Exhibit 99.1

HYDROCARB ENERGY CORPORATION

Estimated Future Reserves

And Income

As of July 31, 2014

Table of Contents

Hydrocarb Energy Corporation

Table of Contents

Discussion
Letter
Reserves Definitions
Certificate of Qualifications
Economic Summary Report	Page
Total Company	1
Proved Producing	2
Proved Shut-In	3
Proved Behind Pipe	4
Proved Undeveloped	5
Field Expenses	6
One-line Summary - Sorted by Reserve Category, Field, and Lease	7-10
Proved Producing Economic Detail Report
Fishers Reef Field	11-15
Point Bolivar Field	16-17
Red Fish Reef Field	18-24
Trinity Bay Field	25-29
Proved Shut-In Economic Detail Report
Fishers Reef Field	30-31
Point Bolivar North Field	32-33
Red Fish Reef Field	34-39
Trinity Bay Field	40-43
Proved Behind Pipe Economic Detail Report
Fishers Reef Field	44-46
Red Fish Reef Field	47-53
Trinity Bay Field	54-56
Proved Undeveloped Economic Detail Report
Red Fish Reef Field	57-64
Trinity Bay Field	65-66
Field Expenses Economic Detail Report
Fishers Reef Field	67-69
Point Bolivar North Field	70-72
Red Fish Reef Field	73-75
Trinity Bay Field	76-78

Discussion

August 21, 2014

Hydrocarb Energy Corporation

800 Gessner Rd., Suite 375

Houston, TX 77024

Attention:	Pasquale Scaturro
	Chief Executive Officer

Re: Oil, Condensate, and Natural Gas Reserves

SEC Non-Escalated Analysis

Hydrocarb Energy Corporation

As of July 31, 2014

Gentlemen:

At the request of Hydrocarb Energy Corporation (“Hydrocarb”), the firm of Ralph E. Davis Associates Inc. (“Davis”) has prepared an evaluation of the oil, natural gas, and natural gas liquid reserves on leaseholds in which Hydrocarb has certain interests. The purpose of this report is to present a summary of the proved developed producing, proved developed behind pipe, proved shut-in, and proved undeveloped reserves that in our opinion meet the criteria for proved reserve volumes in keeping with the directives of the Securities and Exchange Commission as detailed later in this report.

Davis has evaluated 100% of Hydrocarb’s proved developed producing, proved developed behind pipe, proved shut-in, and proved undeveloped properties, all of which are located in either Chambers or Galveston Counties of Texas in the United States. We have prepared these estimates of the reserves, future production and income attributable to the subject interests with an effective date of July 31, 2014, having completed the evaluation of said estimate of reserves based upon the information presented within this report, on August 21, 2014.

The reserves associated with this review have been classified in accordance with the definitions of the Securities and Exchange Commission as found in Part 210—Form and Content of and Requirements for Financial Statements, Securities Act of 1933, Securities Exchange Act of 1934, Public Utility Holding Company Act of 1935, Investment Company Act of 1940, Investment Advisers Act of 1940, and Energy Policy and Conservation Act of 1975, under Rules of General Application § 210.4-10 Financial accounting and reporting for oil and gas producing activities pursuant to the Federal securities laws and the Energy Policy and Conservation Act of 1975. A summation of these definitions is included as a portion of this letter.

We have also estimated the future net revenue and discounted present value associated with these reserves as of July 31, 2014, utilizing a scenario of non-escalated product prices as well as non-escalated costs of operations, i.e., prices and costs were not escalated above current values as detailed later in this report. The present value is presented for your information and should not be construed as an estimate of the fair market value.

1717 St. James Place, Suite 460 Houston, Texas 77056 Office 713-622-8955 Fax 713-626-3664 www.ralphdavis.com

Worldwide Energy Consultants Since 1924

RALPH E. DAVIS

ASSOCIATES, INC.

Hydrocarb Energy Corporation	August 21, 2014
SEC Non-Escalated Analysis	Page 2 of 6
Oil, Condensate, and Natural Gas Reserves

The results of our study related to our estimate of the Total Proved Reserves attributable to Hydrocarb and remaining to be produced as of July 31, 2014 are as follows:

Estimated Proved Reserves

Net to Hydrocarb Energy Corporation

SEC Non-Escalated Analysis

As of July 31, 2014

	Proved
	Producing		Shut In		Behind Pipe		Undeveloped		Field Expense			Total
Net Reserves
Oil/Condensate-MBbls		201.0		73.6		138.8		608.5	-				1,021.8
Gas-MMCF		969.9		896.7		3,916.5		6,248.2	-				12,031.4
Income Data (M$)
Future Gross Revenue	$	26,914.2 $		11,882.7	$	32,973.7	$	87,513.1	$	-		$	159,283.7
Ad Valorem Tax	$	672.9 $		297.1	$	824.3	$	2,187.8	$	-		$	3,982.1
Severance Tax	$	1,381.6 $		658.1	$	2,033.1	$	4,750.6	$	-		$	8,823.4
Operating Costs	$	351.0 $		258.1	$	1,336.0	$	3,172.4	$	36,514.2		$	41,631.6
Capital Costs	$	- $		525.0	$	1,575.0	$	14,950.0	$	4,731.1		$	21,781.1
Future Net Income (FNI)	$	24,508.8 $		10,144.5	$	27,205.3	$	62,452.2	$	(41,245.3	)	$	83,065.5
FNI @ 10%	$	17,502.9 $		7,519.6	$	16,465.3	$	32,002.7	$	(21,972.8	)	$	51,517.7

*(Expenses are applied on a field wide basis. Therefore, the net undiscounted and discounted income (10%) has been adjusted. The values have been adjusted by application of each category’s share of the expense as a percent of its share of the unadjusted income.) Note: Errors in addition are due to rounding.

Liquid volumes are expressed in thousands of barrels (MBbls) of stock tank oil. Gas volumes are expressed in millions of standard cubic feet (MMSCF) at the official temperature and pressure bases of the areas wherein the gas reserves are located.

A summary presentation by reserve category at the scheduled price scenario is included behind the economic summary analysis tab.

Discussion

The scope of this study was to review basic information compiled by and prepare estimates of the proved reserves attributable to the interests of Hydrocarb. Reserve estimates were prepared by Davis using acceptable evaluation principles for each source and were based in large part on the basic information supplied by Hydrocarb.

The quantities presented herein are estimated reserves of oil and natural gas that geologic and engineering data demonstrate can be recovered from known reservoirs under current economic conditions with reasonable certainty. Proved undeveloped locations are scheduled to be drilled such that the investment cost will be fully recovered prior to recovery of estimated reserve volumes.

Texas Registered Engineering Firm F-1529

RALPH E. DAVIS

ASSOCIATES, INC.

Hydrocarb Energy Corporation	August 21, 2014
SEC Non-Escalated Analysis	Page 3 of 6
Oil, Condensate, and Natural Gas Reserves

This evaluation has been prepared in accordance with the “Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information” as proclaimed by the Society of Petroleum Engineers”, the SPE Standards.

The evaluated properties are operated by a Hydrocarb subsidiary operating company. All proved developed producing properties were reviewed for this evaluation and all requested data was made available by Hydrocarb. Data provided includes seismic, well logs, sub-surface maps, analogous well data, timing of future development, drilling and investments.

Certain properties have been drilled, completed, and previously produced. Many of these contain additional reserves in intervals not yet completed within an existing wellbore and have been classified as proved behind pipe. All of these properties are considered to have recoverable reserves and are scheduled to be placed on production at a future time.

Certain properties which have been drilled are currently shut-in. They are considered to have recoverable reserves and are scheduled to be placed on production at a future time. These properties will require remedial action before they can be restored to production.

Reserves classified as undeveloped are scheduled for future drilling beginning in 2015. The undrilled locations have been reviewed on an individual well location basis. The estimates of these recoverable reserves are based on volumetric estimates.

Data Source

Basic well and field data used in the preparation of this report were furnished by Hydrocarb or were obtained from commercial sources or from Davis’ own database of information. Records as they pertain to factual matters such as acreage controlled the number and depths of wells, reservoir pressure and/or production history, the existence of contractual obligations to others, and similar matters were accepted as presented.

Additionally, the analyses of these properties utilized not only the basic data on the subject wells but also data on analogous properties as provided. Well logs, ownership interest, revenues received from the sale of products and operating costs were furnished by Hydrocarb. No physical inspection of the properties was made nor any well tests conducted.

Operating cost data were provided by Hydrocarb and were utilized to estimate the direct cost of operation for each property or producing unit. Certain historical costs of operation are charged against a producing unit or group of wells in addition to any individual well costs that may be scheduled for an area. Development costs for new wells to be drilled, wells to be worked over to return intervals to production, anticipated costs to provide for significant field operation, and facility changes were provided by Hydrocarb and are reported to be based upon recent field activity.

Ownership

Ownership interests in the subject properties have been furnished by Hydrocarb and accepted by Davis as accurate without independent verification.

Texas Registered Engineering Firm F-1529

RALPH E. DAVIS

ASSOCIATES, INC.

Hydrocarb Energy Corporation	August 21, 2014
SEC Non-Escalated Analysis	Page 4 of 6
Oil, Condensate, and Natural Gas Reserves

Reserve Estimates

The estimate of reserves included in this report is based primarily upon production history or analogy with wells in the area producing from the same or similar formations. In addition to individual well production history, geological and well test information, when available, were utilized in the evaluation. Individual well production histories were analyzed and forecast until a calculated economic limit.

Reserves for the behind pipe categories were estimated using volumetric methods which consolidated well log, sidewall core, and subsurface mapping. Reserves for Fishers Reef, N. Point Bolivar, Red Fish Reed, and Trinity Bay Fields were prepared on a field wide basis. They are estimated to the limit of profitable operations for each field.

It should be noted that all reserve estimates involve an assessment of uncertainty relating to the likelihood that the actual remaining quantities recovered will be greater or less than the estimated quantities. The uncertainty depends primarily on the amount of reliable geological and engineering data available at the time of the estimate along with the interpretation of these data. The reserves have been determined using methods and procedures widely accepted within the industry and are believed to be appropriate for the purposes of this report. In our opinion, we used all methods and procedures necessary under the circumstances to prepare this report.

Regulations in the Oil and Gas industry are constantly changing to meet new safety and environmental concerns, in addition to the possibility of some market regulations which have occasionally occurred historically. State, Local or Federal Regulations, such as upon hydraulic fracturing, or drill/production site security and safety, environmental regulations of spills noxious emissions, greenhouse gases, and drill site location, wildlife protections and extensive permitting processes, sometimes with multiple agencies or governments, in the future may all adversely affect the ability of the Registrant to recover the estimated reserves, as well as potentially rendering the reserves uneconomic, in certain, as yet undetermined, circumstances. To the best of the engineers belief, none of the reserves described in this report are negatively impacted as of the date of this report, by any such current regulations.

Producing Rates

For the purpose of this report, estimated reserves are scheduled for recovery primarily on the basis of actual producing rates or appropriate well test information. They were prepared giving consideration to engineering and geological data such as reservoir pressure, anticipated producing mechanisms, the number and types of completions, as well as past performance of analogous reservoirs.

These and other future rates may be subject to regulation by various agencies, changes in market demand or other factors; consequently, reserves recovered and the actual rates of recovery may vary from the estimates included herein. Scheduled dates of future well completions may vary from that provided by Hydrocarb due to changes in market demand or the availability of materials and/or capital; however, the timing of the wells and their estimated rates of production are reasonable and consistent with established performance to date.

Texas Registered Engineering Firm F-1529

RALPH E. DAVIS

ASSOCIATES, INC.

Hydrocarb Energy Corporation	August 21, 2014
SEC Non-Escalated Analysis	Page 5 of 6
Oil, Condensate, and Natural Gas Reserves

Pricing Provisions

Prices received for products sold, adjustments due to the BTU content of the gas, shrinkage for transportation, measuring or the removal of liquids, the liquid yield from gas processed, etc., were provided by Hydrocarb and were accepted as presented.

The unit prices used throughout this report for crude oil, condensate, and natural gas are based upon the appropriate price in effect the first trading of each month from July 2013 through June 2014 and averaged for the year.

Crude Oil, Condensate and/or Natural Gas Liquids – The unit price used throughout this report for crude oil and condensate is based upon the average of prices for the twelve month period as indicated above.

An average crude oil price of $100.11 per barrel represents the effective average crude oil price utilized in the evaluation. This scheduled price for 2014 was held flat throughout the remaining producing life of the properties. Prices for the liquid reserves scheduled for initial production at some future date were estimated using this same price. Oil prices were adjusted for price differentials. The average price realized for liquid reserves, crude oil and condensate, over the producing life of the properties, was $105.39 per barrel, and represents the combined effect due to the adjustments for location and quality differentials such as transportation, quality and gravity.

Natural Gas – The unit price used throughout this report for natural gas is based upon the average of prices for the twelve month period as indicated above. An average gas price of $4.10 per MMBTU represents the effective average natural gas price utilized in the evaluation. The scheduled price for 2014 was held flat throughout the remaining producing life of the properties. Prices for natural gas reserves scheduled for initial production at some future date were estimated using this same price. Gas prices were adjusted for BTU content and price differentials. The average price realized for natural gas reserves over the producing life of the properties, was $4.29 per MLMBTU, and represents the combined effect due to the adjustments for location and quality differentials such as transportation and the BTU (heating value) of the gas.

Future Net Income

Future net income is based upon gross income from future production, less direct operating expenses and applicable provincial taxes. Estimated future capital for development was also deducted from gross income at the time it will be expended. No allowance was made for depletion, depreciation, income taxes, or administrative expense.

Direct lease operating expense includes direct cost of operations of each lease or an estimated value for future operations based upon analogous properties. Lease operating expenses and/or capital costs for drilling and/or major workover expense were held flat throughout the producing life of the properties. Abandonment costs were deducted at the end of the economic life of the fields.

Future net income has been discounted for present worth at values ranging from 0 to 100 percent using continuous discounting. In this report, the future net income is discounted at a primary rate of ten (10.0) percent.

Texas Registered Engineering Firm F-1529

RALPH E. DAVIS

ASSOCIATES, INC.

Hydrocarb Energy Corporation	August 21, 2014
SEC Non-Escalated Analysis	Page 6 of 6
Oil, Condensate, and Natural Gas Reserves

General

Hydrocarb Energy Corporation has provided access to all of its accounts, records, geological and engineering data, reports, and other information as required for this audit. The ownership interests, product classifications relating to prices, and other factual data were accepted as furnished without verification.

No consideration was given in this report to potential environmental liabilities which may exist, nor were any costs included for potential liability to restore and clean up damages, if any, caused by past operating practices.

Neither Ralph E. Davis Associates, Inc. nor any of its employees have any interest in Hydrocarb or the properties reported herein. The employment and compensation to make this study are not contingent on our estimate of reserves. The technical persons responsible for preparing the estimates presented herein meet the requirements regarding qualifications, independence, objectivity, and confidentiality set forth in the SEC standards.

This report has been prepared for public disclosure by Hydrocarb in filings made with the SEC in accordance with the disclosure requirements set forth in the SEC regulations.

The data and work papers used in the preparation of this report are available for examination by authorized parties in our offices. Please feel free to contact us if we can be of further service.

We appreciate the opportunity to be of service to you in this matter and will be glad to address any questions or inquiries you may have.

Very truly yours,
RALPH E. DAVIS ASSOCIATES, INC.
/s/ Allen C. Barron
Allen C. Barron, P. E.	[SEAL]
President

Texas Registered Engineering Firm F-1529

Securities and Exchange Commission

Definitions of Reserves

The following information is taken from the United States Securities and Exchange Commission:

PART 210—FORM AND CONTENT OF AND REQUIREMENTS FOR FINANCIAL STATEMENTS, SECURITIES ACT OF 1933, SECURITIES EXCHANGE ACT OF 1934, PUBLIC UTILITY HOLDING COMPANY ACT OF 1935, INVESTMENT COMPANY ACT OF 1940, INVESTMENT ADVISERS ACT OF 1940, AND ENERGY POLICY AND CONSERVATION ACT OF 1975

Rules of General Application

§ 210.4-10 Financial accounting and reporting for oil and gas producing activities pursuant to the Federal securities laws and the Energy Policy and Conservation Act of 1975.

Reserves

Reserves are estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and gas or related substances to market, and all permits and financing required to implement the project.

Reserves should not be assigned to adjacent reservoirs isolated by major, potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (i.e., absence of reservoir, structurally low reservoir, or negative test results). Such areas may contain prospective resources (i.e., potentially recoverable resources from undiscovered accumulations).

Proved Oil and Gas Reserves

Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.

(i) The area of the reservoir considered as proved includes:

(A) The area identified by drilling and limited by fluid contacts, if any, and

(B) Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data.

(ii) In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with reasonable certainty.

(iii) Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.

(iv) Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when:

(A) Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and

(B) The project has been approved for development by all necessary parties and entities, including governmental entities.

(v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.

Securities and Exchange Commission
§ 210.4-10 Definitions (of Reserves)	Page 2
Modified, Effective 2009 for Filings of 12/31/2009 and Thereafter

Reasonable certainty. If deterministic methods are used, reasonable certainty means a high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90% probability that the quantities actually recovered will equal or exceed the estimate. A high degree of confidence exists if the quantity is much more likely to be achieved than not, and, as changes due to increased availability of geoscience (geological, geophysical, and geochemical), engineering, and economic data are made to estimated ultimate recovery (EUR) with time, reasonably certain EUR is much more likely to increase or remain constant than to decrease.

Reliable technology. Reliable technology is a grouping of one or more technologies (including computational methods) that has been field tested and has been demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation.

Probable Reserves

Probable reserves are those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered.

(i) When deterministic methods are used, it is as likely as not that actual remaining quantities recovered will exceed the sum of estimated proved plus probable reserves. When probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the proved plus probable reserves estimates.

(ii) Probable reserves may be assigned to areas of a reservoir adjacent to proved reserves where data control or interpretations of available data are less certain, even if the interpreted reservoir continuity of structure or productivity does not meet the reasonable certainty criterion. Probable reserves may be assigned to areas that are structurally higher than the proved area if these areas are in communication with the proved reservoir.

(iii) Probable reserves estimates also include potential incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than assumed for proved reserves.

Possible Reserves

Possible reserves are those additional reserves that are less certain to be recovered than probable reserves.

(i) When deterministic methods are used, the total quantities ultimately recovered from a project have a low probability of exceeding proved plus probable plus possible reserves. When probabilistic methods are used, there should be at least a 10% probability that the total quantities ultimately recovered will equal or exceed the proved plus probable plus possible reserves estimates.

(ii) Possible reserves may be assigned to areas of a reservoir adjacent to probable reserves where data control and

interpretations of available data are progressively less certain. Frequently, this will be in areas where geoscience and engineering data are unable to define clearly the area and vertical limits of commercial production from the reservoir by a defined project.

(iii) Possible reserves also include incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than the recovery quantities assumed for probable reserves.

(iv) The proved plus probable and proved plus probable plus possible reserves estimates must be based on reasonable alternative technical and commercial interpretations within the reservoir or subject project that are clearly documented, including comparisons to results in successful similar projects.

(v) Possible reserves may be assigned where geoscience and engineering data identify directly adjacent portions of a reservoir within the same accumulation that may be separated from proved areas by faults with displacement less than formation thickness or other geological discontinuities and that have not been penetrated by a wellbore, and the registrant believes that such adjacent portions are in communication with the known (proved) reservoir. Possible reserves may be assigned to areas that are structurally higher or lower than the proved area if these areas are in communication with the proved reservoir.

(vi) Pursuant to paragraph (a)(22)(iii) of this section, where direct observation has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves should be assigned in the structurally higher portions of the reservoir above the HKO only if the higher contact can be established with reasonable certainty through reliable technology. Portions of the reservoir that do not meet this reasonable certainty criterion may be assigned as probable and possible oil or gas based on reservoir fluid properties and pressure gradient interpretations.

Securities and Exchange Commission
§ 210.4-10 Definitions (of Reserves)	Page 3
Modified, Effective 2009 for Filings of 12/31/2009 and Thereafter

Developed Oil and Gas Reserves

Developed oil and gas reserves are reserves of any category that can be expected to be recovered:

(i) Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and

(ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.

Undeveloped Oil and Gas Reserves

Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.

(i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.

(ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances, justify a longer time.

(iii) Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, as defined in paragraph (a)(2) of this section, or by other evidence using reliable technology establishing reasonable certainty.

Additional Definitions:

Deterministic Estimate

The method of estimating reserves or resources is called deterministic when a single value for each parameter (from the geoscience, engineering, or economic data) in the reserves calculation is used in the reserves estimation procedure.

Probabilistic Estimate

The method of estimation of reserves or resources is called probabilistic when the full range of values that could reasonably occur for each unknown parameter (from the geoscience and engineering data) is used to generate a full range of possible outcomes and their associated probabilities of occurrence.

Reasonable Certainty

If deterministic methods are used, reasonable certainty means a high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90% probability that the quantities actually recovered will equal or exceed the estimate. A high degree of confidence exists if the quantity is much more likely to be achieved than not, and, as changes due to increased availability of geoscience (geological, geophysical, and geochemical), engineering, and economic data are made to estimated ultimate recovery (EUR) with time, reasonably certain EUR is much more likely to increase or remain constant than to decrease.

Economic Summary Report

Date : 08/21/2014 11:46:45AM

ECONOMIC SUMMARY PROJECTION

Total

Project Name : HYDROCARB ENERGY 06/30/2014 Partner :           All Cases Case Type :       GRAND TOTAL CASE As Of Date : 07/31/2014 Discount Rate (%) : 10.00 All Cases

SEC REPORT

Cum Oil (Mbbl) :  4,085.47

Cum Gas (MMcf) : 40,357.72

	Gross	Gross	Net	Net	Oil	Gas	Oil	Gas	Misc.
Year	Oil	Gas	Oil	Gas	Price	Price	Revenue	Revenue	Revenue
	(Mbbl)	(MMcf)	(Mbbl)	(MMcf)	($/bbl)	($/Mcf)	(M$)	(M$)	(M$)
2014	33.20	316.73	26.58	188.97	109.28	4.56	2,904.86	861.68	0.00
2015	88.89	2,140.17	71.26	1,089.85	109.28	4.34	7,787.36	4,732.48	0.00
2016	107.76	2,600.26	81.75	1,505.60	109.30	4.43	8,934.73	6,668.86	0.00
2017	205.96	2,297.98	162.26	1,486.69	103.97	4.32	16,869.87	6,415.07	0.00
2018	178.87	2,718.19	141.40	1,823.43	104.28	4.22	14,745.90	7,687.71	0.00
2019	143.18	1,991.11	113.31	1,316.14	104.17	4.31	11,803.47	5,671.39	0.00
2020	114. 70	1,394.81	90.98	912.30	104.04	4.33	9,465.40	3,948.19	0.00
2021	92.04	982.24	73.16	633.16	103.95	4.35	7,604.82	2,751.82	0.00
2022	74.53	700.35	59.37	443.90	103.90	4.36	6,168.08	1,937.31	0.00
2023	48.35	456.24	38.41	310.53	102.46	4.38	3,935.48	1,361.41	0.00
2024	38.82	322.38	30.90	218.87	102.31	4.41	3,161.11	964.42	0.00
2025	36.73	430.11	29.24	298.92	103.56	4.22	3,028.37	1,261.74	0.00
2026	15.85	333.41	12.48	231.69	109.30	4.21	1,363.52	975.89	0.00
2027	37.19	565.71	30.00	402.63	109.29	4.09	3,279.04	1,647.32	0.00
2028	39.62	851.55	31.78	609.75	109.29	4.05	3,473.42	2,466.74	0.00
Rem	35.84	775.90	28.91	558.94	109.29	4.02	3,159.36	2,246.89	0.00
Total	1,291.53	18,877.17	1,021.78	12,031.36	105.39	4.29	107,684.79	51,598.90	0.00
Ult	5,377.00	59,234.89

	Well		Net Tax		Net Tax		Net		Net		Net		Other		Net		Annual		Cum Disc.
Year	Count		Production		AdValorem		Investment		Lease Costs		Well Costs		Costs		Profits		Cash Flow		Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		36.00		198.25		94.16		50.00		1,278.65		0.00		78.62		0.00		2,066.87		2,021.86
2015		39.00		713.15		313.00		3,525.00		3,049.09		0.00		372.62		0.00		4,546.98		6,032.98
2016		43.00		911.16		390.09		4,330.51		2,907.86		0.00		525.10		0.00		6,538.86		11,340.64
2017		39.00		1,257.14		582.12		5,300.00		2,807.98		0.00		625.64		0.00		12,712.05		20,818.02
2018		40.00		1,254.89		560.84		3,484.36		2,807.98		0.00		823.71		0.00		13,501.83		29,877.87
2019		40.00		968.31		436.87		0.00		2,807.98		0.00		563.01		0.00		12,698.68		37,679.84
2020		38.00		731.52		335.34		0.00		2,807.98		0.00		388.19		0.00		9,150.56		42,769.07
2021		37.00		556.21		258.92		0.00		2,807.98		0.00		268.46		0.00		6,465.08		46,023.95
2022		37.00		429.03		202.63		0.00		2,807.98		0.00		188.02		0.00		4,477.72		48,065.17
2023		32.00		283.14		132.42		1,442.65		1,749.15		0.00		131.99		0.00		1,557.55		48,694.99
2024		24.00		217.74		103.14		0.00		1,749.15		0.00		93.35		0.00		1,962.15		49,428.44
2025		24.00		233.94		107.25		350.00		1,749.15		0.00		140.95		0.00		1,708.82		50,001.56
2026		19.00		135.91		58.49		50.00		1,749.15		0.00		112.03		0.00		233.84		50,070.13
2027		19.00		274.39		123.16		700.00		1,749.15		0.00		202.20		0.00		1,877.47		50,581.09
2028		15.00		344.78		148.50		0.00		1,749.15		0.00		310.52		0.00		3,387.20		51,433.57
Rem.				313.85		135.16		2,548.59		1,935.79		0.00		293.03		0.00		179.82		84.10
Total				8,823.42		3,982.09		21,781.11		36,514.15		0.00		5,117.44		0.00		83,065.48		51,517.67

		Present Worth Profile (M$)
Disc. Initial Invest. (M$) :	2,962.01	PW	5.00% :	64,713.19
ROInvestment (disc/undisc) :	18.39 / 20.03	PW	10.00% :	51,517.67
Years to Payout :	1.07	PW	15.00% :	41,771.29
Internal ROR (%) :	>1000	PW	20.00% :	34,401.94
		PW	25.00% :	28,717.00
		PW	30.00% :	24,255.83

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

1

Date : 08/21/2014 11:46:45AM

ECONOMIC SUMMARY PROJECTION

Proved Producing Rsv Class & Category

Project Name : HYDROCARB ENERGY 06/30/2014 Partner :           All Cases Case Type :       REPORT BREAK TOTAL CASE As Of Date : 07/31/2014 Discount Rate (%) : 10.00 All Cases

SEC REPORT

Cum Oil (Mbbl) :  2,850.12

Cum Gas (MMcf) : 30,476.83

	Gross		Gross		Net		Net		Oil		Gas		Oil		Gas		Misc.
Year	Oil		Gas		Oil		Gas		Price		Price		Revenue		Revenue		Revenue
	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)		($/bbl)		($/Mcf)		(M$)		(M$)		(M$)
2014		20.71		183.34		16.54		93.24		109.27		5.13		1,807.64		478.13		0.00
2015		45.87		396.83		36.71		186.02		109.28		5.13		4,011.54		954.20		0.00
2016		36.65		322.52		29.55		145.94		109.29		5.13		3,228.99		748.15		0.00
2017		30.40		263.71		24.55		115.11		109.29		5.12		2,682.90		589.78		0.00
2018		26.03		217.08		21.03		91.22		109.29		5.12		2,298.15		466.60		0.00
2019		22.47		178.94		18.16		72.17		109.29		5.10		1,984.75		367.98		0.00
2020		19.53		150.03		15.79		58.26		109.29		5.09		1,725.45		296.65		0.00
2021		16.99		125.73		13.74		47.03		109.29		5.08		1,501.58		238.86		0.00
2022		14.90		106.18		12.05		38.28		109.29		5.06		1,317.48		193.71		0.00
2023		3.71		44.32		2.98		30.14		109.31		5.08		325.75		153.03		0.00
2024		3.09		34.53		2.48		23.38		109.31		5.11		271.12		119.60		0.00
2025		2.54		28.28		2.04		19.20		109.31		5.08		223.54		97.57		0.00
2026		2.17		23.53		1.74		16.03		109.31		5.04		190.68		80.76		0.00
2027		1.81		19.48		1.46		13.31		109.31		5.00		159.61		66.53		0.00
2028		1.33		15.40		1.07		10.51		109.31		5.02		116.81		52.70		0.00
Rem		1.33		14.15		1.09		10.11		109.29		4.44		118.96		44.94		0.00
Total		249.52		2,124.05		200.98		969.94		109.29		5.10		21,964.96		4,949.21		0.00
Ult		3,099.63		32,600.87

	Well		Net Tax		Net Tax		Net		Net		Net		Other		Net		Annual		Cum Disc.
Year	Count		Production		AdValorem		Investment		Lease Costs		Well Costs		Costs		Profits		Cash Flow		Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		15.00		119.01		57.14		0.00		0.00		0.00		26.90		0.00		2,082.72		2,038.00
2015		15.00		256.10		124.14		0.00		0.00		0.00		54.28		0.00		4,531.22		6,181.13
2016		15.00		204.65		99.43		0.00		0.00		0.00		44.01		0.00		3,629.06		9,184.15
2017		12.00		167.65		81.82		0.00		0.00		0.00		36.14		0.00		2,987.07		11,420.89
2018		11.00		140.71		69.12		0.00		0.00		0.00		30.24		0.00		2,524.68		13,132.17
2019		11.00		118.90		58.82		0.00		0.00		0.00		25.66		0.00		2,149.36		14,450.92
2020		10.00		101.62		50.55		0.00		0.00		0.00		21.94		0.00		1,847.98		15,477.19
2021		10.00		86.99		43.51		0.00		0.00		0.00		18.97		0.00		1,590.98		16,276.87
2022		10.00		75.13		37.78		0.00		0.00		0.00		16.65		0.00		1,381.63		16,905.52
2023		6.00		26.46		11.97		0.00		0.00		0.00		14.15		0.00		426.20		17,081.19
2024		4.00		21.44		9.77		0.00		0.00		0.00		11.95		0.00		347.55		17,210.85
2025		4.00		17.60		8.03		0.00		0.00		0.00		10.72		0.00		284.76		17,306.98
2026		4.00		14.83		6.79		0.00		0.00		0.00		9.79		0.00		240.04		17,380.33
2027		3.00		12.33		5.65		0.00		0.00		0.00		8.86		0.00		199.30		17,435.51
2028		3.00		9.33		4.24		0.00		0.00		0.00		7.63		0.00		148.31		17,472.65
Rem.				8.84		4.10		0.00		0.00		0.00		13.05		0.00		137.90		30.22
Total				1,381.58		672.85		0.00		0.00		0.00		350.96		0.00		24,508.77		17,502.87

		Present Worth Profile (M$)
Disc. Initial Invest. (M$) :	0.00	PW	5.00% :	20,496.95
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	10.00% :	17,502.87
Years to Payout :	0.00	PW	15.00% :	15,209.56
Internal ROR (%) :	0.00	PW	20.00% :	13,412.41
		PW	25.00% :	11,975.48
		PW	30.00% :	10,806.00

