Flip-Book-Final

SILVER OAK 1300 East Sonterra Blvd., Suite 1130, San Antonio, Texas 78258 • [email protected] • 210.530.1429

ContentS 01 contact info 02 who we are 03 project overview 04 ownership infoRMATION 05 formation description 06 well bore illustration1

07 business plan08 site location09 tax incentivesCopyright - CMV Oil » 2015 »*This is not an offering.““ OOuurr CCoommppaannyy aacccceeppttss nnoo rreessppoonnssiibbiilliittyy ffoorr ccoonnsseeqquueenncceess ooff aannyy aaccttiioonnss ttaakkeenn oonn tthhee bbaassiiss ooff tthhee iinnffoorrmmaattiioonn pprroovviiddeedd,, uunnlleessss tthhaatt iinnffoorrmmaattiioonn iiss ssuubbsseeqquueennttllyy ccoonnffiirrmmeedd iinn 2wwrriittiinngg.. IIff yyoouu aarree nnoott tthhee iinntteennddeedd rreecciippiieenntt yyoouu aarree nnoottiiffiieedd tthhaatt ddiisscclloossiinngg,, ccooppyyiinngg,, ddiissttrriibbuuttiinngg oorr ttaakkiinngg aannyy aaccttiioonn iinn rreelliiaannccee oonn tthhee ccoonntteenntt ooff tthhiiss iinnffoorrmmaattiioonn iiss ssttrriiccttllyypprroohhiibbiitteedd.. TThhee ooffffeerriinngg iiss mmaaddee ssoolleellyy bbyy tthhee aaggrreeeemmeenntt aanndd ccoonnffiiddeennttiiaall pprriivvaattee ppllaacceemmeenntt mmeemmoorraanndduumm.. TThhiiss ddooccuummeenntt iiss nnoott ttoo bbee ccoonnssiiddeerreedd tthhee ooffffeerriinngg..””

Who we are.....CMV Oil And GasCMV Oil & Gas is an independent Texas based oil and gas company.We’re committed to ethical and profitable operations. Our goal is toprovide ownership opportunities for our partners in the highlysought-after Texas oil fields. To do that, we have assembled a team ofthe most experienced advisors, personnel and service companies avail-able. In the current economic climate, we will be actively pursuing theBuda Lime formation due to its high production volume and low costof completion. We will use the most up to date and proven technologyto maximize our well’s potential. We anticipate a substantial return oninvestment over the short and long term. CMV strives to be a trustedregional producer of oil and natural gas through careful management ofour wells and land positions. We seek to develop long term businessrelationships with our partners for mutual growth and financialprosperity. We thank you for your support.Sincerely,Steven D. CarterManaging Director/OwnerCraig MasonField Operations Director/OwnerJimmy VillarrealOperations Director/Owner3

SteveN D. Carter Craig Mason Jimmy VillarReal who we are MANAGING DIRECTOR Field Operations Director Operations Director• Holds Degrees in Biology and • Holds a B.S. from The University • Has managed Oil and GasChemistry from The University of of North Texas where he graduat- cooperate offices and institutedTexas At San Antonio. ed with honors. extensive cost and profit manage-• Managing Director and • Field Operations Director and ment practices.co-founder of CMV Oil and Gas. co-founder of CMV Oil and Gas. • Operations Director and• Built CMV Oil and Gas into a • Key team member in one of the co-founder of CMV Oil and Gas.fully licensed and insured oper- largest drilling programs undertak- • Formed Talent managementator for new and proven leases en in the Continental United States. corporation that handled over $30throughout the Pearsall field. • Helped EnCana Oil and Gas million dollars in total contract• Over 15 years of large scale cor- establish a daily natural gas pro- commitments.porate management experience. duction over 1 BCF/ a day. • Recipient of several recognitions• Steve is in charge of partner • Led Pioneer Natural Resources for service to the communityinteractions and daily operations. Technical Services Division by from the City Council of San• During his career he has been implementing new technologies Antonio.responsible for extensive growth to maximize production and • Broad experience in the market-throughout the Eagle Ford Shale profitability. ing and customer retention.region in both Field Operations • Chaired Environmental, Health • Jimmy is in charge of partner and Safety Committees at both interactions and daily operations.and Logistic growth and support. EnCana Oil and Gas and Pioneer Natural Resources. John Long David Alexander Ernest Brown 4 Advisor Advisor Advisor• Thirty six years of experience in • Thirty six years experience in the • Natural Resources and Energythe Oil & Gas Industry. Oil & Gas Industry. economist and public speaker• Currently John is an independent • Helped develop proprietary gas • Advisor to Valero Energycontractor and consultant special- processing solutions with Dow and • Published author of numerous eco-izing in the Eagle ford Shale and Union Carbide Chemical. nomics and natural resource articlesPearsall fields. • Designed and implemented large and publications• Affiliations: AAPG (Certified scale training programs for Perry • Managing director for San AntonioPetroleum Geologist), SEG (Member), Gas Processors, Inc. office of Kennedy WilsonSouth Texas Geological Society (Past • Secured commercial financing for • Prior to joining Kennedy Wilson,President), San Antonio Geophysical specialty projects in the industry. Ernest was Executive Vice PresidentSociety (Past President) •Published author of industry and Managing Director for Grubb &• He is one of the foremost authori- articles and training manuals Ellis from 1996-2014.ties on Geological and Geophysical • Designed marketing and sales • A Certified Commercial Invest-3D acquisition and interpretation. collateral for company-wide ment Member of the CCIM Institute,• Among the most highly regarded distribution. Ernest has over has over 30-years ofgeologists in Texas, Kansas and • Prospected and secured capital experience in commercial real estateWyoming. commitments for oil and gas including selling, leasing, foreclosing• Masters degree with honors from prospects. and managing real estate propertiesThe University of Texas at Austin • Successfully developed a new en- for public, private and institutional• Bachelors degree in Geology from ergy corporation with $15,000.00 investors and ownersThe University of Missouri At in startup funds worth millions • Double Major in Natural ResourcesColumbia graduating with honors, at sale. and Economics, The University ofPhi Beta Kappa and Curators The South, Sewanee, TNScholarship 1974

