Gas in Place Estimate

Curzon Coos Bay CBM – Original Gas in Place Estimates, BCF

Low Mid High
Upper Coaledo 20.6 66.2 101.5
Lower Coaledo 181.3 579.4 888.5
Total 201.9 645.5 989.9

Contingent Resources Summary

Curzon Coos Bay CBM – Lower Coaledo coals – Contingent Resources, BCF

1C 2C 3C
85.6 273.5 419.4

Individual Well Economics

Single Well Economics Summary – 15 year well life

Type Curve Net Gas,
mmcf		 Net Revenue,
k$		 Net Opex,
k$		 Taxes,
k$		 PV10,
k$		 IRR,
%		 Payout,
yrs
Low 240.5 1,213.8 320.0 72.8 181.5 22.6 4.2
Mid 392.9 1,988.5 512.0 119.3 493.2 40.1 3.1
High 533.2 2,717.5 657.3 163.0 758.9 47.8 2.6

Development Economics: Initial Phase I (7 Wells) and Phase II (58 Wells)

Phase I & II Economics Summary – 15 Year Project Life

Net Gas,
bcf		 Net Revenue,
mm$		 Cap Ex,
mm$		 Net Opex,
mm$		 Taxes,
mm$		 PV10,
mm$		 IRR,
%		 Payout
yrs
Phase I 2.8 15.1 1.2 3.6 0.9 5.5 112% 1.6
Phase II 22.4 123.3 21.5 28.4 7.4 29.1 46% 4.6
Phase I + II 25.2 138.4 22.7 32.0 8.3 34.6 N/A N/A

Source: CPR Report by MHA, May 2017