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

2

Date : 08/21/2014 11:46:45AM

ECONOMIC SUMMARY PROJECTION

Proved Shut-In Rsv Class & Category

Project Name : HYDROCARB ENERGY 06/30/2014 Partner :           All Cases Case Type :       REPORT BREAK TOTAL CASE As Of Date : 07/31/2014 Discount Rate (%) : 10.00 All Cases

SEC REPORT

Cum Oil (Mbbl) :  1,229.87

Cum Gas (MMcf) : 9,766.76

	Gross		Gross		Net		Net		Oil		Gas		Oil		Gas		Misc.
Year	Oil		Gas		Oil		Gas		Price		Price		Revenue		Revenue		Revenue
	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)		($/bbl)		($/Mcf)		(M$)		(M$)		(M$)
2014		7.18		22.75		5.82		16.65		109.29		4.04		636.26		67.22		0.00
2015		17.40		901.18		14.14		360.58		109.29		4.45		1,545.73		1,605.30		0.00
2016		14.98		564.73		12.20		245.58		109.29		4.38		1,333.72		1,074.64		0.00
2017		12.05		79.98		9.81		59.92		109.29		4.01		1,071.90		240.36		0.00
2018		9.85		61.82		8.02		46.31		109.29		4.01		876.07		185.74		0.00
2019		8.18		50.12		6.65		37.52		109.29		4.01		727.14		150.47		0.00
2020		6.81		40.77		5.54		30.50		109.29		4.01		605.68		122.30		0.00
2021		5.62		32.94		4.57		24.63		109.29		4.00		499.89		98.66		0.00
2022		4.66		26.72		3.79		19.97		109.29		4.00		414.10		79.88		0.00
2023		0.94		21.75		0.77		16.25		109.29		4.00		84.11		64.99		0.00
2024		0.77		17.77		0.63		13.26		109.29		4.00		68.71		53.06		0.00
2025		0.59		12.44		0.48		9.29		109.29		4.00		52.76		37.14		0.00
2026		0.43		7.54		0.35		5.58		109.29		4.00		38.40		22.32		0.00
2027		0.35		6.08		0.29		4.49		109.29		4.00		31.32		17.98		0.00
2028		0.28		4.68		0.23		3.44		109.29		4.00		24.80		13.77		0.00
Rem		0.32		3.81		0.25		2.72		109.29		4.00		27.45		10.89		0.00
Total		90.43		1,855.09		73.55		896.71		109.29		4.29		8,038.02		3,844.71		0.00
Ult		1,320.30		11,621.85

	Well		Net Tax		Net Tax		Net		Net		Net		Other		Net		Annual		Cum Disc.
Year	Count		Production		AdValorem		Investment		Lease Costs		Well Costs		Costs		Profits		Cash Flow		Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		10.00		34.31		17.59		50.00		0.00		0.00		10.98		0.00		590.59		577.61
2015		10.00		191.50		78.78		475.00		0.00		0.00		39.36		0.00		2,366.40		2,716.25
2016		10.00		141.95		60.21		0.00		0.00		0.00		45.49		0.00		2,160.71		4,509.25
2017		8.00		67.33		32.81		0.00		0.00		0.00		34.64		0.00		1,177.47		5,391.47
2018		8.00		54.23		26.55		0.00		0.00		0.00		27.03		0.00		954.00		6,038.24
2019		8.00		44.73		21.94		0.00		0.00		0.00		21.98		0.00		788.95		6,522.44
2020		8.00		37.03		18.20		0.00		0.00		0.00		17.93		0.00		654.81		6,886.19
2021		7.00		30.39		14.96		0.00		0.00		0.00		14.56		0.00		538.62		7,157.06
2022		7.00		25.04		12.35		0.00		0.00		0.00		11.87		0.00		444.72		7,359.49
2023		7.00		8.74		3.73		0.00		0.00		0.00		9.69		0.00		126.94		7,411.80
2024		4.00		7.14		3.04		0.00		0.00		0.00		7.93		0.00		103.65		7,450.47
2025		3.00		5.21		2.25		0.00		0.00		0.00		5.71		0.00		76.73		7,476.38
2026		2.00		3.44		1.52		0.00		0.00		0.00		3.57		0.00		52.19		7,492.35
2027		2.00		2.79		1.23		0.00		0.00		0.00		2.89		0.00		42.38		7,504.07
2028		1.00		2.17		0.96		0.00		0.00		0.00		2.26		0.00		33.17		7,512.40
Rem.				2.08		0.96		0.00		0.00		0.00		2.16		0.00		33.14		7.21
Total				658.10		297.07		525.00		0.00		0.00		258.06		0.00		10,144.50		7,519.61

		Present Worth Profile (M$)
Disc. Initial Invest. (M$) :	306.58	PW	5.00% :	8,664.02
ROInvestment (disc/undisc) :	25.53 / 32.21	PW	10.00% :	7,519.61
Years to Payout :	0.26	PW	15.00% :	6,614.44
Internal ROR (%) :	>1000	PW	20.00% :	5,883.98
		PW	25.00% :	5,284.11
		PW	30.00% :	4,783.87

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

3

Date : 08/21/2014 11:46:45AM

ECONOMIC SUMMARY PROJECTION

Proved Behind Pipe Rsv Class & Category

Project Name :  HYDROCARB ENERGY 06/30/2014 Partner :            All Cases Case Type :        REPORT BREAK TOTAL CASE As Of Date : 07/31/2014 Discount Rate (%) : 10.00 All Cases

SEC REPORT

Cum Oil (Mbbl) :  5.48

Cum Gas (MMcf) : 114.14

	Gross		Gross		Net		Net		Oil		Gas		Oil		Gas		Misc.
Year	Oil		Gas		Oil		Gas		Price		Price		Revenue		Revenue		Revenue
	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)		($/bbl)		($/Mcf)		(M$)		(M$)		(M$)
2014		5.31		110.65		4.22		79.08		109.29		4.00		460.96		316.34		0.00
2015		13.11		473.97		10.46		280.08		109.29		4.00		1,143.56		1,120.32		0.00
2016		29.69		925.96		19.00		551.54		109.32		4.71		2,076.96		2,595.89		0.00
2017		25.75		1,240.11		16.36		798.19		109.32		4.42		1,788.12		3,529.47		0.00
2018		20.76		1,075.60		13.48		704.22		109.32		4.41		1,474.07		3,107.35		0.00
2019		15.56		805.31		10.02		517.54		109.32		4.63		1,095.08		2,396.26		0.00
2020		10.93		531.03		6.95		338.80		109.32		4.69		760.06		1,589.43		0.00
2021		7.72		352.61		4.86		222.15		109.33		4.75		531.17		1,056.21		0.00
2022		5.49		236.64		3.42		147.19		109.33		4.82		374.36		709.30		0.00
2023		3.90		157.68		2.40		96.48		109.33		4.89		262.57		472.24		0.00
2024		2.79		106.21		1.71		63.98		109.33		4.98		186.63		318.39		0.00
2025		1.99		72.54		1.21		43.15		109.33		5.04		132.11		217.59		0.00
2026		5.74		49.87		4.41		29.31		109.30		5.11		481.84		149.74		0.00
2027		21.35		36.36		17.36		21.49		109.29		5.09		1,897.47		109.46		0.00
2028		13.98		24.84		11.35		14.44		109.29		5.18		1,240.40		74.81		0.00
Rem		14.11		14.01		11.56		8.83		109.29		4.75		1,263.61		41.96		0.00
Total		198.18		6,213.39		138.77		3,916.48		109.31		4.55		15,168.96		17,804.75		0.00
Ult		203.65		6,327.53

	Well		Net Tax		Net Tax		Net		Net		Net		Other		Net		Annual		Cum Disc.
Year	Count		Production		AdValorem		Investment		Lease Costs		Well Costs		Costs		Profits		Cash Flow		Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		3.00		44.93		19.43		0.00		0.00		0.00		40.74		0.00		672.20		658.32
2015		5.00		136.63		56.60		550.00		0.00		0.00		143.42		0.00		1,377.24		1,901.22
2016		8.00		290.23		116.82		390.63		0.00		0.00		145.81		0.00		3,729.35		4,966.62
2017		9.00		346.96		132.94		300.00		0.00		0.00		298.82		0.00		4,238.86		8,125.19
2018		10.00		300.86		114.54		284.36		0.00		0.00		268.88		0.00		3,612.78		10,579.75
2019		10.00		230.09		87.28		0.00		0.00		0.00		167.00		0.00		3,006.96		12,428.38
2020		9.00		154.17		58.74		0.00		0.00		0.00		103.84		0.00		2,032.74		13,559.45
2021		9.00		103.65		39.68		0.00		0.00		0.00		64.31		0.00		1,379.74		14,254.30
2022		9.00		70.42		27.09		0.00		0.00		0.00		40.04		0.00		946.11		14,685.62
2023		9.00		47.50		18.37		0.00		0.00		0.00		24.50		0.00		644.44		14,951.61
2024		7.00		32.46		12.63		0.00		0.00		0.00		14.76		0.00		445.17		15,117.88
2025		7.00		22.40		8.74		0.00		0.00		0.00		9.14		0.00		309.41		15,222.51
2026		5.00		33.40		15.79		50.00		0.00		0.00		5.63		0.00		526.76		15,379.40
2027		4.00		95.49		50.17		0.00		0.00		0.00		4.15		0.00		1,857.12		15,894.25
2028		3.00		62.67		32.88		0.00		0.00		0.00		2.43		0.00		1,217.23		16,199.67
Rem				61.27		32.64		0.00		0.00		0.00		2.53		0.00		1,209.13		265.58
Total				2,033.13		824.34		1,574.99		0.00		0.00		1,336.00		0.00		27,205.25		16,465.26

		Present Worth Profile (M$)
Disc. Initial Invest. (M$) :	378.43	PW	5.00% :	20,778.48
ROInvestment (disc/undisc) :	44.51 / 56.45	PW	10.00% :	16,465.26
Years to Payout :	0.31	PW	15.00% :	13,425.88
Internal ROR (%) :	>1000	PW	20.00% :	11,191.41
		PW	25.00% :	9,490.01
		PW	30.00% :	8,157.50

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

4

Date : 08/21/2014 11:46:45AM

ECONOMIC SUMMARY PROJECTION

Proved Undeveloped Rsv Class & Category

Project Name :  HYDROCARB ENERGY 06/30/2014 Partner :            All Cases Case Type :        REPORT BREAK TOTAL CASE As Of Date : 07/31/2014 Discount Rate (%) : 10.00 All Cases

SEC REPORT

Cum Oil (Mbbl) :  0.00

Cum Gas (MMcf) : 0.00

	Gross		Gross		Net		Net		Oil		Gas		Oil		Gas		Misc.
Year	Oil		Gas		Oil		Gas		Price		Price		Revenue		Revenue		Revenue
	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)		($/bbl)		($/Mcf)		(M$)		(M$)		(M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		12.52		368.19		9.94		263.16		109.29		4.00		1,086.53		1,052.65		0.00
2016		26.44		787.05		21.00		562.54		109.29		4.00		2,295.06		2,250.18		0.00
2017		137.77		714.17		111.54		513.47		101.55		4.00		11,326.96		2,055.46		0.00
2018		122.23		1,363.69		98.87		981.68		102.13		4.00		10,097.62		3,928.01		0.00
2019		96.97		956.73		78.48		688.90		101.89		4.00		7,996.50		2,756.68		0.00
2020		77.43		672.98		62.69		484.73		101.67		4.00		6,374.22		1,939.81		0.00
2021		61.71		470.97		49.98		339.34		101.48		4.00		5,072.18		1,358.09		0.00
2022		49.48		330.82		40.10		238.46		101.30		4.00		4,062.13		954.42		0.00
2023		39.80		232.50		32.26		167.67		101.15		4.00		3,263.05		671.15		0.00
2024		32.17		163.87		26.08		118.24		101.01		4.00		2,634.66		473.37		0.00
2025		31.59		316.85		25.51		227.28		102.72		4.00		2,619.96		909.44		0.00
2026		7.51		252.47		5.97		180.77		109.29		4.00		652.60		723.06		0.00
2027		13.67		503.79		10.89		363.34		109.29		4.00		1,190.63		1,453.35		0.00
2028		24.03		806.64		19.14		581.37		109.29		4.00		2,091.41		2,325.46		0.00
Rem		20.08		743.93		16.01		537.28		109.29		4.00		1,749.34		2,149.10		0.00
Total		753.41		8,684.64		608.47		6,248.23		102.74		4.00		62,512.85		25,000.24		0.00
Ult		753.41		8,684.64

	Well		Net Tax		Net Tax		Net		Net		Net		Other		Net		Annual		Cum Disc.
Year	Count		Production		AdValorem		Investment		Lease Costs		Well Costs		Costs		Profits		Cash Flow		Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		128.93		53.48		2,500.00		0.00		0.00		135.56		0.00		-678.79		-730.23
2016		2.00		274.34		113.63		3,200.00		0.00		0.00		289.78		0.00		667.49		-278.32
2017		4.00		675.20		334.56		5,000.00		0.00		0.00		256.04		0.00		7,116.62		5,021.57
2018		5.00		759.09		350.64		3,200.00		0.00		0.00		497.55		0.00		9,218.35		11,169.93
2019		5.00		574.59		268.83		0.00		0.00		0.00		348.37		0.00		9,561.38		17,041.34
2020		5.00		438.70		207.85		0.00		0.00		0.00		244.48		0.00		7,423.00		21,167.09
2021		5.00		335.18		160.76		0.00		0.00		0.00		170.62		0.00		5,763.72		24,066.61
2022		5.00		258.44		125.41		0.00		0.00		0.00		119.46		0.00		4,513.24		26,121.90
2023		5.00		200.44		98.36		0.00		0.00		0.00		83.64		0.00		3,551.77		27,586.08
2024		5.00		156.70		77.70		0.00		0.00		0.00		58.70		0.00		2,814.94		28,636.40
2025		6.00		188.73		88.24		350.00		0.00		0.00		115.38		0.00		2,787.06		29,572.60
2026		4.00		84.25		34.39		0.00		0.00		0.00		93.03		0.00		1,163.99		29,928.84
2027		6.00		163.77		66.10		700.00		0.00		0.00		186.30		0.00		1,527.81		30,341.36
2028		4.00		270.61		110.42		0.00		0.00		0.00		298.20		0.00		3,737.64		31,280.37
Rem.				241.65		97.46		0.00		0.00		0.00		275.29		0.00		3,284.03		722.34
Total				4,750.61		2,187.83		14,950.00		0.00		0.00		3,172.42		0.00		62,452.23		32,002.71

		Present Worth Profile (M$)
Disc. Initial Invest. (M$) :	2,277.00	PW	5.00% :	44,108.92
ROInvestment (disc/undisc) :	15.05 / 18.59	PW	10.00% :	32,002.71
Years to Payout :	2.70	PW	15.00% :	23,721.41
Internal ROR (%) :	92.34	PW	20.00% :	17,876.08
		PW	25.00% :	13,638.54
		PW	30.00% :	10,497.21

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

5

Date : 08/21/2014 11:46:45AM

ECONOMIC SUMMARY PROJECTION

Field Expense Rsv Class & Category

Project Name :  HYDROCARB ENERGY 06/30/2014 Partner :            All Cases Case Type :        REPORT BREAK TOTAL CASE As Of Date : 07/31/2014 Discount Rate (%) : 10.00 All Cases

SEC REPORT

Cum Oil (Mbbl) :  0.00

Cum Gas (MMcf) : 0.00

	Gross		Gross		Net		Net		Oil		Gas		Oil		Gas		Misc.
Year	Oil		Gas		Oil		Gas		Price		Price		Revenue		Revenue		Revenue
	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)		($/bbl)		($/Mcf)		(M$)		(M$)		(M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2028		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

	Well		Net Tax		Net Tax		Net		Net		Net		Other		Net		Annual		Cum Disc.
Year	Count		Production		AdValorem		Investment		Lease Costs		Well Costs		Costs		Profits		Cash Flow		Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		8.00		0.00		0.00		0.00		1,278.65		0.00		0.00		0.00		-1,278.65		-1,252.07
2015		8.00		0.00		0.00		0.00		3,049.09		0.00		0.00		0.00		-3,049.09		-4,035.38
2016		8.00		0.00		0.00		739.88		2,907.86		0.00		0.00		0.00		-3,647.75		-7,041.05
2017		6.00		0.00		0.00		0.00		2,807.98		0.00		0.00		0.00		-2,807.98		-9,141.10
2018		6.00		0.00		0.00		0.00		2,807.98		0.00		0.00		0.00		-2,807.98		-11,042.21
2019		6.00		0.00		0.00		0.00		2,807.98		0.00		0.00		0.00		-2,807.98		-12,763.24
2020		6.00		0.00		0.00		0.00		2,807.98		0.00		0.00		0.00		-2,807.98		-14,320.86
2021		6.00		0.00		0.00		0.00		2,807.98		0.00		0.00		0.00		-2,807.98		-15,730.89
2022		6.00		0.00		0.00		0.00		2,807.98		0.00		0.00		0.00		-2,807.98		-17,007.36
2023		5.00		0.00		0.00		1,442.65		1,749.15		0.00		0.00		0.00		-3,191.80		-18,335.70
2024		4.00		0.00		0.00		0.00		1,749.15		0.00		0.00		0.00		-1,749.15		-18,987.17
2025		4.00		0.00		0.00		0.00		1,749.15		0.00		0.00		0.00		-1,749.15		-19,576.91
2026		4.00		0.00		0.00		0.00		1,749.15		0.00		0.00		0.00		-1,749.15		-20,110.79
2027		4.00		0.00		0.00		0.00		1,749.15		0.00		0.00		0.00		-1,749.15		-20,594.10
2028		4.00		0.00		0.00		0.00		1,749.15		0.00		0.00		0.00		-1,749.15		-21,031.52
Rem.				0.00		0.00		2,548.59		1,935.79		0.00		0.00		0.00		-4,484.38		-941.26
Total				0.00		0.00		4,731.12		36,514.15		0.00		0.00		0.00		-41,245.27		-21,972.78

		Present Worth Profile (M$)
Disc. Initial Invest. (M$) :	0.00	PW	5.00% :	-29,335.17
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	10.00% :	-21,972.78
Years to Payout :	0.00	PW	15.00% :	-17,199.99
Internal ROR (%) :	0.00	PW	20.00% :	-13,961.94
		PW	25.00% :	-11,671.15
		PW	30.00% :	-9,988.75

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

6

One-line Summary

Sorted by Reserve Category,

Field, and Lease

08/21/2014 11:48:10AM

Economic One-Liners

 As of Date: 7/31/2014

SEC REPORT

Project Name :         HYDROCARB ENERGY 06/30/2014

Ownership Group : All Cases

	Gross Reserves				Net Reserves				Net Revenue						Expense				Cash Flow
Lease Name	Oil		Gas		Oil		Gas		Oil		Gas		Other		& Tax		Invest.		Non-Disc.		Disc. 10%
Risked /UnRisked	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
Grand Total		1,291.53		18,877.17		1,021.78		12,031.36		107,684.79		51,598.90		0.00		54,437.10		21,781.11		83,065.48		51,517.67
Proved Producing Rsv Class & Category		249.52		2,124.05		200.98		969.94		21,964.96		4,949.21		0.00		2,405.39		0.00		24,508.77		17,502.87
Proved Producing Rsv Class & Category
FISHERS REEF Field		58.39		930.61		45.02		596.06		4,922.09		3,453.68		0.00		694.84		0.00		7,680.94		5,492.36
FRSU #1 115 (06384) - GBE		35.21		125.90		28.54		88.77		3,120.17		514.38		0.00		272.97		0.00		3,361.58		2,370.39
ST 02-3A #001 (23530) - GBE		20.87		763.65		15.18		483.19		1,659.86		2,799.71		0.00		397.82		0.00		4,061.75		2,888.81
ST 05-8A (230143) #01 - GB]		0.03		36.26		0.02		21.74		2.49		125.99		0.00		12.78		0.00		115.71		100.83
ST 06-7A #01 ST (25088) - G]		2.27		4.80		1.28		2.35		139.57		13.60		0.00		11.27		0.00		141.90		132.32
Proved Producing Rsv Class & Category
POINT BOLIVAR NORTH Field		0.10		0.00		0.07		0.00		5.98		0.00		0.00		0.42		0.00		5.56		5.11
ST 343 18 (18424) A-1a Thru		0.10		0.00		0.07		0.00		5.98		0.00		0.00		0.42		0.00		5.56		5.11
Proved Producing Rsv Class & Category
RED FISH REEF Field		50.83		499.64		41.99		373.88		4,589.48		1,495.52		0.00		826.37		0.00		5,258.64		3,625.57
RFRU 224 185 (099996) - GB		0.75		2.23		0.63		1.70		69.20		6.80		0.00		6.60		0.00		69.40		48.88
ST 224 141U (052698) - GBE		0.86		161.58		0.73		122.88		79.33		491.53		0.00		115.80		0.00		455.05		358.91
ST 225 139 (23981) - GBE		3.23		10.72		2.73		8.15		298.00		32.61		0.00		36.45		0.00		294.15		255.82
ST 246 120 (06840) - GBE		18.59		188.23		15.32		139.62		1,674.52		558.47		0.00		382.95		0.00		1,850.03		1,061.91
ST 246 183 (096910) - GBE		8.54		35.95		7.04		26.67		769.48		106.67		0.00		81.64		0.00		794.50		636.90
ST 247 188 (102549) - GBE (1		18.86		100.93		15.55		74.86		1,698.96		299.45		0.00		202.92		0.00		1,795.50		1,263.15
Proved Producing Rsv Class & Category
TRINITY BAY Field		140.20		693.79		113.90		0.00		12,447.41		0.00		0.00		883.77		0.00		11,563.64		8,379.83
TBSU #1 (08444) #37 - GBE		4.80		0.00		3.90		0.00		426.05		0.00		0.00		30.25		0.00		395.80		368.65
TBSU #1 013 (16366) - GBE		36.49		198.29		29.65		0.00		3,240.04		0.00		0.00		230.04		0.00		3,010.00		2,132.76
TBSU #1 12, 35, 130 (8004) -		47.45		294.69		38.55		0.00		4,212.72		0.00		0.00		299.10		0.00		3,913.62		2,873.24
TBSU #1 69D, 75F, 135 (5351		51.46		200.81		41.81		0.00		4,568.60		0.00		0.00		324.37		0.00		4,244.23		3,005.18
Proved Shut-In Rsv Class & Category		90.43		1,855.09		73.55		896.71		8,038.02		3,844.71		0.00		1,213.23		525.00		10,144.50		7,519.61
Proved Shut-In Rsv Class & Category
FISHERS REEF Field		1.33		3.67		1.08		2.59		117.91		14.98		0.00		9.87		0.00		123.02		98.53
RFRU 1 112 (12528) - GBE		1.33		3.67		1.08		2.59		117.91		14.98		0.00		9.87		0.00		123.02		98.53

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

7

08/21/2014 11:48:10AM

Economic One-Liners

 As of Date: 7/31/2014

SEC REPORT

Project Name :         HYDROCARB ENERGY 06/30/2014

Ownership Group : All Cases

	Gross Reserve				Net Reserve				Net Revenue						Expense				Cash Flow
Lease Name	Oil		Gas		Oil		Gas		Oil		Gas		Other		& Tax		Invest.		Non-Disc.		Disc. 10%
Risked /UnRisked	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
Proved Shut-In Rsv Class & Category
POINT BOLIVAR NORTH Field		0.00		1,269.53		0.00		459.57		0.00		2,091.51		0.00		209.15		325.00		1,557.36		1,349.47
ST 343 1 (Big Gas) - GBE		0.00		1,269.53		0.00		459.57		0.00		2,091.51		0.00		209.15		325.00		1,557.36		1,349.47
Proved Shut-In Rsv Class & Category
RED FISH REEF Field		28.06		581.89		22.88		434.56		2,500.56		1,738.22		0.00		609.43		150.00		3,479.35		2,384.04
RFRU 247 21 (08946) - GBE		14.15		117.00		11.24		83.63		1,227.94		334.51		0.00		197.97		0.00		1,364.48		912.47
ST 224 176 - GBE		2.42		121.00		2.04		92.02		223.48		368.08		0.00		103.51		50.00		438.05		277.26
ST 225 050 - GBE		6.13		204.35		5.18		155.41		566.16		621.64		0.00		179.94		50.00		957.86		620.07
ST 247 175-L - GBE		2.39		87.39		1.97		64.82		215.35		259.28		0.00		73.98		50.00		350.64		239.39
ST 247 198 (190463) F 10 Str;		2.97		52.15		2.45		38.68		267.63		154.72		0.00		54.02		0.00		368.32		334.86
Proved Shut-In Rsv Class & Category
TRINITY BAY Field		61.04		0.00		49.59		0.00		5,419.56		0.00		0.00		384.79		50.00		4,984.77		3,687.57
TBSU #1 063D - GBE		27.31		0.00		22.19		0.00		2,425.32		0.00		0.00		172.20		0.00		2,253.12		1,668.57
TBSU #1 068 - GBF		13.82		0.00		11.23		0.00		1,227.16		0.00		0.00		87.13		0.00		1,140.03		868.81
TBSU #1 133 - GBE		19.90		0.00		16.17		0.00		1,767.08		0.00		0.00		125.46		50.00		1,591.62		1,150.19
Proved Behind Pipe Rsv Class & Category		198.18		6,213.39		138.77		3,916.48		15,168.96		17,804.75		0.00		4,193.47		1,574.99		27,205.25		16,465.26
Proved Behind Pipe Rsv Class & Category
FISHERS REEF Field		91.92		2,233.43		52.25		1,145.74		5,713.11		6,638.64		0.00		1,069.49		424.99		10,857.26		6,805.56
ST 05-8A #01 (BP02) - GBE		4.94		493.76		3.40		295.72		371.65		1,713.43		0.00		197.73		284.36		1,602.99		800.33
ST 06-7A #01 ST F-13 - GBE		86.98		1,739.67		48.85		850.02		5,341.46		4,925.20		0.00		871.76		140.63		9,254.27		6,005.22
Proved Behind Pipe Rsv Class & Category
RED FISH REEF Field		99.20		3,627.23		80.79		2,619.85		8,829.51		10,479.39		0.00		3,010.83		850.00		15,448.07		9,010.41
ST 225 187 - GBE		3.12		496.03		2.55		363.84		278.35		1,455.34		0.00		350.25		250.00		1,133.44		862.57
ST 246 181 (BP01) - GBE		31.28		651.72		24.84		465.81		2,715.14		1,863.26		0.00		619.05		0.00		3,959.34		3,295.93
ST 247 023 (BP01) - GBE		0.02		1,073.08		0.01		766.98		1.37		3,067.93		0.00		701.99		250.00		2,117.32		1,320.18
ST 247 198 (190463) F 7A & '		51.89		25.95		42.77		19.24		4,673.91		76.98		0.00		349.03		50.00		4,351.86		1,113.57
ST 247 198 (190463) F 9 - GE		12.89		640.00		10.62		474.72		1,160.75		1,898.88		0.00		506.18		50.00		2,503.45		1,509.06
ST 247 21 (BP01) - GBE		0.00		740.47		0.00		529.25		0.00		2,116.99		0.00		484.33		250.00		1,382.66		909.11
Proved Behind Pipe Rsv Class & Category
TRINITY BAY Field		7.05		352.73		5.73		150.90		626.33		686.72		0.00		113.14		300.00		899.91		649.29

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

8

08/21/2014 11:48:10AM

Economic One-Liners

 As of Date: 7/31/2014

SEC REPORT

Project Name :         HYDROCARB ENERGY 06/30/2014

Ownership Group : All Cases

	Gross Reserves				Net Reserves				Net Revenue						Expense				Cash Flow
Lease Name	Oil		Gas		Oil		Gas		Oil		Gas		Other		& Tax		Invest.		Non-Disc.		Disc. 10%
Risked / UnRisked	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)			(M$)	(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
TBSU #1 053 - GBE		3.34		167.00		2.71		0.00		296.54		0.00		0.00		21.05		250.00		25.48		-5.34
TBSU #1 135 - GBE		3.71		185.73		3.02		150.90		329.80		686.72		0.00		92.09		50.00		874.43		654.63
Proved Undeveloped Rsv Class & Category		753.41		8,684.64		608.47		6,248.23		62,512.85		25,000.24		0.00		10,110.85		14,950.00		62,452.23		32,002.71
Proved Undeveloped Rsv Class & Category
RED FISH REEF Field		218.79		8,594.52		174.12		6,175.01		19,030.10		24,700.05		0.00		6,993.56		12,450.00		24,286.60		10,136.73
ST 224 ACW #15L - GBE		10.69		989.70		8.71		725.94		952.06		2,903.77		0.00		727.01		2,500.00		628.82		-2.35
ST 224 ACW #15U - GBE		7.21		721.42		5.88		529.16		642.58		2,116.64		0.00		526.29		350.00		1,882.93		443.78
ST 246 ACW #35L - GBE		40.61		1,194.36		32.25		853.67		3,524.56		3,414.66		0.00		1,031.46		2,500.00		3,407.76		2,109.77
ST 246 ACW #35U - GBE		24.26		713.56		19.27		510.02		2,105.72		2,040.07		0.00		616.24		350.00		3,179.56		901.33
ST 246 ACW #40L - GBE		67.24		2,013.04		53.40		1,438.82		5,835.67		5,755.28		0.00		1,731.04		3,200.00		6,659.91		3,923.90
ST 246 ACW #40U - GBE		38.38		936.19		30.48		669.14		3,331.50		2,676.57		0.00		848.89		350.00		4,809.18		1,162.06
ST 247 119 OFFSET - GBE		30.39		2,026.26		24.14		1,448.27		2,638.02		5,793.07		0.00		1,512.65		3,200.00		3,718.44		1,598.24
Proved Undeveloped Rsv Class & Category
TRINITY BAY Field		534.62		90.12		434.35		73.22		43,482.74		300.19		0.00		3,117.29		2,500.00		38,165.64		21,865.98
ST 25-A NO 01		534.62		90.12		434.35		73.22		43,482.74		300.19		0.00		3,117.29		2,500.00		38,165.64		21,865.98
Field Expense Rsv Class & Category		0.00		0.00		0.00		0.00		0.00		0.00		0.00		36,514.15		4,731.12		-41,245.27		-21,972.78
Field Expense Rsv Class & Category
FISHERS REEF Field		0.00		0.00		0.00		0.00		0.00		0.00		0.00		14,868.04		890.34		-15,758.38		-7,939.30
FIELD ABANDONMENT EX		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		890.34		-890.34		-196.54
FIELD FIXED OPERATING ]		0.00		0.00		0.00		0.00		0.00		0.00		0.00		14,868.04		0.00		-14,868.04		-7,742.77
Field Expense Rsv Class & Category
POINT BOLIVAR NORTH Field		0.00		0.00		0.00		0.00		0.00		0.00		0.00		442.10		739.88		-1,181.99		-1,004.93
FIELD ABANDONMENT EX		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		739.88		-739.88		-600.92
FIELD FIXED OPERATING E		0.00		0.00		0.00		0.00		0.00		0.00		0.00		442.10		0.00		-442.10		-404.01
Field Expense Rsv Class & Category
RED FISH REEF Field		0.00		0.00		0.00		0.00		0.00		0.00		0.00		12,289.32		1,658.25		-13,947.57		-6,385.83
FIELD ABANDONMENT EX		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		1,658.25		-1,658.25		-318.01
FIELD FIXED OPERATING E		0.00		0.00		0.00		0.00		0.00		0.00		0.00		12,289.32		0.00		-12,289.32		-6,067.83

