HEFLEY LEASE

About Hefley producing lease

Summary：Production operation at the Buffalo Wallow gas field
Producing wells：Hefley 9001H, 9002H (horizontal wells, fracked)
Production start dates：August 2011 (9001H), March 2012 (9002H)
Production zone：Granite Wash-A (tight sand zone)
Working Interest：Hayabusa ONE USA LLC (100.00% )
Operator：Hayabusa Energy USA LLC
Well site production volume：400MCFD (as of July, 2017)
Products：natural gas (60%), NGL (20%), crude oil (20%)
Background of asset：Vaalco Energy Inc (NYSE: EGY) acquired the lease and drilled 2 wells in 2011 and 2012 with 100% working interests, and produced since then. Hayabusa ONE fully acquired the asset at the end of December 2016.