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Home My WebLink About20203618NADOA Model Form Division Order (Adopted 9/95) VERDAD RESOURCES LLC VEROOO 5950 SHERRY LANE, SUITE 700 RESOURCES DALLAS, TX 75225 Property Name: Operator: Property Description: County and State: Production: X Date: 09/11/2020 Effective Date: 03/01/2020 100569 HDIKF 10-1H & 100570 HDIKF 10-3H VERDAD RESOURCES, LLC 01N -65W-03 E2SW, W2SE, SENW & SEC 10 W2E2, E2W2 WELD/COLORADO Oil x Gas Both: Vcp to -11-1 \-\ Oat k 0 -3 k4 05-1-3 01`05 Owner No. Owner Name Interest Type NRI Decimal 6043 1150 WELD GREELEY 0 COUNTY STREET CO 80634 COLORADO RI 0.01155937 The undersigned certifies the ownership of the decimal interest in production or proceeds as described above payable by Verdad Resources, LLC (Verdad). Verdad shall be notified, in writing, of any change in ownership, decimal interest, or payment address. All such changes shall be effective the first day of the month following receipt of such notice. Verdad is authorized to withhold payment pending resolution of a title dispute or adverse claim asserted regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and reimburse Verdad any amount attributable to an interest to which the undersigned is not entitled. Verdad may accrue proceeds until the total amount equals $100.00, or pay annually, whichever occurs first, or as required by applicable state statutes. This Division Order does not amend any lease or operating agreement between the undersigned and the lessee or operator or any other contracts for the purchase of oil or g as. In addition to the terms and conditions of this Division Order, the undersigned and Verdad may have certain statutory rights under the laws of the state in which the property is located. BOARD OF WE ATTEST CLER BY: DEPUTY CLERK T!i' HE IOARD Weld County Government 1150 "0" Street Greeley, CO 80634 Phone: 970-336-7204 Fax: 970-336-7233 Tax ID: 84-6000-813 TONERS, CHAIR A ® 141 v3 Federal Law requires you to furnish your Social Security or Taxpayer Identification Number, Failure to comply will result in additional tax withholding and will not be refundable by Verdad. Co \r, Pea/trace, aorao PLEASE RETAIN THIS COPY 2020-36186 /o2 9 0 WBSU #1 - Pooled Unit Ownership (WBSU #1 covers the same lands as Block 1 & Block 2) (Revised 3-16-20, 3-26-20 & 4.22-20) covering TIN, R65W, 6th P.M. Section 3: SE/4NW/4, SW/4NE/4, E/2SW4, W/2SE/4 Section 10: E/2W/2, W/2E/2 Weld County, Colorado Containing 562.947 acres, more or less Block 1 Participation Percentage 50.11217800% Block 2 Participation Percentage 49.88782200% Total 100.00000000% Check 52.059 562.947 0.09247496 0.01155937 Tract No. Assessor Parcel No. OGL Owner Type Mineral Int. Gross LOR/ORI Tract NRI Tract Acreage Unit Acreage Unit Partic. Fctr. Owner Tract NRI Owner Unit NRI Lease Nos. 10-W2NE-10 147310105017 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 2.601 562.947 0.00462033 0.00057754 0.01155937 1761915, 1873614 10-W2NE-107 147310143005 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 1.012 562.947 0.00179768 0.00022471 147310107004 147310107001 10-W2NE-13 147310107009 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 1.007 562.947 0.00178880 0.00022360 147310107021 147310107025 10-W2NE-17 147310107028 147310107029 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.155 562.947 0.00027534 0.00003442 1 147310105015 10-W2NE-2 147310105009 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.861 562.947 0.00152945 0.00019118 147310153001 10-W2NE-21 147310107016 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.038 562.947 0.00006750 0.00000844 10-W2NE-22 None 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.540 562.947 0.00095924 0.00011990 10-W2NE-24 None 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 1.900 562.947 0.00337510 0.00042189 147310109011 147310109012 10-W2NE-26 147310109014 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.472 562.947 0.00083844 0.00010481 147310109004 147310109008 10-W2NE-28 147310109004 147310109008 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.574 562.947 0.00101963 0.00012745 147310109006 10-W2NE-30 147310109009 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.567 562.947 0.00100720 0.00012590 147310109010 10-W2NE-32 147310111010 