HULL SALT DOME INFILL DRILLING PROJECT Liberty County, Texas STRATTON #1 4000’ FRIO/MIOCENE ELSIE TAYLOR HEIRS 10 ACRE TRACT #1

HULL OILFIELD. The Hull oilfield is west of Farm Road 770 and forty miles northwest of Beaumont in eastern Liberty County. Although the Sun Oil Company located a salt dome in the area in 1908, ten years elapsed before the Republic Production Company brought in the first producing well at Hull, at 5,000 feet. From 330,000 barrels in 1918, production jumped to eight million barrels in 1921. It tapered off thereafter, although another major field, New Hull, was discovered in 1935. The original Hull field caused a boom in Hull and Daisetta, which had a combined population of some 4,000 during the 1930s. In 1984, though the boom days had long since ended, the Hull field continued to yield more than 630,000 barrels of oil a year and sizable quantities of casinghead gas. Much of the increase in production during these years was due to the extensive engineering work carried out in the area. Cumulative production as of 2010 had exceeded 200,000,000 barrels.

The Elsie Taylor Heirs is 35 acres, more or less, with infill drilling prospects from 2000 foot Miocene, 4000 foot Frio, 5500 foot Yegua and 8000 foot Cook Mountain formations. There is also other contiguous acreage available.

The Frio trend in the northwest portion of the Hull Field, at 4000’, will typically produce around25,000 barrels of oil in the first year, 15,000 in the second declining to stripper production (1-10/day)for many years.This area of the field was originally drilled by Harvey Mecom (Houston Production Co.) in the 1920’sAnd his son John Mecom from the 1940’s through the 1980’s at the time of his death in 1983, then sold to P & V, who drilled the last wells before the rapid decline of oil prices in 1987 through 2000.The location pictured above was built but not drilled and lease expired in February of 2015.