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Prepared For:

Example Client

SAMPLE EVALUATION & Field Sample Reference Code: ####### COMPARATIVE MARKET ANALYSIS Winkler County, Texas

August 14, 2017 CLIENT PROPERTY CORE #-- DEPTH: #’-##’

DETERMINATION OF VIABILITY FOR USE AS API COMPLIANT FRAC (API RP 19C)

August 14, 2017

Mr. John Doe Example Client 123 ABC Lane Austin, TX 78746

Dear Mr. Doe,

Preliminary testing of the Core #-- sample, as requested by Example Client, was performed to determine its viability for use as frac sand. A series of sieve tests were carried out on a washed sample, gathered at a depth range of #-## feet, to generate a full distribution profile using 14 US standard mesh sizes. The sample was split into 40/70 and 70/140 API designated size ranges, and tested to determine roundness/sphericity, , and turbidity. The results of these tests are summarized on the following pages.

A Comparative Market Analysis is contained within this report that provides an overview of the properties of the submitted sample relative to published data from major suppliers of sand proppants.

It has been a pleasure to assist Example Client with this analysis. Please call or email if you have any questions or need clarification.

Sincerely, Certified By: Lonquist & Co., LLC Texas Registration No. F-8952

Stephen L. Pattee, P.G.

Petroleum and Mining Engineer

Lonquist & Co., LLC

3345 Bee Cave , Suite 201

Austin, Texas, USA 78746 Date Signed: 8/1/2017

Nathaniel L. Byars, P.E.

Staff Engineer

Texas License No. 118890

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Contents Background: ...... 3 Procedures: ...... 4 Summary of Results ...... 6 Table 1: Tabular Summary of All Tests Performed...... 6 Comparative Market Analysis ...... 7 Figure 1: Comparison of Properties of 40/70 Mesh Sample to Current Published Data ...... 7 Figure 2: Comparison of Properties of 70/140 Mesh Sample to Current Published Data ...... 8 Results ...... 9 Table 2: Tabular data for Washed Sample Test Results ...... 9 Figure 3: Sieve Analysis of Washed Sample ...... 10 Figure 4: Sieve Analysis, Bulk Density & Turbidity - API 40/70 Mesh Sample ...... 11 Figure 5: Krumbien/Sloss Sphericity and Roundness - API 40/70 Mesh Sample ...... 12 Figure 6: Additional Sample Images - API 40/70 Mesh Sample ...... 13 Figure 7: Sieve Analysis, Bulk Density & Turbidity - API 70/140 Mesh Sample ...... 14 Figure 8: Krumbien/Sloss Sphericity and Roundness - API 70/140 Mesh Sample ...... 15 Figure 9: Additional Sample Images - API 70/140 Mesh Sample ...... 16

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Background: This sample was collected during the drilling of Test Core #-- on the Client property in Winkler County, Texas on March 25, 2017. Drilling was performed using a sonic drilling rig to collect a continuous from the formation. Core was retrieved in approximately ten-foot sections, evaluated and catalogued by an on-site geoscientist, and packaged for storage/shipping. Core holes were drilled until red-bed or caliche was encountered.

The below stratigraphic column depicts geologic assessments made in the field and highlights the segment of core that was mixed and sampled for the purpose of this analysis. It has been assigned a Field Sample Reference Code (SRC) of: ###### - #-- – #’-##’

Sand Sample No. ##

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Instructions were to perform preliminary testing to determine the viability of the sand source for use as proppant material in hydraulic fracturing. A Comparative Market Analysis has been provided to convey an indication of the suitability of the properties tested relative to published data from major suppliers of raw sand proppant (not resin-coated).

Procedures: It is typical to weigh, dry, and reweigh the sample to determine percent moisture; however, foreign was introduced to the sample during drilling, invalidating the utility of this metric. Instead, testing began with light milling of clumped material and washing of the sample over a 200 mesh sieve in order to provide a general representation of a product that has been processed in a wash plant, with regard to removal of fines content (clay and ) and oversize content (from clustering due to clay cementation and organic sediment). Prior to, and after washing, the sample was dried and weighed to provide a mass loss percentage indicating the ratio of material that is likely to be removed in the field during processing. The sample was then reduced through a riffle splitter to obtain a random sample for further testing.