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 2.902 562.947 0.00515501 0.00064438 10-W2NE-35 147310111010 147310111011 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.216 562.947 0.00038370 0.00004796 10-W2NE-38 147310111007 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.060 562.947 0.00010658 0.00001332 10-W2NE-39 147310111007 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.242 562.947 0.00042988 0.00005374 10-W2NE-4 147310105015 1761915 Weld County, Colorado LOR - 100.00000000% 12.50000000% 12.50000000% 0.305 562.947 0.00054179 0.00006772 ' 147310111007 10-W2NE-40 147310111011 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.222 562.947 0.00039435 0.00004929 10-W2NE-41 147310148001 1761915 Weld County, Colorado _ LOR _ 100.00000000% _ 12.50000000% 12.50000000% 0.940 562.947 0.00166978 0.00020872 10-W2NE-43 147310121002 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.502 562.947 0.00089174 0.00011147 10-W2NE-48 147310122001 147310122002 147310122012 147310122018 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.715 562.947 0.00127010 0.00015876 10-W2NE-52 147310122014 147310122015 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.932 562.947 0.00165557 0.00020695 10-W2NE-54 147310122015 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.144 562.947 0.00025491 0.00003186 10-W2NE-55 147310122015 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 2.814 562.947 0.00499869 0.00062484 10-W2NE-57 147310124005 147310124007 147310124008 147310124006 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 3.633 562.947 0.00645354 0.00080669 10-W2NE-58 147310125001 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.216 562.947 0.00038370 0.00004796 10-W2NE-6 147310105015 147310105009 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.726 562.947 0.00128964 0.00016121 10-W2NE-60 147310125001 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.216 562.947 0.00038370 0.00004796 10-W2NE-62 147310125001 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.324 562.947 0.00057554 0.00007194 10-W2NE-66 147310126002 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.004 562.947 0.00000711 0.00000089 10-W2NE-8 None 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.255 562.947 0.00045297 0.00005662 10-W2NE-87 147310136003 147310136004 147310136005 147310136006 147310136007 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.700 562.947 0.00124346 0.00015543 10-W2NE-89 147310136010 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.280 562.947 0.00049738 0.00006217 10-W2NE-9 147310105001 147310105016 147310105015 147310105012 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 3.395 562.947 0.00603076 0.00075385 10-W2NE-91 147310136010 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.202 562.947 0.00035883 0.00004485 10-W2NE-92 147310136010 147310136012 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.680 562.947 0.00120793 0.00015099 10-W2NE-99 147310139002 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 1.600 562,947 0.00284219 0.00035527 10-W2SE-1 None 1873614 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 5.000 562.947 0.00888183 0.00111023 3-W2SE-16 147303416008 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.211 562.947 0.00037481 0.00004685 3-W2SE-17 147303416010 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.211 562.947 0.00037481 0.00004685 3-W2SE-18 147303416014 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.352 562,947 0.00062528 0.00007816 3-W2SE-19 147303416003 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.211 562.947 0.00037481 0.00004685 3-W2SE-22 147303416013 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.146 562.947 0.00025935 0.00003242 3-W2SE-23 147303416012 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.293 562.947 0.00052048 0.00006506 3-W2SE-24 147303416006 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.293 562.947 0.00052048 0.00006506 3-W2SE-25 147303416005 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.293 562.947 0.00052048 0.00006506 3-W2SE-27 147303415002 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.283 562.947 0.00050271 0.00006284 3-W2SE-3 147303400010 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 1.096 562.947 0.00194690 0.00024336 3-W2SE-31 None 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 