Clearview Energy II, L.P.
A Developmental Drilling Program
Managing Broker Dealer — Alliance Affiliated Equities Corporation
Member FINRA/SIPC/MSRB
1
Integrity.
Experience.
Transparency.
King Consolidated, Inc. has offered over $150 million in institutional
quality direct participation oil and gas investments to accredited and
institutional investors through a network of FINRA broker-dealers.
King prides itself on being an oil company first. King and its affiliates
maintain an in house staff of geoscientists, petroleum engineers and
landmen to continually evaluate oil and natural gas prospects.
2
Clearview II
Drilling Program Opportunity
Number of Wells:
Issue Date:
Up to 12
September 6, 2011
Offering Size:
$60,000,000
Number of Units:
300
Unit Size:
$200,000
Prospect Locations:
Strawn Sand Formation
Scurry County, Texas
The Clearview Energy II, L.P. is a developmental drilling opportunity located solely in the prolific eastern shelf of the Permian
Basin in West Texas. King Operating Corporation, a wholly owned affiliate, will not only be operating all program wells, it
will also be participating financially alongside the program investors.
Key Program Highlights Include:
• Opportunity to use new technology to enhance
production and reserves in a proven and economically
viable reservoir.
• Program Audit
• Industry priced AFE’s
• Up to 85% first year tax deduction
Persons Who Should Not Invest:
Sponsor Information:
King Consolidated, Inc.
North Dallas Energy Centre
6142 Campbell Road
Dallas, Texas 75248
972-447-3535 office
972-447-3536 fax
www.kingconsolidated.com
Persons requiring immediate liquidity, guaranteed income,
seeking a short-term investment, or who cannot afford to lose
their principal.
This information is for the confidential use of prospective
accredited investors. Any offer is solely by private placement
memorandum in reliance on exemption from registration
provided under section 4 (2) of the Securities Act of 1933 and
Rule 506 of Regulation D there under.
1
Why
“
Invest in Energy?
World marketed energy consumption is projected
to increase by 50 percent from 2005 to 2030.
”
Source: Energy Information Administration, June 2008
Global energy demand is growing
while global energy supplies may
be near a peak. Direct investment
Increasing Global Demand
greater dependence on mechanized
Simply put, our modern world runs
transportation and greater per capita
on oil and natural gas. Electrical
energy use.
power, transportation fuel, fertilizers,
industrial materials and fabrics are
in oil and natural gas may provide
monthly cash flow, tax benefits and
solid portfolio diversification.
2
all dependent on large scale and
economical production of oil and gas.
The Dollar & Your
Purchasing Power
It is clear that global stock markets,
debt markets, bank lending practices
With a growing world population of
and government policies are changing
seven billion people reaching for better
with a frequency and scale that were
living standards, everyone contributes
unimaginable a few years ago. The
to increasing industrial development,
US government has made financial
commitments to address the economic
If you acquire a diversified portfolio of
economics of direct oil and gas
crisis that some experts estimate to
producing oil and gas properties, you
investment. Current tax law allows:
be in excess of $12 trillion – nearly
may achieve monthly cash flow, and
• Intangible Drilling Cost Deduction
the size of the US gross domestic
enhance your total portfolio returns.
Intangible expenditures of drilling
product. If the US dollar declines how
will you maintain your portfolio’s
purchasing power?
Tax Benefits/Long-term
ROI Potential1
For fifty years or more, Congress has
Portfolio Diversification
provided tax incentives to stimulate
Direct energy investments allow
domestic natural gas and oil exploration
investors to diversify their portfolio into
financed by private sources. While the
assets with a traditionally low correlation
primary reason to invest in oil and gas
to stock and bond market performance
is a direct cash-on-cash return, available
and a positive correlation with inflation.
tax advantages may enhance the
(labor, chemicals, mud, grease and
others) typically 50% - 80% of well
costs are 100% deductible during the
first year.
• The Small Producers Exemption
(Depletion Allowance) Fifteen percent
of certain oil and gas production
revenue may be received tax-free.
Prospective partners must consult their own professionals for tax information and advice.
This information should in no way be construed or relied upon as tax advice.
1
3
Why King Consolidated?