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

9

08/21/2014 11:48:10AM

Economic One-Liners

 As of Date: 7/31/2014

SEC REPORT

Project Name :         HYDROCARB ENERGY 06/30/2014

Ownership Group : All Cases

	Gross Reserves				Net Reserves				Net Revenue						Expense				Cash Flow
Lease Name	Oil		Gas		Oil		Gas		Oil		Gas		Other		& Tax		Invest.		Non-Disc.		Disc. 10%
Risked / UnRisked	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
Field Expense Rsv Class & Category
TRINITY BAY Field		0.00		0.00		0.00		0.00		0.00		0.00		0.00		8,914.68		1,442.65		-10,357.33		-6,642.71
FIELD ABANDONMENT EX		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		1,442.65		-1,442.65		-608.52
FIELD FIXED OPERATING E		0.00		0.00		0.00		0.00		0.00		0.00		0.00		8,914.68		0.00		-8,914.68		-6,034.19

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

10

Proved Producing

Economic Detailed Report

Date : 08/21/2014 11:45:32AM

ECONOMIC SUMMARY PROJECTION

Project Name : HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Proved Producing Rsv Class & Category
Partner :           All Cases	Discount Rate (%) : 10.00	FISHERS REEF Field
Case Type :       REPORT BREAK TOTAL CASE	All Cases
	SEC REPORT

Cum Oil (Mbbl) :	1,061.99
Cum Gas (MMcf) :	1,997.59

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		5.38		92.07		4.01		58.62		109.34		5.79		438.78		339.67		0.00
2015		11.94		183.69		9.02		117.11		109.34		5.79		985.78		678.56		0.00
2016		8.71		143.12		6.75		91.62		109.34		5.79		737.91		530.85		0.00
2017		6.83		112.46		5.33		72.09		109.34		5.79		582.67		417.69		0.00
2018		5.49		88.35		4.28		56.70		109.34		5.79		468.24		328.54		0.00
2019		4.41		68.75		3.44		44.20		109.34		5.79		376.21		256.13		0.00
2020		3.55		55.14		2.77		35.46		109.34		5.79		303.14		205.44		0.00
2021		2.85		43.99		2.22		28.28		109.34		5.79		242.93		163.87		0.00
2022		2.29		35.19		1.79		22.63		109.34		5.79		195.27		131.12		0.00
2023		1.84		28.16		1.44		18.11		109.34		5.79		156.97		104.91		0.00
2024		1.48		22.59		1.16		14.52		109.34		5.79		126.49		84.15		0.00
2025		1.19		18.02		0.93		11.58		109.34		5.79		101.37		67.12		0.00
2026		0.95		14.42		0.75		9.27		109.34		5.79		81.49		53.71		0.00
2027		0.77		11.53		0.60		7.42		109.34		5.79		65.50		42.97		0.00
2028		0.61		9.25		0.48		5.95		109.34		5.79		52.08		34.47		0.00
Rem		0.09		3.89		0.07		2.50		109.34		5.79		7.25		14.47		0.00
Total		58.39		930.61		45.02		596.06		109.34		5.79		4,922.09		3,453.68		0.00
Ult		1,120.38		2,928.21

Year	Well Count		Net Tax Production (M$)		Net Tax  AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		4.00		45.66		19.46		0.00		0.00		0.00		0.00		0.00		713.33		698.18
2015		4.00		96.24		41.61		0.00		0.00		0.00		0.00		0.00		1,526.49		2,094.01
2016		4.00		73.76		31.72		0.00		0.00		0.00		0.00		0.00		1,163.29		3,057.13
2017		3.00		58.13		25.01		0.00		0.00		0.00		0.00		0.00		917.23		3,744.23
2018		2.00		46.18		19.92		0.00		0.00		0.00		0.00		0.00		730.68		4,239.79
2019		2.00		36.52		15.81		0.00		0.00		0.00		0.00		0.00		580.02		4,595.85
2020		2.00		29.35		12.71		0.00		0.00		0.00		0.00		0.00		466.51		4,855.07
2021		2.00		23.47		10.17		0.00		0.00		0.00		0.00		0.00		373.17		5,042.76
2022		2.00		18.82		8.16		0.00		0.00		0.00		0.00		0.00		299.42		5,179.09
2023		2.00		15.09		6.55		0.00		0.00		0.00		0.00		0.00		240.24		5,278.11
2024		2.00		12.13		5.27		0.00		0.00		0.00		0.00		0.00		193.24		5,350.21
2025		2.00		9.70		4.21		0.00		0.00		0.00		0.00		0.00		154.58		5,402.41
2026		2.00		7.78		3.38		0.00		0.00		0.00		0.00		0.00		124.04		5,440.33
2027		2.00		6.24		2.71		0.00		0.00		0.00		0.00		0.00		99.53		5,467.87
2028		2.00		4.98		2.16		0.00		0.00		0.00		0.00		0.00		79.41		5,487.77
Rem.				1.42		0.54		0.00		0.00		0.00		0.00		0.00		19.76		4.59
Total				485.44		209.39		0.00		0.00		0.00		0.00		0.00		7,680.94		5,492.36

		Present Worth Profile (M$)
		PW	5.00% :	6,417.89
Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	5,492.36
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	4,792.62
Years to Payout :	0.00	PW	20.00% :	4,248.63
Internal ROR (%) :	0.00	PW	25.00% :	3,815.25
		PW	30.00% :	3,462.59

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

11

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	FRSU #1 115 (06384) - GBE
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	FISHERS REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	203.64
Cum Gas (MMcf) :	411.24

Year	Gross Oil (mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue  (M$)		Misc. Revenue (M$)
2014		2.69		11.73		2.18		8.27		109.34		5.79		237.94		47.90		0.00
2015		6.64		23.76		5.38		16.75		109.34		5.79		588.64		97.06		0.00
2016		5.37		19.05		4.35		13.44		109.34		5.79		475.44		77.85		0.00
2017		4.31		15.20		3.49		10.72		109.34		5.79		381.91		62.10		0.00
2018		3.47		12.16		2.81		8.57		109.34		5.79		307.71		49.68		0.00
2019		2.80		9.73		2.27		6.86		109.34		5.79		247.93		39.75		0.00
2020		2.26		7.80		1.83		5.50		109.34		5.79		200.25		31.89		0.00
2021		1.82		6.23		1.47		4.39		109.34		5.79		160.85		25.43		0.00
2022		1.46		4.98		1.19		3.51		109.34		5.79		129.60		20.35		0.00
2023		1.18		3.99		0.96		2.81		109.34		5.79		104.42		16.28		0.00
2024		0.95		3.20		0.77		2.25		109.34		5.79		84.34		13.06		0.00
2025		0.76		2.55		0.62		1.80		109.34		5.79		67.75		10.42		0.00
2026		0.62		2.04		0.50		1.44		109.34		5.79		54.59		8.34		0.00
2027		0.50		1.63		0.40		1.15		109.34		5.79		43.98		6.67		0.00
2028		0.39		1.31		0.32		0.92		109.34		5.79		34.82		5.35		0.00
Rem		0.00		0.55		0.00		0.39		0.00		5.79		0.00		2.25		0.00
Total		35.21		125.90		28.54		88.77		109.34		5.79		3,120.17		514.38		0.00
Ult		238.85		537.15

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum. Cash Flow (M$)
2014		1.00		14.54		7.15		0.00		0.00		0.00		0.00		0.00		264.16		258.19
2015		1.00		34.36		17.14		0.00		0.00		0.00		0.00		0.00		634.20		838.01
2016		1.00		27.71		13.83		0.00		0.00		0.00		0.00		0.00		511.75		1,261.51
2017		1.00		22.22		11.10		0.00		0.00		0.00		0.00		0.00		410.68		1,569.13
2018		1.00		17.88		8.93		0.00		0.00		0.00		0.00		0.00		330.58		1,793.29
2019		1.00		14.39		7.19		0.00		0.00		0.00		0.00		0.00		266.10		1,956.64
2020		1.00		11.60		5.80		0.00		0.00		0.00		0.00		0.00		214.73		2,075.96
2021		1.00		9.31		4.66		0.00		0.00		0.00		0.00		0.00		172.32		2,162.62
2022		1.00		7.49		3.75		0.00		0.00		0.00		0.00		0.00		138.72		2,225.78
2023		1.00		6.02		3.02		0.00		0.00		0.00		0.00		0.00		111.66		2,271.81
2024		1.00		4.86		2.44		0.00		0.00		0.00		0.00		0.00		90.11		2,305.42
2025		1.00		3.90		1.95		0.00		0.00		0.00		0.00		0.00		72.32		2,329.84
2026		1.00		3.14		1.57		0.00		0.00		0.00		0.00		0.00		58.21		2,347.64
2027		1.00		2.52		1.27		0.00		0.00		0.00		0.00		0.00		46.86		2,360.61
2028		1.00		2.00		1.00		0.00		0.00		0.00		0.00		0.00		37.16		2,369.93
Rem.				0.17		0.06		0.00		0.00		0.00		0.00		0.00		2.02		0.47
Total				182.11		90.86		0.00		0.00		0.00		0.00		0.00		3,361.58		2,370.39

Major Phase :	Oil		Abandonment Date :	7/1/2029	Present Worth ProfileM$)
Perfs :	8741 - 8744		Working Int :	1.00000000	PW	5.00% :	2,789.01
Initial Rate :	390.20	bbl/month	RevenueInt:	0.81045170	PW	10.00% :	2,370.39
Abandonment :	0.00	bbl/month	Disc. Initial Invest. (M$) :	0.00	PW	15.00% :	2,054.86
Initial Decline :	19.44	% year     b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	20.00% :	1,810.41
Beg Ratio :	6.219		Years to Payout :	0.00	PW	25.00% :	1,616.38
End Ratio :	0.000		Internal ROR (%) :	0.00	PW	30.00% :	1,459.11

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

12

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 02-3A #001 (23530) - GBE
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	FISHERS REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	Frio 15
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	747.42
Cum Gas (MMcf) :	14.65

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue  (M$)		Misc. Revenue (M$)
2014		1.94		71.12		1.41		45.00		109.34		5.79		154.58		260.73		0.00
2015		3.94		144.09		2.86		91.17		109.34		5.79		313.19		528.27		0.00
2016		3.16		115.57		2.30		73.13		109.34		5.79		251.21		423.71		0.00
2017		2.52		92.19		1.83		58.33		109.34		5.79		200.38		337.99		0.00
2018		2.02		73.76		1.47		46.67		109.34		5.79		160.33		270.43		0.00
2019		1.61		59.02		1.17		37.34		109.34		5.79		128.28		216.38		0.00
2020		1.29		47.34		0.94		29.95		109.34		5.79		102.89		173.55		0.00
2021		1.03		37.76		0.75		23.89		109.34		5.79		82.08		138.44		0.00
2022		0.83		30.21		0.60		19.12		109.34		5.79		65.67		110.77		0.00
2023		0.66		24.17		0.48		15.30		109.34		5.79		52.55		88.63		0.00
2024		0.53		19.39		0.39		12.27		109.34		5.79		42.15		71.09		0.00
2025		0.42		15.47		0.31		9.79		109.34		5.79		33.62		56.70		0.00
2026		0.34		12.38		0.25		7.83		109.34		5.79		26.90		45.37		0.00
2027		0.27		9.90		0.20		6.27		109.34		5.79		21.52		36.30		0.00
2028		0.22		7.94		0.16		5.03		109.34		5.79		17.26		29.12		0.00
Rem		0.09		3.34		0.07		2.11		109.34		5.79		7.25		12.23		0.00
Total		20.87		763.65		15.18		483.19		109.34		5.79		1,659.86		2,799.71		0.00
Ult		768.30		778.30

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		26.67		10.38		0.00		0.00		0.00		0.00		0.00		378.26		370.52
2015		1.00		54.03		21.04		0.00		0.00		0.00		0.00		0.00		766.40		1,071.24
2016		1.00		43.33		16.87		0.00		0.00		0.00		0.00		0.00		614.71		1,579.97
2017		1.00		34.57		13.46		0.00		0.00		0.00		0.00		0.00		490.34		1,947.29
2018		1.00		27.66		10.77		0.00		0.00		0.00		0.00		0.00		392.34		2,213.34
2019		1.00		22.13		8.62		0.00		0.00		0.00		0.00		0.00		313.92		2,406.05
2020		1.00		17.75		6.91		0.00		0.00		0.00		0.00		0.00		251.79		2,545.96
2021		1.00		14.16		5.51		0.00		0.00		0.00		0.00		0.00		200.85		2,646.98
2022		1.00		11.33		4.41		0.00		0.00		0.00		0.00		0.00		160.70		2,720.15
2023		1.00		9.06		3.53		0.00		0.00		0.00		0.00		0.00		128.58		2,773.15
2024		1.00		7.27		2.83		0.00		0.00		0.00		0.00		0.00		103.13		2,811.63
2025		1.00		5.80		2.26		0.00		0.00		0.00		0.00		0.00		82.27		2,839.41
2026		1.00		4.64		1.81		0.00		0.00		0.00		0.00		0.00		65.82		2,859.54
2027		1.00		3.71		1.45		0.00		0.00		0.00		0.00		0.00		52.67		2,874.11
2028		1.00		2.98		1.16		0.00		0.00		0.00		0.00		0.00		42.24		2,884.69
Rem.				1.25		0.49		0.00		0.00		0.00		0.00		0.00		17.74		4.12
Total				286.33		111.49		0.00		0.00		0.00		0.00		0.00		4,061.75		2,888.81

Major Phase :	Gas		Abandonment Date :	7/1/2029	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000	PW	5.00% :	3,384.05
Initial Rate :	14,718.59	Mcf/month	Revenue Int :	0.72729100	PW	10.00% :	2,888.81
Abandonment :	527.36	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	15.00% :	2,515.31
Initial Decline :	20.00	% year      b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	20.00% :	2,225.59
Beg Ratio :	0.027		Years to Payout :	0.00	PW	25.00% :	1,995.29
End Ratio :	0.027		Internal ROR (%) :	0.00	PW	30.00% :	1,808.27

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

13

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 05-8A (230143) #01 - GBE
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	FISHERS REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	FRIO 17
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	12.84
Cum Gas (MMcf) :	1,395.84

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil  (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.01		7.61		0.00		4.57		109.34		5.79		0.48		26.45		0.00
2015		0.01		13.01		0.01		7.80		109.34		5.79		0.86		45.21		0.00
2016		0.01		8.14		0.01		4.88		109.34		5.79		0.58		28.29		0.00
2017		0.01		5.07		0.00		3.04		109.34		5.79		0.38		17.61		0.00
2018		0.00		2.43		0.00		1.45		109.34		5.79		0.20		8.43		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.03		36.26		0.02		21.74		109.34		5.79		2.49		125.99		0.00
Ult		12.87		1,432.10

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net  Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		2.01		0.67		0.00		0.00		0.00		0.00		0.00		24.25		23.76
2015		1.00		3.43		1.15		0.00		0.00		0.00		0.00		0.00		41.48		61.77
2016		1.00		2.15		0.72		0.00		0.00		0.00		0.00		0.00		26.00		83.33
2017		1.00		1.34		0.45		0.00		0.00		0.00		0.00		0.00		16.21		95.49
2018		0.00		0.64		0.22		0.00		0.00		0.00		0.00		0.00		7.77		100.83
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				9.56		3.21		0.00		0.00		0.00		0.00		0.00		115.71		100.83

Major Phase :	Gas		Abandonment Date :	9/20/2018	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	0.87500000	PW	5.00% :	107.84
Initial Rate :	1,657.16	Mcf/month	RevenueInt:	0.68923710	PW	10.00% :	100.83
Abandonment :	235.76	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	15.00% :	94.56
Initial Decline :	37.57	% year       b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	20.00% :	88.93
Beg Ratio :	0.001		Years to Payout :	0.00	PW	25.00% :	83.86
End Ratio :	0.001		Internal ROR (%) :	0.00	PW	30.00% :	79.28

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

14

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 06-7A #01 ST (25088) - GBE
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	FISHERS REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	FRIO 15
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	98.09
Cum Gas (MMcf)	175.86

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.74		1.62		0.42		0.79		109.34		5.79		45.78		4.58		0.00
2015		1.35		2.83		0.76		1.39		109.34		5.79		83.09		8.03		0.00
2016		0.17		0.35		0.10		0.17		109.34		5.79		10.69		1.00		0.00

Rem	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	2.27	4.80	1.28	2.35	109.34	5.79	139.57	13.60	0.00
Ult	100.36	180.66

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment  (M$)		Net Lease Costs (M$)		Net Well Costs  (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow  (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		2.45		1.26		0.00		0.00		0.00		0.00		0.00		46.65		45.71
2015		1.00		4.42		2.28		0.00		0.00		0.00		0.00		0.00		84.42		122.99
2016		1.00		0.57		0.29		0.00		0.00		0.00		0.00		0.00		10.83		132.32

Rem.	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	7.44	3.83	0.00	0.00	0.00	0.00	0.00	141.90	132.32

Major Phase :	Oil		Abandonment Date :	2/28/2016
Perfs :	0 - 0		Working Int :	0.75000000	Present Worth Profile (M$)
Initial Rate :	159.27	bbl/month	Revenue Int :	0.56206053	PW	5.00% :	136.98
Abandonment :	87.01	bbl/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	132.32
Initial Decline :	31.80	% year     b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	127.90
Beg Ratio :	2.190		Years to Payout :	0.00	PW	20.00% :	123.70
End Ratio :	2.023		Internal ROR (%) :	0.00	PW	25.00% :	119.72
					PW	30.00% :	115.93

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

15

Date : 08/21/2014 11:45:32AM

ECONOMIC SUMMARY PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Proved Producing Rsv Class & Category
Partner :	All Cases	Discount Rate (%) : 10.00	Point Bolivar North Field
Case Type :	Report Break Total Case	All Cases
		SEC REPORT

Cum Oil (Mbbl) :	419.38
Cum Gas (MMcf)	122.40

Year	Gross Oil (Mbbl)		Gross Gas  (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.03		0.00		0.02		0.00		88.35		0.00		1.60		0.00		0.00
2015		0.05		0.00		0.04		0.00		88.35		0.00		3.23		0.00		0.00
2016		0.02		0.00		0.01		0.00		88.35		0.00		1.15		0.00		0.00

Rem	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	0.10	0.00	0.07	0.00	88.35	0.00	5.98	0.00	0.00
Ult	419.48	122.40

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		0.07		0.04		0.00		0.00		0.00		0.00		0.00		1.49		1.46
2015		1.00		0.15		0.08		0.00		0.00		0.00		0.00		0.00		3.00		4.20
2016		1.00		0.05		0.03		0.00		0.00		0.00		0.00		0.00		1.07		5.11

Rem.	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	0.28	0.15	0.00	0.00	0.00	0.00	0.00	5.56	5.11

		Present Worth Profile (M$)
		PW	5.00% :	5.32
Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	5.11
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	4.90
Years to Payout :	0.00	PW	20.00% :	4.71
Internal ROR (%) :	0.00	PW	25.00% :	4.53
		PW	30.00% :	4.36

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

16

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 343 18 (18424) A - 1a Thru A - 1d - (
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	POINT BOLIVAR NORTH
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	S-2 B2
			Co., State :	GALVESTON, TX

Cum Oil (Mbbl) :	419.38
Cum Gas (MMcf)	122.40

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.03		0.00		0.02		0.00		88.35		0.00		1.60		0.00		0.00
2015		0.05		0.00		0.04		0.00		88.35		0.00		3.23		0.00		0.00
2016		0.02		0.00		0.01		0.00		88.35		0.00		1.15		0.00		0.00

Rem	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	0.10	0.00	0.07	0.00	88.35	0.00	5.98	0.00	0.00
Ult	419.48	122.40

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		0.07		0.04		0.00		0.00		0.00		0.00		0.00		1.49		1.46
2015		1.00		0.15		0.08		0.00		0.00		0.00		0.00		0.00		3.00		4.20
2016		1.00		0.05		0.03		0.00		0.00		0.00		0.00		0.00		1.07		5.11
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				0.28		0.15		0.00		0.00		0.00		0.00		0.00		5.56		5.11

Major Phase :	Oil		Abandonment Date :	6/1/2016
Perfs :	0 - 0		Working Int :	1.00000000	Present Worth Profile (M$)
Initial Rate :	5.42	bbl/month	Revenue Int :	0.69375100	PW	5.00% :	5.32
Abandonment :	3.55	bbl/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	5.11
Initial Decline :	20.64	% year     b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	4.90
Beg Ratio :	0.000		Years to Payout :	0.00	PW	20.00% :	4.71
End Ratio :	0.000		Internal ROR (%) :	0.00	PW	25.00% :	4.53
					PW	30.00% :	4.36

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

17

Date : 08/21/2014 11:45:32AM

ECONOMIC SUMMARY PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Proved Producing Rsv Class & Category
Partner :	All Cases	Discount Rate (%) : 10.00	RED FISH REEF Field
Case Type :	Report Break Total Case	All Cases
		SEC REPORT

Cum Oil (Mbbl) :	666.50
Cum Gas (MMcf)	27,144.55

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		4.67		46.10		3.87		34.62		109.29		4.00		423.12		138.47		0.00
2015		9.05		91.83		7.49		68.91		109.29		4.00		818.32		275.65		0.00
2016		6.95		72.44		5.75		54.32		109.29		4.00		628.24		217.30		0.00
2017		5.45		57.41		4.51		43.02		109.29		4.00		492.54		172.09		0.00
2018		4.39		46.09		3.63		34.52		109.29		4.00		396.32		138.06		0.00
2019		3.61		37.37		2.98		27.96		109.29		4.00		325.20		111.85		0.00
2020		2.98		30.50		2.46		22.80		109.29		4.00		269.00		91.21		0.00
2021		2.51		25.09		2.07		18.75		109.29		4.00		226.59		74.98		0.00
2022		2.16		20.96		1.78		15.65		109.29		4.00		194.83		62.59		0.00
2023		1.87		16.16		1.54		12.03		109.29		4.00		168.79		48.12		0.00
2024		1.60		11.94		1.32		8.86		109.29		4.00		144.63		35.45		0.00
2025		1.36		10.26		1.12		7.61		109.29		4.00		122.17		30.45		0.00
2026		1.21		9.12		1.00		6.76		109.29		4.00		109.20		27.05		0.00
2027		1.04		7.94		0.86		5.89		109.29		4.00		94.11		23.56		0.00
2028		0.72		6.14		0.59		4.56		109.29		4.00		64.72		18.23		0.00
Rem		1.24		10.27		1.02		7.62		109.29		4.00		111.71		30.46		0.00
Total		50.83		499.64		41.99		373.88		109.29		4.00		4,589.48		1,495.52		0.00
Ult		717.33		27,644.19

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow  (M$)		Cum Disc. Cash Flow (M$)
2014		6.00		29.85		14.04		0.00		0.00		0.00		26.90		0.00		490.81		480.80
2015		6.00		58.32		27.35		0.00		0.00		0.00		54.28		0.00		954.01		1,353.44
2016		6.00		45.20		21.14		0.00		0.00		0.00		44.01		0.00		735.19		1,962.01
2017		6.00		35.56		16.62		0.00		0.00		0.00		36.14		0.00		576.30		2,393.74
2018		6.00		28.59		13.36		0.00		0.00		0.00		30.24		0.00		462.20		2,707.14
2019		6.00		23.35		10.93		0.00		0.00		0.00		25.66		0.00		377.12		2,938.60
2020		5.00		19.22		9.01		0.00		0.00		0.00		21.94		0.00		310.05		3,110.86
2021		5.00		16.05		7.54		0.00		0.00		0.00		18.97		0.00		259.02		3,241.07
2022		5.00		13.66		6.44		0.00		0.00		0.00		16.65		0.00		220.68		3,341.50
2023		4.00		11.37		5.42		0.00		0.00		0.00		14.15		0.00		185.96		3,418.14
2024		2.00		9.31		4.50		0.00		0.00		0.00		11.95		0.00		154.31		3,475.71
2025		2.00		7.90		3.82		0.00		0.00		0.00		10.72		0.00		130.18		3,519.63
2026		2.00		7.05		3.41		0.00		0.00		0.00		9.79		0.00		116.01		3,555.06
2027		1.00		6.10		2.94		0.00		0.00		0.00		8.86		0.00		99.78		3,582.70
2028		1.00		4.34		2.07		0.00		0.00		0.00		7.63		0.00		68.90		3,599.94
Rem.				7.42		3.55		0.00		0.00		0.00		13.05		0.00		118.14		25.63
Total				323.28		152.13		0.00		0.00		0.00		350.96		0.00		5,258.64		3,625.57

		Present Worth Profile (M$)
		PW	5.00% :	4,298.86
Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	3,625.57
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	3,133.76
Years to Payout :	0.00	PW	20.00% :	2,761.43
Internal ROR (%) :	0.00	PW	25.00% :	2,470.72
		PW	30.00% :	2,237.70

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

18

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	RFRU 224 185 (099996) - GBE (0999
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	FB A-1 FRIO 22C
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	23.94
Cum Gas (MMcf)	3,247.25

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.06		0.16		0.05		0.12		109.29		4.00		5.40		0.49		0.00
2015		0.12		0.35		0.11		0.26		109.29		4.00		11.51		1.06		0.00
2016		0.11		0.31		0.09		0.23		109.29		4.00		9.92		0.93		0.00
2017		0.09		0.27		0.08		0.20		109.29		4.00		8.50		0.82		0.00
2018		0.08		0.24		0.07		0.18		109.29		4.00		7.31		0.72		0.00
2019		0.07		0.21		0.06		0.16		109.29		4.00		6.28		0.63		0.00
2020		0.06		0.18		0.05		0.14		109.29		4.00		5.41		0.55		0.00
2021		0.05		0.16		0.04		0.12		109.29		4.00		4.64		0.49		0.00
2022		0.04		0.14		0.04		0.11		109.29		4.00		3.99		0.43		0.00
2023		0.04		0.12		0.03		0.09		109.29		4.00		3.43		0.38		0.00
2024		0.03		0.10		0.03		0.08		109.29		4.00		2.81		0.31		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.75		2.23		0.63		1.70		109.29		4.00		69.20		6.80		0.00
Ult		24.69		3,249.49

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		0.29		0.15		0.00		0.00		0.00		0.07		0.00		5.39		5.27
2015		1.00		0.61		0.31		0.00		0.00		0.00		0.16		0.00		11.48		15.77
2016		1.00		0.53		0.27		0.00		0.00		0.00		0.14		0.00		9.91		23.97
2017		1.00		0.45		0.23		0.00		0.00		0.00		0.12		0.00		8.51		30.34
2018		1.00		0.39		0.20		0.00		0.00		0.00		0.11		0.00		7.33		35.30
2019		1.00		0.34		0.17		0.00		0.00		0.00		0.09		0.00		6.31		39.17
2020		1.00		0.29		0.15		0.00		0.00		0.00		0.08		0.00		5.45		42.20
2021		1.00		0.25		0.13		0.00		0.00		0.00		0.07		0.00		4.68		44.55
2022		1.00		0.22		0.11		0.00		0.00		0.00		0.06		0.00		4.03		46.38
2023		1.00		0.19		0.10		0.00		0.00		0.00		0.06		0.00		3.47		47.81
2024		0.00		0.15		0.08		0.00		0.00		0.00		0.05		0.00		2.85		48.88
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				3.69		1.90		0.00		0.00		0.00		1.00		0.00		69.40		48.88

Major Phase :	Gas		Abandonment Date :	12/12/2024
Perfs :	10878 - 11062		Working Int :	1.00000000	Present Worth Profile (M$)
Initial Rate :	32.60	Mcf/month	Revenue Int :	0.84500000	PW	5.00% :	57.69
Abandonment :	8.53	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	48.88
Initial Decline :	12.13	% year     b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	42.11
Beg Ratio :	0.366		Years to Payout :	0.00	PW	20.00% :	36.83
End Ratio :	0.291		Internal ROR (%) :	0.00	PW	25.00% :	32.64
					PW	30.00% :	29.25

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

19

Date : 08/21/2014 11::32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 224 141U (052698) - GBE (05269:
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	FB A-2 FRIO 19
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	173.14
Cum Gas (MMcf) :	12,617.21

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.17		19.96		0.14		15.18		109.29		4.00		15.53		60.71		0.00
2015		0.28		38.66		0.24		29.40		109.29		4.00		25.83		117.61		0.00
2016		0.17		29.07		0.14		22.11		109.29		4.00		15.54		88.44		0.00
2017		0.10		21.74		0.09		16.53		109.29		4.00		9.29		66.13		0.00
2018		0.06		16.31		0.05		12.40		109.29		4.00		5.58		49.61		0.00
2019		0.04		12.23		0.03		9.30		109.29		4.00		3.35		37.21		0.00
2020		0.02		9.20		0.02		7.00		109.29		4.00		2.01		27.98		0.00
2021		0.01		6.88		0.01		5.23		109.29		4.00		1.20		20.92		0.00
2022		0.01		5.16		0.01		3.92		109.29		4.00		0.72		15.70		0.00
2023		0.00		2.37		0.00		1.80		109.29		4.00		0.28		7.22		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.86		161.58		0.73		122.88		109.29		4.00		79.33		491.53		0.00
Ult		174.00		12,778.79

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs  (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow  (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		5.27		1.91		0.00		0.00		0.00		7.54		0.00		61.52		60.27
2015		1.00		10.01		3.59		0.00		0.00		0.00		14.60		0.00		115.25		165.74
2016		1.00		7.35		2.60		0.00		0.00		0.00		10.98		0.00		83.05		234.53
2017		1.00		5.39		1.89		0.00		0.00		0.00		8.21		0.00		59.94		279.47
2018		1.00		3.98		1.38		0.00		0.00		0.00		6.16		0.00		43.67		309.10
2019		1.00		2.95		1.01		0.00		0.00		0.00		4.62		0.00		31.98		328.75
2020		1.00		2.19		0.75		0.00		0.00		0.00		3.47		0.00		23.58		341.86
2021		1.00		1.62		0.55		0.00		0.00		0.00		2.60		0.00		17.35		350.60
2022		1.00		1.21		0.41		0.00		0.00		0.00		1.95		0.00		12.85		356.45
2023		0.00		0.55		0.19		0.00		0.00		0.00		0.90		0.00		5.86		358.91
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				40.51		14.27		0.00		0.00		0.00		61.02		0.00		455.05		358.91

Major Phase :	Gas		Abandonment Date :	7/30/2023
Perfs :	0 - 0		Working Int :	1.00000000	Present Worth Profile (M$)
Initial Rate :	4,184.88	Mcf/month	RevenueInt:	0.84500000	PW	5.00% :	401.90
Abandonment :	314.53	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	358.91
Initial Decline :	25.00	% year b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	323.68
Beg Ratio :	0.009		Years to Payout :	0.00	PW	20.00% :	294.45
End Ratio :	0.001		Internal ROR (%) :	0.00	PW	25.00% :	269.90
					PW	30.00% :	249.05

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

20

Date : 08/21/2014 11::32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 224 141U (052698) - GBE (05269:
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	FB A-2 FRIO 19
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	60.64
Cum Gas (MMcf) :	357.30

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.75		2.19		0.64		1.67		109.29		4.00		69.56		6.67		0.00
2015		1.17		3.65		0.99		2.77		109.29		4.00		108.31		11.09		0.00
2016		0.64		2.19		0.54		1.67		109.29		4.00		59.04		6.67		0.00
2017		0.35		1.31		0.29		1.00		109.29		4.00		32.00		3.99		0.00
2018		0.19		0.79		0.16		0.60		109.29		4.00		17.41		2.39		0.00
2019		0.10		0.47		0.09		0.36		109.29		4.00		9.47		1.44		0.00
2020		0.02		0.12		0.02		0.09		109.29		4.00		2.20		0.36		0.00