1.983 562.947 0.00352253 0.00044032 3-W2SE-32 None 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 1.721 562.947 0.00305713 0.00038214 3-W2SE-33 None 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 2.994 562.947 0.00531844 0.00066481 3-W2SE-34 None 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 1.422 562.947 0.00252599 0.00031575 3-W2SE-35 None 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 1.235 562.947 0.00219381 0.00027423 3-W2SE-37 None 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.486 562.947 0.00086331 0.00010791 3-W2SE-38 None 1761915 Weld County, Colorado LOR 100,00000000% 12.50000000% 12.50000000% 0.674 562.947 0.00119727 0.00014966 3-W2SE-39 None 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.486 562.947 0.00086331 0.00010791 3-W2SE-4 147303405002 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.220 562.947 0.00039080 0.00004885 3-W2SE-6 147303404014 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.356 562.947 0.00063239 0.00007905 3-W2SE-9 147303404012 147303404013 1761915 Weld County, Colorado LOR 100.00000000% 12.50000000% 12.50000000% 0.141 562.947 0.00025047 0.00003131 Jessica Reid From: Subject: CTB-Oil and Gas Leasing FW: [External]:RE: Weld County CO - DO Calculations - Verdad Resources LLC's HDIKF Unit From: Lindsay Grose <LGrose@VerdadResources.com> Sent: Wednesday, December 2, 2020 11:49 AM To: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Subject: RE: [External]:RE: Weld County CO - DO Calculations - Verdad Resources LLC's HDIKF Unit Caution: This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. Jess, If you click in the cell in Column K that shows Column I / Column J, it shows that's how the value was calculated. If you expand the value in that cell in Column K, it will show each value as it changes getting to that 8th digit. For example, this is what cell K17 shows from 8 through 12 digits as expanded on Exh. 5 tab: ® 8 digits: 52.059/562.947 = 0.09247496 • 9 digits: 52.059/562.947 = 0.092474958 10 digits: 52.059/562.947 = 0.0924749577 ® 11 digits: 52.059/562.947 = 0.09247495768 12 digits: 52.059/562.947 = 0.092474957678 The Column I total is rounded to 3 decimal places — if you expand I17 on the same Exh. 5 tab to 4 digits, it comes to 52.0585, rounding up to 52.059 & that's where the difference in your calculation vs. the spreadsheet's calculations. The same applies to the other calculations you're asking about. The Column I total in I20 on the Exh. 7 tab is rounded to 3 decimal places from 8 decimal places — 87.57331816 to 87.573; cell I22 on Exh. 10 rounds to 3 decimal places from 6 digits — 72.169636 to 72.170. Let me know if that helps. Thanks, Liviolsay �rvse From: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Sent: Wednesday, December 2, 2020 12:30 PM To: Lindsay Grose <LGrose@VerdadResources.com> Subject: [External]:RE: Weld County CO - DO Calculations - Verdad Resources LLC's HDIKF Unit Even with rounding I still show a few are off. I apologize for being a pain, but I have to be able to show our attorney's the math is correct before they will allow it to go before the Board for approval. Exh. 5- 52.059 / 562.947= 0.0924758459 (rounded 0.09247585), not 0.09247496 Exh. 9- 35.621 / 280.406= 0.1270336583 (rounded 0.12703366), not 0.12703463 Exh. 10- 72.170 / 562.393= 0.1283266328 (rounded 0.12832663), not 0.12832599 f if this is an oil and gas communication please use the email address ct oilandcgasleasinc (weldgov com opposed to my personal email address. Jess Reid Deputy Clerk to the Board Weld County 1150 O Street Greeley, CO 80631 tel: 970-400-4212 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Lindsay Grose <LGrose@VerdadResources.com> Sent: Wednesday, December 2, 2020 10:47 AM To: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Subject: RE: [External]::RE: Weld County CO - DO Calculations - Verdad Resources LLC's HDIKF Unit This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hi Jess, I made comments within your email & attached spreadsheet for confirmation as well. See below. Let me know if you have more questions With the holidays this month, in order to be placed into pay status for December revenues on these wells, we will need to have the executed DOs by December l0'h due to the timing requirements for bank