1. The Pecan Sales Estimate is our best estimate of this tract's market value as of the first of this month. This is the total value of the tract, including the present value of future revenue from any existing or yet-to-be-drilled oil & gas wells. It is not an appraisal and it should only be used as a starting point.

2. The Estimate Range is the high and low estimate market value for this particular tract. The more certain recoverable oil and gas volume and timing, the smaller the range, and the more accurate the estimate.

3. The Pecan Lease Estimate is our estimated lease bonus, computed using a proprietary formula. It is a starting point in determining the paid-up cash bonus that should be expected when leasing the right to drill the tract to another party assuming a 25% royalty with a 3-5 year primary term. Lower royalty rates (12.5-22.5%) should expect a higher lease bonus in return. Other terms of the lease can also affect the negotiated bonus, such as a continuous drilling clause, depth limitations, and post-production costs.