Our team has...A Combined Completed132 Years of Over 3000 Experience Wells in the US5

OIL & GAS LOW OIL Low Oil PricesTAX * PROVENOIL & GAS • Deminished CompetitionINCENTIVES FIELD • Historical Low Service cost • Low Lease Cost Proven Field • Development Production • Not Wildcat Exploration • Proven Recovery Methods • Established Infrastructure Tax Incentives* • Not Available to Public Producers* • 100% Tax Deductible* • Tax FREE income* Why Now? Why CMV?*Please consult your tax adviser 6

Legacy Investing Income • Taxes • Timing • Legacy•Thousands of Texas Wells have become generational assets • Your beneficiary Information will be kept in our Secure Files and protected by the Privacy Act of 19887

TaxIncentivesfor US energy development!“Are you aware of what you pay in Taxes?”This should not be considered as individual tax advice. Please consult your personal tax advisor. 8When it comes to tax-advantaged investments for wealthy or sophis-ticated investors, one investment class continues to stand alone aboveall others: oil. With the U.S. government’s backing, domestic energyproduction has created a litany of tax incentives for both investors andsmall producers. Tax codes have been put in place to help small produc-ers and to reduce the United States dependence on foreign oil. In shortany investment dollars placed in a domestic energy development project(solar, biofuel and oil) can be 100% tax deductible! An investor should beable to write off the intangible drilling cost in the first year to the tune of80-85%. The remaining balance, referred to as tangible drilling expenses,can be amortized across the following 4 years. The tax advantages don’tstop there. An additional tax advantage is called the “depletion allow-ance”. This allowance permits the first 15% of the gross returns from pro-duction to be tax free! The depletion allowance is for the life of the well.The table above outlines the tax incentives of a unit participation.

Silver Oak2HD PROSPECTL.L.C.300 East Sonterra Blvd., Suite 1130,San Antonio, Texas [email protected] Proposed Location 9

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Project overview This prospect is located in Frio County. It’s sit- tal drilling. Within this field, there are three uated in one of the most productive and fa- hydrocarbon bearing formations: The Austin mous oil fields in the world today. Our goal Chalk, The Eagle Ford Shale and The Buda is to enter one of three blanket formations Lime. While the local geology studies indi- of the Pearsall Field. We will use the proven cate the Buda Lime is overwhelmingly more technique known as dual-lateral-horizon- favorable, we will be relying on the exper-11

tise of our Board of Advisors to help guideour team. We plan to drill a pilot well to giveus insight into the nature of these formationsand the economic value they potentiallyrepresent. We will use these findings, alongwith the latest technology and industry re-sources, to determine which of the threeformations presents the best opportunityto generate a return on investment for ourpartners. CMV Oil & Gas also prides itself onmaintaining environmentally clean and safewell sites. We drill for the future of our familiesand our planet.Sincerely,Steven D. CarterManaging DirectorCraig MasonField Operations DirectorJimmy VillarrealOperations Director 12

Description oftarget formations13

Know how: Dual Lateral Drilling Technology 14

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9/1/11 9/1/119/1/11 9/1/11 16