4
King Consolidated, Inc. is a privately
King Consolidated, Inc. and its affiliates’
held company based in Dallas, Texas
leadership team — led by founder and
that specializes in acquiring and
CEO James R. “Jay” Young — has over a
operating oil and natural gas
combined 100 years of oil and gas
investments for the accredited and
experience, and maintains an operating
institutional investor. Uniquely
staff of industry specialists, including
structured to take advantage of market
geoscientists, petroleum engineers, field
opportunities, King’s institutional
operations managers, and landmen.
quality programs have raised the bar
These top professionals work together
in the private oil and gas investment
to evaluate, acquire and operate
arena. Since 2006, King Consolidated
developmental oil and gas prospects
and its affiliates have offered over $150
located throughout the country. Over the
million in direct participation oil and
past 14 years, King has participated in
gas investments through a network of
drilling wells that have created millions
FINRA broker-dealers.
of barrels of proven domestic reserves.
Prior Activities
King also sponsors developmental
Geographic Focus
Since 2006, King Consolidated, Inc.
drilling programs that are designed
King’s operations are focused mainly
and its affiliates have acquired royalty
to exploit hydrocarbons from proven
in Texas and the South Central region
interests on behalf of its investors that
reserves as well as take advantage of
of the United States, one of the most
total over 1,100 wells and 186,000
the potential tax benefits currently
prolific oil producing areas in the world.
acres throughout seven states
available. Through three previous
In 2008, the U.S Energy Information
including Louisiana, Mississippi,
developmental drilling programs, King
Administration cited Texas as having
Alabama, Texas, Oklahoma, Kansas,
has drilled and/or participated in over
the highest onshore proved oil reserves,
and North Dakota. Well-diversified
30 wells located on over 14,800 acres
and roughly two-thirds of the Nation’s
mineral rights, royalties, and
which boast diverse geologic formations.
proved shale gas reserves. The EIA
overriding royalties, allow investors
King acquires and develops properties
further predicts that approximately
to enjoy monthly cash flows that
using strategies that make the prospect
44% of future onshore oil production
can potentially last for generations.
attractive for acquisition.
will take place in this South Central
region of the United States.
5
King Consolidated, Inc.
Management Team
The Management Team
of King Consolidated, Inc.
The King Consolidated, Inc.
The Management Team
of King Operating
Corporation
Management Team is comprised of
The King Operating Corporations
experienced and tenured professionals
Management Team is comprised
from not only the oil and gas industry,
of highly respected, experienced and
but also from the financial planning
seasoned veterans in the oil patch.
and investment management industry.
Since inception, King Operating
This diversity in management makeup
Corporation has followed the same
allows for every aspect of business
goal: to continue its rapid growth by
related functions to be addressed with
horizontally enhancing current projects,
the utmost professionalism and
drilling and developing properties in a
expertise needed to perform at the
timely and cost efficient manner, and
highest level for the King Investor.
by investing in producing properties.
James R. Young — Chief Executive Officer, President and Sole Shareholder
Mr. Young, relying on his family’s fourth generation experience, has devoted his career to the
oil and gas industry. After graduating from Angelo State University with a Bachelor of
Business Administration degree in Marketing, Mr. Young selected the securities industry as his
vocation and held Series 3, 7 and 63 licenses. In 1996, Mr. Young formed King Operating
Corporation for petroleum exploration, development and production. Later, Mr. Young formed
King Royalty Corporation and King Consolidated, Inc. to engage in the acquisition and sale of
royalty and working interests. Mr. Young has negotiated lease and production acquisitions,
led his technical team in developing many drilling and production programs, and has been
the visionary in employing strategic planning and evaluation for the development of various
oil and gas fields within Texas. Mr. Young is also President of Anderson-Drake, Inc. and
Anderson-Drake Partners, Inc.
J. Robert Ransone — Executive Vice President/Chief Operating Officer
6
Mr. Ransone joined King Consolidated, Inc. in May 2010. Prior to joining King Mr. Ransone
was President and Chief Operating Officer of Barnes Oil and Gas LLC, a Plano, Texas
based private company with operations in the Barnett Shale. He has extensive management
experience within the energy industry having served in various capacities including Manager
of Acquisitions and Divestitures, CFO, COO, Partner, board member and also CEO of his
own successful energy divestment advisory firm. Mr. Ransone has over 20 years experience
in the specific area of energy asset acquisitions and divestments. He will oversee the day-today operations of the Partnership under the policy directives of the Chief Executive Officer.
Mr. Ransone received has Bachelor of Arts degree in Economics from Stanford University
and his Masters of Business Administration from the Wharton School of the University of
Pennsylvania. He then served in the U.S. Army’s Air Defense Artillery assigned to NORAD,
receiving his honorable discharge as a Captain.
