Exhibit 99.1



Cawley,
Gillespie & Associates, Inc.



petroleum
consultants



|13640
    BRIARWICK DRIVE, SUITE 100 |  | 306
    WEST SEVENTH STREET, SUITE 302 |  | 1000
    LOUISIANA STREET, SUITE 1900
|------------------------------------ |  | -------------------------------------- |  | -------------------------------------
|AUSTIN, TEXAS 78729-1707             |  | FORT WORTH, TEXAS
    76102-4987       |  | HOUSTON, TEXAS 77002-5008            
|512-249-7000                         |  | 817- 336-2461                          |  | 713-651-9944                         
|                                     |  | www.cgaus.com                          |  |                                      



February 7, 2023



Bank of New York
Mellon Trust Company, N.A.

as Trustee of MV
Oil Trust

Attn: Elaina C.
Rodgers

919 Congress Avenue

Austin, Texas 78701



|Re: | Evaluation Summary                       |  | Pursuant to the
    Guidelines of the     
|--- | ---------------------------------------- |  | ------------------------------------------
|    | MV Oil Trust Net
    Profits Interests   |  | Securities and
    Exchange Commission for
|    | Total Proved Reserves                    |  | Reporting Corporate Reserves
    and      
|    | Certain Oil and Gas Assets –
    KS & CO |  | Future Net Revenue                        
|    | As of December
    31, 2022              |  |                                           



Ladies and Gentlemen:



As
requested, this report was prepared on February 7, 2023 for MV Oil Trust (“Trust”) for the purpose of submitting our
estimates of total proved reserves and forecasts of economics attributable to the Trust term net profits interests. We evaluated 100%
of the Company’s reserves, which are located in certain oil and gas properties in Kansas and Colorado. This evaluation, effective
December 31, 2022, was prepared using constant prices and costs, and conforms to Item 1202(a)(8) of Regulation S-K and other rules of
the Securities and Exchange Commission (SEC). A composite summary of the proved reserves is presented below:



|                         |  |  |                                                    |  | Proved    |  |           | Proved        |  |  |             |  |  |        |        
|------------------------ |  |  | -------------------------------------------------- |  | --------- |  | --------- | ------------- |  |  | ----------- |  |  | ------ | -------
|                         |  |  |                                                    |  | Developed |  |           | Developed     |  |  | Proved      |  |  | Total  |        
|                         |  |  |                                                    |  | Producing |  |           | Non-Producing |  |  | Undeveloped |  |  | Proved |        
|Net Reserves             |  |  |                                                    |  |           |  |           |               |  |  |             |  |  |        |        
|Oil                      |  |  | -
                                            MBBL |  |           |  | 1,858.0   |               |  |  | 8.0         |  |  |        | 70.7   
|Gas                      |  |  | -
                                            MMCF |  |           |  | 91.2      |               |  |  | 0.0         |  |  |        | 0.0    
|NGL                      |  |  | -
                                            MBBL |  |           |  | 0.3       |               |  |  | 0.0         |  |  |        | 0.0    
|                         |  |  |                                                    |  |           |  |           |               |  |  |             |  |  |        |        
|Revenue                  |  |  |                                                    |  |           |  |           |               |  |  |             |  |  |        |        
|Oil                      |  |  | -
                                            M$   |  |           |  | 165,673.9 |               |  |  | 710.7       |  |  |        | 6,307.6
|Gas                      |  |  | -
                                            M$   |  |           |  | 556.4     |               |  |  | 0.0         |  |  |        | 0.0    
|NGL                      |  |  | -
                                            M$   |  |           |  | 12.2      |               |  |  | 0.0         |  |  |        | 0.0    
|Severance Taxes          |  |  | -
                                            M$   |  |           |  | 915.6     |               |  |  | 31.9        |  |  |        | 212.7  
|Ad Valorem Taxes         |  |  | -
                                            M$   |  |           |  | 3,874.9   |               |  |  | 42.6        |  |  |        | 313.3  
|Operating Expenses       |  |  | -
                                            M$   |  |           |  | 65,033.2  |               |  |  | 21.5        |  |  |        | 717.4  
|Future Development Costs |  |  | -
                                            M$   |  |           |  | 306.4     |               |  |  | 270.0       |  |  |        | 733.3  
|Future Net Cash Flow     |  |  | -
                                            M$   |  |           |  | 76,889.8  |               |  |  | 275.7       |  |  |        | 3,464.8
|Discounted @ 10%         |  |  | -
                                            M$   |  |           |  | 66,083.2  |               |  |  | 216.0       |  |  |        | 2,912.6
|(Present
    Worth)      |  |  |                                                    |  |           |  |           |               |  |  |             |  |  |        |        













MV
Oil Trust Net Profits Interests

February
7, 2023

Page
2



Future
revenue was calculated prior to deducting state production taxes and ad valorem taxes; however, future net cash flow was calculated
after deducting these taxes, future development costs, and operating expenses, but before federal income taxes. Future net cash flowhas been discounted at an annual rate of ten (10) percent, in accordance with SEC guidelines, to determine net present worth.
Present worth indicates the time value of money and should not be construed as being fair market value.



