Nextraction Notes Initial Flow Rates for North Pinedale Project

Nextraction announced, along with joint venture and operating partner Vantage, that the initial production flow rates and thirty day flow rates from the 13 -stage frac located only in the lower zones of the Noble #6-24 well (the Mesaverde and Lower Lance formations) have been completed. After stabilizing, the Noble #6-24 had an initial 24 hour flow rate of 1.1 million cubic feet of gas (MMCFG), 29 barrels of condensate and 230 barrels of water on a 24/64ths inch choke. These initial flow rates have subsequently been filed with the Wyoming Oil and Gas Conservation Commission. The well, drilled to a 14,481 foot total measured depth (4,525 meters), with a 3,000 foot (937.5 meter) deviation, successfully extends production along the northern extent of the prolific Pinedale Anticline in Sublette County, Wyoming.

Company President, Mark S. Dolar, summarized the flow rates as follows, "We are pleased with the initial flowback rates on this partial completion of the Noble #6-24 well. We made a decision to frac and complete only 13 of the 21 multi-stages planned for the well when it became apparent natural gas prices were going to continue to remain "soft" at the Opal market hub this year. We opened up 462 feet (144 meters) of pay in the lower zones, and left 340 feet (106 meters) of the more porous Middle and Upper Lance and Tertiary formations for completion at a later date. Daily production rates are expected to increase substantially when the additional eight zones are perforated and frac'd."

The Noble #6-24 well currently has higher than average oil/gas ratio (approximately 3 barrels of condensate per thousand cubic feet of gas) than other wells on the Pinedale Anticline (which typically average 1-2 barrels of condensate per thousand cubic feet of gas for offset locations). This indicates the bottomhole location of the Noble #6-24 may be located in or near the oil-gas leg of the Pinedale Anticline.

The Company plans to run a production log to determine gas volumes of each frac'd interval and will then run production tubing to the lowest producing interval. After the tubing is set, gas production volumes should increase while water production decreases, which is consistent with other producing wells to the south of the Noble #6-24. July production rates totaled 20,291 MCFG; 511 barrels of condensate, and 3,260 barrels of water. Daily average production for twenty six (26) days in July has been 780 mcfg, 21 barrels of condensate and 151 barrels of water per day while producing through a 24/64ths inch choke for the first half of the month, and a 32/64ths inch choke for the second half of the month.

Nextraction has recently increased its interest in the northern portion of the Pinedale Anticline by 1,023 acres and now owns 3,574 acres with an experienced operator in the region.

A recent reserve report completed indicates average recovery of 4.977 Billion Cubic Feet (BCF) of gas and 59.7 Thousand Barrels of Condensate (MBC) for the Noble #6-24. The report also indicates a 32 well program has Possible Reserves (P3) of 79.8 billion cubic feet of gas (BCFG) and 959,000 barrels of condensate net to the Company, resulting in projected Future Net Revenue of US $112.311 million, discounted at 10% annually. The reserve report is modeled with the Company owning 100% interest in two wells and receiving all of the revenues until 150% of the invested capital costs are recovered. After 150% of payout is received, the Company will revert to a 73.75% interest in the two wells. Nextraction will then participate as a 25% interest owner in all subsequent wells.