processing. Thanks, Lioo1saui Grose From: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Sent: Wednesday, December 2, 2020 11:24 AM TLindsay Grose <LGrose@VerdadResources.com> Subject: [External]::RE: Weld County CO - DO Calculations - Verdad Resources LLC's HDIKF Unit Hey Lindsay, 2 I am in the process of getting these wrapped up but a few discrepancies... Exh. 5- Our tract acreage equals 52.059/562.947= 0.0924758459 * .125= 0.01155948 rounding issue — see HDIKF 10-1H + 3H (Exh. 5) tab, line 17 shows confirmation with rounding (formulated to 8 -digits as that's the extent of our deck capabilities) Exh. 7- Our tract acreage equals 52.059/561.248= 0.0927557871 * .125= 0.01159447, page one shows four lease numbers, only two are applicable to Weld County (1761915, 1873614) *see HDIKF 10-5H + 7H (Exh. 7) tab, line 19 — total acreage for Weld County within the unit comes to 87.573 acres 87.573 / 561.248 = 0.15603319 * 0.125 = 0.01950415; additional leases removed from Column O Exh. 9- Our tract acreage equals 35.621/280.406= 0.1270336583 * .125= 0.01587921 *rounding issue — see HDIKF 10-8H + 9H (Exh. 9) tab, line 15 shows confirmation with rounding (formulated to 8 -digits as that's the extent of our deck capabilities) Exh. 10- The first page shows four Lease Nos., only one is applicable to Weld County, page three, about half way down, shows tract information for Lease No. 1799545 so I can't verify calculations until that is removed *see HDIKF I0 -11H (Exh. 10) tab — additional leases removed from Column O Please reach out if you have questions, otherwise, when I get corrected information these will be ready to go to the Board for approval. if this is an oil and gas communication please use the email address etb® 'and asleasln welova co yf. R opposed tmy pens®,, al e address. Jess Reid Deputy Clerk to the Board Weld County 1150 0 Street Greeley, CO 80631 tel: 970-400-4212 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Lindsay Grose <LGrose@VerdadResources.com> Sent: Thursday, November 12, 2020 9:38 AM To: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Subject: RE: [External]:RE: [External]:RE: Weld County CO - DO Calculations - Verdad Resources LLC's HDIKF Unit This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. No problem, see attached. 3 Thanks, Lit/1056i 6troso From: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Sent: Thursday, November 12, 2020 10:31 AM To: Lindsay Grose <LGrose@VerdadResources.com> Subject: [External]:RE: [External]:RE: Weld County CO - DO Calculations - Verdad Resources LLC's HDIKF Unit Lindsay, I hate to be a pain but if you would please send revised calculations then everything is clean and easier to process. If this is an oil and gas communication please use the email address ctb= n g sM as ; q el ocom o ;.used t. my personal email address. Jess Reid Deputy Clerk to the Board Weld County 1150 O Street Greeley, CO 80631 tel: 970-400-4212 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Lindsay Grose <LGrose@VerdadResources.com> Sent: Wednesday, November 11, 2020 1:36 PM To: CTB-Oil and Gas Leasing <CTB-OilandGasLeasing@co.weld.co.us> Subject: RE: [External]:RE: Weld County CO - DO Calculations - Verdad Resources LLC's HDIKF Unit This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hi Jess, Attached are the revised DOs for Weld County's interests in the HDI wells. The calculations will remain the same as what I had previously sent, but I removed the three leases, parcels & interests that had been incorrectly allocated. If you'd prefer that I send the revised calculations as well, I can do that, too. Let me know if you have any other questions. Thanks, Liviolsau rose 4 April 24 .)01O O covering Via Email:, drichardsong-verdadresourcestcom Mr. David Richardson erdad Resources LLC 1125 17th Street, Suite 550 Denver. Cole 80202 1.; 74(1/2 x Section 2: SW/4N1174, S ISW74 Section n 3: ,. INEi4, SEE` , SEM +i '�4, EMST174 Section 10: El, '' ': 2.. Section ii: 'W111172 a , t Weld d Coign.Colorado MUTED T ' u ,;; CODELL . • NI BRAR . FORMA IIONS The above-describedlands awl formatioas are hereinafter . ed. to collectively as the "sub j ct lands" I' OF SURFACE MEESTRAIS ANTI Offi AND GAS LEASE 'OLD ESTATE Mock 1 consisting of Township 1 North, Range 65 West 66 Prince :. Mariam Section 3: S M