The
oil reserves include oil and condensate. Oil and natural gas liquid (“NGL”) volumes are expressed in barrels (42 U.S. gallons).
Gas volumes are expressed in thousands of standard cubic feet (“MCF”) at contract temperature and pressure base. Barrels
of oil equivalent (“BOE”) is expressed as oil and NGL volumes in barrels plus gas volumes in Mcf divided by six (6) to convert
to barrels. Our estimates include proved reserves only. Neither probable or possible reserves, nor interest in acreage beyond the location
of proven reserves have been estimated.



Proved
Developed reserves are the summation of the Proved Developed Producing and Proved Developed Non-Producing reserve estimates. Proved Developed
reserves were estimated at 1,866.0 Mbbl oil, 91.2 MMcf gas and 0.3 Mbbl NGLs (or 1,881.5 MBOE). Of the Proved Developed reserves, 1,873.5
MBOE were attributed to producing zones in existing wells and 8.0 MBOE were attributed to zones in existing wells not producing.



Net Profits
Calculations



The
net profits interests entitle the Trust to receive 80% of the net proceeds from the sale of hydrocarbon production within the Company
underlying properties. The net profits interests will terminate on the later to occur of (1) June 30, 2026, or (2) the time when 14.4
MMBOE have been produced from the underlying properties and sold, and the trust will soon thereafter wind up its affairs and terminate.
For this report, it was estimated that the Trust would terminate June 30, 2026 based on the calculation that 14.4 MMBOE would be produced
from the underlying properties and sold (which amount is the equivalent of 11.5 MMBOE in respect of the trust’s right to receive
80% of the net proceeds from the underlying properties pursuant to the net profits interest) by February 29, 2024. The cash flow tables
in this report reflect the termination date of June 30, 2026.



Hydrocarbon Pricing



The
base SEC oil and gas prices calculated for December 31, 2022 were $93.67/BBL and $6.358/MMBTU, respectively. As specified by the SEC,
a company must use a 12-month average price, calculated as the unweighted arithmetic average of the first-day-of-the-month price for
each month within the 12-month period prior to the end of the reporting period. The base oil price is based upon WTI-Cushing spot prices
(EIA) during 2022 and the base gas price is based upon Henry Hub spot prices (Gas Daily) during 2022.



Oil
price differentials were forecast at -$4.50 per BBL for all properties. Gas price and NGL price differentials varied by property. The
base price differentials may include local basis differentials, transportation, gas shrinkage, gas heating value (BTU content) and/or
crude quality and gravity corrections. After these adjustments, the net realized prices for the SEC price case over the life of the proved
properties was estimated to be $89.17/BBL for oil, $6.103/MMBTU for gas, and $37.47/BBL for NGLs. All economic factors were held constant
in accordance with SEC guidelines.



Economic Parameters



Ownership
was accepted as furnished and has not been independently confirmed. Oil and gas price differentials, lease operating expenses (LOE),
workover expenses, overhead expenses, and future development costs were calculated and prepared by you and were thoroughly reviewed by
us for accuracy and completeness. LOE (column 22) and overhead (COPAS, column 26) were determined at the well level using averages determined
from historical lease operating statements. Workover Expenses (column 25) were applied to cover the annual costs for recurring well work
and wellbore abandonment. All economic parameters, including expenses and future development costs, were held constant (not escalated)
throughout the life of these properties.













MV
Oil Trust Net Profits Interests

February
7, 2023

Page
3



Severance
tax rates were applied at normal state percentages of oil, gas and NGL revenue, except for those Kansas producing properties that are
severance tax exempt. Ad valorem taxes of 2.0% of total revenue were applied to each property as provided by your office. Oil and gas
conservation tax rates were applied to all Kansas properties at current rates of $0.144 per BBL and $0.0205 per MCF, respectively.



Reserve Estimation Methods



The
methods employed in estimating reserves are described in page two (2) of the Appendix. We evaluated 854 PDP properties for this report,
most with monthly production data typically updated through 10/31/2022, as provided by the Company. Certain PDP properties consist of
multiple-well leases. Reserves for PDP wells were estimated using production performance methods for the vast majority of properties.
Certain new producing properties with very little production history were forecast using a combination of production performance and
analogy to similar production, both of which are considered to provide a relatively high degree of accuracy.



Non-producing
reserve estimates, for both developed and undeveloped properties, were forecast using either volumetric or analogy methods, or a combination
of both. These methods provide a relatively high degree of accuracy for predicting PDNP and PUD reserves for the Company properties,
due to the mature nature of their properties targeted for development and an abundance of subsurface control data. The assumptions, data,
methods and procedures used herein are appropriate for the purpose served by this report.