Rex E. Gifford — Chief Financial Officer
Mr. Gifford earned a Bachelor of Business Administration degree in Accounting from The
University of Texas. He currently assists the Company and its affiliates, King Operating
Corporation and King Royalty Corporation, in the formation, management and economic
reporting functions for the properties sponsored by the Company. Prior to joining King
Consolidated, Inc., Mr. Gifford functioned as the Chief Financial Officer of New Horizon
Exploration, Inc. for twelve years. Before beginning his tenure with New Horizon, Mr. Gifford
specialized in resolving complex accounting issues for individuals and companies. He also
provided income tax services for both the private industry and local public accounting firms.
Josh Fagan — National Sales Director
Mr. Fagan has been in the Securities industry for over 10 years and currently holds Series 7,
24, 63 and 65 securities licenses. Mr. Fagan is a principal of the Managing Broker-Dealer.
Prior to joining King Consolidated, Inc., Mr. Fagan served as President and Chief Executive
Officer of Fagan and Rawlings Capital Management where he oversaw the investment
strategies for high net worth clients and institutions. Mr. Fagan is recognized in the
broker-dealer community for his expertise in the 1031 exchange market. He is the founder
of 1031Junction.com, an online 1031 exchange informational resource. Mr. Fagan serves as
the liaison between King Consolidated, Inc. and the institutions throughout the United States.
Jeff Katzman — Vice President Sales - Western United States
Prior to joining King Consolidated, Inc., Mr. Katzman marketed non-traded REIT offerings for
Behringer Harvard and served as a Sales Director for Texas Energy Holdings in private placement oil and gas offerings. Before specializing in the alternative investment field, he was a
financial advisor for Lincoln/Sagemark managing private wealth and estate planning. He has
served as a public speaker for many events educating registered representatives, investors,
and CPAs on the use of oil and gas as a tax efficient investing tool and for income potential.
He earned a Bachelors of Science Degree from the University of Texas at Austin and currently
holds the Series 7 and 66 licenses.
Kyle Donnelly — Executive Vice President - Broker Dealer/Investor Relations
Mr. Donnelly is a graduate of Ohio State University where he earned his Bachelor of
Science specializing in Financial Planning. Using his expertise in the securities industry, Mr.
Donnelly serves as a liaison between the Company and broker dealer institutions throughout
the United States. Additionally, he oversees all communication between the Company and
its past, present, and future investors. Mr. Donnelly holds Series 7, 63, and 65 securities
licenses and is a registered representative of the Managing Broker-Dealer.
7
King Operating Corporation
Affiliated Consulting Company:
Management Team
King Operating Corporation is an affiliate of King Consolidated Partners, Inc.
O. Dow Moore — Director of Acquisitions
Mr. Moore received his Bachelor of Science degree in Geology from Baylor University. Mr.
Moore attributes much of his industry success to his experience as the head of his own independent oil and gas company and as a consultant for various operators in Dallas and Houston, Texas. He has been involved in all aspects of the oil and gas industry, including prospect
generation, geological research, wellsite drilling supervision, sample analysis, and investor
relations. Mr. Moore is on the Board of Directors of the Texas Alliance of Energy Producers.
Cruz Abila — Chief Production Engineer
Mr. Abila graduated from Texas A&M University with a Bachelor of Science Degree in
Petroleum Engineering. Upon graduation, he was employed by Texaco Exploration &
Production, Inc. in Midland, Texas where he spent five years as a drilling, production and
completion engineer in various gas fields, waterfloods and CO2 floods in the Permian Basin.
Mr. Abila spent the last ten years in various positions of increasing responsibility at Merit
Energy Company based out of Dallas, Texas. He spent time as an engineer responsible for
assets in Texas, Louisiana (onshore/offshore), Wyoming and North Dakota; spent time as a
Marketing Manager of approximately 50,000 gross BOEPD in Wyoming, Utah, Colorado and
Michigan; and spent time as Region Manager of assets in the Gulf of Mexico (Texas-Shelf), in
Arkansas primary gas and Barnett Shale resource play development. Most recently, Mr. Abila
managed assets in the Permian Basin which included waterfloods and Wolfberry resource
play development of approximately 12,000 BOEPD, $4.0 million per month lease and
expense workover budgets and a $30 million per year capital program.