A sieve analysis was performed through a series of tests utilizing a total of 14 US designated mesh sizes. The sample was split into two API designated size ranges, 40/70 and 70/140 as indicated in the below table. A random sampling of the material from each of these samples was then used to determine bulk density, turbidity, and sphericity/roundness.

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For the sphericity and roundness analysis, twenty (20) particles were randomly selected from a micrograph of each sample to determine average particle shape. Each particle was compared to reference charts depicting geometries with numerically calculated values, such as the Krumbien/Sloss charts shown below. Any visual evidence of particle clustering due to cementation from carbonates or clays was also noted in this analysis, as it may affect distribution and bulk density results and also lead to elevated turbidity.

Sphericity

Roundness

W. C. Krumbein Roundness Chart

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Summary of Results Table 1: Tabular Summary of All Tests Performed

Results Summary

Field Sample Name HR-SH7Sand Sample - #11 No. - 0'-17'## Field Sample Reference Code 2017-0525-HR-SH7Reference No. - ###11 - 0'-17' Post-Wash Mass Loss 10.1% Mean Particle Diameter 0.222 mm Median Particle Diameter 0.210 mm

Silica Content (wt %) SiO2 not tested

Mesh Size (API RP 19C) 40/70 70/140 % In-size (wt %) 46.5% 49.1% % Over-size (wt %) 1.7% 48.2% % Fines (wt %) 51.8% 2.6% Krumbein Roundness 0.6 0.6 Krumbein Sphericity 0.7 0.7 (lbs/ft3) 92.1 90.0 Bulk Density (g/cm3) 1.48 1.44 Turbidity (FTU) 10 11.1 Crush Resistance Factor psi not tested not tested 2,000 psi not tested not tested 4,000 psi not tested not tested 6,000 psi not tested not tested Conductivity 8,000 psi not tested not tested 10,000 psi not tested not tested 12,000 psi not tested not tested 2,000 psi not tested not tested 4,000 psi not tested not tested 6,000 psi not tested not tested Permeability 8,000 psi not tested not tested 10,000 psi not tested not tested 12,000 psi not tested not tested Specific Gravity not tested not tested Acid Solubility (wt %) not tested not tested

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Comparative Market Analysis Figure 1: Comparison of Properties of 40/70 Mesh Sample to Current Published Data

Comparative Market Analysis - 40/70 Mesh Size HR-SH7 R- ef#11erence - 0'-17' No. ## - 40/70

Physical Properties Conductivity Permeability HR-SH7 - #11 0'-17' - - #11 HR-SH7 Farimount Texas Gold Fairmount Northern White US Silica Premium Hickory Brady Unifrac Unimin 0'-17' - - #11 HR-SH7 Unimin Unifrac Farimount Texas Gold Fairmount Northern White US Silica Premium Hickory US Silica White Brady Unifrac Unimin Unimin Unifrac US Silica White HR-SH7 - #11 0'-17' - - #11 HR-SH7 Unimin Unifrac Farimount Texas Gold Fairmount Northern White US Silica Premium Hickory US Silica White Brady Unifrac Unimin

12 K 1,600 2,000 psi 100 2,000 psi 10 K 1,200 8 K 75

6 K ft 800 - 50

psi 4 K md 400 Darcys 25 2 K 0 K 0 0 Not Tested Not Tested Not Tested Crush K-FactorCrush 0 K 0 0

Min API 0.8 1,200 allowance 4,000 psi 80 4,000 psi 0.7 900 0.6 60 ft 0.5 - 600 40 0.4 md 0.6 300 Darcys 20

Roundness 0.3 0 0 Not Tested 0.2 0 Not Tested 0

0.9 800 60 Min API 6,000 psi 6,000 psi 0.8 allowance 600 45 0.7 ft

- 400 30 0.6 md 0.7 200 Darcys 15

Sphericity 0.5 0 0 Not Tested 0.4 0 0 Not Tested

1.60 600 8,000 psi 8,000 psi 30 1.50

3 400 20 ft

1.40 - g/cm

md 200 1.48 1.30 Darcys 10 0 0 Bulk Density 1.20 0 Not Tested 0 Not Tested

Max API allowance 250 400 10,000 psi 25 10,000 psi 200 300 20 3 150 15 ft

- 200 100 g/cm 10 md Darcys Turbidity 50 100 5 0 0 10 Not AdvertisedNot Not AdvertisedNot Not Tested 0 0 Not Tested 0

