Oil and Gas Lease Rights in California

Sale of Ownership Interest in the George Lease and Portman Lease in California, are more described below:
George Lease - All right title and interest to that certain Oil and Gas Lease covering certain lands situated in Kern County, California as described below together with all wells, well equipment, production equipment, structures, and other ancillary equipment of whatever nature located on the George Lease.
Lessee Working Interest (WI): 100.000%
Lessee Net Revenue Interest (NRI): 81.250000%
DESCRIPTION: Portion of Section 23, Township 31 South, Range 29 East, M.D.B. & M. KERN COUNTY, CALIFORNIA APN 190-010-01, 02, 04MR, 06MR, 07MR & 08MR

The 21 wells listed below are included in the “George Lease” - (i) George 4, API No. 02914587; (ii) George 15, API No. 02914591; (iii) George 17, API No. 02914593; (iv) George 19, API No. 02914595; (v) George 20X, API No. 02946852; (vi) Kirkorian 14X-23, API No. 02947968; (vii) AWFU G1, API No. 02914574; (viii) AWFU G3, API No. 02914576; (ix) AWFU G7, API No. 02914578; (x) AWFU G9, API No. 02914580; (xi) AWFU G11, API No. 02914582; (xii) George 14, API No. 02914590; (xiii) George 16, API No. 02914592; (xiv) George 18, API No. 02914594; (xv) George 20, API No. 02914596; (xvi) George 21, API No. 02954044; (xvii) AWFU G2, API No. 02914575; (xviii) AWFU G5, API No. 02914577; (xix) AWFU G8, API No. 02914579; (xx) AWFU G10, API No. 02914581 and (xxi) AWFU G13, API No. 02914583.

Portman Lease - All right title and interest to that certain Oil and Gas Lease covering certain lands situated in Kern County, California as described below together with all wells, well equipment, production equipment, structures, and other ancillary equipment of whatever nature located on the Portman Lease.
Lessee Working Interest (WI): 100.000%
Lessee Net Revenue Interest (NRI): 83.333333%
DESCRIPTION: Portion of Section 14, Township 31 South, Range 29 East, M.D.B. & M. KERN COUNTY, CALIFORNIA APN 189-070-33 & 14MR (Ptn)

The 3 wells listed below are included with the “Portman Lease” - (i) Portman 1, API No. 02914551; (ii) Portman 2, API No. 02914552 and (iii) Portman 3, API No. 02914553