8
Drilling rig using the latest in directional drilling
technologies to complete the #34-1H in Scurry County, TX
As of August 31, 2011, the #34-1H has produced 48,193 BO and 98,530 MCF in just
over 8 months. This Long Single Lateral was completed using a 7 stage, plug-&perf frac
9
Strawn Sand Formation
Geological
Summary
Scurry
Figure 1
Location Map
The Ernest Strawn Sand Oil Field is
located eight miles southeast of Snyder,
in Scurry County, Texas (See Figure 1).
The reservoir consists of thick oil-saturated river channel sand deposits.
Discovered in 1956, the seventeen
vertical wells drilled in the field
collectively produced approximately
315,000 BO (“barrels of oil”) and
252,000 MCF (“thousand cubic feet”)
before abandonment in 1991. Oil
columns ranged in thickness from 10’ to
nearly 100’, yet the wells averaged less
than 20,000 BO on 160 acre units.
Standard volumetric calculations
indicate that a 160 acre unit with a 50’
oil column and 12% porosity holds
approximately 4,000,000 barrels of oil
in place. The vast majority of the oil
remains in place.
12
King Operating Corporation (“King”)
recognized this field presented the
perfect opportunity to exploit a low
porosity, low permeability reservoir
using modern drilling and completion
techniques. Specifically, horizontal
drilling to expose more reservoir to the
wellbore and current completion
practices which utilize multi-stage
focused fracs (See Figure 2 on
page 13 and Schematic Diagram
on pages 10 & 11).
Beginning in 2001, King began drilling
operations in the Strawn Sand Oil Field.
Encouraged by increased production,
operations have continued on a nearly
continuous basis. One of the first wells
in the field to use the latest technologies
was the King-Ernest #19-H and more
recently, the King-Ernest #34-1H,
both“Long Single Laterals.”
The King-Ernest #19H extended out
laterally to a distance of 3,499’ in a
westerly direction exposing approximately 5,722 sqft of reservoir to the
wellbore. Comparing this to an average
well drilled in the 1950’s, this is
approximately a 40 fold increase in
reservoir exposure to the wellbore (See
Figure 3 on page 17 and Schematic
Diagram on pages 10 & 11). The long
single lateral was completed on March
19th and 20th in 2010 and utilized a
plug and perf technique with a six stage
frac. Initial gauged production rates
approached a peak rate of approximately 395 BOPD (“barrels of oil per day”)
plus up to 245 MCFPD (“thousand
cubic feet per day”). Daily gauge
reports indicate that during the first
thirty-five days the #19-H produced an
average of approximately 218 BOPD
plus 201 MCFPD.
The King-Ernest #34-1H was drilled with
the assistance of an industry-leading
independent engineering firm that
specializes at optimizing reservoir
responses and emphasizes appropriate
field implementation. Their expertise
recommended changing the drilling
orientation for this well compared to
previous wells and utilizing the latest in
fracking technology. It was drilled
laterally to a distance of 2,300’ and in a
northern orientation to expose approximately 3,760 sq ft of the reservoir to the
wellbore. Initial gauged production rates
approached an impressive peak rate of
approximately 824 BOPD plus up to
919 MCFPD. During the first thirty days
of full production, the #34-1H averaged
451 BOPD and 565 MCFD. Over a
span of just over eight months, this well
has produced 48,193 BO and 98,530
MCF. Thus far, the #34-1H has produced approximately twice as much oil
as the King-Ernest #19-H and has done
it in half the production time. King
believes this well is a good barometer
for future developments.
Figure 2
The revitalization of the abandoned
Ernest Straw Sand Field began in 2001
when King re-commenced drilling
operations in the area. Horizontal
drilling programs were employed by
King and each new horizontal well
provided valuable information to help
improve drilling and completion
techniques. At this point in the field’s
development, the operator uses “Long
Single Laterals” and plug and perf
completion practices. These completions utilize multi-stage fracs to extract
maximum amount of hydrocarbons from
the Strawn Sand (See Figure 2 below).
All future horizontal wells have the
potential to expose 7,000 to 7,400 sqft
of oil saturated Strawn Sand to the
wellbore. This equates to approximately
5,000% more pay zone exposure than
in an average vertical well in the field.
Estimated initial production from these
wells has surpassed the initial estimates
of 400 BOPD and up to 400 MCFD with
the completion and production of the
#34-1H.
13
King
Technology
By philosophy and in practice, King
of excessive sand flow-back problems.