s/4, 14 Section 10: E/2'%72 Weld County. Colorado block 2 Towns 1 North_, Range 65 West 6th Principal e an. Section 3: SWAI/4 W/2 4 Section Sn H): W/2E,'` Weld Cam; Colorado Block 3 Township 1 North. Range 65 West 6th Principal Meridian Sector 3: SEI4 /4, O. E/4 Section 10: El2E/2 Wet . County, Colorado Block 4 Twutp 1 North.. Range 65 West,, 6th Prinelpal Meridian Section 2: W/4NW14,, W /4 Section 11: Va2W12 Weld C"ountyj, Colorado First Amended Drilling and Division Order Title Opinion .I -1 O-IH fhb -on 11H wells DN. R 5W, 6± - Portions of Sectio2,310arid n Weld Co 5ity, Colorado Page 6 of 314 L, G AEI S H_ I P OF OIL AND GAS AND THE PROCEEDS FROM SALE OF O A.N, GAS, PRODUCED FROM THE H UI. l �1�,O-1 M 3H WELLS., CALCULATED A LC L�ATED 'S}'1 k THE BASIS.OF A DRILTal J AND SPA3i.yL �Iy UN"! (� l 4al #1) CONSB '!G OF THE SE/4NW/4, SWINE/4,,W1 2SE/4 AND E S /4 OF SECTION 3, AND THE VII2E12 Z.O.E V /I OF SECTION 10, TIN3 R65111, CIL KM, CONTADIEW 562,947 +A +, i'(n r' MO ' OR LESS, I B TO HE C a " J::: .1 1 O BRA F .4IIOpt 1.�.F`_ SEE mu :: 5 {R}31SED 4-22-2) TO IOC ,: OWNERSHIP F OIL : AND GAS, ANI.) .1l.. _ PROCEEDS FROM THE Sal OF t�_.. AND GAS,. . PR JIPL CED FROM EE F I KT 10-4H WELL, C LA D O�*�",THE BASIS OF A DRILLING,AND SPACING UNIT (MISTS 2) CO' SISI LAG OF nit W '4 ' M AND ` ZSE OF SEC HON 3,, AND THE Wi2Erl OF SECTION 10, TL „ 65W, 6�- P.M., CONIALNING. 28M1O.842• A E , ORE R LESS, .I UT TO j� nit C�pO•D Ili; Y AND IO 4 F"Lc` ' A l.tom l SEE EXHMI 'I 6 (REVISED SED �.v-2 2-201 C OF THIS P (� O 3 5i .OWNERSHIP OF UT AND GAS, ai.LND THE PROCEEDS FROM THE -SALE OF OIL AND GAS9 PRODLTCED FROM HDI 10t-SH ANTI 7H LS CALCULATED LATE] ON TRW, BASIS Of A DRILLDCG AND SPACING UNIT (WRSU ) CONSISTDTG OF Mt S/ZNi I4, -SEI4 OF SEC HON 3,. AND T l F E/2 F SECTION 1G TIN, R65W, 6th. P.M.,. CONFAminG 561.248 ACRES, MORE OR HISS, LLUITED THE 'COD= 3RD i."fTOB � ' K4 F OR MNS. SEEE;/IT 7 (REVISED 4-22-20 OF THIS OPMON. 'a OW'-�4 ::Sn tF F�.Qfl:3 AN GASH ;- THE T�+.P' OCEEDS`v1f. FROM T • SALE F 0d AND GAS, PRODUCED FROM Y i. E 3:BS I i� *. r Mail 9 WELLSII CALCULATE]) ON TEM BASIS OF A DRILLING AND SPACING [NET ( BSS! 44) CONSIST NG- OF Ta. SEMNE14 AND E 255E14 OF SECTION , AND TELL Et2E12 OF SECTIONB, TIN„ Rat5114 6th JP ,CONTALNDTG 280,406 ACRES, MORE 03 LESS, LLUILED To FJL AM) NIOBRARA roinurrays, SEE EMM I S (CORRECTED 4-22-20) OF IHIS OPLNION. V 011413TERSHIP F On, A' { � Hw AND THE PROCEEDS �CALCULATED O SALE IOF OIL 2 V` 't2i a FR M '.ii.�.t ifi IE 1 0-i WELL, CA CU ATEiif2 ON IRE BASIS OF A DRALENTG AND SPACING I....�. (WBSU #5) .CONSISTING OF "HE SW/TN1+'4 AND W/23W/1 OF SECTION 2 THE SE/41\M AND Et2SE14 OF SECTION 3� l ► - Ei21/2 OF SFCTIO .1 AND TIM wawa OF SECTION I.I., T] , . : „ 6th CONSISTDTG OF .562.. 393 ACRES„ MORE OR LESS, LIMITED TO TILE C'ODELL AND NTOBRALI FO ' :4 HUM. SEE E4•. SIT 9 (REVISED 4 22-20) OF MB V A E NO Thanks, Liv��sa� �rvse Lindsay Grose Division Order Analyst Please note new address for the Dallas Office below: Verdad Resources, LLC 5950 Siaeny Lane, Suite 700 Dallas, Texas 75225 P: 214-838-2765 F: 214-357-9358 Email: lgrose@verdadresources.com 12/2/2020 COGIS - WELL Information COGCC Data Scout Card Related - Insp. 'L MIT O GIS a Doc COA 9E Wellbore Surface Location Data for API # 05-123-46167 Well Name/No: Operator: Status Date: FacilitylD: County: Field: Planned Location As Drilled Location rac Focus 500 FSL 697 FEL Footages Not Available Chemical Disclosure Registry V� a Orders Status: PR 7/8/2019 HDI KF#10-1H (click well name for production) VERDAD RESOURCES LLC - 10651 7/8/2019 453514 WELD #123 Federal or State Lease #: LocationlD: Location: WATTENBERG - #90750 Elevation: Lat/Long: 40.060105/-104.64298 Lat/Long: 40.060106/-104.64298 453512 SESE 10 1N65W 6 PM 5,012 ft. Lat/Long Source: Field Measured Lat/Long Source: Field Measured Job Date: 4/18/2019 Reported: 8/6/2019 Days to report: 87 Job End Date: 5/11/2019 Originally Reported: 5/29/2019 Days to report: 18 Wellbore Data for Sidetrack #00 Spud Date: Wellbore Permit Permit #: Prop Depth/Form: Mineral Owner: Unit: Formation and Spacing: Casing: Cement: Casing: Cement: Casing: Cement: Wellbore Completed Completion Date: Measured TD: True Vertical TD: Top PZ Location: Bottom Hole Location: Log Types: Casing: Cement: Casing: Cement: Casing: Cement: