD ROCK DRLG CO

B & J OIL CO, INC

HARD ROCK DRLG CO

HARD ROCK DRLG CO

ANDERSON, IRVIN JR

ANDERSON, IRVIN JRDOUBLE D PRODUCERS, INC

DOUBLE D PRODUCERS, INC

SUNSHINE OIL & GAS, LLC

SUNSHINE OIL & GAS, LLCSUNSHINE OIL & GAS, LLC





PIONEER OIL COMPANY, INC PIONEER OIL COMPANY, INC

PIONEER OIL COMPANY, INC




SARGENT OIL COMPANY, LLC

COUNTRYMARK ENERGY RESOURCES, LLC



COUNTRYMARK ENERGY RESOURCES, LLCCOUNTRYMARK ENERGY RESOURCES, LLC

HALL'S WELL DRLG & PUMP SERVICE, INC


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Map Legend: • Tentative Location

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IMPORTANT

All The dAIly PROducTION NuMbeRs ON ThIs MAP ARe bAsed ON OuR OwN ReseARch ANd “besT effORTs” bAsIs. cOMPANIes, IN The OIl & GAs INdusTRy, esPecIAlly IN “New” TeRRITORIes, ARe veRy cOMPeTITIve. All The cOMPANIes cuRReNTly AcTIve (8 AT lAsT cOuNT!) IN ThIs AReA ARe eX-TReMely secReTIve ANd cAuTIOus IN shARING ResulTs. They ARe NOT RequIRed TO RePORT dAIly PROducTION NuMbeRs If They OPeRATe New wells uNdeR A “TIGhT hOle” desIGNA-TION, whIch AllOws fOR 12, TO sOMeTIMes 24 MONThs Of NO PublIc dIsclOsuRe As TO PROducTION. The NuMbeRs ReflecTed IN ThIs MAP ARe The ResulT Of dIlIGeNce, ReseARch, ObseRvATIONs, TANkeR TRuck dRIveRs (eXcelleNT sOuRce!) dRIlleRs ANd GeOlOGIsTs PeR-sONAl ANd PROfessIONAl RelATIONshIPs. we belIeve, bAsed ON OuR INfORMATION, All These dAIly PROducTION NuMbeRs TO be As AccuRATe A PIcTuRe As The AReA cuRReNTly cAN PROvIde. ANy AReAs bORdeRed IN “blue” desIGNATe OuR leAse hOldINGs!

Permitted to Drill Results Pending


Ben Taul Well NALB Perforated & Fracked

#1-NALB Pipe Set & Fracked

#1-NALB Pipe Set & FrackedIP 10-12 BOPD NALB

Reported to be a good FT Payne show

NALB PerforatedScheduled to be

Fracked

Good NALB Oil Well75 BOPD




NALB Pipe setReported to be a good

Ft Payne Well


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Phillips Well # 1Permit No 42190TD 1134; Elog, Elev 565SCTGol Base 145 to 175Jx 175 to 215Brlw 240 to 250Bethel 360 to 375Renault 375st Louis 680 to 968

NALB Cored-Pipe SetTesting NALB & FT PayneReported not to be a good Well

NALB Cored-Pipe SetFraced Testing NALB-Good Gas

NALB PerferoatedScheduled to be Fraced

Ben Taul Well-NALB Perferoatedand Fraced

Pipe set through the NALBWaiting to be completed

NALB Pipe SetTested NALB Reported not to be a good Well

NALB Pipe SetReported to be a good FT Payne well

#2-NALB Pipe Set & FracedIP 10 to 12 BOPD NALBReported to be a good FT Payne show