Rem	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	3.23	10.72	2.73	8.15	109.29	4.00	298.00	32.61	0.00
Ult	63.87	368.02

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		3.70		1.91		0.00		0.00		0.00		2.69		0.00		67.93		66.58
2015		1.00		5.81		2.99		0.00		0.00		0.00		4.28		0.00		106.32		164.09
2016		1.00		3.22		1.64		0.00		0.00		0.00		2.41		0.00		58.44		212.60
2017		1.00		1.77		0.90		0.00		0.00		0.00		1.35		0.00		31.97		236.62
2018		1.00		0.98		0.50		0.00		0.00		0.00		0.76		0.00		17.56		248.57
2019		1.00		0.54		0.27		0.00		0.00		0.00		0.43		0.00		9.66		254.52
2020		0.00		0.13		0.06		0.00		0.00		0.00		0.10		0.00		2.27		255.82
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				16.15		8.27		0.00		0.00		0.00		12.03		0.00		294.15		255.82

Major Phase :	Oil		Abandonment Date :	5/9/2020
Perfs :	0 - 0		Working Int :	1.00000000	Present WorthProfile (M$)
Initial Rate :	168.54	bbl/month	RevenueInt:	0.84500000	PW	5.00% :	273.75
Abandonment :	5.00	bbl/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	255.82
Initial Decline :	45.62	% year  b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	239.97
Beg Ratio :	2.853		Years to Payout :	0.00	PW	20.00% :	225.89
End Ratio :	5.036		Internal ROR (%) :	0.00	PW	25.00% :	213.33
					PW	30.00% :	202.06

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

21

Date : 08/21/2014 11::32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 224 141U (052698) - GBE (05269:
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	FB A-2 FRIO 19
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	307.83
Cum Gas (MMcf) :	2,239.21

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.80		9.28		0.66		6.88		109.29		4.00		71.81		27.52		0.00
2015		1.80		20.58		1.48		15.27		109.29		4.00		161.87		61.07		0.00
2016		1.68		18.80		1.38		13.95		109.29		4.00		151.23		55.78		0.00
2017		1.56		17.08		1.29		12.67		109.29		4.00		140.51		50.68		0.00
2018		1.45		15.56		1.20		11.54		109.29		4.00		130.92		46.17		0.00
2019		1.35		14.18		1.12		10.52		109.29		4.00		121.99		42.07		0.00
2020		1.27		12.95		1.04		9.61		109.29		4.00		113.97		38.42		0.00
2021		1.18		11.77		0.97		8.73		109.29		4.00		105.89		34.91		0.00
2022		1.10		10.72		0.90		7.95		109.29		4.00		98.66		31.80		0.00
2023		1.02		9.77		0.84		7.24		109.29		4.00		91.93		28.97		0.00
2024		0.95		8.92		0.79		6.62		109.29		4.00		85.88		26.47		0.00
2025		0.89		8.10		0.73		6.01		109.29		4.00		79.80		24.04		0.00
2026		0.83		7.38		0.68		5.48		109.29		4.00		74.35		21.91		0.00
2027		0.77		6.73		0.63		4.99		109.29		4.00		69.28		19.96		0.00
2028		0.72		6.14		0.59		4.56		109.29		4.00		64.72		18.23		0.00
Rem		1.24		10.27		1.02		7.62		109.29		4.00		111.71		30.46		0.00
Total		18.59		188.23		15.32		139.62		109.29		4.00		1,674.52		558.47		0.00
Ult		326.42		2,427.44

Year	Well Count		Net Tax Production (M$)		Net Tax Advalorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profit (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		5.37		2.48		0.00		0.00		0.00		9.37		0.00		82.11		80.41
2015		1.00		12.03		5.57		0.00		0.00		0.00		21.00		0.00		184.34		248.75
2016		1.00		11.14		5.18		0.00		0.00		0.00		19.46		0.00		171.23		390.29
2019		1.00		10.26		4.78		0.00		0.00		0.00		17.94		0.00		158.20		508.66
2020		1.00		9.49		4.43		0.00		0.00		0.00		16.59		0.00		146.59		607.95
2019		1.00		8.77		4.10		0.00		0.00		0.00		15.34		0.00		135.85		691.25
2020		1.00		8.12		3.81		0.00		0.00		0.00		14.22		0.00		126.23		761.30
2021		1.00		7.49		3.52		0.00		0.00		0.00		13.12		0.00		116.67		819.91
2022		1.00		6.92		3.26		0.00		0.00		0.00		12.13		0.00		108.15		869.10
2023		1.00		6.40		3.02		0.00		0.00		0.00		11.22		0.00		100.26		910.37
2024		1.00		5.94		2.81		0.00		0.00		0.00		10.41		0.00		93.20		945.10
2025		1.00		5.47		2.60		0.00		0.00		0.00		9.61		0.00		86.17		974.16
2026		1.00		5.06		2.41		0.00		0.00		0.00		8.89		0.00		79.90		998.56
2027		1.00		4.68		2.23		0.00		0.00		0.00		8.23		0.00		74.10		1,019.04
2028		1.00		4.34		2.07		0.00		0.00		0.00		7.63		0.00		68.90		1,036.28
Rem.				7.42		3.55		0.00		0.00		0.00		13.05		0.00		118.14		25.63
Total				118.91		55.82		0.00		0.00		0.00		208.21		0.00		1,850.03		1,061.91

Major Phase :	Oil		Abandonment Date :	12/1/2030
Perfs :	0 - 0		Working Int :	1.00000000	Present Worth Profile (M$)
Initial Rate :	159.89	bbl/month	Revenue Int :	0.82416700	PW	5.00% :	1,369.55
Abandonment :	50.35	bbl/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	1,061.91
Initial Decline :	6.83	% year  b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	856.04
Beg Ratio :	11.690		Years to Payout :	0.00	PW	20.00% :	712.33
End Ratio :	8.098		Internal ROR (%) :	0.00	PW PW	25.00% : 30.00% :	608.04 529.69

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

22

Date : 08/21/2014 11::32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 224 141U (052698) - GBE (05269:
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	FB A-2 FRIO 19
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	50.30
Cum Gas (MMcf) :	4,310.98

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		1.28		5.14		1.06		3.81		109.29		4.00		115.39		15.26		0.00
2015		2.34		9.51		1.93		7.06		109.29		4.00		210.47		28.23		0.00
2016		1.61		6.69		1.33		4.96		109.29		4.00		144.95		19.85		0.00
2017		1.10		4.68		0.91		3.47		109.29		4.00		99.28		13.88		0.00
2018		0.76		3.28		0.62		2.44		109.29		4.00		68.22		9.74		0.00
2019		0.52		2.30		0.43		1.71		109.29		4.00		46.88		6.84		0.00
2020		0.36		1.62		0.30		1.20		109.29		4.00		32.29		4.81		0.00
2021		0.25		1.13		0.20		0.84		109.29		4.00		22.11		3.36		0.00
2022		0.17		0.80		0.14		0.59		109.29		4.00		15.20		2.36		0.00
2023		0.12		0.56		0.10		0.41		109.29		4.00		10.44		1.66		0.00
2024		0.05		0.23		0.04		0.17		109.29		4.00		4.24		0.68		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		8.54		35.95		7.04		26.67		109.29		4.00		769.48		106.67		0.00
Ult		58.84		4,346.93

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		6.45		3.27		0.00		0.00		0.00		2.36		0.00		118.57		116.17
2015		1.00		11.80		5.97		0.00		0.00		0.00		4.35		0.00		216.58		314.43
2016		1.00		8.16		4.12		0.00		0.00		0.00		3.05		0.00		149.48		438.29
2017		1.00		5.61		2.83		0.00		0.00		0.00		2.12		0.00		102.60		515.25
2018		1.00		3.87		1.95		0.00		0.00		0.00		1.48		0.00		70.66		563.23
2019		1.00		2.67		1.34		0.00		0.00		0.00		1.04		0.00		48.67		593.14
2020		1.00		1.85		0.93		0.00		0.00		0.00		0.73		0.00		33.59		611.83
2021		1.00		1.27		0.64		0.00		0.00		0.00		0.51		0.00		23.06		623.44
2022		1.00		0.88		0.44		0.00		0.00		0.00		0.35		0.00		15.89		630.68
2023		1.00		0.60		0.30		0.00		0.00		0.00		0.25		0.00		10.94		635.20
2024		0.00		0.25		0.12		0.00		0.00		0.00		0.10		0.00		4.45		636.90
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				43.40		21.90		0.00		0.00		0.00		16.34		0.00		794.50		636.90

Major Phase :	Oil		Abandonment Date :	7/17/2024
Perfs :	0 - 0		Working Int :	1.00000000	Present WorthProfile (M$)
Initial Rate :	273.49	bbl/month	RevenueInt:	0.82416700	PW	5.00% :	707.60
Abandonment :	6.49	bbl/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	636.90
Initial Decline :	31.30	% year b = 0.000	ROInvestment (disc/undisc) : Years to Payout :	0.00 / 0.00 0.00	PW	15.00% :	578.56
Beg Ratio :	3.997				PW	20.00% :	529.78
End Ratio :	4.922		Internal ROR (%) :	0.00	PW	25.00% :	488.49
					PW	30.00% :	453.17

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

23

Date : 08/21/2014 11::32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 224 141U (052698) - GBE (05269:
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	FB A-2 FRIO 19
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	50.65
Cum Gas (MMcf) :	4,372.60

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		1.61		9.38		1.33		6.96		109.29		4.00		145.43		27.83		0.00
2015		3.33		19.07		2.75		14.15		109.29		4.00		300.32		56.59		0.00
2016		2.75		15.38		2.27		11.41		109.29		4.00		247.56		45.63		0.00
2017		2.25		12.33		1.86		9.15		109.29		4.00		202.96		36.59		0.00
2018		1.85		9.92		1.53		7.36		109.29		4.00		166.89		29.43		0.00
2019		1.52		7.98		1.26		5.92		109.29		4.00		137.23		23.67		0.00
2020		1.26		6.43		1.04		4.77		109.29		4.00		113.12		19.08		0.00
2021		1.03		5.16		0.85		3.83		109.29		4.00		92.74		15.30		0.00
2022		0.85		4.15		0.70		3.08		109.29		4.00		76.26		12.31		0.00
2023		0.70		3.34		0.57		2.48		109.29		4.00		62.71		9.90		0.00
2024		0.57		2.69		0.47		2.00		109.29		4.00		51.69		7.98		0.00
2025		0.47		2.16		0.39		1.60		109.29		4.00		42.38		6.40		0.00
2026		0.39		1.74		0.32		1.29		109.29		4.00		34.85		5.15		0.00
2027		0.28		1.21		0.23		0.90		109.29		4.00		24.83		3.60		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		18.86		100.93		15.55		74.86		109.29		4.00		1,698.96		299.45		0.00
Ult		69.52		4,473.53

Year	Well Count		Net Tax Production (M$)		Net Tax Advalorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		8.78		4.33		0.00		0.00		0.00		4.86		0.00		155.29		152.10
2015		1.00		18.06		8.92		0.00		0.00		0.00		9.89		0.00		320.03		444.65
2016		1.00		14.81		7.33		0.00		0.00		0.00		7.98		0.00		263.07		662.32
2017		1.00		12.08		5.99		0.00		0.00		0.00		6.40		0.00		215.08		823.40
2018		1.00		9.88		4.91		0.00		0.00		0.00		5.14		0.00		176.38		942.99
2019		1.00		8.09		4.02		0.00		0.00		0.00		4.14		0.00		144.65		1,031.77
2020		1.00		6.63		3.31		0.00		0.00		0.00		3.34		0.00		118.93		1,097.84
2021		1.00		5.41		2.70		0.00		0.00		0.00		2.68		0.00		97.25		1,146.75
2022		1.00		4.43		2.21		0.00		0.00		0.00		2.15		0.00		79.77		1,183.06
2023		1.00		3.63		1.82		0.00		0.00		0.00		1.73		0.00		65.43		1,210.03
2024		1.00		2.98		1.49		0.00		0.00		0.00		1.40		0.00		53.81		1,230.10
2025		1.00		2.43		1.22		0.00		0.00		0.00		1.12		0.00		44.01		1,244.96
2026		1.00		1.99		1.00		0.00		0.00		0.00		0.90		0.00		36.11		1,256.00
2027		0.00		1.41		0.71		0.00		0.00		0.00		0.63		0.00		25.68		1,263.15
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				100.61		49.96		0.00		0.00		0.00		52.35		0.00		1,795.50		1,263.15

Major Phase :	Gas		Abandonment Date :	11/8/2027
Perfs :	0 - 0		Working Int :	1.00000000	Present WorthProfile (M$)
Initial Rate :	1,938.98	Mcf/month	Revenue Int :	0.82416670	PW	5.00% :	1,488.37
Abandonment :	107.48	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	1,263.15
Initial Decline :	19.58	% year b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	1,093.40
Beg Ratio :	0.171		Years to Payout :	0.00	PW	20.00% :	962.15
End Ratio :	0.230		Internal ROR (%) :	0.00	PW	25.00% :	858.33
					PW	30.00% :	774.49

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

24

Date : 08/21/2014 11::32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 224 141U (052698) - GBE (05269:
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	FB A-2 FRIO 19
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	702.24
Cum Gas (MMcf) :	1,212.28

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		10.63		45.16		8.64		0.00		109.28		0.00		944.13		0.00		0.00
2015		24.83		121.32		20.17		0.00		109.28		0.00		2,204.21		0.00		0.00
2016		20.97		106.96		17.04		0.00		109.28		0.00		1,861.69		0.00		0.00
2017		18.11		93.85		14.71		0.00		109.28		0.00		1,607.69		0.00		0.00
2018		16.15		82.64		13.12		0.00		109.28		0.00		1,433.59		0.00		0.00
2019		14.45		72.82		11.74		0.00		109.28		0.00		1,283.35		0.00		0.00
2020		12.99		64.38		10.55		0.00		109.28		0.00		1,153.30		0.00		0.00
2021		11.62		56.65		9.44		0.00		109.28		0.00		1,032.07		0.00		0.00
2022		10.45		50.02		8.49		0.00		109.28		0.00		927.38		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		140.20		693.79		113.90		0.00		109.28		0.00		12,447.41		0.00		0.00
Ult		842.44		1,906.07

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		4.00		43.43		23.60		0.00		0.00		0.00		0.00		0.00		877.10		857.56
2015		4.00		101.39		55.11		0.00		0.00		0.00		0.00		0.00		2,047.71		2,729.48
2016		4.00		85.64		46.54		0.00		0.00		0.00		0.00		0.00		1,729.51		4,159.90
2017		3.00		73.95		40.19		0.00		0.00		0.00		0.00		0.00		1,493.54		5,277.82
2018		3.00		65.95		35.84		0.00		0.00		0.00		0.00		0.00		1,331.81		6,180.13
2019		3.00		59.03		32.08		0.00		0.00		0.00		0.00		0.00		1,192.23		6,911.36
2020		3.00		53.05		28.83		0.00		0.00		0.00		0.00		0.00		1,071.42		7,506.15
2021		3.00		47.48		25.80		0.00		0.00		0.00		0.00		0.00		958.79		7,987.93
2022		3.00		42.66		23.18		0.00		0.00		0.00		0.00		0.00		861.53		8,379.83
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				572.58		311.19		0.00		0.00		0.00		0.00		0.00		11,563.64		8,379.83

		Present Worth Profile (M$)
		PW	5.00% :	9,774.88
Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	8,379.83
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	7,278.27
Years to Payout :	0.00	PW	20.00% :	6,397.64
Internal ROR (%) :	0.00	PW	25.00% :	5,684.98
		PW	30.00% :	5,101.35

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

25

Date : 08/21/2014 11::32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	TBSU #1 (08444) #37 - GBE
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	TRINITY BAY
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	FRIO 12
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	7.83
Cum Gas (MMcf) :	0.46

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas  Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		1.94		0.00		1.57		0.00		109.28		0.00		172.12		0.00		0.00
2015		2.13		0.00		1.73		0.00		109.28		0.00		189.28		0.00		0.00
2016		0.68		0.00		0.55		0.00		109.28		0.00		60.49		0.00		0.00
2017		0.05		0.00		0.04		0.00		109.28		0.00		4.16		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		4.80		0.00		3.90		0.00		109.28		0.00		426.05		0.00		0.00
Ult		12.63		0.46

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem(M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		7.92		4.30		0.00		0.00		0.00		0.00		0.00		159.90		156.82
2015		1.00		8.71		4.73		0.00		0.00		0.00		0.00		0.00		175.84		318.78
2016		1.00		2.78		1.51		0.00		0.00		0.00		0.00		0.00		56.20		365.63
2017		0.00		0.19		0.10		0.00		0.00		0.00		0.00		0.00		3.87		368.65
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				19.60		10.65		0.00		0.00		0.00		0.00		0.00		395.80		368.65

Major Phase :	Oil		Abandonment Date :	2/20/2017
Perfs :	0 - 0		Working Int :	1.00000000	Present WorthProfile (M$)
Initial Rate :	481.36	bbl/month	Revenue Int :	0.81243864	PW	5.00% :	381.79
Abandonment :	25.81	bbl/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	368.65
Initial Decline :	68.11	% year b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	356.33
Beg Ratio :	0.000		Years to Payout :	0.00	PW	20.00% :	344.75
End Ratio :	0.000		Internal ROR (%) :	0.00	PW	25.00% :	333.86
					PW	30.00% :	323.60

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

26

Date : 08/21/2014 11::32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	TBSU #1 013 (16366) - GBE
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	TRINITY BAY
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	281.43
Cum Gas (MMcf) :	269.53

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		1.93		11.49		1.57		0.00		109.28		0.00		171.19		0.00		0.00
2015		5.87		33.16		4.77		0.00		109.28		0.00		521.03		0.00		0.00
2016		5.35		29.81		4.35		0.00		109.28		0.00		475.41		0.00		0.00
2017		4.86		26.65		3.95		0.00		109.28		0.00		431.41		0.00		0.00
2018		4.42		23.89		3.59		0.00		109.28		0.00		392.61		0.00		0.00
2019		4.02		21.42		3.27		0.00		109.28		0.00		357.30		0.00		0.00
2020		3.67		19.25		2.98		0.00		109.28		0.00		326.01		0.00		0.00
2021		3.33		17.21		2.71		0.00		109.28		0.00		295.84		0.00		0.00
2022		3.03		15.43		2.46		0.00		109.28		0.00		269.23		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		36.49		198.29		29.65		0.00		109.28		0.00		3,240.04		0.00		0.00
Ult		317.92		467.88

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		7.87		4.28		0.00		0.00		0.00		0.00		0.00		159.04		155.04
2015		1.00		23.97		13.03		0.00		0.00		0.00		0.00		0.00		484.04		597.14
2016		1.00		21.87		11.89		0.00		0.00		0.00		0.00		0.00		441.66		962.26
2017		1.00		19.84		10.79		0.00		0.00		0.00		0.00		0.00		400.78		1,262.16
2018		1.00		18.06		9.82		0.00		0.00		0.00		0.00		0.00		364.73		1,509.24
2019		1.00		16.44		8.93		0.00		0.00		0.00		0.00		0.00		331.93		1,712.80
2020		1.00		15.00		8.15		0.00		0.00		0.00		0.00		0.00		302.86		1,880.91
2021		1.00		13.61		7.40		0.00		0.00		0.00		0.00		0.00		274.84		2,019.00
2022		1.00		12.38		6.73		0.00		0.00		0.00		0.00		0.00		250.12		2,132.76
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				149.04		81.00		0.00		0.00		0.00		0.00		0.00		3,010.00		2,132.76

Major Phase :	Oil		Abandonment Date :	1/1/2023
Perfs :	0 - 0		Working Int :	1.00000000	Present WorthProfile (M$)
Initial Rate :	183.53	bbl/month	Revenue Int :	0.81243864	PW	5.00% :	2,516.01
Abandonment :	241.09	bbl/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	2,132.76
Initial Decline :	9.00	% year b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	1,831.80
Beg Ratio :	7.018		Years to Payout :	0.00	PW	20.00% :	1,592.59
End Ratio :	5.048		Internal ROR (%) :	0.00	PW	25.00% :	1,400.16
					PW	30.00% :	1,243.53

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

27

Date : 08/21/2014 11::32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	TBSU #1 12, 35, 130 (8004) - GBE
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	TRINITY BAY
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	Frio 23
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	207.93
Cum Gas (MMcf) :	681.87

Year	Gross Oil (Mbbl)		Gross  Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		3.30		19.12		2.68		0.00		109.28		0.00		292.70		0.00		0.00
2015		9.05		56.01		7.35		0.00		109.28		0.00		803.36		0.00		0.00
2016		7.73		47.98		6.28		0.00		109.28		0.00		686.04		0.00		0.00
2017		6.56		40.87		5.33		0.00		109.28		0.00		582.66		0.00		0.00
2018		5.59		34.92		4.54		0.00		109.28		0.00		496.32		0.00		0.00
2019		4.76		29.84		3.87		0.00		109.28		0.00		422.78		0.00		0.00
2020		4.07		25.56		3.30		0.00		109.28		0.00		361.04		0.00		0.00
2021		3.45		21.77		2.81		0.00		109.28		0.00		306.63		0.00		0.00
2022		2.94		18.60		2.39		0.00		109.28		0.00		261.20		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		47.45		294.69		38.55		0.00		109.28		0.00		4,212.72		0.00		0.00
Ult		254.84		976.56

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		13.46		7.32		0.00		0.00		0.00		0.00		0.00		271.91		265.36
2015		1.00		36.95		20.08		0.00		0.00		0.00		0.00		0.00		746.32		947.38
2016		1.00		31.56		17.15		0.00		0.00		0.00		0.00		0.00		637.34		1,474.56
2017		1.00		26.80		14.57		0.00		0.00		0.00		0.00		0.00		541.29		1,879.82
2018		1.00		22.83		12.41		0.00		0.00		0.00		0.00		0.00		461.08		2,192.34
2019		1.00		19.45		10.57		0.00		0.00		0.00		0.00		0.00		392.76		2,433.33
2020		1.00		16.61		9.03		0.00		0.00		0.00		0.00		0.00		335.41		2,619.61
2021		1.00		14.11		7.67		0.00		0.00		0.00		0.00		0.00		284.86		2,762.81
2022		1.00		12.01		6.53		0.00		0.00		0.00		0.00		0.00		242.65		2,873.24
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				193.79		105.32		0.00		0.00		0.00		0.00		0.00		3,913.62		2,873.24

Major Phase :	Oil		Abandonment Date :	1/1/2023
Perfs :	8058 - 8355		Working Int :	1.00000000	Present WorthProfile (M$)
Initial Rate :	394.58	bbl/month	Revenue Int :	0.81243864	PW	5.00% :	3,331.56
Abandonment :	226.08	bbl/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	2,873.24
Initial Decline :	15.00	% year b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	2,507.89
Beg Ratio :	4.625		Years to Payout :	0.00	PW	20.00% :	2,213.13
End Ratio :	6.334		Internal ROR (%) :	0.00	PW	25.00% :	1,972.50
					PW	30.00% :	1,773.79

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

28

Date : 08/21/2014 11::32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	TBSU #1 69D, 75F, 135 (5351 - GBE
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Producing
Case Type :	LEASE CASE	All Cases	Field :	TRINITY BAY
Archive Set :	RED 14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	205.59
Cum Gas (MMcf) :	260.35

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		3.47		14.55		2.82		0.00		109.28		0.00		308.13		0.00		0.00
2015		7.78		32.14		6.32		0.00		109.28		0.00		690.54		0.00		0.00
2016		7.21		29.17		5.85		0.00		109.28		0.00		639.75		0.00		0.00
2017		6.64		26.33		5.39		0.00		109.28		0.00		589.45		0.00		0.00
2018		6.13		23.83		4.98		0.00		109.28		0.00		544.66		0.00		0.00
2019		5.67		21.57		4.61		0.00		109.28		0.00		503.27		0.00		0.00
2020		5.25		19.57		4.27		0.00		109.28		0.00		466.25		0.00		0.00
2021		4.84		17.67		3.93		0.00		109.28		0.00		429.60		0.00		0.00
2022		4.47		15.99		3.63		0.00		109.28		0.00		396.95		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		51.46		200.81		41.81		0.00		109.28		0.00		4,568.60		0.00		0.00
Ult		257.05		461.16

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		14.17		7.70		0.00		0.00		0.00		0.00		0.00		286.25		280.33
2015		1.00		31.77		17.26		0.00		0.00		0.00		0.00		0.00		641.52		866.18
2016		1.00		29.43		15.99		0.00		0.00		0.00		0.00		0.00		594.33		1,357.46
2017		1.00		27.11		14.74		0.00		0.00		0.00		0.00		0.00		547.60		1,767.18
2018		1.00		25.05		13.62		0.00		0.00		0.00		0.00		0.00		505.99		2,109.90
2019		1.00		23.15		12.58		0.00		0.00		0.00		0.00		0.00		467.54		2,396.58
2020		1.00		21.45		11.66		0.00		0.00		0.00		0.00		0.00		433.15		2,636.98
2021		1.00		19.76		10.74		0.00		0.00		0.00		0.00		0.00		399.09		2,837.47
2022		1.00		18.26		9.92		0.00		0.00		0.00		0.00		0.00		368.77		3,005.18
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				210.16		114.21		0.00		0.00		0.00		0.00		0.00		4,244.23		3,005.18

 

Major Phase :	Oil		Abandonment Date :	1/1/2023
Perfs :	8065 - 8070		Working Int :	1.00000000	Present WorthProfile (M$)
Initial Rate :	697.29	bbl/month	Revenue Int :	0.81243864	PW	5.00% :	3,545,52
Abandonment :	358.22	bbl/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	3,005,18
Initial Decline :	7.60	% year b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	2,582,24
Beg Ratio :	4.211		Years to Payout :	0.00	PW	20.00% :	2,247,16
End Ratio :	3.539		Internal ROR (%) :	0.00	PW	25.00% :	1,978,46
					PW	30.00% :	1,760,42

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

29

This Page Is Intentionally Left Blank

Proved Shut-In

Economic Detailed Report

  Date : 08/21/2014 11:45:32AM

ECONOMIC SUMMARY PROJECTION

				Proved Shut-In Rsv Class & Category
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	FISHERS REEF Field
Partner :	All Cases	Discount Rate (%) :	10.00
Case Type :	REPORT BREAK TOTAL CASE	All Cases
		SEC REPORT

Cum Oil (Mbbl) :	95.65
Cum Gas (MMcf) :	349.56

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.18		0.48		0.14		0.34		109.34		5.79		15.58		1.98		0.00
2015		0.34		0.94		0.28		0.66		109.34		5.79		30.18		3.84		0.00
2016		0.26		0.71		0.21		0.50		109.34		5.79		22.70		2.88		0.00
2017		0.19		0.53		0.16		0.37		109.34		5.79		16.97		2.16		0.00
2018		0.14		0.40		0.12		0.28		109.34		5.79		12.73		1.62		0.00
2019		0.11		0.30		0.09		0.21		109.34		5.79		9.55		1.21		0.00
2020		0.08		0.22		0.07		0.16		109.34		5.79		7.18		0.91		0.00
2021		0.03		0.09		0.03		0.07		109.34		5.79		3.01		0.38		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		1.33		3.67		1.08		2.59		109.34		5.79		117.91		14.98		0.00
Ult		96.98		353.23

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		0.87		0.44		0.00		0.00		0.00		0.00		0.00		16.26		15.92
2015		1.00		1.68		0.85		0.00		0.00		0.00		0.00		0.00		31.49		44.73
2016		1.00		1.26		0.64		0.00		0.00		0.00		0.00		0.00		23.68		64.34
2017		1.00		0.94		0.48		0.00		0.00		0.00		0.00		0.00		17.71		77.61
2018		1.00		0.71		0.36		0.00		0.00		0.00		0.00		0.00		13.28		86.63
2019		1.00		0.53		0.27		0.00		0.00		0.00		0.00		0.00		9.96		92.75
2020		1.00		0.40		0.20		0.00		0.00		0.00		0.00		0.00		7.49		96.91
2021		0.00		0.17		0.08		0.00		0.00		0.00		0.00		0.00		3.14		98.53
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				6.55		3.32		0.00		0.00		0.00		0.00		0.00		123.02		98.53

		Present Worth Profile		(M$)
		PW	5.00% :	109.65
Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	98.53
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	89.21
Years to Payout :	0.00	PW	20.00% :	81.34
	0.00	PW	25.00% :	74.63
		PW	30.00% :	68.87

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

30

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

				Case :	RFRU 1 112 (12528)  - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Shut-In
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	FISHERS REEF
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
				Reservoir :	FRIO 6 C
Archive Set:	RED.07.14	SEC REPORT		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	95.65
Cum Gas (MMcf) :	349.56

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.18		0.48		0.14		0.34		109.34		5.79		15.58		1.98		0.00
2015		0.34		0.94		0.28		0.66		109.34		5.79		30.18		3.84		0.00
2016		0.26		0.71		0.21		0.50		109.34		5.79		22.70		2.88		0.00
2017		0.19		0.53		0.16		0.37		109.34		5.79		16.97		2.16		0.00
2018		0.14		0.40		0.12		0.28		109.34		5.79		12.73		1.62		0.00
2019		0.11		0.30		0.09		0.21		109.34		5.79		9.55		1.21		0.00
2020		0.08		0.22		0.07		0.16		109.34		5.79		7.18		0.91		0.00
2021		0.03		0.09		0.03		0.07		109.34		5.79		3.01		0.38		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		1.33		3.67		1.08		2.59		109.34		5.79		117.91		14.98		0.00
Ult		96.98		353.23

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		0.87		0.44		0.00		0.00		0.00		0.00		0.00		16.26		15.92
2015		1.00		1.68		0.85		0.00		0.00		0.00		0.00		0.00		31.49		44.73
2016		1.00		1.26		0.64		0.00		0.00		0.00		0.00		0.00		23.68		64.34
2017		1.00		0.94		0.48		0.00		0.00		0.00		0.00		0.00		17.71		77.61
2018		1.00		0.71		0.36		0.00		0.00		0.00		0.00		0.00		13.28		86.63
2019		1.00		0.53		0.27		0.00		0.00		0.00		0.00		0.00		9.96		92.75
2020		1.00		0.40		0.20		0.00		0.00		0.00		0.00		0.00		7.49		96.91
2021		0.00		0.17		0.08		0.00		0.00		0.00		0.00		0.00		3.14		98.53
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				6.55		3.32		0.00		0.00		0.00		0.00		0.00		123.02		98.53

Major Phase :	Oil				Abandonment Date :	7/10/2021
Perfs :	8425	- 8428			Working Int :	1.00000000	Present Worth Profile		(M$)
Initial Rate :		36.87	bbl/month		Revenue Int :	0.81045170	PW	5.00% :	109.65
Abandonment :		5.00	bbl/month		Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	98.53
Initial Decline :		25.00	% year	b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	89.21
Beg Ratio :		2.757			Years to Payout :	0.00	PW	20.00% :	81.34
End Ratio :		2.758			Internal ROR (%) :	0.00	PW	25.00% :	74.63
							PW	30.00% :	68.87

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

31

Date : 08/21/2014 11:45:32AM

ECONOMIC SUMMARY PROJECTION

				Proved Shut-In Rsv Class & Category
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	POINT BOLIVAR NORTH Field
Partner :	All Cases	Discount Rate (%) :	10.00
Case Type :	REPORT BREAK TOTAL CASE	All Cases
		SEC REPORT