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Monthly Report(OWN423) 09/16/2015 RAILROAD COMMISSION OF TEXAS PAGE 3 OF 3 OIL AND GAS DIVISION MONTHLY CRUDE OIL PRODUCTION REPORT *CUMULATIVE STATEMENT FROM JANUARY, 2015 THRU JULY, 2015 IN BARRELS REPORTED PRODUCTION DELINQUENT NET UNDER PRODUCTION % UNDERRRC TOTAL ALLOWABLE DELQ ALLOWABLEDIST CUMULATIVE DAILY CUMULATIVE DAILY CUMULATIVE CUMULATIVE DAILY PRODUCED------------------------------------------------------------------------------------------------------------------------------------01 316,821,063 1,494,439 130,481,520 615,479 4,266,908 186,339,543 878,960 58.3402 185,718,164 876,029 102,931,848 485,528 592,636 82,786,316 390,501 44.4603 43,825,970 206,726 21,860,980 103,118 941,285 21,964,990 103,608 49.3704 3,977,426 18,761 1,969,279 9,289 58,815 2,008,147 9,472 49.9705 9,139,814 43,112 4,319,026 20,373 325,134 4,820,788 22,739 51.5006 42,008,764 198,155 5,588,367 26,360 119,624 36,420,397 171,795 86.606E 3,691,976 17,415 1,991,591 9,394 185,968 1,700,385 8,021 44.297B 12,347,004 58,241 6,875,630 32,432 249,525 5,471,374 25,809 43.617C 108,907,754 513,716 52,653,979 248,368 1,026,059 56,253,775 265,348 51.3208 349,845,094 1,650,213 166,698,726 786,315 6,715,945 183,146,368 863,898 51.688A 107,281,401 506,044 60,363,790 284,735 763,314 46,917,611 221,309 43.4809 16,862,749 79,541 7,425,899 35,028 468,814 9,436,850 44,513 54.9910 50,844,203 239,831 11,216,642 52,909 1,322,905 39,627,561 186,922 77.03------------------------------------------------------------------------------------------------------------------------------------TOTAL 251,271,382 1,185,242 574,377,277 2,709,327 7,036,932 323,105,895 1,524,085 29.57 * INCLUDES ALL CORRECTED AND LATE REPORTS RECEIVED FOR JANUARY 2015 THRU JULY, 2015 Keeping you Informed 18

Formation Description Houston SSaann AAnnttoonniioo,, TTeexxaass Eagle Ford Eagle Ford Shale at Night The Eagle Ford Shale Region Under the world-class Eagle ford shale oil production costs in light of changing econom- region is a more easily accessed oil in the ic climates. The cost of a Buda well is around Buda Limestone. The formation is naturally half that of completing an Eagle Ford well! fractured in most areas and as such does not One of the many reasons is the use of “open require the expensive and potentially costly hole completions”, simply put this means stimulation procedures known as fracking. that the drill bore does not require drill pipe, Fracking is a procedure which creates paths or casing, to be placed through the horizon- for oil to move toward the well bore know as tal leg of the completed drill bore. This is a reservoir communication. In the Buda Lime- requirement for any well that is to be fracked. stone these paths for communication occur Combine this with cheaper and less complex naturally allowing for oil to flow through drilling fluids, reduced number of drilling natural cracks in the formation as opposed to procedures and far less fluid to dispose of the manmade fractures created though fracking. Buda Lime quickly starts to make sense. The advantages of the Buda limestone have really stacked up over the past few years as The Buda limestone is the focus of many companies have begun to demand cheaper companies throughout the Eagle Ford Shale19

Did you know?Buda Lime stone Core Sample Oil is directly responsible for about 2.5% of worldThe picture above is a core sample form the Kothmann 3 well located approximately GDP [1], but accounts for2 miles from our proposed location at a depth of 7880.0ft. Please note the fracturing orcracks visible throughout the sample. These fractures are allow for the oil to move more 1/3rd of humanity’sfreely in the formation and into the well bore! The fractures are native and allow the primary energy supplyBuda formation to be produced without the need for expensive fracking procedures. One in Five of theregion. In Frio County, Texas, where Go- examine the included decline curve to see an companies listed on theodrich and privately held Blackbrush Oil& example of what wells in the area typically Fortune 500 list are OilGas LP are focusing their Buda work, their yield over days, months and decades.Carnes 7H tested 1,167 BOE (Barrels Oil and Gas CompaniesEquivalent) from an unstimulated, 4,215- This typefoot lateral and their Carnes 6H initially of wellproduced 1,635 BOE (89% oil). Meanwhile, produceTheir Lancaster C1H came in at 512 BOE, return ratesPals Ranch #9H at 530, and Burns Ranch 30H in excess ofat 500. The Silver Oak prospect is surround- 3:1 over theed by these wells and other high volume early lifeproducers! of the well. Wells like Also, among the two highest initially these areproducing wells, the Carnes 7H has held expected toup better over time, with a first-30-day-av- remain inerage of 871 BOE per day or a 25% decline, commercial viability decades according towhile Carnes 6H made an average 1,000 BOE reservoir engineers specializing in the area.per day in its first 30 days online. You can 20