5.0% 300 20 12,000 psi 12,000 psi 4.0% 15 Max API allowance 200 3.0% ft

- 10 2.0%

md 100 1.0% Darcys 5 0 0 0.0% Not AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot Not Tested Not Tested Not Tested Acid Solubility 0.0% 0 0

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Figure 2: Comparison of Properties of 70/140 Mesh Sample to Current Published Data

Comparative Market Analysis - 100 Mesh Size HR-SH7 -R #11eference - 0'-17' No. ## - 70/140

Physical Properties Conductivity Permeability Hi Crush Whitehall 50/140 Preferred Genoa 50/140 50/140 Sand Mississippi BadgerFrac T-Grd. 50/140 0'-17' - - #11 HR-SH7 Hi Crush Wyeville 50/140 Hi Crush Blair 50/140 Hi Crush Whitehall 50/140 Preferred Genoa 50/140 50/140 Sand Mississippi BadgerFrac T-Grd. 50/140 HR-SH7 - #11 0'-17' - - #11 HR-SH7 Hi Crush Wyeville 50/140 Hi Crush Blair 50/140 HR-SH7 - #11 0'-17' - - #11 HR-SH7 Hi Crush Wyeville 50/140 Hi Crush Blair 50/140 Hi Crush Whitehall 50/140 Preferred Genoa 50/140 50/140 Sand Mississippi BadgerFrac T-Grd. 50/140 800 14 K 2,000 psi 40 2,000 psi 12 K 10 K 600 30 8 K

ft 400 20 6 K - psi md 4 K 200 Darcys 10 2 K 0 K 0 0 Not Tested Not Tested Not Tested

Crush K-FactorCrush 0 K 0 0

Min API 0.8 600 allowance 4,000 psi 4,000 psi 0.7 30 450 0.6 20 ft

0.5 - 300 0.4 md 0.6 10 150 Darcys

Roundness 0.3 0 0 Not AdvertisedNot Not Tested 0.2 0 Not Tested 0

0.9 Min API 500 25 allowance 6,000 psi 6,000 psi 0.8 400 20 0.7 300 15 ft - 0.6 200 10 md 0.7 Darcys

Sphericity 0.5 100 5 0 0 Not AdvertisedNot Not Tested 0.4 0 0 Not Tested

1.60 400 8,000 psi 20 8,000 psi 300 1.50 15 3

ft 200 1.40 - 10 g/cm md Darcys 1.30 1.44 100 5 0 0 Bulk Density Not AdvertisedNot AdvertisedNot 1.20 0 Not Tested 0 Not Tested

250 Max API allowance 300 10,000 psi 15 10,000 psi 200 225 3 150 10 ft 150 100 - g/cm

md 5 Darcys Turbidity 50 75 0 0 11 Not AdvertisedNot AdvertisedNot AdvertisedNot Not AdvertisedNot AdvertisedNot Not AdvertisedNot AdvertisedNot Not Tested Not AdvertisedNot AdvertisedNot 0 0 Not Tested 0

5.0% 200 12,000 psi 10 12,000 psi 4.0% Max API 150 allowance 8 3.0% ft

- 100 2.0% 5 md 1.0% 50 Darcys 3 0 0 0.0% Not AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot AdvertisedNot Not Tested Not Tested Not Tested Acid Solubility 0.0% 0 0

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Results Table 2: Tabular data for Washed Sample Test Results

Sieve Analysis of Washed Sample HR-SH7Sand Sample - #11 No. - 0'-17' ##

Field Sample Reference Code: 2017-0525-HR-SH7Reference No. -## #11 - 0'-17'