Cum Oil (Mbbl) :	0.29
Cum Gas (MMcf) :	747.77

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		811.11		0.00		293.62		0.00		4.55		0.00		1,336.27		0.00
2016		0.00		458.42		0.00		165.95		0.00		4.55		0.00		755.23		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		1,269.53		0.00		459.57		0.00		4.55		0.00		2,091.51		0.00
Ult		0.29		2,017.30

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		100.22		33.41		325.00		0.00		0.00		0.00		0.00		877.65		782.10
2016		1.00		56.64		18.88		0.00		0.00		0.00		0.00		0.00		679.71		1,349.47
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				156.86		52.29		325.00		0.00		0.00		0.00		0.00		1,557.36		1,349.47

		Present Worth Profile (M$)
		PW	5.00% :	1,449.26
Disc. Initial Invest. (M$) :	306.58	PW	10.00% :	1,349.47
ROInvestment (disc/undisc) :	5.40 / 5.79	PW	15.00% :	1,257.27
Years to Payout :	0.83	PW	20.00% :	1,172.03
Internal ROR (%) :	469.46	PW	25.00% :	1,093.16
		PW	30.00% :	1,020.13

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

32

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

				Case :	ST 343 1 (Big Gas) - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Shut-In
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	POINT BOLIVAR NORTH
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
				Reservoir :	12300
Archive Set:	RED.07.14	SEC REPORT		Co., State :	GALVESTON, TX

Cum Oil (Mbbl) :	0.29
Cum Gas (MMcf) :	747.77

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		811.11		0.00		293.62		0.00		4.55		0.00		1,336.27		0.00
2016		0.00		458.42		0.00		165.95		0.00		4.55		0.00		755.23		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		1,269.53		0.00		459.57		0.00		4.55		0.00		2,091.51		0.00
Ult		0.29		2,017.30

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		100.22		33.41		325.00		0.00		0.00		0.00		0.00		877.65		782.10
2016		1.00		56.64		18.88		0.00		0.00		0.00		0.00		0.00		679.71		1,349.47
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				156.86		52.29		325.00		0.00		0.00		0.00		0.00		1,557.36		1,349.47

Major Phase :	Gas			Abandonment Date :	12/1/2016
Perfs :	13370 - 13427			Working Int :	0.50000000	Present Worth Profile (M$)
Initial Rate :	125,000.00	Mcf/month		RevenueInt:	0.36200000	PW	5.00% :	1,449.26
Abandonment :	26,214.47	Mcf/month		Disc. Initial Invest. (M$) :	306.58	PW	10.00% :	1,349.47
Initial Decline :	60.69	% year	b = 0.000	ROInvestment (disc/undisc) :	5.40 / 5.79	PW	15.00% :	1,257.27
Beg Ratio :	0.000			Years to Payout :	0.83	PW	20.00% :	1,172.03
End Ratio :	0.000			Internal ROR (%) :	469.46	PW	25.00% :	1,093.16
						PW	30.00% :	1,020.13

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

33

Date : 08/21/2014 11:45:32AM

ECONOMIC SUMMARY PROJECTION

				Proved Shut-In Rsv Class & Category
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	RED FISH REEF Field
Partner :	All Cases	Discount Rate (%) :	10.00
Case Type :	REPORT BREAK TOTAL CASE	All Cases
		SEC REPORT

Cum Oil (Mbbl) :	863.59
Cum Gas (MMcf) :	8,495.30

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		2.02		22.27		1.63		16.31		109.29		4.00		178.43		65.24		0.00
2015		5.07		89.13		4.13		66.30		109.29		4.00		451.09		265.19		0.00
2016		4.66		105.60		3.82		79.13		109.29		4.00		417.53		316.52		0.00
2017		3.45		79.46		2.82		59.55		109.29		4.00		308.55		238.20		0.00
2018		2.66		61.42		2.17		46.03		109.29		4.00		237.60		184.12		0.00
2019		2.16		49.82		1.76		37.31		109.29		4.00		192.68		149.25		0.00
2020		1.76		40.55		1.43		30.35		109.29		4.00		156.79		121.39		0.00
2021		1.42		32.85		1.16		24.57		109.29		4.00		127.02		98.27		0.00
2022		1.16		26.72		0.95		19.97		109.29		4.00		103.32		79.88		0.00
2023		0.94		21.75		0.77		16.25		109.29		4.00		84.11		64.99		0.00
2024		0.77		17.77		0.63		13.26		109.29		4.00		68.71		53.06		0.00
2025		0.59		12.44		0.48		9.29		109.29		4.00		52.76		37.14		0.00
2026		0.43		7.54		0.35		5.58		109.29		4.00		38.40		22.32		0.00
2027		0.35		6.08		0.29		4.49		109.29		4.00		31.32		17.98		0.00
2028		0.28		4.68		0.23		3.44		109.29		4.00		24.80		13.77		0.00
Rem		0.32		3.81		0.25		2.72		109.29		4.00		27.45		10.89		0.00
Total		28.06		581.89		22.88		434.56		109.29		4.00		2,500.56		1,738.22		0.00
Ult		891.65		9,077.19

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		5.00		13.10		6.09		0.00		0.00		0.00		10.98		0.00		213.49		209.19
2015		5.00		40.64		17.91		150.00		0.00		0.00		39.36		0.00		468.38		633.11
2016		5.00		42.95		18.35		0.00		0.00		0.00		45.49		0.00		627.26		1,152.45
2017		4.00		32.06		13.67		0.00		0.00		0.00		34.64		0.00		466.39		1,502.18
2018		4.00		24.74		10.54		0.00		0.00		0.00		27.03		0.00		359.41		1,745.89
2019		4.00		20.06		8.55		0.00		0.00		0.00		21.98		0.00		291.35		1,924.72
2020		4.00		16.32		6.95		0.00		0.00		0.00		17.93		0.00		236.98		2,056.39
2021		4.00		13.21		5.63		0.00		0.00		0.00		14.56		0.00		191.89		2,152.89
2022		4.00		10.74		4.58		0.00		0.00		0.00		11.87		0.00		156.00		2,223.91
2023		4.00		8.74		3.73		0.00		0.00		0.00		9.69		0.00		126.94		2,276.23
2024		4.00		7.14		3.04		0.00		0.00		0.00		7.93		0.00		103.65		2,314.89
2025		3.00		5.21		2.25		0.00		0.00		0.00		5.71		0.00		76.73		2,340.81
2026		2.00		3.44		1.52		0.00		0.00		0.00		3.57		0.00		52.19		2,356.77
2027		2.00		2.79		1.23		0.00		0.00		0.00		2.89		0.00		42.38		2,368.50
2028		1.00		2.17		0.96		0.00		0.00		0.00		2.26		0.00		33.17		2,376.83
Rem.				2.08		0.96		0.00		0.00		0.00		2.16		0.00		33.14		7.21
Total				245.39		105.97		150.00		0.00		0.00		258.06		0.00		3,479.35		2,384.04

		Present Worth Profile (M$)
		PW	5.00% :	2,844.99
Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	2,384.04
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	2,038.32
Years to Payout :	0.00	PW	20.00% :	1,771.69
Internal ROR (%) :	0.00	PW	25.00% :	1,561.02
		PW	30.00% :	1,391.07

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

34

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

				Case :	RFRU 247 21 (08946) - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Shut-In
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	RED FISH REEF
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
				Reservoir :	FRIO 2-B
Archive Set:	RED.07.14	SEC REPORT		Co., State :	CHAMBER, TX

Cum Oil (Mbbl) :	444.79
Cum Gas (MMcf) :	2,962.57

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		1.10		7.71		0.88		5.51		109.29		4.00		95.81		22.05		0.00
2015		2.30		16.49		1.83		11.78		109.29		4.00		199.69		47.14		0.00
2016		1.92		14.28		1.53		10.20		109.29		4.00		166.81		40.82		0.00
2017		1.60		12.30		1.27		8.79		109.29		4.00		138.58		35.16		0.00
2018		1.33		10.62		1.06		7.59		109.29		4.00		115.48		30.37		0.00
2019		1.11		9.17		0.88		6.56		109.29		4.00		96.22		26.23		0.00
2020		0.93		7.94		0.74		5.68		109.29		4.00		80.38		22.71		0.00
2021		0.77		6.84		0.61		4.89		109.29		4.00		66.78		19.56		0.00
2022		0.64		5.91		0.51		4.22		109.29		4.00		55.64		16.90		0.00
2023		0.53		5.11		0.42		3.65		109.29		4.00		46.37		14.60		0.00
2024		0.45		4.42		0.35		3.16		109.29		4.00		38.73		12.64		0.00
2025		0.37		3.81		0.29		2.72		109.29		4.00		32.18		10.89		0.00
2026		0.31		3.29		0.25		2.35		109.29		4.00		26.81		9.40		0.00
2027		0.26		2.84		0.20		2.03		109.29		4.00		22.34		8.12		0.00
2028		0.22		2.46		0.17		1.76		109.29		4.00		18.66		7.03		0.00
Rem		0.32		3.81		0.25		2.72		109.29		4.00		27.45		10.89		0.00
Total		14.15		117.00		11.24		83.63		109.29		4.00		1,227.94		334.51		0.00
Ult		458.94		3,079.58

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		6.06		2.95		0.00		0.00		0.00		5.53		0.00		103.33		101.21
2015		1.00		12.72		6.17		0.00		0.00		0.00		11.67		0.00		216.27		298.87
2016		1.00		10.73		5.19		0.00		0.00		0.00		9.93		0.00		181.78		449.25
2017		1.00		9.01		4.34		0.00		0.00		0.00		8.40		0.00		151.98		563.05
2018		1.00		7.59		3.65		0.00		0.00		0.00		7.14		0.00		127.47		649.46
2019		1.00		6.39		3.06		0.00		0.00		0.00		6.06		0.00		106.94		715.08
2020		1.00		5.40		2.58		0.00		0.00		0.00		5.16		0.00		89.95		765.04
2021		1.00		4.54		2.16		0.00		0.00		0.00		4.38		0.00		75.27		802.89
2022		1.00		3.83		1.81		0.00		0.00		0.00		3.72		0.00		63.18		831.64
2023		1.00		3.23		1.52		0.00		0.00		0.00		3.17		0.00		53.04		853.50
2024		1.00		2.73		1.28		0.00		0.00		0.00		2.70		0.00		44.66		870.15
2025		1.00		2.30		1.08		0.00		0.00		0.00		2.29		0.00		37.40		882.78
2026		1.00		1.94		0.91		0.00		0.00		0.00		1.95		0.00		31.42		892.38
2027		1.00		1.64		0.76		0.00		0.00		0.00		1.66		0.00		26.40		899.68
2028		1.00		1.39		0.64		0.00		0.00		0.00		1.42		0.00		22.25		905.25
Rem.				2.08		0.96		0.00		0.00		0.00		2.16		0.00		33.14		7.21
Total				81.57		39.6		0.00		0.00		0.00		77.34		0.00		1,364.48		912.47

Major Phase :	Oil			Abandonment Date :	12/1/2030
Perfs :	8700 - 8707			Working Int :	1.00000000	Present Worth Profile (M$)
Initial Rate :	226.56	bbl/month		Revenue Int :	0.79416670	PW	5.00% :	1,097.96
Abandonment :	11.49	bbl/month		Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	912.47
Initial Decline :	16.68	% year	b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	778.17
Beg Ratio :	6.937			Years to Payout :	0.00	PW	20.00% :	677.46
End Ratio :	12.486			Internal ROR (%)	0.00	PW	25.00% :	599.59
						PW	30.00% :	537.77

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

35

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

				Case :	ST 224 176 - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Shut-In
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	RED FISH REEF
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
				Reservoir :	FB A-3 FRIO 6
Archive Set:	RED.07.14	SEC REPORT		Co., State :	CHAMBER, TX

Cum Oil (Mbbl) :	315.97
Cum Gas (MMcf) :	876.25

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.15		7.35		0.12		5.59		109.29		4.00		13.57		22.35		0.00
2016		0.51		25.47		0.43		19.37		109.29		4.00		47.03		77.47		0.00
2017		0.41		20.31		0.34		15.45		109.29		4.00		37.52		61.79		0.00
2018		0.33		16.25		0.27		12.36		109.29		4.00		30.02		49.44		0.00
2019		0.26		13.00		0.22		9.89		109.29		4.00		24.02		39.56		0.00
2020		0.21		10.43		0.18		7.93		109.29		4.00		19.27		31.73		0.00
2021		0.17		8.32		0.14		6.33		109.29		4.00		15.37		25.31		0.00
2022		0.13		6.66		0.11		5.06		109.29		4.00		12.30		20.25		0.00
2023		0.11		5.33		0.09		4.05		109.29		4.00		9.84		16.20		0.00
2024		0.09		4.27		0.07		3.25		109.29		4.00		7.89		13.00		0.00
2025		0.07		3.41		0.06		2.59		109.29		4.00		6.29		10.37		0.00
2026		0.00		0.20		0.00		0.15		109.29		4.00		0.37		0.60		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		2.42		121.00		2.04		92.02		109.29		4.00		223.48		368.08		0.00
Ult		318.39		997.25

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		2.30		0.90		50.00		0.00		0.00		3.09		0.00		-20.36		-18.45
2016		1.00		7.97		3.11		0.00		0.00		0.00		10.70		0.00		102.72		66.56
2017		1.00		6.36		2.48		0.00		0.00		0.00		8.53		0.00		81.94		127.93
2018		1.00		5.09		1.99		0.00		0.00		0.00		6.83		0.00		65.56		172.39
2019		1.00		4.07		1.59		0.00		0.00		0.00		5.46		0.00		52.45		204.59
2020		1.00		3.27		1.27		0.00		0.00		0.00		4.38		0.00		42.07		227.97
2021		1.00		2.61		1.02		0.00		0.00		0.00		3.50		0.00		33.56		244.85
2022		1.00		2.08		0.81		0.00		0.00		0.00		2.80		0.00		26.85		257.08
2023		1.00		1.67		0.65		0.00		0.00		0.00		2.24		0.00		21.49		265.93
2024		1.00		1.34		0.52		0.00		0.00		0.00		1.79		0.00		17.23		272.36
2025		1.00		1.07		0.42		0.00		0.00		0.00		1.43		0.00		13.75		277.00
2026		0.00		0.06		0.02		0.00		0.00		0.00		0.08		0.00		0.80		277.26
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				37.89		14.79		50.00		0.00		0.00		50.83		0.00		438.05		277.26

Major Phase :	Oil			Abandonment Date :	1/23/2026
Perfs :	0 - 0			Working Int :	1.00000000	Present Worth Profile		(M$)
Initial Rate :	50.00	bbl/month		RevenueInt:	0.84500000	PW	5.00%	345.90
Abandonment :	5.00	bbl/month		Disc. Initial Invest. (M$) :	0.00	PW	10.00%	277.26
Initial Decline :	20.00	% year	b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00%	225.20
Beg Ratio :	50.000			Years to Payout :	0.00	PW	20.00%	185.03
End Ratio :	50.000			Internal ROR (%) :	0.00	PW	25.00%	153.56
						PW	30.00%	128.56

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

36

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

				Case :	ST 225 050 - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Shut-In
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	RED FISH REEF
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
				Reservoir :	F-4&5
Archive Set:	RED.07.14	SEC REPORT		Co., State :	CHAMBER, TX

Cum Oil (Mbbl) :	76.47
Cum Gas (MMcf) :	197.20

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price Price		Oil Revenue (M$)		Misc. Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.79		26.36		0.67		20.05		109.29		4.00		73.04		80.19		0.00
2016		1.13		37.82		0.96		28.76		109.29		4.00		104.78		115.04		0.00
2017		0.91		30.17		0.76		22.94		109.29		4.00		83.58		91.77		0.00
2018		0.72		24.14		0.61		18.36		109.29		4.00		66.87		73.43		0.00
2019		0.58		19.31		0.49		14.69		109.29		4.00		53.51		58.75		0.00
2020		0.46		15.49		0.39		11.78		109.29		4.00		42.92		47.12		0.00
2021		0.37		12.36		0.31		9.40		109.29		4.00		34.23		37.59		0.00
2022		0.30		9.89		0.25		7.52		109.29		4.00		27.39		30.08		0.00
2023		0.24		7.91		0.20		6.02		109.29		4.00		21.92		24.06		0.00
2024		0.19		6.34		0.16		4.83		109.29		4.00		17.58		19.30		0.00
2025		0.15		5.06		0.13		3.85		109.29		4.00		14.02		15.40		0.00
2026		0.12		4.05		0.10		3.08		109.29		4.00		11.22		12.32		0.00
2027		0.10		3.24		0.08		2.46		109.29		4.00		8.98		9.86		0.00
2028		0.07		2.22		0.06		1.68		109.29		4.00		6.14		6.74		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		6.13		204.35		5.18		155.41		109.29		4.00		566.16		621.64		0.00
Ult		82.60		401.55

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		9.37		3.83		50.00		0.00		0.00		10.01		0.00		80.02		70.27
2016		1.00		13.45		5.50		0.00		0.00		0.00		14.36		0.00		186.52		224.63
2017		1.00		10.73		4.38		0.00		0.00		0.00		11.45		0.00		148.78		336.09
2018		1.00		8.58		3.51		0.00		0.00		0.00		9.16		0.00		119.04		416.81
2019		1.00		6.87		2.81		0.00		0.00		0.00		7.33		0.00		95.25		475.29
2020		1.00		5.51		2.25		0.00		0.00		0.00		5.88		0.00		76.40		517.74
2021		1.00		4.39		1.80		0.00		0.00		0.00		4.69		0.00		60.94		548.39
2022		1.00		3.52		1.44		0.00		0.00		0.00		3.75		0.00		48.76		570.59
2023		1.00		2.81		1.15		0.00		0.00		0.00		3.00		0.00		39.01		586.68
2024		1.00		2.26		0.92		0.00		0.00		0.00		2.41		0.00		31.29		598.35
2025		1.00		1.80		0.74		0.00		0.00		0.00		1.92		0.00		24.96		606.78
2026		1.00		1.44		0.59		0.00		0.00		0.00		1.54		0.00		19.97		612.89
2027		1.00		1.15		0.47		0.00		0.00		0.00		1.23		0.00		15.98		617.31
2028		0.00		0.79		0.32		0.00		0.00		0.00		0.84		0.00		10.92		620.07
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				72.67		29.70		50.00		0.00		0.00		77.58		0.00		957.86		620.07

Major Phase :	Gas			Abandonment Date :	11/1/2028
Perfs :	0 - 0			Working Int :	1.00000000	Present Worth Profile		(M$)
Initial Rate :	4,000.00	Mcf/month		RevenueInt:	0.84500000	PW	5.00% :	762.37
Abandonment :	200.00	Mcf/month		Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	620.07
Initial Decline :	20.00	% year	b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	513.55
Beg Ratio :	0.030			Years to Payout :	0.00	PW	20.00% :	431.80
End Ratio :	0.030			Internal ROR (%) :	0.00	PW	25.00% :	367.66
						PW	30.00% :	316.35

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

37

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

				Case :	ST 247 175-L - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Shut-In
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	RED FISH REEF
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
				Reservoir :	FB B-1 FRIO 9
Archive Set:	RED.07.14	SEC REPORT		Co., State :	CHAMBER, TX

Cum Oil (Mbbl) :	7.87
Cum Gas (MMcf) :	1,406.15

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.54		16.73		0.45		12.41		109.29		4.00		48.95		49.65		0.00
2016		0.50		16.31		0.41		12.10		109.29		4.00		44.98		48.40		0.00
2017		0.37		13.01		0.31		9.65		109.29		4.00		33.64		38.60		0.00
2018		0.28		10.41		0.23		7.72		109.29		4.00		25.23		30.89		0.00
2019		0.21		8.33		0.17		6.18		109.29		4.00		18.93		24.71		0.00
2020		0.16		6.68		0.13		4.96		109.29		4.00		14.23		19.82		0.00
2021		0.12		5.33		0.10		3.95		109.29		4.00		10.64		15.81		0.00
2022		0.09		4.26		0.07		3.16		109.29		4.00		7.98		12.65		0.00
2023		0.07		3.41		0.05		2.53		109.29		4.00		5.99		10.12		0.00
2024		0.05		2.74		0.04		2.03		109.29		4.00		4.50		8.12		0.00
2025		0.00		0.17		0.00		0.12		109.29		4.00		0.26		0.49		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		2.39		87.39		1.97		64.82		109.29		4.00		215.35		259.28		0.00
Ult		10.26		1,493.54

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		5.98		2.47		50.00		0.00		0.00		6.27		0.00		33.89		28.87
2016		1.00		5.70		2.33		0.00		0.00		0.00		6.12		0.00		79.23		94.46
2017		1.00		4.44		1.81		0.00		0.00		0.00		4.88		0.00		61.12		140.25
2018		1.00		3.48		1.40		0.00		0.00		0.00		3.90		0.00		47.34		172.36
2019		1.00		2.72		1.09		0.00		0.00		0.00		3.12		0.00		36.70		194.90
2020		1.00		2.14		0.85		0.00		0.00		0.00		2.51		0.00		28.56		210.77
2021		1.00		1.68		0.66		0.00		0.00		0.00		2.00		0.00		22.12		221.90
2022		1.00		1.32		0.52		0.00		0.00		0.00		1.60		0.00		17.21		229.74
2023		1.00		1.03		0.40		0.00		0.00		0.00		1.28		0.00		13.40		235.26
2024		1.00		0.82		0.32		0.00		0.00		0.00		1.03		0.00		10.47		239.16
2025		0.00		0.05		0.02		0.00		0.00		0.00		0.06		0.00		0.63		239.39
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				29.35		11.87		50.00		0.00		0.00		32.76		0.00		350.64		239.39

Major Phase :	Gas			Abandonment Date :	1/25/2025
Perfs :	0 - 0			Working Int :	1.00000000	Present Worth Profile		(M$)
Initial Rate :	1,825.00	Mcf/month		Revenue Int :	0.82416670	PW	5.00% ;	287.85
Abandonment :	200.00	Mcf/month		Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	239.39
Initial Decline :	20.00	% year	b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	201.36
Beg Ratio :	0.033			Years to Payout :	0.00	PW	20.00% :	171.07
End Ratio :	0.018			Internal ROR (%) :	0.00	PW	25.00% :	146.59
				Internal ROR (%) :		PW	30.00% :	126.55

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

38

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

				Case :	ST 247 198 (190463) F 10 Stray - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Shut-In
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	RED FISH REEF
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
				Reservoir :	FB A FRIO 10 STRAY
Archive Set:	RED.07.14	SEC REPORT		Co., State :	CHAMBER, TX

Cum Oil (Mbbl) :	18.48
Cum Gas (MMcf) :	3,053.13

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.92		14.55		0.76		10.80		109.29		4.00		82.62		43.18		0.00
2015		1.29		22.20		1.06		16.46		109.29		4.00		115.85		65.85		0.00
2016		0.60		11.73		0.49		8.70		109.29		4.00		53.93		34.80		0.00
2017		0.17		3.67		0.14		2.72		109.29		4.00		15.24		10.88		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		2.97		52.15		2.45		38.68		109.29		4.00		267.63		154.72		0.00
Ult		21.46		3,105.28

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		7.04		3.14		0.00		0.00		0.00		5.46		0.00		110.16		107.98
2015		1.00		10.27		4.54		0.00		0.00		0.00		8.32		0.00		158.57		253.55
2016		1.00		5.09		2.22		0.00		0.00		0.00		4.40		0.00		77.02		317.55
2017		0.00		1.52		0.65		0.00		0.00		0.00		1.38		0.00		22.57		334.86
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				23.91		10.56		0.00		0.00		0.00		19.55		0.00		368.32		334.86

Major Phase :	Gas			Abandonment Date :	7/7/2017
Perfs :	0 - 0			Working Int :	1.00000000	Present Worth Profile		(M$)
Initial Rate :	3,276.54	Mcf/month		RevenueInt:	0.82416700	PW	5.00% :	350.91
Abandonment :	500.00	Mcf/month		Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	334.86
Initial Decline :	47.29	% year	b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	320.04
Beg Ratio :	0.065			Years to Payout :	0.00	PW	20.00% :	306.33
End Ratio :	0.045			Internal ROR (%) :	0.00	PW	25.00% :	293.62
				Internal ROR (%) :		PW	30.00% :	281.83

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

39

Date : 08/21/2014 11:45:32AM

ECONOMIC SUMMARY PROJECTION

				Proved Shut-In Rsv Class & Category
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	TRINITY BAY Field
Partner :	All Cases	Discount Rate (%) :	10.00
Case Type :	REPORT BREAK TOTAL CASE	All Cases
		SEC REPORT

Cum Oil (Mbbl) :	270.34
Cum Gas (MMcf) :	174.13

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		4.98		0.00		4.05		0.00		109.29		0.00		442.25		0.00		0.00
2015		11.99		0.00		9.74		0.00		109.29		0.00		1,064.45		0.00		0.00
2016		10.06		0.00		8.18		0.00		109.29		0.00		893.49		0.00		0.00
2017		8.41		0.00		6.83		0.00		109.29		0.00		746.37		0.00		0.00
2018		7.05		0.00		5.73		0.00		109.29		0.00		625.73		0.00		0.00
2019		5.91		0.00		4.80		0.00		109.29		0.00		524.91		0.00		0.00
2020		4.97		0.00		4.04		0.00		109.29		0.00		441.70		0.00		0.00
2021		4.17		0.00		3.38		0.00		109.29		0.00		369.85		0.00		0.00
2022		3.50		0.00		2.84		0.00		109.29		0.00		310.79		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		61.04		0.00		49.59		0.00		109.29		0.00		5,419.56		0.00		0.00
Ult		331.38		174.13

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		3.00		20.34		11.06		50.00		0.00		0.00		0.00		0.00		360.85		352.50
2015		3.00		48.96		26.61		0.00		0.00		0.00		0.00		0.00		988.88		1,256.31
2016		3.00		41.10		22.34		0.00		0.00		0.00		0.00		0.00		830.05		1,942.99
2017		3.00		34.33		18.66		0.00		0.00		0.00		0.00		0.00		693.38		2,462.20
2018		3.00		28.78		15.64		0.00		0.00		0.00		0.00		0.00		581.31		2,856.25
2019		3.00		24.15		13.12		0.00		0.00		0.00		0.00		0.00		487.64		3,155.50
2020		3.00		20.32		11.04		0.00		0.00		0.00		0.00		0.00		410.34		3,383.42
2021		3.00		17.01		9.25		0.00		0.00		0.00		0.00		0.00		343.59		3,556.17
2022		3.00		14.30		7.77		0.00		0.00		0.00		0.00		0.00		288.72		3,687.57
2023		3.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		3,687.57
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				249.30		135.49		50.00		0.00		0.00		0.00		0.00		4,984.77		3,687.57

		Present Worth Profile (M$)
		PW	5.00% :	4,260.12
Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	3,687.57
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	3,229.64
Years to Payout :	0.00	PW	20.00% :	2,858.93
Internal ROR (%) :	0.00	PW	25.00%:	2,555.31
Internal ROR (%) :		PW	30.00% :	2,303.80

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

40

Date : 08/21/2014 11:45:32AM

ECONOMIC SUMMARY PROJECTION

				Case :	TBSU #1 063D - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Shut-In
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	TRINITY BAY
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
				Reservoir :	FRIO 7
Archive Set:	RED.07.14	SEC REPORT		Co., State :	CHAMBER, TX

Cum Oil (Mbbl) :	196.34
Cum Gas (MMcf) :	88.62

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		2.44		0.00		1.98		0.00		109.29		0.00		216.22		0.00		0.00
2015		5.14		0.00		4.18		0.00		109.29		0.00		456.62		0.00		0.00
2016		4.38		0.00		3.56		0.00		109.29		0.00		388.69		0.00		0.00
2017		3.71		0.00		3.01		0.00		109.29		0.00		329.06		0.00		0.00
2018		3.15		0.00		2.56		0.00		109.29		0.00		279.40		0.00		0.00
2019		2.67		0.00		2.17		0.00		109.29		0.00		237.24		0.00		0.00
2020		2.27		0.00		1.85		0.00		109.29		0.00		201.95		0.00		0.00
2021		1.93		0.00		1.56		0.00		109.29		0.00		170.96		0.00		0.00
2022		1.63		0.00		1.33		0.00		109.29		0.00		145.17		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		27.31		0.00		22.19		0.00		109.29		0.00		2,425.32		0.00		0.00
Ult		223.65		88.62

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		9.95		5.41		0.00		0.00		0.00		0.00		0.00		200.87		196.74
2015		1.00		21.00		11.42		0.00		0.00		0.00		0.00		0.00		424.20		584.40
2016		1.00		17.88		9.72		0.00		0.00		0.00		0.00		0.00		361.10		883.10
2017		1.00		15.14		8.23		0.00		0.00		0.00		0.00		0.00		305.70		1,111.98
2018		1.00		12.85		6.99		0.00		0.00		0.00		0.00		0.00		259.57		1,287.92
2019		1.00		10.91		5.93		0.00		0.00		0.00		0.00		0.00		220.40		1,423.15
2020		1.00		9.29		5.05		0.00		0.00		0.00		0.00		0.00		187.61		1,527.35
2021		1.00		7.86		4.27		0.00		0.00		0.00		0.00		0.00		158.83		1,607.19
2022		1.00		6.68		3.63		0.00		0.00		0.00		0.00		0.00		134.86		1,668.57
2023		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		1,668.57
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				111.56		60.63		0.00		0.00		0.00		0.00		0.00		2,253.12		1,668.57

Major Phase :	Oil			Abandonment Date :	1/1/2023
Perfs :	0 - 0			Working Int :	1.00000000	Present Worth Profile (M$)
Initial Rate :	497.88	bbl/month		RevenueInt:	0.81243864	PW	5.00% :	1,926.21
Abandonment :	125.43	bbl/month		Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	1,668.57
Initial Decline :	15.10	% year	b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	1,463.00
Beg Ratio :	0.000			Years to Payout :	0.00	PW	20.00% :	1,297.00
End Ratio :	0.000			Internal ROR (%) :	0.00	PW	25.00% :	1,161.35
				Internal ROR (%) :		PW	30.00% :	1,049.23

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

41

Date : 08/21/2014 11:45:32AM

ECONOMIC SUMMARY PROJECTION

				Case :	TBSU #1 068 - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Shut-In
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	TRINITY BAY
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
				Reservoir :	FRIO 1
Archive Set:	RED.07.14	SEC REPORT		Co., State :	CHAMBER, TX

Cum Oil (Mbbl) :	65.83
Cum Gas (MMcf) :	85.51

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		1.46		0.00		1.19		0.00		109.29		0.00		130.05		0.00		0.00
2015		2.97		0.00		2.41		0.00		109.29		0.00		263.49		0.00		0.00
2016		2.38		0.00		1.93		0.00		109.29		0.00		211.34		0.00		0.00
2017		1.90		0.00		1.54		0.00		109.29		0.00		168.59		0.00		0.00
2018		1.52		0.00		1.23		0.00		109.29		0.00		134.89		0.00		0.00
2019		1.22		0.00		0.99		0.00		109.29		0.00		107.93		0.00		0.00
2020		0.97		0.00		0.79		0.00		109.29		0.00		86.57		0.00		0.00
2021		0.78		0.00		0.63		0.00		109.29		0.00		69.05		0.00		0.00
2022		0.62		0.00		0.51		0.00		109.29		0.00		55.25		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		13.82		0.00		11.23		0.00		109.29		0.00		1,227.16		0.00		0.00
Ult		79.65		85.51