Ownership Participation Ownership Percentage Working Interest Net Revenue Interest Partners (investors) 70% 60% CMV Oil and Gas 30% 15% Land Owner 0% 25% Total 100% 100% • Each unit of $250,000.00 represents an ownership of 3.5% of each well • Each unit represents a net revenue interest of 3% • CMV Oil & Gas will have a working interest in the well of 30% and a net revenue interest of 15%. • CMV Oil and Gas will pay its pro rata share of all operating costs. • Once the total funds for the project have been collected ($5 million) and all the costs have been satisfied, any remaining balance will be returned to the client partners pro rata.21

EWxoarmkpshleeTeatxIn additional to your monthly income you will receive these tax advantages:EXAMPLE TAX WORKSHEETExample of Initial Investment $100,000 Line 1Multiply Line 1 by 80% $80,000 Line 2Approximate Tangible Drilling Cost(Year 1)Multiply Line 1 by 20% $20,000 Line 3Approximate Tangible Drilling Cost(Next 4 years at 5% a year)Multiply Line 2 by 35% $28,000 Line 4In Pocket (based on 35% tax rate)Multiply Line 1 by 35% Subtracted from Line 1 $65,000 Line 5“Actual Investment Dollars”INVESTOR TAX WORKSHEET $ Line 1 $ Line 2 Example of Initial Investment $ Multiply Line 1 by 80% $ Line 3 Approximate Tangible Drilling cost (Year 1) $ Line 4 Multiply Line 1 by 20% Approximate Tangible Drilling cost Line 5 (Next 4 years at 5% a year) Multiply Line 2 by 35% In Pocket (based on 35% tax rate) Investment (x) Tax Rate (-) Investment “Actual Investment Dollars” 22

Financial Overview 5000000 0.75Oil Price Per Barrel 100bbl/d 300bbl/d 600bbl/d 800bbl/d 1000bbl/d$ 40.00 $ 4,000.00 $ 12,000.00 $ 24,000.00 $ 32,000.00 $ 40,000.00$ 60.00 $ 6,000.00 $ 18,000.00 $ 36,000.00 $ 48,000.00 $ 60,000.00$ 80.00 $ 8,000.00 $ 24,000.00 $ 48,000.00 $ 64,000.00 $ 80,000.00$ 100.00 $ 10,000.00 $ 30,000.00 $ 60,000.00 $ 80,000.00 $ 100,000.00Oil price per month 100bbl/M 300bbl/M 600bbl/M 800bbl/M 1000bbl/M$ 40.00 $ 120,000.00 $ 360,000.00 $ 720,000.00 $ 960,000.00 $ 1,200,000.00$ 60.00 $ 180,000.00 $ 540,000.00 $ 1,080,000.00 $ 1,440,000.00 $ 1,800,000.00$ 80.00 $ 240,000.00 $ 720,000.00 $ 1,440,000.00 $ 1,920,000.00 $ 2,400,000.00$ 100.00 $ 300,000.00 $ 900,000.00 $ 1,800,000.00 $ 2,400,000.00 $ 3,000,000.00Pay Out Overview (in months)Oil Price Per Barrel 100bbl/M 300bbl/M 600bbl/M 800bbl/M 1000bbl/M 6.94 5.56$ 40.00 55.56 18.51 9.26 4.63 3.70$ 60.00 37.04 12.34 6.17 3.47 2.78$ 80.00 27.78 4.63 2.78 2.22$ 100.00 22.22 9.26 3.70 7.41 800bbl/M 1000bbl/M 138% 173%Return on Investment of One Unit ($250,000.00) 207% 259% 276% 346%Oil Price Per Barrel 100bbl/M 300bbl/M 600bbl/M 346% 432%$ 40.00 17% 52% 104%$ 60.00 26% 78% 156%$ 80.00 35% 104% 208%$ 100.00 43% 130% 260% These figures do not represent initial production or natural gas production.23

Vendors with CMV Oil & Gas: 24





www.cmvoil.com300 East Sonterra Blvd., Suite 1130,San Antonio, Texas [email protected] Designed by: Adfierce.com