#1-NALB Pipe Set & FracedSee Video-Bring Frac back






Reported to be Good Ft Payne Well200 BOPD or No good-Pipe set




HARD ROCK DRLG CO

B & J OIL CO, INC

HARD ROCK DRLG CO

HARD ROCK DRLG CO

ANDERSON, IRVIN JR

ANDERSON, IRVIN JRDOUBLE D PRODUCERS, INC

DOUBLE D PRODUCERS, INC


SUNSHINE OIL & GAS, LLCSUNSHINE OIL & GAS, LLC





PIONEER OIL COMPANY, INC PIONEER OIL COMPANY, INC





SARGENT OIL COMPANY, LLC




COUNTRYMARK ENERGY RESOURCES, LLCCOUNTRYMARK ENERGY RESOURCES, LLC



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13

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19

12

2

1999

1949

1758

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1682

1808

1808

BRECKINRIDGE

HANCOCK

OHIO

2

1

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O 3 5O 3 5O 3 6O 3 6

N 3 5N 3 5 N 3 6N 3 6

Map Legend: • Tentative Location

••

• •

• •

IMPORTANT

All The dAIly PROducTION NuMbeRs ON ThIs MAP ARe bAsed ON OuR OwN ReseARch ANd “besT effORTs” bAsIs. cOMPANIes, IN The OIl & GAs INdusTRy, esPecIAlly IN “New” TeRRITORIes, ARe veRy cOMPeTITIve. All The cOMPANIes cuRReNTly AcTIve (8 AT lAsT cOuNT!) IN ThIs AReA ARe eX-TReMely secReTIve ANd cAuTIOus IN shARING ResulTs. They ARe NOT RequIRed TO RePORT dAIly PROducTION NuMbeRs If They OPeRATe New wells uNdeR A “TIGhT hOle” desIGNA-TION, whIch AllOws fOR 12, TO sOMeTIMes 24 MONThs Of NO PublIc dIsclOsuRe As TO PROducTION. The NuMbeRs ReflecTed IN ThIs MAP ARe The ResulT Of dIlIGeNce, ReseARch, ObseRvATIONs, TANkeR TRuck dRIveRs (eXcelleNT sOuRce!) dRIlleRs ANd GeOlOGIsTs PeR-sONAl ANd PROfessIONAl RelATIONshIPs. we belIeve, bAsed ON OuR INfORMATION, All These dAIly PROducTION NuMbeRs TO be As AccuRATe A PIcTuRe As The AReA cuRReNTly cAN PROvIde. ANy AReAs bORdeRed IN “blue” desIGNATe OuR leAse hOldINGs!


NALB Pipe Set Tested NALB

Reported not to be a good well

Reported to be a good Ft Payne Well

200 BOPD

-14-

EXHIBIT/CONTRACT AREA A Patriots Energy Group, Inc.

Summary of 12 Existing Wells

and Acreage Position as of 5/2015

Phone: (385) 282-5285 · Fax: (385) 282-5001

INTEREST PURCHASE AGREEMENT

This agreement herein referred to as THE FENTRESS WELL COMPLETION PROJECT will serve as asubmittal to you of a working interest in the above captioned prospect subject to treatment andcompletion of 1 well located in Breckinridge County, Kentucky.

A $50,000 purchase consists of 2.0% Net Revenue Interest or 2.60% Working Interest.

Upon completion of the well, as commercial producers, Patriots Energy Group, Inc. agrees to assign toyou (per $50,000) an undivided 2.60% working interest which equals 2.0% net revenue in the well.

By execution of this participation letter, you understand and agree that Patriots Energy Group, Inc. willoversee operators wherein its standard operating agreement will then become effective and govern theday-to-day operations. You also understand and agree that Patriots Energy Group, Inc. can outsource anindependent company to operate the well wherein Patriots Energy Group, Inc. will manage operations atall times.

YOUR REPRESENTATIONS TO PATRIOTS ENERGY GROUP, INC.

PATRIOTS ENERGY GROUP, INC. understands from you or your representation, the following:

(A) You are financially sophisticated in the business of oil and gas drilling ventures andqualify as an Accredited Investor;

(B) You understand that although our objective is to make money from this matter, this, aswith any oil and gas drilling venture, is a high risk undertaking and even in spite ofPatriots Energy Group, Inc.’s best effort to mitigate risk, your investment (including yourcontribution for completion expenses) may be lost or else never recovered in its entiretyand no representations to the contrary have been made to you or your representativesat Patriots Energy Group, Inc.;

* Notwithstanding the Fentress Well Completion Project is covered by theEnergy Production Deficiency Protection Plan Pledge Agreement.

(C) You have your own tax counsel and recognize that Patriots Energy Group, Inc. makes norepresentation of warranty of any kind of the proper tax treatment of your expendituresfor this matter;

(D) You and Patriots Energy Group, Inc. are not herein agreeing and have not, in any way,agreed to be partners or trustees for the other in regard to the venture and mattersherein set forth;

(E) Patriots Energy Group, Inc. does hereby extend its corporation’s irrevocable agreementto indemnify said Purchaser for all liability in carrying out the authority and directionherein contained on the terms set forth;

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Phone: (385) 282-5285 · Fax: (385) 282-5001

(F) You understand that this matter is not being registered with the SEC;

(G) You understand that this is a turnkey project. If an incident occurs or additional fundsare needed to complete the well, a call for your proportionate share of costs will notarise;

(H) You have performed your own investigation to the extent you believe necessaryregarding this matter; and

(I) This agreement represents the entire agreement between you and Patriots EnergyGroup, Inc. and sets out all inducements or representations made by either party to theother party hereto in regard to this agreement.