US Standard Sieve Mesh Size Weight % No. mm inches Retained Cumlulative 8 2.360 0.0937 0.0 0.0 16 1.180 0.0469 0.0 0.0 30 0.600 0.0234 0.0 0.0 40 0.425 0.0165 1.7 1.7 45 0.355 0.0139 3.0 4.7 50 0.300 0.0117 6.8 11.5 60 0.250 0.0098 15.2 26.7 70 0.212 0.0083 21.5 48.2 80 0.180 0.0070 23.1 71.3 100 0.150 0.0059 17.2 88.6 120 0.125 0.0049 6.7 95.2 140 0.106 0.0041 2.1 97.4 170 0.090 0.0035 1.3 98.6 200 0.075 0.0029 1.3 99.9 Pan < 0.075 < 0.0029 0.1 100.0

Mean Particle Diameter Currently Marketed Percentage of Sample Mesh Sizes within Range 0.222 mm 30/50 11.5 30/60 26.7 Median Particle Diameter 30/70 48.2 40/70 46.5 0.210 mm 40/80 69.6 40/140 95.6 Post-Wash Mass Loss 45/140 92.7 50/140 85.9 10.07% 70/140 49.1

Sample Processing Method: - Sample was washed and dried prior to all testing in order to provide a general representation of a product that has been processed in a wash plant, with regard to removal of fines content (clay and silt) and oversize content (from clustering due to clay cementation and organic sediment).

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Figure 3: Sieve Analysis of Washed Sample

Particle Size Distribution

HR-SH7Sand Sample - #11 No. -## 0'-17' - 8/200 Mesh Analysis

Test Sample Code: 2017-0525-HR-SH7R f N - ###11 - 0'-17' - 8/200

US Standard Mesh Size Mesh Size Weight % Sieve No. (mm) (inches) Retained Cumlulative 8 2.360 0.0937 0.0 0.0 16 1.180 0.0469 0.0 0.0 30 0.600 0.0234 0.0 0.0 40 0.425 0.0165 1.7 1.7 45 0.355 0.0139 3.0 4.7 50 0.300 0.0117 6.8 11.5 60 0.250 0.0098 15.2 26.7 70 0.212 0.0083 21.5 48.2 80 0.180 0.0070 23.1 71.3 100 0.150 0.0059 17.2 88.6 120 0.125 0.0049 6.7 95.2 140 0.106 0.0041 2.1 97.4 170 0.090 0.0035 1.3 98.6 200 0.075 0.0029 1.3 99.9 Pan < 0.075 < 0.0029 0.1 100.0

99.9 100.0 97.4 98.6 100% 95.2

88.6 90%

80% 71.3 70%

60% % Weight Retained

48.2 % Weight Retained Culmulative 50%

40%

30% 26.7 23.1

Percent Weight by Retained Sieve 21.5 17.2 20% 15.2 11.5 6.8 6.7 10% 4.7 1.7 3.0 2.1 0.0 0.0 0.0 1.3 1.3 0.1 0% 8 16 30 40 45 50 60 70 80 140 200 100 120 170 Pan US Standard Sieve No.

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Figure 4: Sieve Analysis, Bulk Density & Turbidity - API 40/70 Mesh Sample

Particle Size Distribution

HR-SH7Sand Sample - #11 No. ##- 0'-17' - 40/70 Mesh Analysis

Test Sample Code: 2017-0525-HR-SH7Reference No. - ## #11 - 0'-17' - 40/70

US Standard Mesh Size Mesh Size Weight % Sieve No. (mm) (inches) Retained Cumlulative 30 0.600 0.0234 0.0 0.0 40 0.425 0.0165 1.7 1.7 45 0.355 0.0139 3.0 4.7 50 0.300 0.0117 6.8 11.5 API 40/70 60 0.250 0.0098 15.2 26.7 70 0.212 0.0083 21.5 48.2 100 0.150 0.0059 40.4 88.6 pan < 0.15 < 0.0059 11.4 100.0

% Over-size 1.7 % Fines 51.8 % In-size 46.5

100.0 100%

% Weight Retained 88.6 90% % Weight Retained Culmulative 80%

70%

60%

48.2 50% 40.4 40%

30% 26.7

Percent Weight by Retained Sieve 21.5 20% 15.2 11.5 11.4 6.8 10% 4.7 1.7 3.0 0.0 0% 30 40 45 50 60 70 100 pan US Standard Sieve No.