Drilling Advances
is committed to state-of-the-art methods
In early 2009, King Operating Corpora-
This drilling program will employ a
to maximize the production potential
tion (“KOC”) addressed this issue by using
small lower cost drilling rig to drill the
of its areas of operation. Some of the
resin coated sand in the final 15% to 30%
initial +/- 3000’ of the well and set and
technologies currently employed by
of the hydraulic fractures. Resin coated
cement casing at this depth. Afterward
King include:
sand has a thin coating of resin on the
a fit-for-purpose rack and pinion drilling
sand granules which adhere to each other
rig will be utilized which incorporates
creating a boundary which eliminates
the advantages of a top-drive, 1000 HP,
or greatly reduces the ability for reservoir
and additional features, allowing for
sand and/or white frac sand to flow back
faster and more efficient drilling
Hydraulic Fracturing
“Hydraulic Fracturing” describes the
technique of pumping large amounts
of sand and fluid down the wellbore
14
at very high rates and pressures. This
into the wellbore. Maintaining the frac
combination breaks the rock, which
sand in place maximizes the conductivity
increases inflow of oil and gas into the
of the fracture system, which could
wellbore, thus potentially enhancing
potentially increase rate and recovery
ultimate recoveries. Early wells
from the well while minimizing expenses
utilized white Brady or Ottawa sand
to maintain lift equipment adversely
exclusively, resulting in several instances
affected by sand production.
of long laterals nearly 1 mile in length.
King Technology
(cont.)
Completion
multi-stage fracturing along the
fracture ports; however, results from
Completion methods planned for
horizontal with a plug, perf and
recently completed wells indicate
the drilling program include cementing
fracture technique. KOC has previously
better flexibility, simplicity, and lower
a 4-1/2” liner in the horizontal
employed sophisticated systems
costs employing a plug, perf and
section of the well and performing
with open hole rock packers and
fracture method.
Technology is also applied to the
producing method in the Ernest Field
by teaming with a gas gathering
company in 2009 to install a
refrigeration plant to cool the gas and
extract natural gas liquids (“NGL’s”).
KOC has a profit sharing contract with
the gathering company, proceeds of
which are passed through to the L.P.,
and could result in an increase in
revenue from gas production as
compared to selling gas simply on
a volume basis.
15
Proof of
Concept
As with any unconventional oil field, proof of concept is paramount in creating significant value. King Operating, Inc. has
spent 10 years and an excess of $70 Million to do just that. With recent successes seen in the field, King is confident that the
most effective combination of both drilling and completion technologies have been discovered. The chart below highlights the
dramatic increase in production using the latest technologies. The #34-1H, which was completed in late December, 2010 has
to date produced more oil than all but one well in the field since inception. In fact, in just 6 months the well has out produced
the field’s average per well cumulative production. Higher initial production rates create higher reserves thus creating a higher
value for the field. The Clearview Energy II, LP is designed to potentially create significant value through proving reserves for
its investors. In today’s economic climate, publically traded oil companies are seeking to add proved reserves to their balance
sheets. King Operating, Inc. believes that there is potentially 50 Million barrels of oil in the field that could be proved after all
phases of planned drilling are complete.
16
Figure 3
17
Exit
Strategy
King recognizes the time value of
prior to initial drilling operations.
these PUD reserves allows the
money and is committed to accelerating
This process includes choosing the
purchaser to capture the upside
potential future returns through
optimal number of wells, identifying
portion of the acquisition.
enhancement of producing assets and
the best locations, as well as designing
divestiture of proven reserves. The
the drilling and completion techniques.
company’s primary strategy is to identify
Deciding on the right balance of
and acquire assets in areas with current
producing wells to offset locations,
production and exploit these proven
called Proved Undeveloped Locations
reservoirs, rather than explore for new
(PUDS), is a crucial part of preparing
ones. With this focus, King attempts to
a project for sale. Many exploration
add value to these assets through drilling
and production companies prefer to
wells and developing projects to such a
level that is attractive for acquisition.
purchase properties that have significant
development and current cash flows;
however, these projects must have
18
In order to accomplish this, King
sufficient additional drill sites to be
Operating Corporation, an affiliate of
attractive. There must be adequate
the Sponsor and Managing Partner,
undeveloped acreage for the purchaser
outlines the complete plan of
to repeat the drilling program
development for the entire prospect
established by the seller. Exploiting
As previously stated, it is the goal
of the Sponsor to acquire and develop
assets that fit the criteria these larger
companies are looking for. By focusing
its strategies, King believes it can bring
these projects full cycle and add value
to the Partnership through the divestment
of optimally developed assets.