Status: PR 7/8/2019 12/24/2018 Spud Date is: ACTUAL HORIZONTAL Expiration Date: 15575 Surface Mineral Owner Same: FEE Surface Owner: FEE Unit Number: Code: NBRR , Formation: NIOBRARA , Order: , Unit Acreage: 560, Drill Unit: GWA String Type: CONDUCTOR , Hole Size: 24, Size: 16, Top: 0, Depth: 80, Weight: 65 Sacks: 70, Top: 0, Bottom: 80, Determination Method: String Type: SURF , Hole Size: 13.5, Size: 9.625, Top: 0, Depth: 1700, Weight: 36 Sacks: 462, Top: 0, Bottom: 1700, Determination Method: String Type: 1ST , Hole Size: 8.5, Size: 5.5, Top: 0, Depth: 15575, Weight: 20 Sacks: 1980, Top: , Bottom: 15575, Determination Method: 1/2/2019 15725 7150 Sec: 10 Twp: 1N 65W Sec: 3 Twp: 1N 65W Formation PARKMAN SUSSEX SHARON SPRINGS NIOBRARA Measured PB depth: True Vertical PB depth: Footage: 462 s 2576 E Footages: 2349 FNL 2644 FEL 12/10/2020 4:54:19 PM 15540 7151 Depth Depth MWD/LWD, CBL (Res in API 123-46158) String Type: CONDUCTOR , Hole Size: 24, Size: 16, Top: 0, Depth: 80, Weight: 65 Sacks: 70, Top: 0, Bottom: 80, Determination Method: VISU String Type: SURF , Hole Size: 13.5, Size: 9.625, Top: 0, Depth: 1765, Weight: 36 Sacks: 803, Top: 0, Bottom: 1765, Determination Method: VISU String Type: 1ST , Hole Size: 8.5, Size: 5.5, Top: 0, Depth: 15703, Weight: 20 Sacks: 2180, Top: 0, Bottom: 15703, Determination Method: CBL Log Top 4391 4767 7401 7449 Completed information for formation N-COM 1st Production Date: 12/1/2018 Status Date: 6/1/2019 Commingled: Formation Name: Tubing Size: Tubing Packer Depth: Open Hole Top: No Initial Test Data was found for formation N-COM No Perforation Data was found for formation N-COM . Completed information for formation NBRR 1st Production Date: 7/1/2019 NOT COMPLETED Log Bottom Cored Choke Size: Open Hole Completion: Production Method: Status: Tubing Setting Depth: Tubing Multiple Packer: Open Hole Bottom: Choke Size: Status: PR 6/1/2019 PR Status: PR 7/8/2019 DSTs https://cogcc.state.co.us/data5_ext.html#/cogis 1/2 12/2/2020 COGCC Data Status Date: Commingled: Formation Name: Formation Treatment Treatment Date: 7/8/2019 Open Hole Completion: N N Production Method: NIOBRARA Status: PR Treatment Type: FRACTURE STIMULATION 4/18/2019 Treatment End Date: 5/11/2019 Treatment summary: FR Water 320,631 bbls, Treated Water 16,286 6970840 Flowback is measured by strapping a flowback tank every facility flowback. Total fluid used in treatment (bbls): 340567 Total gas used in treatment (mcf): Type of gas: Total acid used in treatment (bbls): 3650 Recycled water used in treatment (bbls): Produced water used in treatment (bbls): 336917 Total proppant used (Ibs): 10426981 Reason green techniques not utilized: PIPELINE Tubing Size: 2.375 Tubing Packer Depth: 7498 Open Hole Top: Initial Test Data: Test Date: Hours Tested: Gas Disposal: Test Type BBLS_H2O BBLS_OIL BTU_GAS CALC_BBLS_H2O CALC_BBLS_OIL CALC_GOR CALC_MCF_GAS CASING_PRESS GRAVITY_OIL MCF_GAS TUBING_PRESS Perforation Data: Interval Bottom: # of Holes: 7/8/2019 24 FLARED Measure 457 333 1331 457 333 1093 364 332 43 364 2084 15530 1200 bbls, 7.5 HCL Acid 3650 bbls, 100 Mesh 3456141, 40/70 White Sand hour during initial flowback and from tank gauges during permanent Max pressure during treatment (psi): 11391 Fluid density (lbs/gal): 8.34 Number of staged intervals: 50 Min frac gradient (psi/ft): 0.91 Total flowback volume recovered (bbls): 5226 Disposition method for flowback: DISPOSAL Green completions techniques utilized: Tubing Setting Depth: Tubing Multiple Packer: Open Hole Bottom: Test Method: Gas Type: Interval Top: Hole Size: 7490 FLOWBACK WET 7945 0.36 https://cogcc.state.co.us/data5_ext.html#/cogis 2/2 12/2/2020 COGIS - WELL Information COGCC Data Scout Card `.