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		5.98		3.25		0.00		0.00		0.00		0.00		0.00		120.82		118.34
2015		1.00		12.12		6.59		0.00		0.00		0.00		0.00		0.00		244.79		342.15
2016		1.00		9.72		5.28		0.00		0.00		0.00		0.00		0.00		196.34		504.64
2017		1.00		7.75		4.21		0.00		0.00		0.00		0.00		0.00		156.62		621.96
2018		1.00		6.20		3.37		0.00		0.00		0.00		0.00		0.00		125.31		706.94
2019		1.00		4.96		2.70		0.00		0.00		0.00		0.00		0.00		100.26		768.49
2020		1.00		3.98		2.16		0.00		0.00		0.00		0.00		0.00		80.42		813.18
2021		1.00		3.18		1.73		0.00		0.00		0.00		0.00		0.00		64.15		845.44
2022		1.00		2.54		1.38		0.00		0.00		0.00		0.00		0.00		51.33		868.81
2023		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		868.81
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				56.45		30.68		0.00		0.00		0.00		0.00		0.00		1,140.03		868.81

Major Phase :	Oil			Abandonment Date :	1/1/2023
Perfs :	0 - 0			Working Int :	1.00000000	Present Worth Profile		(M$)
Initial Rate :	303.13	bbl/month		RevenueInt:	0.81243864	PW	5.00% :	989.26
Abandonment :	46.29	bbl/month		Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	868.81
Initial Decline :	20.00	% year	b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	771.41
Beg Ratio :	0.000			Years to Payout :	0.00	PW	20.00% :	691.71
End Ratio :	0.000			Internal ROR (%) :	0.00	PW	25.00% :	625.74
				Internal ROR (%) :		PW	30.00% :	570.53

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

42

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

				Case :	TBSU #1 133 - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Shut-In
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	TRINITY BAY
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
				Reservoir :	Frio 12
Archive Set:	RED.07.14	SEC REPORT		Co., State :	CHAMBER, TX

Cum Oil (Mbbl) :	8.18
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		1.08		0.00		0.88		0.00		109.29		0.00		95.98		0.00		0.00
2015		3.88		0.00		3.15		0.00		109.29		0.00		344.33		0.00		0.00
2016		3.30		0.00		2.69		0.00		109.29		0.00		293.46		0.00		0.00
2017		2.80		0.00		2.28		0.00		109.29		0.00		248.73		0.00		0.00
2018		2.38		0.00		1.93		0.00		109.29		0.00		211.44		0.00		0.00
2019		2.02		0.00		1.64		0.00		109.29		0.00		179.74		0.00		0.00
2020		1.73		0.00		1.40		0.00		109.29		0.00		153.19		0.00		0.00
2021		1.46		0.00		1.19		0.00		109.29		0.00		129.84		0.00		0.00
2022		1.24		0.00		1.01		0.00		109.29		0.00		110.37		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		19.90		0.00		16.17		0.00		109.29		0.00		1,767.08		0.00		0.00
Ult		28.08		0.00

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		4.42		2.40		50.00		0.00		0.00		0.00		0.00		39.17		37.42
2015		1.00		15.84		8.61		0.00		0.00		0.00		0.00		0.00		319.89		329.75
2016		1.00		13.50		7.34		0.00		0.00		0.00		0.00		0.00		272.62		555.25
2017		1.00		11.44		6.22		0.00		0.00		0.00		0.00		0.00		231.07		728.26
2018		1.00		9.73		5.29		0.00		0.00		0.00		0.00		0.00		196.43		861.40
2019		1.00		8.27		4.49		0.00		0.00		0.00		0.00		0.00		166.98		963.86
2020		1.00		7.05		3.83		0.00		0.00		0.00		0.00		0.00		142.31		1,042.89
2021		1.00		5.97		3.25		0.00		0.00		0.00		0.00		0.00		120.62		1,103.53
2022		1.00		5.08		2.76		0.00		0.00		0.00		0.00		0.00		102.54		1,150.19
2023		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		1,150.19
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				81.29		44.18		50.00		0.00		0.00		0.00		0.00		1,591.62		1,150.19

Major Phase :	Oil			Abandonment Date :	1/1/2023
Perfs :	0 - 0			Working Int :	1.00000000	Present Worth Profile (M$)
Initial Rate :	365.00	bbl/month		Revenue Int :	0.81243864	PW	5.00% :	1,344.65
Abandonment :	95.43	bbl/month		Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	1,150.19
Initial Decline :	15.00	% year	b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	995.22
Beg Ratio :	0.000			Years to Payout :	0.00	PW	20.00% :	870.22
End Ratio :	0.000			Internal ROR (%) :	0.00	PW	25.00% :	768.22
				Internal ROR (%) :		PW	30.00% :	684.04

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

Proved Behind Pipe Economic Detailed Report

43

Proved Behind Pipe

Economic Detailed Report

Date : 08/21/2014 11:45:32AM		ECONOMIC SUMMARY PROJECTION
			Proved Behind Pipe Rsv Class & Category
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	FISHERS REEF Field
Partner :	All Cases	Discount Rate (%) :	10.00
Case Type :	REPORT BREAK TOTAL CASE	All Cases
		SEC REPORT

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		19.96		399.21		11.21		195.06		109.34		5.79		1,225.73		1,130.21		0.00
2017		18.01		360.22		10.12		176.01		109.34		5.79		1,106.01		1,019.81		0.00
2018		13.71		308.92		7.76		155.72		109.34		5.79		847.99		902.29		0.00
2019		11.17		334.08		6.45		178.49		109.34		5.79		705.19		1,034.21		0.00
2020		8.20		241.72		4.73		128.81		109.34		5.79		517.22		746.37		0.00
2021		5.99		174.05		3.45		92.51		109.34		5.79		377.39		536.03		0.00
2022		4.39		125.80		2.53		66.70		109.34		5.79		276.32		386.46		0.00
2023		3.22		90.98		1.85		48.12		109.34		5.79		202.39		278.81		0.00
2024		2.37		66.00		1.36		34.82		109.34		5.79		148.62		201.74		0.00
2025		1.73		47.64		0.99		25.07		109.34		5.79		108.57		145.26		0.00
2026		1.27		34.52		0.73		18.12		109.34		5.79		79.58		105.00		0.00
2027		0.93		25.02		0.53		13.11		109.34		5.79		58.35		75.94		0.00
2028		0.69		18.19		0.39		9.51		109.34		5.79		42.90		55.09		0.00

Rem	0.27	7.09	0.15	3.70	109.34	5.79	16.85	21.43	0.00
Total	91.92	2,233.43	52.25	1,145.74	109.34	5.79	5,713.11	6,638.64	0.00
Ult	91.92	2,233.43

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		1.00		141.15		58.90		140.63		0.00		0.00		0.00		0.00		2,015.27		1,649.21
2017		1.00		127.36		53.15		0.00		0.00		0.00		0.00		0.00		1,945.31		3,107.41
2018		2.00		106.68		43.76		284.36		0.00		0.00		0.00		0.00		1,315.48		4,000.92
2019		2.00		110.00		43.48		0.00		0.00		0.00		0.00		0.00		1,585.91		4,975.29
2020		2.00		79.77		31.59		0.00		0.00		0.00		0.00		0.00		1,152.23		5,616.07
2021		2.00		57.56		22.84		0.00		0.00		0.00		0.00		0.00		833.02		6,035.39
2022		2.00		41.70		16.57		0.00		0.00		0.00		0.00		0.00		604.52		6,310.86
2023		2.00		30.22		12.03		0.00		0.00		0.00		0.00		0.00		438.94		6,491.93
2024		2.00		21.97		8.76		0.00		0.00		0.00		0.00		0.00		319.63		6,611.28
2025		2.00		15.89		6.35		0.00		0.00		0.00		0.00		0.00		231.59		6,689.55
2026		2.00		11.54		4.61		0.00		0.00		0.00		0.00		0.00		168.43		6,741.08
2027		2.00		8.38		3.36		0.00		0.00		0.00		0.00		0.00		122.56		6,775.03
2028		2.00		6.10		2.45		0.00		0.00		0.00		0.00		0.00		89.43		6,797.45

Rem.	2.38	0.96	0.00	0.00	0.00	0.00	0.00	34.94	8.11
Total	760.70	308.79	424.99	0.00	0.00	0.00	0.00	10,857.26	6,805.56

		Present Worth Profile (M$)
		PW	5.00% :	8,519.12
Disc. Initial Invest. (M$) :	120.09	PW	10.00% :	6,805.56
ROInvestment (disc/undisc) :	57.67 / 78.20	PW	15.00% :	5,520.59
Years to Payout :	1.63	PW	20.00% :	4,537.25
Internal ROR (%) :	>1000	PW	25.00% :	3,771.14
		PW	30.00% :	3,164.83

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

44

Date : 08/21/2014 11:45:32AM		ECONOMIC PROJECTION
				Case :	ST 05-8A #01 (BP02) - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Behind Pipe
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	FISHERS REEF
Case Type :	RECOMPLETION CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
Archive Set:	RED.07.14			Reservoir :	FRIO 15
		SEC REPORT		Co., State :	CHAMBER, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.43		43.36		0.30		25.97		109.34		5.79		32.64		150.47		0.00
2019		1.38		138.31		0.95		82.84		109.34		5.79		104.11		479.97		0.00
2020		0.97		97.06		0.67		58.13		109.34		5.79		73.06		336.82		0.00
2021		0.68		67.74		0.47		40.57		109.34		5.79		50.99		235.07		0.00
2022		0.47		47.43		0.33		28.41		109.34		5.79		35.70		164.59		0.00
2023		0.33		33.21		0.23		19.89		109.34		5.79		25.00		115.24		0.00
2024		0.23		23.30		0.16		13.96		109.34		5.79		17.54		80.87		0.00
2025		0.16		16.26		0.11		9.74		109.34		5.79		12.24		56.44		0.00
2026		0.11		11.39		0.08		6.82		109.34		5.79		8.57		39.52		0.00
2027		0.08		7.97		0.05		4.78		109.34		5.79		6.00		27.67		0.00
2028		0.06		5.60		0.04		3.35		109.34		5.79		4.21		19.42		0.00
Rem		0.02		2.12		0.01		1.27		109.34		5.79		1.60		7.36		0.00
Total		4.94		493.76		3.40		295.72		109.34		5.79		371.65		1,713.43		0.00
Ult		4.94		493.76

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
	(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		1.00		12.79		4.58		284.36		0.00		0.00		0.00		0.00		-118.61		-79.66
2019		1.00		40.79		14.60		0.00		0.00		0.00		0.00		0.00		528.68		245.25
2020		1.00		28.62		10.25		0.00		0.00		0.00		0.00		0.00		371.01		451.64
2021		1.00		19.98		7.15		0.00		0.00		0.00		0.00		0.00		258.93		582.02
2022		1.00		13.99		5.01		0.00		0.00		0.00		0.00		0.00		181.29		664.65
2023		1.00		9.79		3.51		0.00		0.00		0.00		0.00		0.00		126.94		717.03
2024		1.00		6.87		2.46		0.00		0.00		0.00		0.00		0.00		89.08		750.30
2025		1.00		4.80		1.72		0.00		0.00		0.00		0.00		0.00		62.17		771.32
2026		1.00		3.36		1.20		0.00		0.00		0.00		0.00		0.00		43.53		784.64
2027		1.00		2.35		0.84		0.00		0.00		0.00		0.00		0.00		30.48		793.09
2028		1.00		1.65		0.59		0.00		0.00		0.00		0.00		0.00		21.39		798.45

Rem.	0.63	0.22	0.00	0.00	0.00	0.00	0.00	8.11	1.88
Total	145.60	52.13	0.00	0.00	0.00	0.00	0.00	1,602.99	800.33

Major Phase :	Gas		Abandonment Date :	7/1/2029
Perfs :	0 - 0	Mcf/month	Working Int :	0.87500000	Present Worth Pro file (M$)
Initial Rate :	15,000.00		Revenue Int :	0.68840000	PW	5.00% :	1,126.03
Abandonment :	324.08	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	800.33
Initial Decline :	30.00	% year b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	574.66
Beg Ratio :	0.010		Years to Payout :	0.00	PW:	20.00%	416.26
End Ratio :	0.010		Internal ROR (%) :	0.00	PW	25.00% :	303.84
					PW	30.00% :	223.24

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

45

Date : 08/21/20 11:45:32AM		ECONOMIC PROJECTION
				Case :	ST 06-7A #01 ST F-13 - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Behind Pipe
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	FISHERS REEF
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
Archive Set :	RED.07.14			Reservoir :	FRIO 13
		SEC REPORT		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		19.96		399.21		11.21		195.06		109.34		5.79		1,225.73		1,130.21		0.00
2017		18.01		360.22		10.12		176.01		109.34		5.79		1,106.01		1,019.81		0.00
2018		13.28		265.55		7.46		129.75		109.34		5.79		815.35		751.81		0.00
2019		9.79		195.77		5.50		95.65		109.34		5.79		601.08		554.24		0.00
2020		7.23		144.66		4.06		70.68		109.34		5.79		444.16		409.55		0.00
2021		5.32		106.31		2.99		51.94		109.34		5.79		326.40		300.96		0.00
2022		3.92		78.37		2.20		38.29		109.34		5.79		240.62		221.87		0.00
2023		2.89		57.77		1.62		28.23		109.34		5.79		177.39		163.57		0.00
2024		2.13		42.69		1.20		20.86		109.34		5.79		131.08		120.86		0.00
2025		1.57		31.37		0.88		15.33		109.34		5.79		96.33		88.82		0.00
2026		1.16		23.13		0.65		11.30		109.34		5.79		71.01		65.48		0.00
2027		0.85		17.05		0.48		8.33		109.34		5.79		52.35		48.27		0.00
2028		0.63		12.60		0.35		6.16		109.34		5.79		38.68		35.67		0.00
Rem		0.25		4.97		0.14		2.43		109.34		5.79		15.26		14.07		0.00
Total		86.98		1,739.67		48.85		850.02		109.34		5.79		5,341.46		4,925.20		0.00
Ult		86.98		1,739.67

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		1.00		141.15		58.90		140.63		0.00		0.00		0.00		0.00		2,015.27		1,649.21
2017		1.00		127.36		53.15		0.00		0.00		0.00		0.00		0.00		1,945.31		3,107.41
2018		1.00		93.89		39.18		0.00		0.00		0.00		0.00		0.00		1,434.10		4,080.57
2019		1.00		69.22		28.88		0.00		0.00		0.00		0.00		0.00		1,057.23		4,730.04
2020		1.00		51.15		21.34		0.00		0.00		0.00		0.00		0.00		781.22		5,164.43
2021		1.00		37.59		15.68		0.00		0.00		0.00		0.00		0.00		574.09		5,453.37
2022		1.00		27.71		11.56		0.00		0.00		0.00		0.00		0.00		423.23		5,646.21
2023		1.00		20.43		8.52		0.00		0.00		0.00		0.00		0.00		312.00		5,774.90
2024		1.00		15.09		6.30		0.00		0.00		0.00		0.00		0.00		230.55		5,860.97
2025		1.00		11.09		4.63		0.00		0.00		0.00		0.00		0.00		169.42		5,918.23
2026		1.00		8.18		3.41		0.00		0.00		0.00		0.00		0.00		124.90		5,956.44
2027		1.00		6.03		2.52		0.00		0.00		0.00		0.00		0.00		92.08		5,981.94
2028		1.00		4.45		1.86		0.00		0.00		0.00		0.00		0.00		68.04		5,998.99

Rem.	1.76	0.73	0.00	0.00	0.00	0.00	0.00	26.83	6.23
Total	615.10	256.67	140.63	0.00	0.00	0.00	0.00	9,254.27	6,005.22

Major Phase :	Gas		Abandonment Date :	7/1/2029
Perfs :	0 - 0		Working Int :	0.75000000	Present Worth Pi olile (M$)
Initial Rate :	45,000.00	Mcf/month	RevenueInt:	0.56162211	PW	5.00% :	7,393.09
Abandonment :	769.42	Mcf/month	Disc. Initial Invest. (M$) :	120.09	PW	10.00% :	6,005.22
Initial Decline :	26.29	% year b = 0.000	ROInvestment (disc/undisc) :	51.00 / 66.81	PW	15.00% :	4,945.94
Beg Ratio :	0.050		Years to Payout :	1.63	PW	20.00% :	4,120.98
End Ratio :	0.050		Internal ROR (%) :	>1000	PW	25.00% :	3,467.30
					PW	30.00% :	2,941.58

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

46

Date :	08/21/2014 11:45:32AM	ECONOMIC SUMMARY PROJECTION
				Proved Behind Pipe Rsv Class & Category
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	RED FISH REEF Field
Partner :	All Cases	Discount Rate (%) :	10.00
Case Type :	REPORT BREAK TOTAL CASE	All Cases
		SEC REPORT

Cum Oil (Mbbl) :	5.48
Cum Gas (MM cf) :	114.14

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		5.31		110.65		4.22		79.08		109.29		4.00		460.96		316.34		0.00
2015		11.37		387.32		9.06		280.08		109.29		4.00		989.71		1,120.32		0.00
2016		7.08		394.37		5.64		284.32		109.29		4.00		616.15		1,137.29		0.00
2017		6.36		811.37		5.13		584.21		109.29		4.00		560.44		2,336.84		0.00
2018		6.33		731.06		5.15		528.44		109.29		4.00		562.82		2,113.78		0.00
2019		4.04		454.13		3.29		328.46		109.29		4.00		359.52		1,313.84		0.00
2020		2.59		282.41		2.11		204.38		109.29		4.00		230.59		817.54		0.00
2021		1.65		174.93		1.35		126.69		109.29		4.00		147.34		506.75		0.00
2022		1.06		108.92		0.87		78.94		109.29		4.00		94.63		315.75		0.00
2023		0.68		66.70		0.55		48.36		109.29		4.00		60.18		193.43		0.00
2024		0.43		40.21		0.35		29.16		109.29		4.00		38.01		116.66		0.00
2025		0.26		24.91		0.22		18.08		109.29		4.00		23.54		72.33		0.00
2026		4.47		15.35		3.68		11.19		109.29		4.00		402.25		44.74		0.00
2027		20.42		11.34		16.83		8.38		109.29		4.00		1,839.12		33.52		0.00
2028		13.29		6.65		10.96		4.93		109.29		4.00		1,197.51		19.72		0.00
Rem		13.84		6.92		11.41		5.13		109.29		4.00		1,246.76		20.53		0.00
Total		99.20		3,627.23		80.79		2,619.85		109.29		4.00		8,829.51		10,479.39		0.00
Ult		104.68		3,741.37

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		3.00		44.93		19.43		0.00		0.00		0.00		40.74		0.00		672.20		658.32
2015		4.00		129.55		52.75		250.00		0.00		0.00		143.42		0.00		1,534.31		2,053.28
2016		5.00		113.64		43.84		250.00		0.00		0.00		145.81		0.00		1,200.16		3,042.67
2017		6.00		201.04		72.43		300.00		0.00		0.00		298.82		0.00		2,024.98		4,541.17
2018		6.00		184.42		66.92		0.00		0.00		0.00		268.88		0.00		2,156.38		6,006.34
2019		6.00		115.08		41.83		0.00		0.00		0.00		167.00		0.00		1,349.45		6,836.44
2020		6.00		71.92		26.20		0.00		0.00		0.00		103.84		0.00		846.16		7,307.57
2021		6.00		44.78		16.35		0.00		0.00		0.00		64.31		0.00		528.64		7,573.99
2022		6.00		28.03		10.26		0.00		0.00		0.00		40.04		0.00		332.05		7,725.47
2023		6.00		17.28		6.34		0.00		0.00		0.00		24.50		0.00		205.49		7,810.39
2024		5.00		10.50		3.87		0.00		0.00		0.00		14.76		0.00		125.54		7,857.32
2025		5.00		6.51		2.40		0.00		0.00		0.00		9.14		0.00		77.82		7,883.67
2026		3.00		21.86		11.17		50.00		0.00		0.00		5.63		0.00		358.33		7,989.03
2027		2.00		87.11		46.82		0.00		0.00		0.00		4.15		0.00		1,734.57		8,469.93
2028		1.00		56.56		30.43		0.00		0.00		0.00		2.43		0.00		1,127.80		8,752.94

Rem.	58.89	31.68	0.00	0.00	0.00	2.53	0.00	1,174.19	257.47
Total	1,192.11	482.72	850.00	0.00	0.00	1,336.00	0.00	15,448.07	9,010.41

		Present Worth Profile (M$)
		PW	5.00% :	11,495.64
Disc. Initial Invest. (M$) :	258.34	PW	10.00% :	9,010.41
ROInvestment (disc/undisc) :	35.88 / 45.14	PW	15.00% :	7,352.69
Years to Payout :	0.22	PW	20.00% :	6,183.73
Internal ROR (%) :	>1000	PW	25.00% :	5,318.61
		PW	30.00% :	4,652.59

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

47

Date : 08/21/20 11:45:32AM		ECONOMIC PROJECTION
				Case :	ST 225 187 - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Behind Pipe
Partner :	All Cases	Discount Rate (%) :	10.00 1	Field :	RED FISH REEF
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
Archive Set :	RED.07.14			Reservoir :	FRIO 15 A & B
		SEC REPORT		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.09		173.07		0.89		126.95		109.29		4.00		97.12		507.79		0.00
2016		0.82		130.66		0.67		95.84		109.29		4.00		73.32		383.34		0.00
2017		0.50		78.78		0.40		57.78		109.29		4.00		44.21		231.13		0.00
2018		0.30		47.66		0.24		34.96		109.29		4.00		26.75		139.85		0.00
2019		0.18		28.84		0.15		21.15		109.29		4.00		16.18		84.61		0.00
2020		0.11		17.49		0.09		12.83		109.29		4.00		9.81		51.30		0.00
2021		0.07		10.54		0.05		7.73		109.29		4.00		5.92		30.93		0.00
2022		0.04		6.38		0.03		4.68		109.29		4.00		3.58		18.72		0.00
2023		0.02		2.61		0.01		1.92		109.29		4.00		1.47		7.66		0.00

Rem	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	3.12	496.03	2.55	363.84	109.29	4.00	278.35	1,455.34	0.00
Ult	3.12	496.03

Year	Well Count		Net Tax Production		Net Tax AdValorem		Net Investment		Net Lease Costs		Net Well Costs		Other Costs		Net Profits		Annual Cash Flow		Cum Disc. Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		42.55		15.12		250.00		0.00		0.00		64.53		0.00		232.70		202.33
2016		1.00		32.12		11.42		0.00		0.00		0.00		48.72		0.00		364.40		504.59
2017		1.00		19.37		6.88		0.00		0.00		0.00		29.37		0.00		219.71		669.56
2018		1.00		11.72		4.16		0.00		0.00		0.00		17.77		0.00		132.94		759.91
2019		1.00		7.09		2.52		0.00		0.00		0.00		10.75		0.00		80.43		809.40
2020		1.00		4.30		1.53		0.00		0.00		0.00		6.52		0.00		48.77		836.56
2021		1.00		2.59		0.92		0.00		0.00		0.00		3.93		0.00		29.40		851.39
2022		1.00		1.57		0.56		0.00		0.00		0.00		2.38		0.00		17.79		859.51
2023		1.00		0.64		0.23		0.00		0.00		0.00		0.97		0.00		7.29		862.57

Rem.	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	121.95	43.34	250.00	0.00	0.00	184.96	0.00	1,133.44	862.57

Major Phase :	Gas		Abandonment Date :	8/13/2023
Perfs :	0 - 0		Working Int :	1.00000000	Present Worth Profle (M$)
Initial Rate :	23,360.00	Mcf/month	RevenueInt:	0.81500000	PW	5.00% :	985.66
Abandonment :	300.00	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	862.57
Initial Decline :	100.00	% year b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	759.06
Beg Ratio :	0.006		Years to Payout :	0.00	PW	20.00% :	671.26
End Ratio :	0.006		Internal ROR (%) :	0.00	PW	25.00% :	596.20
					PW	30.00% :	531.55

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

48

Date : 08/21/2014 11:45:32AM		ECONOMIC PROJECTION
				Case :	ST 246 181 (BP01) - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Behind Pipe
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	RED FISH REEF
Case Type :	LEASE CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
Archive Set:	RED.07.14			Reservoir :	FRIO 9
		SEC REPORT		Co., State :	CHAMBER, TX

Cum Oil (Mbbl) :	5.48
Cum Gas (MMcf) :	114.14

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		5.31		110.65		4.22		79.08		109.29		4.00		460.96		316.34		0.00
2015		10.28		214.25		8.17		153.13		109.29		4.00		892.59		612.54		0.00
2016		6.25		130.30		4.97		93.13		109.29		4.00		542.83		372.52		0.00
2017		3.77		78.56		2.99		56.15		109.29		4.00		327.30		224.61		0.00
2018		2.28		47.53		1.81		33.97		109.29		4.00		198.03		135.90		0.00
2019		1.38		28.76		1.10		20.56		109.29		4.00		119.82		82.22		0.00
2020		0.84		17.44		0.66		12.46		109.29		4.00		72.65		49.85		0.00
2021		0.50		10.51		0.40		7.51		109.29		4.00		43.80		30.06		0.00
2022		0.31		6.36		0.24		4.55		109.29		4.00		26.50		18.19		0.00
2023		0.18		3.85		0.15		2.75		109.29		4.00		16.04		11.00		0.00
2024		0.11		2.33		0.09		1.67		109.29		4.00		9.72		6.67		0.00
2025		0.06		1.18		0.04		0.84		109.29		4.00		4.90		3.36		0.00

Rem	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	31.28	651.72	24.84	465.81	109.29	4.00	2,715.14	1,863.26	0.00
Ult	36.76	765.85

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		44.93		19.43		0.00		0.00		0.00		40.74		0.00		672.20		658.32
2015		1.00		87.00		37.63		0.00		0.00		0.00		78.88		0.00		1,301.61		1,850.95
2016		1.00		52.91		22.88		0.00		0.00		0.00		47.97		0.00		791.59		2,507.56
2017		1.00		31.90		13.80		0.00		0.00		0.00		28.93		0.00		477.28		2,865.91
2018		1.00		19.30		8.35		0.00		0.00		0.00		17.50		0.00		288.78		3,062.18
2019		1.00		11.68		5.05		0.00		0.00		0.00		10.59		0.00		174.72		3,169.69
2020		1.00		7.08		3.06		0.00		0.00		0.00		6.42		0.00		105.94		3,228.69
2021		1.00		4.27		1.85		0.00		0.00		0.00		3.87		0.00		63.87		3,260.89
2022		1.00		2.58		1.12		0.00		0.00		0.00		2.34		0.00		38.65		3,278.53
2023		1.00		1.56		0.68		0.00		0.00		0.00		1.42		0.00		23.38		3,288.19
2024		1.00		0.95		0.41		0.00		0.00		0.00		0.86		0.00		14.18		3,293.49
2025		1.00		0.48		0.21		0.00		0.00		0.00		0.43		0.00		7.14		3,295.93

Rem.	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	264.64	114.46	0.00	0.00	0.00	239.95	0.00	3,959.34	3,295.93

Major Phase :	Gas		Abandonment Date :	10/18/2025
Perfs :	0 - 0		Working Int :	1.00000000	Present Worth Profile (M$)
Initial Rate :	22,351.44	Mcf/month	Revenue Int :	0.79416700	PW	5.00% :	3,598.19
Abandonment :	100.00	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	3,295.93
Initial Decline :	10.00	% year b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	3,039.68
Beg Ratio :	0.048		Years to Payout :	0.00	PW	20.00% :	2,819.94
End Ratio :	0.048		Internal ROR (%) :	0.00	PW	25.00% :	2,629.56
					PW	30.00% :	2,463.13

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

49

Date : 08/21/2014 11:45:32AM		ECONOMIC PROJECTION
				Case :	ST 247 023 (BP01) - GBE
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Behind Pipe
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	RED FISH REEF
Case Type :	RECOMPLETION CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
Archive Set:	RED.07.14			Reservoir :	FRIO 9
		SEC REPORT		Co., State :	CHAMBER, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		316.10		0.00		225.93		0.00		4.00		0.00		903.72		0.00
2018		0.00		300.64		0.00		214.88		0.00		4.00		0.00		859.54		0.00
2019		0.00		183.08		0.00		130.86		0.00		4.00		0.00		523.43		0.00
2020		0.00		111.00		0.00		79.34		0.00		4.00		0.00		317.34		0.00
2021		0.00		66.92		0.00		47.83		0.00		4.00		0.00		191.33		0.00
2022		0.00		40.49		0.00		28.94		0.00		4.00		0.00		115.75		0.00
2023		0.00		24.49		0.00		17.51		0.00		4.00		0.00		70.03		0.00
2024		0.00		14.85		0.00		10.61		0.00		4.00		0.00		42.46		0.00
2025		0.00		8.95		0.00		6.40		0.00		4.00		0.00		25.60		0.00
2026		0.00		5.42		0.00		3.87		0.00		4.00		0.00		15.49		0.00
2027		0.02		1.14		0.01		0.81		109.29		4.00		1.37		3.25		0.00

Rem	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	0.02	1,073.08	0.01	766.98	109.29	4.00	1.37	3,067.93	0.00
Ult	0.02	1,073.08

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		1.00		67.78		22.59		250.00		0.00		0.00		116.38		0.00		446.97		323.94
2018		1.00		64.47		21.49		0.00		0.00		0.00		110.69		0.00		662.89		774.38
2019		1.00		39.26		13.09		0.00		0.00		0.00		67.41		0.00		403.68		1,022.76
2020		1.00		23.80		7.93		0.00		0.00		0.00		40.87		0.00		244.74		1,159.07
2021		1.00		14.35		4.78		0.00		0.00		0.00		24.64		0.00		147.55		1,233.45
2022		1.00		8.68		2.89		0.00		0.00		0.00		14.91		0.00		89.27		1,274.19
2023		1.00		5.25		1.75		0.00		0.00		0.00		9.02		0.00		54.01		1,296.51
2024		1.00		3.18		1.06		0.00		0.00		0.00		5.47		0.00		32.74		1,308.75
2025		1.00		1.92		0.64		0.00		0.00		0.00		3.30		0.00		19.74		1,315.43
2026		1.00		1.16		0.39		0.00		0.00		0.00		1.99		0.00		11.94		1,319.09
2027		1.00		0.31		0.12		0.00		0.00		0.00		0.42		0.00		3.79		1,320.18

Rem.	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	230.16	76.73	250.00	0.00	0.00	395.09	0.00	2,117.32	1,320.18

Major Phase :	Gas		Abandonment Date :	4/17/2027
Perfs :	0 - 0		Working Int :	1.00000000	Present Worth Profile (M$)
Initial Rate :	32,850.00	Mcf/month	Revenue Int :	0.79416670	PW	5.00% :
Abandonment :	300.00	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	1,665.26 1,320.18
Initial Decline :	10.00	% year b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	1,053.93
Beg Ratio :	0.000		Years to Payout :	0.00	PW	20.00% :	846.56
End Ratio :	0.020		Internal ROR (%) :	0.00	PW	25.00% :	683.70
					PW	30.00% :	554.84

