Pad Reclamation and Operation Workover Operations -Description After the completion operation has commenced some additional work must be preformed in order to maximize production. This work is done with a workover rig. -What to Expect Workover operations will be a daylight hours only schedule. -Time Period Typically workover operations take a little over 2 working days per well. Pad Reclamation and Operation -Description Once Workover operations are complete the pad is ready to produce oil and gas. Equipment will be moved off the pad and little day to day activity will be observed. At a predetermined time the majority of the pad area will be reclaimed to minimize the environmental foot print. -What to Expect The majority of the equipment will be moved off. Permanent tanks and the wellheads will be visible on the pad. Reclamation will take place at a predetermined time and the pad size will dramatically decrease and landscaping will be completed. A Verdad employed pumper will stop by the pad everyday to check on the wells and fine tune the production. -Time Period Reclamation will occur within 6 months post bringing the wells online (production). Verdad Resources Contacts Verdad would like to encourage you to contact us with any question, comments, and/or concerns. Vr.info@verdadoil.com What to Expect During Operations on the HDI KF Wellpad

Completion Operations Verdad & EHS Drilling Operations Verdad Resources Health Safety and Environment Policy It is Verdad’s position that most incidents, accidents and injuries are preventable.  We believe it is in the best interest of all to protect the environment and health and safety of our employees, contractors and neighbors.  Verdad has worked closely with the town of Hudson in order to meet the town’s desires. It is our ultimate goal to work wtih the community and keep disruption to a minimum. Established over 30 years ago, Verdad has a long history in the energy industry with over 100 years of oil and gas industry experience. With a strong engineering focus, Verdad is committed to adding value at each level of its operations while maintaining a high regard toward safety of its employees, contractors, the environment and the general public. Verdad strives to establish durable and mutually beneficial relationships within the communities and areas we operate. -Description In order to fit all wells on a single location Verdad directionally drills all wells from this one pad. Each well is drilled to an approximate vertical depth of 6800 ft and approx 2 miles laterally. -What to Expect The drilling operation first consists of mobilizing various equipment and a rig onto location. Drilling rigs work 24 hours a day 7 days a week until every well on the pad is complete. With 24/7 operations there will be activity throughout the night. All providers have been notified to come from the South into location, rather than through town. -Time Period Typically it takes a rig around 5 days to move onto a pad and set up. Each well on the pad takes about 6 days to drill with a day in between wells to move. Pad Construction Completion Operations -Description The first step in the operation of Drilling and Completing an oil and gas well is constructing a pad or location. In order to minimize surface disturbance and reduce the environmental foot print Verdad utilizes a multi-well pad operating method. -What to Expect A typical pad construction will first consist of heavy equipment utilized to move dirt and level out a location. Large sound walls will be moved onto location and installed a few days after initial construction begins in preparation for the upcoming Drilling operations. During these operations equipment can be observed moving throughout the pad preparing for the Drilling Rig to arrive. -Time Period Pad Construction will take 2 to 3 weeks and will not take place during the Thanksgiving Holiday. -Description Once the wells are drilled a technique called hydraulic fracturing is used in order to stimulate the wells to produce. “Fracing” consists of fracturing the rock and pumping sand and water downhole to allow oil and gas to flow through the tight rock back to surface. -What to Expect A fleet of tractor trailers will rig up on location along with additional equipment. Completion operations typically work 7 days a week 24 hours a day. As with drilling, there will be activity throughout the night and all service providers have been notified to come from the South into location, rather than through town. -Time Period Typically completion operations will take a little over 7 working days per well.