= Related r Insp. ab MIT O GIS a Doc a COA 1L Welibore Surface Location Data for API # 05-123-46165 Well Name/No: Operator: Status Date: FacilitylD: County: Field: Planned Location 500 FSL 681 FEL FocustEarac Foals Chemical Disclosure Registry HDI KF #10-3H VERDAD RESOURCES LLC - 10651 7/21/2019 453511 WELD #123 WATTENBERG - #90750 Job Date: 4/19/2019 Job End Date: 5/10/2019 Welibore Data for Sidetrack #00 Spud Date: Welibore Permit Permit #: Prop Depth/Form: Mineral Owner: Unit: Formation and Spacing: Formation and Spacing: Casing: Cement: Casing: Cement: Casing: Cement: Wellbore Completed Completion Date: N/A Measured TD: True Vertical TD: Top PZ Location: Sec: 10 Twp: 1N 65W Bottom Hole Location: Sec: 3 Twp: 1N 65W Formation 12/20/2018 15481 FEE w Orders Status: PR 7/21/2019 (click well name for production) Federal or State Lease #: LocationID: Location: Elevation: Lat/Long: 40.060105/-104.642926 Reported: 8/6/2019 Originally Reported: 5/29/2019 Status: PR 7/21/2019 Spud Date is: HORIZONTAL Expiration Date: Surface Mineral Owner Same: Surface Owner: Unit Number: Code: CODL , Formation: CODELL , Order: , Unit Acreage: 560, Drill Unit: GWA Code: NBRR , Formation: NIOBRARA , Order: , Unit Acreage: 560, Drill Unit: GWA String Type: CONDUCTOR , Hole Size: 24, Size: 16, Top: 0, Depth: 80, Weight: 65 Sacks: 70, Top: 0, Bottom: 80, Determination Method: String Type: SURF , Hole Size: 13.5, Size: 9.625, Top: 0, Depth: 1700, Weight: 36 Sacks: 462, Top: 0, Bottom: 1700, Determination Method: String Type: 1ST , Hole Size: 8.5, Size: 5.5, Top: 0, Depth: 15689, Weight: 20 Sacks: 1993, Top: , Bottom: 15689, Determination Method: Log Top Completed information for formation CARL 1st Production Date: Status Date: Commingled: Formation Name: Formation Treatment Treatment Date: N/A 9/15/2020 Y CARLILE 9/15/2020 Treatment summary: Perf Interval: 7967-9063 Total fluid used in treatment (bbls): Total gas used in treatment (mcf): Type of gas: Total acid used in treatment (bbls): Recycled water used in treatment (bbls): Produced water used in treatment (bbls): Total proppant used (Ibs): Reason green techniques not utilized: Tubing Size: Tubing Packer Depth: Open Hole Top: No Initial Test Data was found for formation CARL . Perforation Data: Interval Bottom: 9063 # of Holes: 1152 Completed information for formation CODL 1st Production Date: N/A Status Date: 9/15/2020 Commingled: Y Formation Name: CODELL Formation Treatment Treatment Date: 9/15/2020 Treatment summary: Perf Interval:9113-12096, 12583-15530 453512 SESE 10 1 N65W 6 PM 5,012 ft. Lat/Long Source: Field Measured Days to report: 88 Days to report: 19 NOTICE 12/10/2020 4:54:19 PM FEE Measured PB depth: True Vertical PB depth: Footage: 460 s 2252 E Depth Footages: 2340 FNL 2252 FEL Depth Log Bottom Status: CM 9/15/2020 Choke Size: Open Hole Completion: N Production Method: Status: CM Treatment Type: Treatment End Date: N/A Max pressure during treatment (psi): Fluid density (lbs/gal): Number of staged intervals: Min frac gradient (psi/ft): Total flowback volume recovered (bbls): Disposition method for flowback: Green completions techniques utilized: Tubing Setting Depth: Tubing Multiple Packer: Open Hole Bottom: Interval Top: Hole Size: Status: CM Choke Size: Open Hole Completion: Production Method: Status: Treatment Type: Treatment End Date: 7967 0.36 9/15/2020 N CM N/A Cored DSTs https://cogcc.state.co.us/data5_ext.html#/cogis 1/3 12/2/2020 COGCC Data Status Date: Commingled: Formation Name: Formation Treatment Treatment Date: 9/15/2020 Treatment summary: Perf Interval: 9064-9112, 12391-12582 Total fluid used in treatment (bbls): Total gas used in treatment (mcf): Type of gas: Total acid used in treatment (bbls): Recycled water used in treatment (bbls): Produced water used in treatment (bbls): Total proppant used (Ibs): Reason green techniques not utilized: Tubing Size: Tubing Packer Depth: Open Hole Top: No Initial Test Data was found for formation FTHYS . Perforation Data: Interval Bottom: 12582 # of Holes: 1152 Total fluid used in treatment (bbls): Total gas used in treatment (mcf): Type of gas: Total acid used in treatment (bbls): Recycled water used in treatment (bbls): Produced water used in treatment (bbls): Total proppant used (Ibs): Reason green techniques not utilized: Tubing Size: Tubing Packer Depth: Open Hole Top: No Initial Test Data was found for formation CODL . Perforation Data: Interval Bottom: 15530 # of Holes: 1152 Completed information for formation FTHYS 1st Production Date: N/A 9/15/2020 Y FORT HAYS 1st Production Date: Status Date: Commingled: Formation Name: Tubing Size: Tubing Packer Depth: Open Hole Top: No Initial Test Data was found for formation N-COM No Perforation Data was found for formation N-COM . Completed information for formation NBRR 1st Production Date: N/A Status Date: 9/15/2020 Commingled: Y Formation Name: NIOBRARA Formation Treatment Treatment Date: 9/15/2020 