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

50

Date : 08/21/2014 11:45:32AM		ECONOMIC PROJECTION
				Case :	ST 247 198 (190463) F 7A & 7B - GB
Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date :	07/31/2014	Reserve Cat. :	Proved Behind Pipe
Partner :	All Cases	Discount Rate (%) :	10.00	Field :	RED FISH REEF
Case Type :	RECOMPLETION CASE	All Cases		Operator :	GALVESTON BAY ENERGY LLC
Archive Set:	RED.07.14			Reservoir :	FB A FRIO 7A & 7B
		SEC REPORT		Co., State :	CHAMBER, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		4.35		2.18		3.59		1.61		109.29		4.00		391.90		6.45		0.00
2027		20.40		10.20		16.82		7.57		109.29		4.00		1,837.75		30.27		0.00
2028		13.29		6.65		10.96		4.93		109.29		4.00		1,197.51		19.72		0.00
Rem		13.84		6.92		11.41		5.13		109.29		4.00		1,246.76		20.53		0.00
Total		51.89		25.95		42.77		19.24		109.29		4.00		4,673.91		76.98		0.00
Ult		51.89		25.95

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs  (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		1.00		18.51		9.96		50.00		0.00		0.00		0.79		0.00		319.08		93.27
2027		1.00		86.81		46.70		0.00		0.00		0.00		3.73		0.00		1,730.78		573.09
2028		1.00		56.56		30.43		0.00		0.00		0.00		2.43		0.00		1,127.80		856.09

Rem.	58.89	31.68	0.00	0.00	0.00	2.53	0.00	1,174.19	257.47
Total	220.77	118.77	50.00	0.00	0.00	9.48	0.00	4,351.86	1,113.57

Major Phase :	Oil		Abandonment Date :	12/1/2030
Perfs :	0 - 0		Working Int :	1.00000000	Present Worth Profile (M$)
Initial Rate :	2,250.00	bbl/month	Revenue Int :	0.82416700	PW	5.00% :	2,195.15
Abandonment :	387.22	bbl/month	Disc. Initial Invest. (M$) :	14.76	PW	10.00% :	1,113.57
Initial Decline :	35.00	% year b = 0.000	ROInvestment (disc/undisc) :	76.47 / 88.04	PW	15.00% :	568.02
Beg Ratio :	0.500		Years to Payout :	12.28	PW	20.00% :	291.30
End Ratio :	0.500		Internal ROR (%) :	200.00	PW	25.00% :	150.16
					PW	30.00% :	77.80

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

51

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 247 198 (190463) F 9 - GBE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Behind Pipe
Case Type :        RECOMPLETION CASE	All Cases	Field :	RED FISH REEF
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	FB A FRIO 9
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		2.10		103.87		1.73		77.04		109.29		4.00		188.93		308.18		0.00
2018		3.75		186.03		3.09		137.99		109.29		4.00		338.04		551.95		0.00
2019		2.48		123.19		2.05		91.37		109.29		4.00		223.52		365.49		0.00
2020		1.64		81.75		1.36		60.64		109.29		4.00		148.13		242.56		0.00
2021		1.08		53.95		0.89		40.02		109.29		4.00		97.62		160.08		0.00
2022		0.72		35.73		0.59		26.50		109.29		4.00		64.55		106.00		0.00
2023		0.47		23.66		0.39		17.55		109.29		4.00		42.68		70.19		0.00
2024		0.31		15.70		0.26		11.65		109.29		4.00		28.28		46.58		0.00
2025		0.21		10.36		0.17		7.69		109.29		4.00		18.64		30.74		0.00
2026		0.11		5.77		0.09		4.28		109.29		4.00		10.36		17.11		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		12.89		640.00		10.62		474.72		109.29		4.00		1,160.75		1,898.88		0.00
Ult		12.89		640.00

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		1.00		31.80		12.43		50.00		0.00		0.00		37.96		0.00		364.92		264.40
2018		1.00		56.95		22.25		0.00		0.00		0.00		67.98		0.00		742.82		768.91
2019		1.00		37.69		14.73		0.00		0.00		0.00		45.02		0.00		491.58		1,071.16
2020		1.00		25.01		9.77		0.00		0.00		0.00		29.87		0.00		326.03		1,252.61
2021		1.00		16.50		6.44		0.00		0.00		0.00		19.72		0.00		215.04		1,360.94
2022		1.00		10.92		4.26		0.00		0.00		0.00		13.06		0.00		142.31		1,425.84
2023		1.00		7.23		2.82		0.00		0.00		0.00		8.65		0.00		94.18		1,464.72
2024		1.00		4.79		1.87		0.00		0.00		0.00		5.74		0.00		62.46		1,488.06
2025		1.00		3.16		1.23		0.00		0.00		0.00		3.79		0.00		41.20		1,501.99
2026		0.00		1.76		0.69		0.00		0.00		0.00		2.11		0.00		22.91		1,509.06
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				195.81		76.49		50.00		0.00		0.00		233.88		0.00		2,503.45		1,509.06

Major Phase :	Gas		Abandonment Date :	10/22/2026	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	22,500.00	Mcf/month	Revenue Int :	0.82416700	PW	5.00% :	1,934.41
Abandonment :	500.00	Mcf/month	Disc. Initial Invest. (M$) :	37.07	PW	10.00% :	1,509.06
Initial Decline :	33.80	% year        b = 0.000	ROInvestment (disc/undisc) :	41.70 / 51.07	PW	15.00% :	1,187.25
Beg Ratio :	0.020		Years to Payout :	3.05	PW	20.00% :	941.09
End Ratio :	0.020		Internal ROR (%) :	700.00	PW	25.00% :	750.95
					PW	30.00% :	602.80

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

52

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 247 21 (BP01) - GBE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Behind Pipe
Case Type :        LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	FRIO 1 & 1B
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		133.41		0.00		95.36		0.00		4.00		0.00		381.43		0.00
2017		0.00		234.07		0.00		167.30		0.00		4.00		0.00		669.20		0.00
2018		0.00		149.19		0.00		106.64		0.00		4.00		0.00		426.55		0.00
2019		0.00		90.27		0.00		64.52		0.00		4.00		0.00		258.08		0.00
2020		0.00		54.73		0.00		39.12		0.00		4.00		0.00		156.48		0.00
2021		0.00		33.00		0.00		23.59		0.00		4.00		0.00		94.35		0.00
2022		0.00		19.97		0.00		14.27		0.00		4.00		0.00		57.09		0.00
2023		0.00		12.08		0.00		8.64		0.00		4.00		0.00		34.54		0.00
2024		0.00		7.33		0.00		5.24		0.00		4.00		0.00		20.94		0.00
2025		0.00		4.42		0.00		3.16		0.00		4.00		0.00		12.63		0.00
2026		0.00		1.99		0.00		1.42		0.00		4.00		0.00		5.70		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		740.47		0.00		529.25		0.00		4.00		0.00		2,116.99		0.00
Ult		0.00		740.47

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		1.00		28.61		9.54		250.00		0.00		0.00		49.12		0.00		44.17		30.52
2017		1.00		50.19		16.73		0.00		0.00		0.00		86.18		0.00		516.10		417.36
2018		1.00		31.99		10.66		0.00		0.00		0.00		54.93		0.00		328.96		640.95
2019		1.00		19.36		6.45		0.00		0.00		0.00		33.24		0.00		199.04		763.42
2020		1.00		11.74		3.91		0.00		0.00		0.00		20.15		0.00		120.68		830.63
2021		1.00		7.08		2.36		0.00		0.00		0.00		12.15		0.00		72.76		867.32
2022		1.00		4.28		1.43		0.00		0.00		0.00		7.35		0.00		44.03		887.41
2023		1.00		2.59		0.86		0.00		0.00		0.00		4.45		0.00		26.64		898.41
2024		1.00		1.57		0.52		0.00		0.00		0.00		2.70		0.00		16.15		904.45
2025		1.00		0.95		0.32		0.00		0.00		0.00		1.63		0.00		9.74		907.75
2026		1.00		0.43		0.14		0.00		0.00		0.00		0.73		0.00		4.39		909.11
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				158.77		52.92		250.00		0.00		0.00		272.63		0.00		1,382.66		909.11

Major Phase :	Gas		Abandonment Date :	9/10/2026	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	22,660.42	Mcf/month	Revenue Int :	0.79416670	PW	5.00% :	1,116.98
Abandonment :	200.00	Mcf/month	Disc. Initial Invest. (M$) :	206.51	PW	10.00% :	909.11
Initial Decline :	10.00	% year        b = 0.000	ROInvestment (disc/undisc) :	5.40 / 6.53	PW	15.00% :	744.76
Beg Ratio :	0.000		Years to Payout :	2.35	PW	20.00% :	613.59
End Ratio :	0.000		Internal ROR (%) :	247.82	PW	25.00% :	508.04
					PW	30.00% :	422.47

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

53

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Proved Behind Pipe Rsv Class & Category
Partner :            All Cases	Discount Rate (%) : 10.00	TRINITY BAY Field
Case Type :        REPORT BREAK TOTAL CASE	All Cases
	SEC REPORT

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc.  Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.73		86.65		1.41		0.00		109.28		0.00		153.86		0.00		0.00
2016		2.65		132.39		2.15		72.16		109.28		4.55		235.07		328.38		0.00
2017		1.37		68.52		1.11		37.97		109.28		4.55		121.68		172.81		0.00
2018		0.71		35.62		0.58		20.06		109.28		4.55		63.25		91.28		0.00
2019		0.34		17.10		0.28		10.59		109.28		4.55		30.36		48.21		0.00
2020		0.14		6.90		0.11		5.61		109.28		4.55		12.25		25.52		0.00
2021		0.07		3.63		0.06		2.95		109.28		4.55		6.45		13.43		0.00
2022		0.04		1.92		0.03		1.56		109.28		4.55		3.41		7.09		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		7.05		352.73		5.73		150.90		109.28		4.55		626.33		686.72		0.00
Ult		7.05		352.73

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		7.08		3.85		300.00		0.00		0.00		0.00		0.00		-157.07		-152.06
2016		2.00		35.44		14.09		0.00		0.00		0.00		0.00		0.00		513.93		274.73
2017		2.00		18.56		7.36		0.00		0.00		0.00		0.00		0.00		268.57		476.60
2018		2.00		9.76		3.86		0.00		0.00		0.00		0.00		0.00		140.91		572.49
2019		2.00		5.01		1.96		0.00		0.00		0.00		0.00		0.00		71.60		616.65
2020		1.00		2.48		0.94		0.00		0.00		0.00		0.00		0.00		34.35		635.80
2021		1.00		1.30		0.50		0.00		0.00		0.00		0.00		0.00		18.08		644.93
2022		1.00		0.69		0.26		0.00		0.00		0.00		0.00		0.00		9.55		649.29
2023		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		649.29
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				80.32		32.83		300.00		0.00		0.00		0.00		0.00		899.91		649.29

		Present Worth Profile (M$)
		PW	5.00% :	763.71
Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	649.29
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	552.59
Years to Payout :	0.00	PW	20.00% :	470.43
Internal ROR (%) :	0.00	PW	25.00% :	400.27
		PW	30.00% :	340.09

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

54

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	TBSU #1 053 - GBE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Behind Pipe
Case Type :        LEASE CASE	All Cases	Field :	TRINITY BAY
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	FRIO 3
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.73		86.65		1.41		0.00		109.28		0.00		153.86		0.00		0.00
2016		0.87		43.57		0.71		0.00		109.28		0.00		77.37		0.00		0.00
2017		0.44		21.79		0.35		0.00		109.28		0.00		38.68		0.00		0.00
2018		0.22		10.93		0.18		0.00		109.28		0.00		19.42		0.00		0.00
2019		0.08		4.06		0.07		0.00		109.28		0.00		7.21		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		3.34		167.00		2.71		0.00		109.28		0.00		296.54		0.00		0.00
Ult		3.34		167.00

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		7.08		3.85		250.00		0.00		0.00		0.00		0.00		-107.07		-108.54
2016		1.00		3.56		1.93		0.00		0.00		0.00		0.00		0.00		71.88		-48.83
2017		1.00		1.78		0.97		0.00		0.00		0.00		0.00		0.00		35.94		-21.80
2018		1.00		0.89		0.49		0.00		0.00		0.00		0.00		0.00		18.04		-9.53
2019		1.00		0.33		0.18		0.00		0.00		0.00		0.00		0.00		6.70		-5.34
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				13.64		7.41		250.00		0.00		0.00		0.00		0.00		25.48		-5.34

Major Phase :	Gas		Abandonment Date :	8/31/2019	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	10,000.00	Mcf/month	Revenue Int :	0.81243864	PW	5.00% :	8.92
Abandonment :	400.00	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	-5.34
Initial Decline :	49.83	% year        b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	-17.64
Beg Ratio :	0.020		Years to Payout :	0.00	PW	20.00% :	-28.25
End Ratio :	0.020		Internal ROR (%) :	0.00	PW	25.00% :	-37.41
					PW	30.00% :	-45.33

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

55

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	TBSU #1 135 - GBE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Behind Pipe
Case Type :        LEASE CASE	All Cases	Field :	TRINITY BAY
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	FRIO F5
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		1.78		88.81		1.44		72.16		109.28		4.55		157.70		328.38		0.00
2017		0.93		46.74		0.76		37.97		109.28		4.55		82.99		172.81		0.00
2018		0.49		24.69		0.40		20.06		109.28		4.55		43.84		91.28		0.00
2019		0.26		13.04		0.21		10.59		109.28		4.55		23.15		48.21		0.00
2020		0.14		6.90		0.11		5.61		109.28		4.55		12.25		25.52		0.00
2021		0.07		3.63		0.06		2.95		109.28		4.55		6.45		13.43		0.00
2022		0.04		1.92		0.03		1.56		109.28		4.55		3.41		7.09		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		3.71		185.73		3.02		150.90		109.28		4.55		329.80		686.72		0.00
Ult		3.71		185.73

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		50.00		0.00		0.00		0.00		0.00		-50.00		-43.52
2016		1.00		31.88		12.15		0.00		0.00		0.00		0.00		0.00		442.05		323.56
2017		1.00		16.78		6.40		0.00		0.00		0.00		0.00		0.00		232.63		498.41
2018		1.00		8.86		3.38		0.00		0.00		0.00		0.00		0.00		122.88		582.02
2019		1.00		4.68		1.78		0.00		0.00		0.00		0.00		0.00		64.90		622.00
2020		1.00		2.48		0.94		0.00		0.00		0.00		0.00		0.00		34.35		641.15
2021		1.00		1.30		0.50		0.00		0.00		0.00		0.00		0.00		18.08		650.27
2022		1.00		0.69		0.26		0.00		0.00		0.00		0.00		0.00		9.55		654.63
2023		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		654.63
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				66.67		25.41		50.00		0.00		0.00		0.00		0.00		874.43		654.63

Major Phase :	Gas		Abandonment Date :	1/1/2023	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	10,000.00	Mcf/month	Revenue Int :	0.81243864	PW	5.00% :	754.79
Abandonment :	114.11	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	654.63
Initial Decline :	47.20	% year        b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	570.23
Beg Ratio :	0.020		Years to Payout :	0.00	PW	20.00% :	498.68
End Ratio :	0.020		Internal ROR (%) :	0.00	PW	25.00% :	437.68
					PW	30.00% :	385.41

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

56

This Page Is Intentionally Left Blank

Proved Undeveloped

Economic Detailed Report

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Proved Undeveloped Rsv Class & Category
Partner :            All Cases	Discount Rate (%) : 10.00	RED FISH REEF Field
Case Type :        REPORT BREAK TOTAL CASE	All Cases
	SEC REPORT

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		12.52		368.19		9.94		263.16		109.29		4.00		1,086.53		1,052.65		0.00
2016		26.44		787.05		21.00		562.54		109.29		4.00		2,295.06		2,250.18		0.00
2017		21.97		694.65		17.46		497.61		109.29		4.00		1,908.51		1,990.44		0.00
2018		27.26		1,347.68		21.72		968.67		109.29		4.00		2,373.44		3,874.69		0.00
2019		19.09		943.60		15.21		678.24		109.29		4.00		1,661.81		2,712.94		0.00
2020		13.40		662.19		10.67		475.96		109.29		4.00		1,166.21		1,903.85		0.00
2021		9.35		462.14		7.45		332.17		109.29		4.00		813.89		1,328.69		0.00
2022		6.55		323.58		5.21		232.58		109.29		4.00		569.86		930.31		0.00
2023		4.58		226.56		3.65		162.84		109.29		4.00		399.00		651.38		0.00
2024		3.22		158.99		2.56		114.28		109.29		4.00		280.01		457.12		0.00
2025		9.12		313.06		7.25		224.20		109.29		4.00		791.81		896.82		0.00
2026		7.51		252.47		5.97		180.77		109.29		4.00		652.60		723.06		0.00
2027		13.67		503.79		10.89		363.34		109.29		4.00		1,190.63		1,453.35		0.00
2028		24.03		806.64		19.14		581.37		109.29		4.00		2,091.41		2,325.46		0.00
Rem		20.08		743.93		16.01		537.28		109.29		4.00		1,749.34		2,149.10		0.00
Total		218.79		8,594.52		174.12		6,175.01		109.29		4.00		19,030.10		24,700.05		0.00
Ult		218.79		8,594.52

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		128.93		53.48		2,500.00		0.00		0.00		135.56		0.00		-678.79		-730.23
2016		2.00		274.34		113.63		3,200.00		0.00		0.00		289.78		0.00		667.49		-278.32
2017		3.00		237.07		97.47		2,500.00		0.00		0.00		256.04		0.00		808.36		388.73
2018		4.00		399.78		156.20		3,200.00		0.00		0.00		497.55		0.00		1,994.59		1,639.40
2019		4.00		279.91		109.37		0.00		0.00		0.00		348.37		0.00		3,637.10		3,874.65
2020		4.00		196.43		76.75		0.00		0.00		0.00		244.48		0.00		2,552.40		5,294.49
2021		4.00		137.09		53.56		0.00		0.00		0.00		170.62		0.00		1,781.31		6,191.41
2022		4.00		95.99		37.50		0.00		0.00		0.00		119.46		0.00		1,247.22		6,759.92
2023		4.00		67.21		26.26		0.00		0.00		0.00		83.64		0.00		873.27		7,120.26
2024		4.00		47.16		18.43		0.00		0.00		0.00		58.70		0.00		612.83		7,349.16
2025		5.00		103.68		42.22		350.00		0.00		0.00		115.38		0.00		1,077.35		7,706.62
2026		4.00		84.25		34.39		0.00		0.00		0.00		93.03		0.00		1,163.99		8,062.86
2027		6.00		163.77		66.10		700.00		0.00		0.00		186.30		0.00		1,527.81		8,475.38
2028		4.00		270.61		110.42		0.00		0.00		0.00		298.20		0.00		3,737.64		9,414.39
Rem.				241.65		97.46		0.00		0.00		0.00		275.29		0.00		3,284.03		722.34
Total				2,727.89		1,093.25		12,450.00		0.00		0.00		3,172.42		0.00		24,286.60		10,136.73

		Present Worth Profile (M$)
		PW	5.00% :	15,415.22
Disc. Initial Invest. (M$) :	312.98	PW	10.00% :	10,136.73
ROInvestment (disc/undisc) :	33.39 / 24.13	PW	15.00% :	6,852.21
Years to Payout :	2.73	PW	20.00% :	4,716.47
Internal ROR (%) :	55.30	PW	25.00% :	3,270.01
		PW	30.00% :	2,254.79

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

57

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 224 ACW #15L - GBE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Undeveloped
Case Type :        LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	FRIO 4
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.64		59.18		0.52		43.41		109.29		4.00		56.93		173.63		0.00
2018		3.12		289.08		2.54		212.04		109.29		4.00		278.09		848.17		0.00
2019		2.19		202.41		1.78		148.47		109.29		4.00		194.71		593.87		0.00
2020		1.53		142.04		1.25		104.19		109.29		4.00		136.64		416.76		0.00
2021		1.07		99.13		0.87		72.71		109.29		4.00		95.36		290.85		0.00
2022		0.75		69.41		0.61		50.91		109.29		4.00		66.77		203.65		0.00
2023		0.52		48.60		0.43		35.65		109.29		4.00		46.75		142.59		0.00
2024		0.37		34.10		0.30		25.02		109.29		4.00		32.81		100.06		0.00
2025		0.26		23.80		0.21		17.46		109.29		4.00		22.90		69.83		0.00
2026		0.18		16.67		0.15		12.22		109.29		4.00		16.03		48.90		0.00
2027		0.06		5.27		0.05		3.87		109.29		4.00		5.07		15.47		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		10.69		989.70		8.71		725.94		109.29		4.00		952.06		2,903.77		0.00
Ult		10.69		989.70

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		1.00		15.64		5.76		2,500.00		0.00		0.00		22.07		0.00		-2,312.91		-1,673.63
2018		1.00		76.41		28.16		0.00		0.00		0.00		107.79		0.00		913.91		-1,053.20
2019		1.00		53.50		19.71		0.00		0.00		0.00		75.47		0.00		639.89		-659.94
2020		1.00		37.54		13.83		0.00		0.00		0.00		52.96		0.00		449.06		-410.14
2021		1.00		26.20		9.66		0.00		0.00		0.00		36.96		0.00		313.39		-252.34
2022		1.00		18.34		6.76		0.00		0.00		0.00		25.88		0.00		219.43		-152.32
2023		1.00		12.84		4.73		0.00		0.00		0.00		18.12		0.00		153.64		-88.93
2024		1.00		9.01		3.32		0.00		0.00		0.00		12.72		0.00		107.82		-48.66
2025		1.00		6.29		2.32		0.00		0.00		0.00		8.87		0.00		75.25		-23.22
2026		1.00		4.40		1.62		0.00		0.00		0.00		6.21		0.00		52.69		-7.09
2027		1.00		1.39		0.51		0.00		0.00		0.00		1.97		0.00		16.67		-2.35
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				261.58		96.40		2,500.00		0.00		0.00		369.03		0.00		628.82		-2.35

Major Phase :	Gas		Abandonment Date :	5/29/2027	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	30,416.67	Mcf/month	Revenue Int :	0.81500000	PW	5.00% :	238.14
Abandonment :	1,000.00	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	-2.35
Initial Decline :	30.00	% year        b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	-145.73
Beg Ratio :	0.011		Years to Payout :	0.00	PW	20.00% :	-226.32
End Ratio :	0.011		Internal ROR (%) :	0.00	PW	25.00% :	-266.47
					PW	30.00% :	-280.85

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

58

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 224 ACW #15U - GBE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Undeveloped
Case Type :        RECOMPLETION CASE	All Cases	Field :	RED FISH REEF
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	FRIO 1
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		1.68		168.30		1.37		123.45		109.29		4.00		149.91		493.80		0.00
2028		2.57		256.95		2.09		188.47		109.29		4.00		228.87		753.89		0.00
Rem		2.96		296.17		2.41		217.24		109.29		4.00		263.80		868.95		0.00
Total		7.21		721.42		5.88		529.16		109.29		4.00		642.58		2,116.64		0.00
Ult		7.21		721.42

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		1.00		43.93		16.09		350.00		0.00		0.00		62.76		0.00		170.93		43.76
2028		1.00		67.07		24.57		0.00		0.00		0.00		95.81		0.00		795.31		243.21
Rem.				77.31		28.32		0.00		0.00		0.00		110.43		0.00		916.69		200.57
Total				188.31		68.98		350.00		0.00		0.00		269.00		0.00		1,882.93		443.78

Major Phase :	Gas		Abandonment Date :	12/1/2030	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	30,416.67	Mcf/month	Revenue Int :	0.81500000	PW	5.00% :	912.03
Abandonment :	8,974.05	Mcf/month	Disc. Initial Invest. (M$) :	96.70	PW	10.00% :	443.78
Initial Decline :	30.00	% year        b = 0.000	ROInvestment (disc/undisc) :	5.59 / 6.38	PW	15.00% :	216.91
Beg Ratio :	0.010		Years to Payout :	13.25	PW	20.00% :	106.49
End Ratio :	0.010		Internal ROR (%) :	150.00	PW	25.00% :	52.50
					PW	30.00% :	26.00

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

59

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 246 ACW #35L - GBE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Undeveloped
Case Type :        LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	FRIO 10B
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		12.52		368.19		9.94		263.16		109.29		4.00		1,086.53		1,052.65		0.00
2016		8.79		258.39		6.98		184.68		109.29		4.00		762.49		738.72		0.00
2017		6.13		180.33		4.87		128.89		109.29		4.00		532.14		515.55		0.00
2018		4.29		126.26		3.41		90.24		109.29		4.00		372.59		360.97		0.00
2019		3.01		88.40		2.39		63.19		109.29		4.00		260.88		252.74		0.00
2020		2.11		62.04		1.68		44.34		109.29		4.00		183.07		177.37		0.00
2021		1.47		43.30		1.17		30.95		109.29		4.00		127.77		123.78		0.00
2022		1.03		30.31		0.82		21.67		109.29		4.00		89.46		86.67		0.00
2023		0.72		21.23		0.57		15.17		109.29		4.00		62.64		60.68		0.00
2024		0.51		14.90		0.40		10.65		109.29		4.00		43.96		42.59		0.00
2025		0.03		1.03		0.03		0.73		109.29		4.00		3.03		2.94		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		40.61		1,194.36		32.25		853.67		109.29		4.00		3,524.56		3,414.66		0.00
Ult		40.61		1,194.36

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		128.93		53.48		2,500.00		0.00		0.00		135.56		0.00		-678.79		-730.23
2016		1.00		90.48		37.53		0.00		0.00		0.00		95.13		0.00		1,278.07		328.65
2017		1.00		63.14		26.19		0.00		0.00		0.00		66.39		0.00		891.96		997.54
2018		1.00		44.21		18.34		0.00		0.00		0.00		46.49		0.00		624.52		1,421.52
2019		1.00		30.96		12.84		0.00		0.00		0.00		32.55		0.00		437.27		1,690.25
2020		1.00		21.72		9.01		0.00		0.00		0.00		22.84		0.00		306.86		1,860.95
2021		1.00		15.16		6.29		0.00		0.00		0.00		15.94		0.00		214.16		1,968.78
2022		1.00		10.62		4.40		0.00		0.00		0.00		11.16		0.00		149.95		2,037.13
2023		1.00		7.43		3.08		0.00		0.00		0.00		7.81		0.00		104.99		2,080.46
2024		1.00		5.22		2.16		0.00		0.00		0.00		5.48		0.00		73.68		2,107.98
2025		1.00		0.36		0.15		0.00		0.00		0.00		0.38		0.00		5.08		2,109.77
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				418.23		173.48		2,500.00		0.00		0.00		439.75		0.00		3,407.76		2,109.77

Major Phase :	Gas		Abandonment Date :	1/30/2025	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	36,500.00	Mcf/month	Revenue Int :	0.79416000	PW	5.00% :	2,683.14
Abandonment :	1,000.00	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	2,109.77
Initial Decline :	30.00	% year        b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	1,649.96
Beg Ratio :	0.034		Years to Payout :	0.00	PW	20.00% :	1,276.74
End Ratio :	0.034		Internal ROR (%) :	0.00	PW	25.00% :	970.48
					PW	30.00% :	716.76

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

60

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 246 ACW #35U - GBE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Undeveloped
Case Type :        RECOMPLETION CASE	All Cases	Field :	RED FISH REEF
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	FRIO 10A
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		7.19		211.47		5.71		151.15		109.29		4.00		624.04		604.58		0.00
2026		6.19		182.06		4.92		130.13		109.29		4.00		537.26		520.50		0.00
2027		4.33		127.47		3.44		91.11		109.29		4.00		376.17		364.44		0.00
2028		3.04		89.46		2.42		63.94		109.29		4.00		263.98		255.75		0.00
Rem		3.51		103.11		2.78		73.70		109.29		4.00		304.27		294.79		0.00
Total		24.26		713.56		19.27		510.02		109.29		4.00		2,105.72		2,040.07		0.00
Ult		24.26		713.56

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		1.00		74.05		30.72		350.00		0.00		0.00		77.86		0.00		696.00		228.46
2026		1.00		63.75		26.44		0.00		0.00		0.00		67.03		0.00		900.53		504.07
2027		1.00		44.64		18.52		0.00		0.00		0.00		46.93		0.00		630.53		678.77
2028		1.00		31.32		12.99		0.00		0.00		0.00		32.94		0.00		442.48		789.73
Rem.				36.11		14.98		0.00		0.00		0.00		37.96		0.00		510.01		111.59
Total				249.87		103.64		350.00		0.00		0.00		262.72		0.00		3,179.56		901.33

Major Phase :	Gas		Abandonment Date :	12/1/2030	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	24,333.33	Mcf/month	Revenue Int :	0.79416700	PW	5.00% :	1,686.61
Abandonment :	3,124.26	Mcf/month	Disc. Initial Invest. (M$) :	121.98	PW	10.00% :	901.33
Initial Decline :	30.00	% year        b = 0.000	ROInvestment (disc/undisc) :	8.39 / 10.08	PW	15.00% :	485.08
Beg Ratio :	0.034		Years to Payout :	10.84	PW	20.00% :	262.82
End Ratio :	0.034		Internal ROR (%) :	200.00	PW	25.00% :	143.31
					PW	30.00% :	78.61

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

61

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 246 ACW #40L - GBE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Undeveloped
Case Type :        LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	FRIO 17
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		17.66		528.67		14.02		377.86		109.29		4.00		1,532.57		1,511.46		0.00
2017		15.20		455.15		12.07		325.32		109.29		4.00		1,319.44		1,301.26		0.00
2018		10.64		318.68		8.45		227.78		109.29		4.00		923.83		911.10		0.00
2019		7.45		223.13		5.92		159.48		109.29		4.00		646.84		637.93		0.00
2020		5.23		156.59		4.15		111.92		109.29		4.00		453.93		447.68		0.00
2021		3.65		109.28		2.90		78.11		109.29		4.00		316.80		312.43		0.00
2022		2.56		76.51		2.03		54.69		109.29		4.00		221.81		218.76		0.00
2023		1.79		53.57		1.42		38.29		109.29		4.00		155.31		153.17		0.00
2024		1.26		37.60		1.00		26.87		109.29		4.00		108.99		107.49		0.00
2025		0.88		26.24		0.70		18.75		109.29		4.00		76.06		75.02		0.00
2026		0.61		18.37		0.49		13.13		109.29		4.00		53.26		52.52		0.00
2027		0.31		9.26		0.25		6.62		109.29		4.00		26.84		26.47		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		67.24		2,013.04		53.40		1,438.82		109.29		4.00		5,835.67		5,755.28		0.00
Ult		67.24		2,013.04

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		1.00		183.86		76.10		3,200.00		0.00		0.00		194.65		0.00		-610.58		-606.97
2017		1.00		158.29		65.52		0.00		0.00		0.00		167.58		0.00		2,229.31		1,064.82
2018		1.00		110.83		45.87		0.00		0.00		0.00		117.33		0.00		1,560.90		2,124.48
2019		1.00		77.60		32.12		0.00		0.00		0.00		82.15		0.00		1,092.90		2,796.14
2020		1.00		54.46		22.54		0.00		0.00		0.00		57.65		0.00		766.96		3,222.78
2021		1.00		38.01		15.73		0.00		0.00		0.00		40.24		0.00		535.26		3,492.29
2022		1.00		26.61		11.01		0.00		0.00		0.00		28.17		0.00		374.77		3,663.12
2023		1.00		18.63		7.71		0.00		0.00		0.00		19.73		0.00		262.40		3,771.40
2024		1.00		13.08		5.41		0.00		0.00		0.00		13.84		0.00		184.15		3,840.18
2025		1.00		9.13		3.78		0.00		0.00		0.00		9.66		0.00		128.52		3,883.62
2026		1.00		6.39		2.64		0.00		0.00		0.00		6.76		0.00		89.98		3,911.16
2027		1.00		3.22		1.33		0.00		0.00		0.00		3.41		0.00		45.34		3,923.90
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				700.09		289.77		3,200.00		0.00		0.00		741.18		0.00		6,659.91		3,923.90