1.48 g/cm3 Bulk Density 92.1 lb/ft3

10.3 FTU Turbidity Passes API RP-19C ≤ 250

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Figure 5: Krumbien/Sloss Sphericity and Roundness - API 40/70 Mesh Sample

Sphericity and Roundness 2017-0525-HR-SH-7Sand Sample No. ###11 0'-17' - 40/70 Shape Analysis

Test Sample Code: 2017-0525-HR-SH-7Reference No. ###11 0'-17' - 40/70

Sphericity Roundness Grain No. Y X 1 0.7 0.5 2 0.7 0.5 3 0.5 0.5 4 0.7 0.6 5 0.9 0.6 6 0.9 0.6 7 0.9 0.7 8 0.9 0.6 9 0.7 0.5 10 0.7 0.5 11 0.9 0.6 12 0.5 0.6 13 0.7 0.6 14 0.5 0.5 15 0.9 0.5 16 0.7 0.5 17 0.7 0.6 18 0.9 0.6 19 0.7 0.6 20 0.5 0.7

Average 0.7 0.6 API RP-19C ≤ 0.6 Passes Passes

Clusters None observed in field of count

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Figure 6: Additional Sample Images - API 40/70 Mesh Sample

Observations: Quartz grains vary from glassy to opaque with a few exhibiting light-yellow staining. A few orange and dark rust colored grains (non-quartz) appear periodically.

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Figure 7: Sieve Analysis, Bulk Density & Turbidity - API 70/140 Mesh Sample

Particle Size Distribution

SandHR-SH7 Sample - No.#11 ## - 0'-17' - 70/140 Mesh Analysis

Test Sample Code: 2017-0525-HR-SH7R f N - #11## - 0'-17' - 70/140

US Standard Mesh Size Mesh Size Weight % Sieve No. (mm) (inches) Retained Cumlulative 50 0.300 0.0117 11.5 11.5 70 0.212 0.0083 36.7 48.2 80 0.180 0.0070 23.1 71.3 100 0.150 0.0059 17.2 88.6 API 70/140 120 0.125 0.0049 6.7 95.2 140 0.106 0.0041 2.1 97.4 200 0.075 0.0029 2.5 99.9 pan < 0.075 < 0.0029 0.1 100.0

% Over-size 48.2 % Fines 2.6 % In-size 49.1

99.9 100.0 97.4 100% 95.2

88.6 90%

80% 71.3 % Weight Retained 70% % Weight Retained Culmulative 60%

48.2 50%

40% 36.7

30% 23.1 Percent Weight by Retained Sieve 20% 17.2 11.5 10% 6.7 2.1 2.5 0.1 0% 50 70 80 100 120 140 200 pan US Standard Sieve No.

1.44 g/cm3 Bulk Density 90.0 lb/ft3

11.1 FTU Turbidity Passes API RP-19C ≤ 250

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Figure 8: Krumbien/Sloss Sphericity and Roundness - API 70/140 Mesh Sample

Sphericity and Roundness 2017-0525-HR-SH-7Sand Sample No. ## #11 0'-17' - 70/140 Shape Analysis

Test Sample Code: 2017-0525-HR-SH-7Reference No. ## #11 0'-17'- 70/140

Sphericity Roundness Grain No. Y X 1 0.7 0.5 2 0.7 0.7 3 0.7 0.5 4 0.7 0.6 5 0.9 0.5 6 0.7 0.5 7 0.7 0.5 8 0.5 0.6 9 0.9 0.6 10 0.7 0.5 11 0.7 0.6 12 0.7 0.6 13 0.7 0.5 14 0.5 0.5 15 0.9 0.6 16 0.5 0.5 17 0.7 0.6 18 0.7 0.5 19 0.7 0.6 20 0.7 0.5

Average 0.7 0.6 API RP-19C ≤ 0.6 Passes Passes

Clusters None observed in field of count

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Figure 9: Additional Sample Images - API 70/140 Mesh Sample

Observations: Quartz grains vary from glassy to opaque with some exhibiting yellow/orange staining. A few dark opaque grains (non-quartz) appear periodically.