What are
oil reserves?
Reserves are those quantities of petroleum claimed to be commercially recoverable by application of
development projects to known accumulations under defined conditions. Reserves must satisfy four criteria:
1.
2.
3.
4.
Discovered through one or more exploratory wells
Recoverable through existing technology
Commercially viable
Remaining in the ground
The three “p’s”
• Proved - Reserves claimed to have a reasonable certainty (normally at least 90% confidence) of being
recoverable under existing economic and political conditions, with existing technology.
• Probable - Probable reserves are attributed to know accumulations and claim a 50% confidence level of
recovery. Industry specialists refer to them as P50 (i.e. having a 50% certainty of being produced).
• Possible – Possible reserves are attributed to known accumulation that have a less likely chance of being
recovered than probable reserves. This term is often used for reserves which are claimed to have at least a
10% certainty of being produced (i.e. P10)
Proved Undeveloped
Reserves
Proved Undeveloped
Reserves
• Each square = 160 acre spacing
PROBABLE PROVED PROBABLE POSSIBLE
• Each
square = 160 acre
spacing
• Commercially
viable
well in green
• Commercially
well in green
• Adjacentviable
blue squares
become proved
PROVED
PROVED
reserves
POSSIBLE
• Adjacent blue squares become proved
reserves
PROBABLE POSSIBLE
PROBABLE
PROVED
POSSIBLE POSSIBLE POSSIBLE POSSIBLE
19
Program
Economics
Clearview Energy II, LP
Investment (Unit)
Intangible Cost (Estimate)
80%
Tangible Cost (Estimate)
7%
Syndication Costs (Estimate)
13%
Year 1 Estimated Intangible Drilling Cost Deduction
$160,000
Year 1 Estimated IDC Tax Deduction
$160,000
Year 1 2011 Eligible Tangible Drilling Cost Deduction (MACRS 7-Year Property, IRC 168 k(5), 100%)
$14,000
Total Estimated Deductions
$174,000
Total Estimated Reduction of Tax Liability
$60,900
Maximum Income Tax Bracket (Excluding Possible state income tax)
Net Cash Outlay (Estimated)
20
$200,000
35%
$139,100
The depletion allowance tax benefit is most likely 15% of gross income; therefore, only 85% of production income may be taxable.
The preceding projection was prepared using information deemed to be reliable as of the issue date is intended only as an approximation of what tax savings
may be expected from the partnership under certain assumed favorable conditions. The information set forth above should not be relied upon for any purpose
other than as an illustration of the tax benefits that can be realized under certain assumed conditions. Prospective partners must consult their own professionals
for tax information and advice. This information would in no way be construed or relied upon as tax advice.
Program Economics Based on 1 Unit Investment ($200,000)
The following economic model is for illustration purposes only. As with any oil and gas program, significant risk
exists that the wells in the Clearview II Program could be unproductive and an investor’s entire principal could be
lost. Furthermore, even if production is obtained in commercial quantities, there can be no assurance that it will be
in such quantities as to meet these estimates. Accordingly, the actual results for the Clearview II Program may be
significantly different than anticipated and may result in investors losing part if not all of their investment in the
Clearview II Program.
Clearview Energy II, L.P. Program Economics
Year
Oil Gross
Gas Gross
NGL Gross
(Barrels)
Oil Price
($/bbl)
Gas Price NGL Price Potential Yearly
($/Mcf)
($/bbl)
Revenue
1
537,944
968,299
136,530
83.29
3.90
29.63
104,738
2
304,495
548,091
77,281
85.31
4.29
31.65
59,530
3
186,764
336,176
47,401
86.75
4.68
33.09
36,330
4
138,242
248,835
35,086
87.38
4.97
33.72
26,496
5
111,002
199,804
28,172
87.93
5.40
34.27
21,024
This economic model is intended to show the potential cash flows, if any, that could be achieved by the Clearview II
Energy, L.P. The distributions projected in the model are net of both severance taxes and operating expenses. Certain
specific assumptions about the price of commodities, recoverable reserves, transportation contracts, and other
factors were made in this forecast. As such, the results and potential returns speculated by the economic model are
necessarily hypothetical. This model in no way is a guarantee of performance or future results.
21
KING CONSOLIDATED, INC.
North Dallas Energy Centre · 6142 Campbell Road · Dallas, Texas 75248
(972) 447-3535 office · (972) 447-3536 fax
www.kingconsolidated.com