Your execution of this letter agreement shall be deemed to indicate the warranty that all of theforegoing statements (A) through (I) are true and correct and you agree to them in its entirety of thisagreement.

Remit to: Patriots Energy Group, Inc.222 South Main Street, Ste. 500Salt Lake City, UT 84101

Agreed to and accepted this ______ day of _________________ 2015, for a __________% working

interest equal to a ___________% net revenue interest at a total cost of $__________________ as

described above.

______________________________________Print Name

___________________________________ ______________________________________Mark W. Wheeler, President Signature(s)Patriots Energy Group, Inc.

_______________________________________Tax ID/ Social Security Number

_______________________________________Address

_______________________________________City, State, Zip

_______________________________________Phone #

_______________________________________Email

Illinois Basin’s New Albany Shale: The Next BigU.S. Horizontal Oil Play?by Keith Schaefer on September 23, 2013

If you were on the hunt for the next big horizontal oil play in the U.S., where would you be inclined to look?

Texas? That makes sense; Texas is the top oil producing state in the country.

California? That also makes sense, California has been a top oil producing state for decades.

But Illinois? Well, would you believe it has produced 4 billion barrels already, and 4 Tcf (that would beTrillion cubic feet) of natural gas?

It’s true. And now, there are rumblings of something very significant happening again in the Illinois oil patch–rumblings of a big horizontal oil play.

Companies in the region are keeping their cards close to their vest, but there is enough information in the publicdomain to know that some oil companies think the Illinois Basin’s New Albany Shale could hold a sizableshale prize. In fact, I’m very surprised we haven’t heard a lot more about this basin yet.

History of the Illinois Basin – It’s Right Under the Industry’s Nose

The Illinois Basin is an oval depression that’s roughly 60,000 miles in the United States Mid-Continent—southern Illinois, southwest Indiana and northwest Kentucky.

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Drilling in the Illinois Basin goes back to 1853—and like many things, it was discovered accidentally; bydrilling that was being done in a search for saltwater. (Early settlers needed saltwater for preserving food andagriculture.)

But it wasn’t until the early 1900s that the first Illinois basin oil boom truly occurred when well casings wereused to manage all the water. (Most retail investors have no idea how much water the oil industry produces—it’s huge.)

In the 1930s a second boom started when seismic technology became available and helped to pinpoint oil pools.

This made oil a lot easier to find, and this oil boom lasted through the 1940s and 1950s. Production peaked in1940 at 147.6 million barrels.

After World War II, production rates fell because all of the easy targets had been drilled. During the boom theIllinois basin was the third largest producing oil basin in the United States.

Since then production has declined with no new oil targets to drill.

That historical production of 4 billion barrels of oil and 4 trillion cubic feet of natural gas was all done withvertical wells in old-style, “conventional” oil pools; not today’s shale or “unconventional” plays.

All that oil had to come from somewhere. Underneath all those conventional oil pools is the New AlbanyShale—and oil and source rock analysis indicates that’s where the oil came from. Given the success of all theseother shale plays in the US under very similar geology, those source rocks could provide a re-birth for oilproduction in a region that has been in decline for more than half a century.

The New Albany Shale Looks Just Like The Bakken

The New Albany Shale is Devonian age and was formed roughly 350 million years ago in a shallow sea thatonce covered the eastern half of the United States.

The New Albany Shale was formed at the same time as four other major U.S. oil resource plays that include:

The Williston Basin / Bakken Shale The Anadarko Basin / Woodford Shale The Appalachian Basin / Marcellus Shale The Michigan Basin / Antrim Shale

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So it was deposited at the same time as some of the most prolific source rocks in North America—that’scertainly a great pedigree! If the other source rocks have borne major horizontal resource plays why wouldn’tthe New Albany Shale?

A 2002 study estimated that the New Albany Shale was deep enough to have generated up to 300 billion barrelsof oil—that’s what the industry calls OOIP—Original Oil In Place.

With that much oil in place, the New Albany shale has the potential to be another big—very big—horizontal oilplay–even if only a small percentage can be recovered

.

That conventional production has come from 140,000 wells that were drilled into the Illinois Basin. 32,000 ofthose wells are still producing! The drilling and production from these wells have allowed oil companiessniffing around the New Albany Shale to gather a lot of evidence. The industry calls that “well control.”

What these companies and their geologists have found has been encouraging as it has led them to conclude thatthe best analog for the New Albany Shale appears to be the Elm Coulee Bakken of Montana—which hasproduced 123 million barrels of oil from horizontal wells so far.

The New Albany and Elm Coulee are similar in age, porosity and size. No two shale plays are exactly alike, butthere is good reason to believe that a short learning curve with horizontal wells could move the New AlbanyShale from being a potential shale oil play to the real deal.

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