Major Phase :	Gas		Abandonment Date :	9/5/2027	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	60,833.33	Mcf/month	Revenue Int :	0.79416700	PWA	5.00% :	5,093.37
Abandonment :	1,000.00	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	3,923.90
Initial Decline :	30.00	% year        b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	3,038.04
Beg Ratio :	0.033		Years to Payout :	0.00	PW	20.00% :	2,358.54
End Ratio :	0.033		Internal ROR (%) :	0.00	PW	25.00% :	1,831.75
					PW	30.00% :	1,419.73

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

62

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 246 ACW #40U - GBE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Undeveloped
Case Type :        RECOMPLETION CASE	All Cases	Field :	RED FISH REEF
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	FRIO 15B
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		6.92		168.72		5.49		120.59		109.29		4.00		600.39		482.36		0.00
2028		18.16		442.85		14.42		316.53		109.29		4.00		1,575.93		1,266.12		0.00
Rem		13.31		324.62		10.57		232.02		109.29		4.00		1,155.18		928.08		0.00
Total		38.38		936.19		30.48		669.14		109.29		4.00		3,331.50		2,676.57		0.00
Ult		38.38		936.19

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow  (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		1.00		63.80		27.07		350.00		0.00		0.00		62.12		0.00		579.77		153.15
2028		1.00		167.45		71.05		0.00		0.00		0.00		163.05		0.00		2,440.49		766.86
Rem.				122.74		52.08		0.00		0.00		0.00		119.52		0.00		1,788.92		395.20
Total				353.99		150.20		350.00		0.00		0.00		344.69		0.00		4,809.18		1,162.06

Major Phase :	Gas		Abandonment Date :	12/1/2030	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	60,833.33	Mcf/month	Revenue Int :	0.79416700	PW	5.00% :	2,358.75
Abandonment :	6,756.89	Mcf/month	Disc. Initial Invest. (M$) :	94.30	PW	10.00% :	1,162.06
Initial Decline :	50.00	% year        b = 0.000	ROInvestment (disc/undisc) :	13.32 / 14.74	PW	15.00% :	575.01
Beg Ratio :	0.041		Years to Payout :	13.26	PW	20.00% :	285.75
End Ratio :	0.041		Internal ROR (%) :	200.00	PW	25.00% :	142.60
					PW	30.00% :	71.46

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

63

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 247 119 OFFSET - GBE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Undeveloped
Case Type :        LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	FRIO 15B
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		9.20		613.65		7.31		438.61		109.29		4.00		798.93		1,754.44		0.00
2019		6.44		429.66		5.12		307.10		109.29		4.00		559.39		1,228.41		0.00
2020		4.52		301.52		3.59		215.51		109.29		4.00		392.56		862.06		0.00
2021		3.16		210.43		2.51		150.41		109.29		4.00		273.97		601.63		0.00
2022		2.21		147.34		1.76		105.31		109.29		4.00		191.82		421.24		0.00
2023		1.55		103.16		1.23		73.74		109.29		4.00		134.31		294.94		0.00
2024		1.09		72.40		0.86		51.74		109.29		4.00		94.25		206.98		0.00
2025		0.76		50.52		0.60		36.11		109.29		4.00		65.78		144.45		0.00
2026		0.53		35.38		0.42		25.28		109.29		4.00		46.06		101.14		0.00
2027		0.37		24.77		0.30		17.70		109.29		4.00		32.25		70.82		0.00
2028		0.26		17.38		0.21		12.42		109.29		4.00		22.63		49.70		0.00
Rem		0.30		20.04		0.24		14.32		109.29		4.00		26.08		57.28		0.00
Total		30.39		2,026.26		24.14		1,448.27		109.29		4.00		2,638.02		5,793.07		0.00
Ult		30.39		2,026.26

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		1.00		168.33		63.83		3,200.00		0.00		0.00		225.94		0.00		-1,104.74		-853.39
2019		1.00		117.86		44.69		0.00		0.00		0.00		158.20		0.00		1,467.04		48.20
2020		1.00		82.71		31.37		0.00		0.00		0.00		111.02		0.00		1,029.52		620.91
2021		1.00		57.72		21.89		0.00		0.00		0.00		77.48		0.00		718.50		982.68
2022		1.00		40.42		15.33		0.00		0.00		0.00		54.25		0.00		503.07		1,211.99
2023		1.00		28.30		10.73		0.00		0.00		0.00		37.98		0.00		352.24		1,357.34
2024		1.00		19.86		7.53		0.00		0.00		0.00		26.66		0.00		247.19		1,449.66
2025		1.00		13.86		5.26		0.00		0.00		0.00		18.60		0.00		172.51		1,507.98
2026		1.00		9.70		3.68		0.00		0.00		0.00		13.02		0.00		120.79		1,544.95
2027		1.00		6.79		2.58		0.00		0.00		0.00		9.12		0.00		84.57		1,568.38
2028		1.00		4.77		1.81		0.00		0.00		0.00		6.40		0.00		59.35		1,583.27
Rem.				5.50		2.08		0.00		0.00		0.00		7.38		0.00		68.41		14.97
Total				555.83		210.78		3,200.00		0.00		0.00		746.04		0.00		3,718.44		1,598.24

Major Phase :	Gas		Abandonment Date :	12/1/2030	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	60,833.33	Mcf/month	Revenue Int :	0.79416700	PW	5.00% :	2,443.19
Abandonment :	607.08	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	1,598.24
Initial Decline :	30.00	% year        b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	1,032.94
Beg Ratio :	0.015		Years to Payout :	0.00	PW	20.00% :	652.46
End Ratio :	0.015		Internal ROR (%) :	0.00	PW	25.00% :	395.83
					PW	30.00% :	223.08

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

64

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Proved Undeveloped Rsv Class & Category
Partner :            All Cases	Discount Rate (%) : 10.00	TRINITY BAY Field
Case Type :        REPORT BREAK TOTAL CASE	All Cases
	SEC REPORT

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		115.80		19.52		94.08		15.86		100.11		4.10		9,418.45		65.02		0.00
2018		94.97		16.01		77.16		13.01		100.11		4.10		7,724.18		53.32		0.00
2019		77.89		13.13		63.28		10.67		100.11		4.10		6,334.69		43.73		0.00
2020		64.03		10.79		52.02		8.77		100.11		4.10		5,208.01		35.95		0.00
2021		52.36		8.83		42.54		7.17		100.11		4.10		4,258.29		29.40		0.00
2022		42.94		7.24		34.88		5.88		100.11		4.10		3,492.27		24.11		0.00
2023		35.21		5.94		28.61		4.82		100.11		4.10		2,864.05		19.77		0.00
2024		28.95		4.88		23.52		3.96		100.11		4.10		2,354.66		16.26		0.00
2025		22.48		3.79		18.26		3.08		100.11		4.10		1,828.15		12.62		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		534.62		90.12		434.35		73.22		100.11		4.10		43,482.74		300.19		0.00
Ult		534.62		90.12

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		1.00		438.13		237.09		2,500.00		0.00		0.00		0.00		0.00		6,308.26		4,632.85
2018		1.00		359.31		194.44		0.00		0.00		0.00		0.00		0.00		7,223.75		9,530.53
2019		1.00		294.68		159.46		0.00		0.00		0.00		0.00		0.00		5,924.28		13,166.70
2020		1.00		242.27		131.10		0.00		0.00		0.00		0.00		0.00		4,870.60		15,872.60
2021		1.00		198.09		107.19		0.00		0.00		0.00		0.00		0.00		3,982.41		17,875.20
2022		1.00		162.45		87.91		0.00		0.00		0.00		0.00		0.00		3,266.02		19,361.99
2023		1.00		133.23		72.10		0.00		0.00		0.00		0.00		0.00		2,678.50		20,465.81
2024		1.00		109.53		59.27		0.00		0.00		0.00		0.00		0.00		2,202.11		21,287.24
2025		1.00		85.04		46.02		0.00		0.00		0.00		0.00		0.00		1,709.71		21,865.98
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				2,022.72		1,094.57		2,500.00		0.00		0.00		0.00		0.00		38,165.64		21,865.98

		Present Worth Profile (M$)
		PW	5.00% :	28,693.70
Disc. Initial Invest. (M$) :	1,964.02	PW	10.00% :	21,865.98
ROInvestment (disc/undisc) :	12.13 / 16.27	PW	15.00% :	16,869.19
Years to Payout :	2.69	PW	20.00% :	13,159.61
Internal ROR (%) :	427.96	PW	25.00% :	10,368.53
		PW	30.00% :	8,242.42

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

65

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	ST 25-A NO 01
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Proved Undeveloped
Case Type :        LEASE CASE	All Cases	Field :	TRINITY BAY
Archive Set :     RED.07.14		Operator :
	SEC REPORT	Reservoir :
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		115.80		19.52		94.08		15.86		100.11		4.10		9,418.45		65.02		0.00
2018		94.97		16.01		77.16		13.01		100.11		4.10		7,724.18		53.32		0.00
2019		77.89		13.13		63.28		10.67		100.11		4.10		6,334.69		43.73		0.00
2020		64.03		10.79		52.02		8.77		100.11		4.10		5,208.01		35.95		0.00
2021		52.36		8.83		42.54		7.17		100.11		4.10		4,258.29		29.40		0.00
2022		42.94		7.24		34.88		5.88		100.11		4.10		3,492.27		24.11		0.00
2023		35.21		5.94		28.61		4.82		100.11		4.10		2,864.05		19.77		0.00
2024		28.95		4.88		23.52		3.96		100.11		4.10		2,354.66		16.26		0.00
2025		22.48		3.79		18.26		3.08		100.11		4.10		1,828.15		12.62		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		534.62		90.12		434.35		73.22		100.11		4.10		43,482.74		300.19		0.00
Ult		534.62		90.12

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		1.00		438.13		237.09		2,500.00		0.00		0.00		0.00		0.00		6,308.26		4,632.85
2018		1.00		359.31		194.44		0.00		0.00		0.00		0.00		0.00		7,223.75		9,530.53
2019		1.00		294.68		159.46		0.00		0.00		0.00		0.00		0.00		5,924.28		13,166.70
2020		1.00		242.27		131.10		0.00		0.00		0.00		0.00		0.00		4,870.60		15,872.60
2021		1.00		198.09		107.19		0.00		0.00		0.00		0.00		0.00		3,982.41		17,875.20
2022		1.00		162.45		87.91		0.00		0.00		0.00		0.00		0.00		3,266.02		19,361.99
2023		1.00		133.23		72.10		0.00		0.00		0.00		0.00		0.00		2,678.50		20,465.81
2024		1.00		109.53		59.27		0.00		0.00		0.00		0.00		0.00		2,202.11		21,287.24
2025		1.00		85.04		46.02		0.00		0.00		0.00		0.00		0.00		1,709.71		21,865.98
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				2,022.72		1,094.57		2,500.00		0.00		0.00		0.00		0.00		38,165.64		21,865.98

Major Phase :	Gas		Abandonment Date :	12/11/2025	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	10,645.83	Mcf/month	Revenue Int :	0.81243864	PW	5.00% :	28,693.70
Abandonment :	0.00	Mcf/month	Disc. Initial Invest. (M$) :	1,964.02	PW	10.00% :	21,865.98
Initial Decline :	18.00	% year        b = 0.000	ROInvestment (disc/undisc) :	12.13 / 16.27	PW	15.00% :	16,869.19
Beg Ratio :	0.0169		Years to Payout :	2.69	PW	20.00% :	13,159.61
End Ratio :	0.000		Internal ROR (%) :	427.96	PW	25.00% :	10,368.53
					PW	30.00% :	8,242.42

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

66

Field Expenses

Economic Detailed Report

ECONOMIC SUMMARY PROJECTION

Project Name : HYDROCARB ENERGY 06/30/2014 Partner :           All Cases Case Type :       REPORT BREAK TOTAL CASE As Of Date : 07/31/2014 Discount Rate (%) : 10.00 All Cases Field Expense Rsv Class & Category FISHERS REEF Field

SEC REPORT

Cum Oil (Mbbl) : 0.00

Cum Gas (MMcf) : 0.00

	Gross		Gross		Net		Net		Oil		Gas		Oli		Gas		Misc.
Year	Oil		Gas		Oil		Gas		Price		Price		Revenue		Revenue		Revenue
	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)		($/bbl)		($/Mcf)		(M$)		(M$)		(M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2028		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

	Well		Net Tax		Net Tax		Net		Net		Net		Other		Net		Annual		Cum Disc.
Year	Count		Production		AdValorem		Investment		Lease Costs		Well Costs		Costs		Profits		Cash Flow		Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		2.00		0.00		0.00		0.00		418.09		0.00		0.00		0.00		-418.09		-409.40
2015		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-1,319.48
2016		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-2,143.16
2017		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-2,888.79
2018		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-3,563.79
2019		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-4,174.85
2020		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-4,727.89
2021		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-5,228.53
2022		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-5,681.74
2023		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-6,092.03
2024		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-6,463.36
2025		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-6,799.50
2026		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-7,103.81
2027		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-7,379.29
2028		2.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-7,628.61
Rem.				0.00		0.00		890.34		492.13		0.00		0.00		0.00		-1,382.47		-310.70
Total				0.00		0.00		890.34		14,868.04		0.00		0.00		0.00		-15,758.38		-7,939.30

		Present Worth Profile (M$)
Disc. Initial Invest. (M$) :	0.00	PW	5.00% :	-10,903.70
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	10.00% :	-7,939.30
Years to Payout :	0.00	PW	15.00% :	-6,055.23
Internal ROR (%) :	0.00	PW	20.00% :	-4,807.80
		PW	25.00% :	-3,948.04
		PW	30.00% :	-3,332.50

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

67

ECONOMIC PROJECTION

Project Name : HYDROCARB ENERGY 06/30/2014 Partner :           All Cases Case Type :       LEASE CASE Archive Set :    RED.07.14 As Of Date : 07/31/2014 Discount Rate (%) : 10.00 All Cases   SEC REPORT Case : Reserve Cat. : Operator : Reservoir : Co., State :   FIELD ABANDONMENT EXPENSE   Field Expense   GALVESTON BAY ENERGY LLC   OPEX   CHAMBERS, TX

Cum Oil (Mbbl) : 0.00

Cum Gas (MMcf) : 0.00

	Gross		Gross		Net		Net		Oil		Gas		Oil		Gas		Misc.
Year	Oil		Gas		Oil		Gas		Price		Price		Revenue		Revenue		Revenue
	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)		($/bbl)		($/Mcf)		(M$)		(M$)		(M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2028		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

	Well		Net Tax		Net Tax		Net		Net		Net		Other		Net		Annual		Cum Disc.
Year	Count		Production		AdValorem		Investment		Lease Costs		Well Costs		Costs		Profits		Cash Flow		Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2028		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem.				0.00		0.00		890.34		0.00		0.00		0.00		0.00		-890.34		-196.54
Total				0.00		0.00		890.34		0.00		0.00		0.00		0.00		-890.34		-196.54

Major Phase :	Gas				Present Worth Profile (M$)
Perfs :	0 - 0
Initial Rate :	0.00	Mcf/month	Abandonment Date :	10/31/2029	PW	5.00% :	-417.66
Abandonment :	0.00	Mcf/month	Working Int :	0.95000000	PW	10.00% :	-196.54
Initial Decline :	0.00	% year b = 0.000	Revenue Int :	0.78850000	PW	15.00% :	-92.77
Beg Ratio :	0.000		Disc. Initial Invest. (M$) :	0.00	PW	20.00% :	-43.93
End Ratio :	0.000		ROInvestment (disc/undisc) :	0.00 / 0.00	PW	25.00% :	-20.86
			Years to Payout :	0.00	PW	30.00% :	-9.94
			Internal ROR (%) :	0.00

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

68

ECONOMIC PROJECTION

Project Name : HYDROCARB ENERGY 06/30/2014 Partner :           All Cases Case Type :       LEASE CASE Archive Set :    RED.07.14 As Of Date : 07/31/2014 Discount Rate (%) : 10.00 All Cases   SEC REPORT Case : Reserve Cat. : Operator : Reservoir : Co., State :   FIELD FIXED OPERATING EXPENS   FISHERS REEF   GALVESTON BAY ENERGY LLC   OPEX   CHAMBERS, TX

Cum Oil (Mbbl) : 0.00

Cum Gas (MMcf) : 0.00

	Gross		Gross		Net		Net		Oil		Gas		Oil		Gas		Misc.
Year	Oil		Gas		Oil		Gas		Price		Price		Revenue		Revenue		Revenue
	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)		($/bbl)		($/Mcf)		(M$)		(M$)		(M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2028		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

	Well		Net Tax		Net Tax		Net		Net		Net		Other		Net		Annual		Cum Disc.
Year	Count		Production		AdValorem		Investment		Lease Costs		Well Costs		Costs		Profits		Cash Flow		Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		1.00		0.00		0.00		0.00		418.09		0.00		0.00		0.00		-418.09		-409.40
2015		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-1,319.48
2016		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-2,143.16
2017		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-2,888.79
2018		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-3,563.79
2019		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-4,174.85
2020		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-4,727.89
2021		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-5,228.53
2022		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-5,681.74
2023		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-6,092.03
2024		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-6,463.36
2025		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-6,799.50
2026		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-7,103.81
2027		1.00		0.00		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-7,379.29
2028		1.00		0.0		0.00		0.00		996.99		0.00		0.00		0.00		-996.99		-7,628.61
Rem.				0.00		0.00		0.00		492.13		0.00		0.00		0.00		-492.13		-114.16
Total				0.00		0.00		0.00		14,868.04		0.00		0.00		0.00		-14,868.04		-7,742.77

Major Phase :	Gas				Present Worth Profile (M$)
Perfs :	0 - 0
Initial Rate :	0.00	Mcf/month	Abandonment Date :	7/1/2029	PW	5.00% :	-10,486.05
Abandonment :	0.00	Mcf/month	Working Int :	0.95000000	PW	10.00% :	-7,742.77
Initial Decline :	0.00	% year b = 0.000	Revenue Int :	0.62250000	PW	15.00% :	-5,962.46
Beg Ratio :	0.000		Disc. Initial Invest. (M$) :	0.00	PW	20.00% :	-4,763.87
End Ratio :	0.000		ROInvestment (disc/undisc) :	0.00 / 0.00	PW	25.00% :	-3,927.17
			Years to Payout :	0.00	PW	30.00% :	-3,322.56
			Internal ROR (%) :	0.00

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

69

ECONOMIC PROJECTION

Project Name : HYDROCARB ENERGY 06/30/2014 Partner :           All Cases Case Type :       REPORT BREAK TOTAL CASE As Of Date : 07/31/2014 Discount Rate (%) : 10.00 All Cases Field Expense Rsv Class & Category POINT BOLIVAR NORTH Field

SEC REPORT

Cum Oil (Mbbl) : 0.00

Cum Gas (MMcf) : 0.00

	Gross		Gross		Net		Net		Oil		Gas		Oil		Gas		Misc.
Year	Oil		Gas		Oil		Gas		Price		Price		Revenue		Revenue		Revenue
	(Mbbl)		(MMcf)		(Mbbl)		(MMcf)		($/bbl)		($/Mcf)		(M$)		(M$)		(M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

	Well		Net Tax		Net Tax		Net		Net		Net		Other		Net		Annual		Cum Disc.
Year	Count		Production		AdValorem		Investment		Lease Costs		Well Costs		Costs		Profits		Cash Flow		Cash Flow
			(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)		(M$)
2014		2.00		0.00		0.00		0.00		101.11		0.00		0.00		0.00		-101.11		-99.01
2015		2.00		0.00		0.00		0.00		241.11		0.00		0.00		0.00		-241.11		-319.10
2016		2.00		0.00		0.00		739.88		99.88		0.00		0.00		0.00		-839.77		-1,004.93
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				0.00		0.00		739.88		442.10		0.00		0.00		0.00		-1,181.99		-1,004.93

		Present Worth Profile (M$)
Disc. Initial Invest. (M$) :	0.00	PW	5.00% :	-1,089.09
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	10.00% :	-1,004.93
Years to Payout :	0.00	PW	15.00% :	-928.63
Internal ROR (%) :	0.00	PW	20.00% :	-859.38
		PW	25.00% :	-796.49
		PW	30.00% :	-739.33

RALPH E. DAVIS A SSOCIATES, INC.

Texas Registered Engineering Firm F-1529

70

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	FIELD ABANDONMENT EXPENSE
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Field Expense
Case Type :	LEASE CASE	All Cases	Field :	POINT BOLIVAR NORTH
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	OPEX
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Cost (M$)		Net Well Cost (M$)		Other Costs (M$)		Net Profit (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		1.00		0.00		0.00		739.88		0.00		0.00		0.00		0.00		-739.88		-600.92
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				0.00		0.00		739.88		0.00		0.00		0.00		0.00		-739.88		-600.92

Major Phase :	Oil		Abandonment Date :	9/30/2016
Perfs :	0 - 0		Working Int :	0.90833330	Present Worth Profile (M$)
Initial Rate :	0.00	bbl/month	Revenue Int:	0.64491664	PW	5.00% :	-666.65
Abandonment :	0.00	bbl/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	-600.92
Initial Decline :	0.00	% year    b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	-541.90
Beg Ratio :	0.000		Years to Payout :	0.00	PW	20.00% :	-488.89
End Ratio :	0.000		Internal ROR (%) :	0.00	PW	25.00% :	-441.25
					PW	30.00% :	-398.42

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

71

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	FIELD FIXED OPERATING EXPENSE
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Field Expense
Case Type :	LEASE CASE	All Cases	Field :	POINT BOLIVAR NORTH
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	OPERATING EXPENSE
			Co., State :	GALVESTON, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits  (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		0.00		0.00		0.00		101.11		0.00		0.00		0.00		-101.11		-99.01
2015		1.00		0.00		0.00		0.00		241.11		0.00		0.00		0.00		-241.11		-319.10
2016		1.00		0.00		0.00		0.00		99.88		0.00		0.00		0.00		-99.88		-404.01
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				0.00		0.00		0.00		442.10		0.00		0.00		0.00		-442.10		-404.01

Major Phase :	Oil		Abandonment Date :	6/1/2016
Perfs :	0 - 0		Working Int :	0.73330000	Present Worth Profile (M$)
Initial Rate :	0.00	bbl/month	Revenue Int :	0.52064300	PW	5.00% :	-422.44
Abandonment :	0.00	bbl/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	-404.01
Initial Decline :	0.00	% year    b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	-386.72
Beg Ratio :	0.000		Years to Payout :	0.00	PW	20.00% :	-370.49
End Ratio :	0.000		Internal ROR (%) :	0.00	PW	25.00% :	-355.24
					PW	30.00% :	-340.91

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

72

Date : 08/21/2014 11:45:32AM

ECONOMIC SUMMARY PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Field Expense Rsv Class & Category
Partner :	All Cases	Discount Rate (%) : 10.00	RED FISH REEF Field
Case Type :	REPORT BREAK TOTAL CASE	All Cases
		SEC REPORT

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2028		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		2.00		0.00		0.00		0.00		315.42		0.00		0.00		0.00		-315.42		-308.86
2015		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-995.46
2016		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-1,616.87
2017		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-2,179.40
2018		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-2,688.64
2019		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-3,149.64
2020		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-3,566.87
2021		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-3,944.57
2022		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-4,286.49
2023		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-4,596.03
2024		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-4,876.17
2025		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-5,129.77
2026		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-5,359.35
2027		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-5,567.18
2028		2.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-5,755.27
Rem.				0.00		0.00		1,658.25		1,443.66		0.00		0.00		0.00		-3,101.91		-630.56
Total				0.00		0.00		1,658.25		12,289.32		0.00		0.00		0.00		-13,947.57		-6,385.83

		Present Worth Profile (M$)
		PW	5.00% :	-9,127.82
Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	-6,385.83
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	-4,742.86
Years to Payout :	0.00	PW	20.00% :	-3,704.35
Internal ROR (%) :	0.00	PW	25.00% :	-3,012.76
		PW	30.00% :	-2,529.37

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

73

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	FIELD ABANDONMENT EXPENSE
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Field Expense
Case Type :	LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	OPEX
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross  Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas P rice ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2028		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net  Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2028		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem.				0.00		0.00		1,658.25		0.00		0.00		0.00		0.00		-1,658.25		-318.01
Total				0.00		0.00		1,658.25		0.00		0.00		0.00		0.00		-1,658.25		-318.01

Major Phase :	Gas		Abandonment Date :	3/31/2031
Perfs :	0 - 0		Working Int :	1.00000000	Present Worth Profile (M$)
Initial Rate :	0.00	Mcf/month	Revenue Int:	0.81000000	PW	5.00% :	-724.94
Abandonment :	0.00	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	-318.01
Initial Decline :	0.00	% year    b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	-139.97
Beg Ratio :	0.000		Years to Payout :	0.00	PW	20.00% :	-61.82
End Ratio :	0.000		Internal ROR (%) :	0.00	PW	25.00% :	-27.39
					PW	30.00% :	-12.18

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

74

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :	HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	FIELD ABANDONMENT EXPENSE
Partner :	All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Field Expense
Case Type :	LEASE CASE	All Cases	Field :	RED FISH REEF
Archive Set :	RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
		SEC REPORT	Reservoir :	OPEX
			Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2024		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2025		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2026		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2027		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2028		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		0.00		0.00		0.00		315.42		0.00		0.00		0.00		-315.42		-308.86
2015		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-995.46
2016		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-1,616.87
2017		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-2,179.40
2018		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-2,688.64
2019		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-3,149.64
2020		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-3,566.87
2021		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-3,944.57
2022		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-4,286.49
2023		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-4,596.03
2024		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-4,876.17
2025		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-5,129.77
2026		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-5,359.35
2027		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-5,567.18
2028		1.00		0.00		0.00		0.00		752.16		0.00		0.00		0.00		-752.16		-5,755.27
Rem.				0.00		0.00		0.00		1,443.66		0.00		0.00		0.00		-1,443.66		-312.55
Total				0.00		0.00		0.00		12,289.32		0.00		0.00		0.00		-12,289.32		-6,067.83

Major Phase :	Gas		Abandonment Date :	12/1/2030
Perfs :	0 - 0		Working Int :	1.00000000	Present Worth Profile (M$)
Initial Rate :	0.00	Mcf/month	Revenue Int:	0.81000000	PW	5.00% :	-8,402.89
Abandonment :	0.00	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	-6,067.83
Initial Decline :	0.00	% year    b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	-4,602.89
Beg Ratio :	0.000		Years to Payout :	0.00	PW	20.00% :	-3,642.53
End Ratio :	0.000		Internal ROR (%) :	0.00	PW	25.00% :	-2,985.36
					PW	30.00% :	-2,517.19

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

75

 Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Field Expense Rsv Class & Category
Partner :            All Cases	Discount Rate (%) : 10.00	TRINITY BAY Field
Case Type :        REPORT BREAK TOTAL CASE	All Cases
	SEC REPORT

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		2.00		0.00		0.00		0.00		444.03		0.00		0.00		0.00		-444.03		-434.80
2015		2.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-1,401.33
2016		2.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-2,276.10
2017		2.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-3,067.98
2018		2.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-3,784.86
2019		2.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-4,433.82
2020		2.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-5,021.17
2021		2.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-5,552.86
2022		2.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-6,034.19
2023		1.00		0.00		0.00		1,442.65		0.00		0.00		0.00		0.00		-1,442.65		-6,642.71
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				0.00		0.00		1,442.65		8,914.68		0.00		0.00		0.00		-10,357.33		-6,642.71

		Present Worth Profile (M$)
		PW	5.00% :	-8,214.56
Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	-6,642.71
ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	-5,473.27
Years to Payout :	0.00	PW	20.00% :	-4,590.41
Internal ROR (%) :	0.00	PW	25.00% :	-3,913.86
		PW	30.00% :	-3,387.56

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

76

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	FIELD ABANDONMENT EXPENSE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Field Expense
Case Type :        LEASE CASE	All Cases	Field :	TRINITY BAY
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	OPEX
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		1.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2023		1.00		0.00		0.00		1,442.65		0.00		0.00		0.00		0.00		-1,442.65		-608.52
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				0.00		0.00		1,442.65		0.00		0.00		0.00		0.00		-1,442.65		-608.52

Major Phase :	Gas		Abandonment Date :	4/30/2023	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	0.00	Mcf/month	Revenue Int :	0.81233864	PW	5.00% :	-936.11
Abandonment :	0.00	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	-608.52
Initial Decline :	0.00	% year        b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	-396.27
Beg Ratio :	0.000		Years to Payout :	0.00	PW	20.00% :	-258.51
End Ratio :	0.000		Internal ROR (%) :	0.00	PW	25.00% :	-168.93
					PW	30.00% :	-110.59

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

77

Date : 08/21/2014 11:45:32AM

ECONOMIC PROJECTION

Project Name :  HYDROCARB ENERGY 06/30/2014	As Of Date : 07/31/2014	Case :	FIELD FIXED OPERATING EXPENSE
Partner :            All Cases	Discount Rate (%) : 10.00	Reserve Cat. :	Field Expense
Case Type :        LEASE CASE	All Cases	Field :	TRINITY BAY
Archive Set :     RED.07.14		Operator :	GALVESTON BAY ENERGY LLC
	SEC REPORT	Reservoir :	OPERATING EXPENSE
		Co., State :	CHAMBERS, TX

Cum Oil (Mbbl) :	0.00
Cum Gas (MMcf) :	0.00

Year	Gross Oil (Mbbl)		Gross Gas (MMcf)		Net Oil (Mbbl)		Net Gas (MMcf)		Oil Price ($/bbl)		Gas Price ($/Mcf)		Oil Revenue (M$)		Gas Revenue (M$)		Misc. Revenue (M$)
2014		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2015		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2016		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2017		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2018		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2019		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2020		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2021		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
2022		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Rem		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Ult		0.00		0.00

Year	Well Count		Net Tax Production (M$)		Net Tax AdValorem (M$)		Net Investment (M$)		Net Lease Costs (M$)		Net Well Costs (M$)		Other Costs (M$)		Net  Profits (M$)		Annual Cash Flow (M$)		Cum Disc. Cash Flow (M$)
2014		1.00		0.00		0.00		0.00		444.03		0.00		0.00		0.00		-444.03		-434.80
2015		1.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-1,401.33
2016		1.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-2,276.10
2017		1.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-3,067.98
2018		1.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-3,784.86
2019		1.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-4,433.82
2020		1.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-5,021.17
2021		1.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-5,552.86
2022		1.00		0.00		0.00		0.00		1,058.83		0.00		0.00		0.00		-1,058.83		-6,034.19
Rem.				0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00
Total				0.00		0.00		0.00		8,914.68		0.00		0.00		0.00		-8,914.68		-6,034.19

Major Phase :	Gas		Abandonment Date :	1/1/2023	Present Worth Profile (M$)
Perfs :	0 - 0		Working Int :	1.00000000
Initial Rate :	0.00	Mcf/month	Revenue Int :	0.81233864	PW	5.00% :	-7,278.45
Abandonment :	0.00	Mcf/month	Disc. Initial Invest. (M$) :	0.00	PW	10.00% :	-6,034.19
Initial Decline :	0.00	% year        b = 0.000	ROInvestment (disc/undisc) :	0.00 / 0.00	PW	15.00% :	-5,077.00
Beg Ratio :	0.000		Years to Payout :	0.00	PW	20.00% :	-4,331.90
End Ratio :	0.000		Internal ROR (%) :	0.00	PW	25.00% :	-3,744.93
					PW	30.00% :	-3,276.97

RALPH E. DAVIS ASSOCIATES, INC.

Texas Registered Engineering Firm F-1529

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