Treatment summary: Perf Interval: 12097-12390 Total fluid used in treatment (bbls): Total gas used in treatment (mcf): Type of gas: Total acid used in treatment (bbls): Recycled water used in treatment (bbls): Produced water used in treatment (bbls): Total proppant used (Ibs): Reason green techniques not utilized: Tubing Size: Tubing Packer Depth: Open Hole Top: No Initial Test Data was found for formation NBRR . Perforation Data: Interval Bottom: 12390 # of Holes: 1152 Completed information for formation N-COM 12/1/2018 6/1/2020 NOT COMPLETED Max pressure during treatment (psi): Fluid density (lbs/gal): Number of staged intervals: Min frac gradient (psi/ft): Total flowback volume recovered (bbls): Disposition method for flowback: Green completions, techniques utilized: Tubing Setting Depth: Tubing Multiple Packer: Open Hole Bottom: Interval Top: 9113 Hole Size: 0.36 Status: CM 9/15/2020 Choke Size: Open Hole Completion: N Production Method: Status: CM Treatment Type: Treatment End Date: N/A Max pressure during treatment (psi): Fluid density (lbs/gal): Number of staged intervals: Min frac gradient (psi/ft): Total flowback volume recovered (bbls): Disposition method for flowback: Green completions techniques utilized: Tubing Setting Depth: Tubing Multiple Packer: Open Hole Bottom: Interval Top: Hole Size: Status: PR Choke Size: Open Hole Completion: Production Method: Status: Tubing Setting Depth: Tubing Multiple Packer: Open Hole Bottom: 9064 0.36 6/1/2020 PR Status: CM 9/15/2020 Choke Size: Open Hole Completion: N Production Method: Status: CM Treatment Type: Treatment End Date: N/A Max pressure during treatment (psi): Fluid density (lbs/gal): Number of staged intervals: Min frac gradient (psi/ft): Total flowback volume recovered (bbls): Disposition method for flowback: Green completions techniques utilized: Tubing Setting Depth: Tubing Multiple Packer: Open Hole Bottom: Interval Top: Hole Size: 12097 0.36 https://cogcc.state.co.us/data5_ext.html#/cogis 2/3 COGCC Data 12/2/2020 Completed information for formation NFCC 1st Production Date: Status Date: Commingled: Formation Name: Formation Treatment Treatment Date: Treatment summary: FR Water 317764 bbls, Treated Water 15553 bbls, 7.5% HCL Acid 3474 bbls, 100 Mesh 3562587 Ibs, 40/70 White 7387270 Flowback is measured by strapping a flowback tank every hour during initial flowback and from tank gauges during permanent facility flowback. Total fluid used in treatment (bbls): 336791 Total gas used in treatment (mcf): Type of gas: Total acid used in treatment (bbls): 3474 Recycled water used in treatment (bbls): Produced water used in treatment (bbls): 333317 Total proppant used (Ibs): 10949857 Reason green techniques not utilized: PIPELINE Tubing Size: 2.375 Tubing Packer Depth: 7489 Open Hole Top: Initial Test Data: Test Date: 7/21/2019 Hours Tested: 24 Gas Disposal: FLARED Test Type BBLS_H2O BBLS_OIL BTU_GAS CALC_BBLS_H2O CALC_BBLS_OIL CALC_GOR CALC_MCF_GAS CASING_PRESS GRAVITY OIL MCF_GAS TUBING_PRESS Perforation Data: Interval Bottom: 15530 # of Holes: 1152 7/1/2019 7/21/2019 N NIOBRARA-FORT HAYS-CODELL-CARLILE Status: PR Treatment Type: FRACTURE STIMULATION 4/19/2019 Treatment End Date: 5/10/2019 Status: PR 7/21/2019 Choke Size: Open Hole Completion: N Production Method: Measure 60 284 1355 60 284 504 143 514 43 143 2154 Max pressure during treatment (psi): 11019 Fluid density (Ibs/gal): 8.34 Number of staged intervals: 48 Min frac gradient (psi/ft): 0.89 Total flowback volume recovered (bbls): 9671 Disposition method for flowback: DISPOSAL Green completions techniques utilized: False Tubing Setting Depth: Tubing Multiple Packer: Open Hole Bottom: Test Method: Gas Type: Interval Top: Hole Size: 7480 FLOWBACK WET 8286 0.36 https://cogcc.state.co.us/data5_ext.html#/cogis 3/3 COUNTY ATTORNEY STAFF APPROVAL This is to affirm the attached Division Order and authorization to receive payment for an oil and gas well has been reviewed by the County Attorney's staff as to form and legal description. Well Name(s): HDIKF 10-1H and HDIKF 10-3H File Location(s): LE0062-1, LE0062-2 1,7:// r / BY.. 47,:/ Bruce Barker - County Attorney DATE: fJ /i/id.i NOTES: 52.059 mineral acres/ 562.947 acres spacing unit * .125 = 0.01155937 MATCH Please see attached email for explanation of rounding process. Hello