SEC Conformance and Regulations



The
reserve classifications and the economic considerations used herein for the SEC pricing scenario conform to the criteria of the SEC as
defined in pages three (3) and four (4) of the Appendix. The reserves and economics are predicated on regulatory agency classifications,
rules, policies, laws, taxes and royalties currently in effect except as noted herein. The possible effects of changes in legislation
or other Federal or State restrictive actions which could affect the reserves and economics have not been considered. However, we do
not anticipate nor are we aware of any legislative changes or restrictive regulatory actions that may impact the recovery of reserves.



This
evaluation includes 15 PUD cases based in various fields throughout Kansas, which includes a mix of new drills, deepenings, workovers
and recompletions. Certain PUD properties consist of multiple development locations. Each of the drilling locations proposed as part
of the Company development plan conforms to the proved undeveloped standards as set forth by the SEC. In our opinion, the Company has
indicated they have intent to complete this development plan within the next five (5) years. Furthermore, the Company has demonstrated
that they have the proper company staffing, financial backing and prior development success to ensure this five (5) year development
plan will be fully executed.



General Discussion



The
estimates and forecasts were based upon interpretations of data furnished by your office and available from our files. To some extent
information from public records has been used to check and/or supplement these data. The basic engineering and geological data were subject
to third party reservations and qualifications. Nothing has come to our attention, however, that would cause us to believe that we are
not justified in relying on such data. All estimates represent our best judgment based on the data available at the time of preparation.
Due to inherent uncertainties in future production rates, commodity prices and geologic conditions, it should be realized that the reserve
estimates, the reserves actually recovered, the revenue derived therefrom and the actual cost incurred could be more or less than the
estimated amounts.













MV
Oil Trust Net Profits Interests

February
7, 2023

Page
4



An
on-site field inspection of the properties has not been performed. The mechanical operation or condition of the wells and their related
facilities have not been examined nor have the wells been tested by Cawley, Gillespie & Associates, Inc. Possible environmental liability
related to the properties has not been investigated nor considered. The cost of plugging and the salvage value of equipment at abandonment
have been included as part of the workover expenses described previously.



Cawley,
Gillespie & Associates, Inc. is a Texas Registered Engineering Firm (F-693), made up of independent registered professional engineers
and geologists that have provided petroleum consulting services to the oil and gas industry for over 60 years. This evaluation was supervised
by W. Todd Brooker, President at Cawley, Gillespie & Associates, Inc. and a State of Texas Licensed Professional Engineer (License
#83462). We do not own an interest in the properties or MV Partners, LLC or MV Oil Trust and are not employed on a contingent basis.
We have used all methods and procedures that we consider necessary under the circumstances to prepare this report. Our work-papers and
related data utilized in the preparation of these estimates are available in our office. We consent to the filing of this report as an
exhibit to the Annual Report on Form 10-K of MV Oil Trust for the year end December 31, 2022.



| | Yours very truly,     | 
| | --------------------- | 
| |                       | 
| | W. Todd Brooker, P.E. | 
| | President             | 



| | CAWLEY,
    GILLESPIE & ASSOCIATES, INC.     
| | ---------------------------------------------
| | Texas Registered Engineering
    Firm (F-693)
| |                                              













APPENDIXMethods Employed in the Estimation of Reserves



The four methods
customarily employed in the estimation of reserves are (1) production performance, (2) material balance, (3) volumetric and
(4) analogy. Most estimates, although based primarily on one method, utilize other methods depending on the nature and extent
of the data available and the characteristics of the reservoirs.



Basic information
includes production, pressure, geological and laboratory data. However, a large variation exists in the quality, quantity and types of
information available on individual properties. Operators are generally required by regulatory authorities to file monthly production
reports and may be required to measure and report periodically such data as well pressures, gas-oil ratios, well tests, etc.
As a general rule, an operator has complete discretion in obtaining and/or making available geological and engineering data. The resulting
lack of uniformity in data renders impossible the application of identical methods to all properties and may result in significant differences
in the accuracy and reliability of estimates.



A brief discussion
of each method, its basis, data requirements, applicability and generalization as to its relative degree of accuracy follows:



Production
performance.This method employs graphical analyses of production data on the
premise that all factors which have controlled the performance to date will continue to control and that historical trends can be extrapolated
to predict future performance. The only information required is production history. Capacity production can usually be analyzed from
graphs of rates versus time or cumulative production. This procedure is referred to as “decline curve” analysis. Both capacity
and restricted production can, in some cases, be analyzed from graphs of producing rate relationships of the various production components.
Reserve estimates obtained by this method are generally considered to have a relatively high degree of accuracy with the degree of accuracy
increasing as production history accumulates.



Material
balance.This method employs the analysis of the relationship of production
and pressure performance on the premise that the reservoir volume and its initial hydrocarbon content are fixed and that this initial
hydrocarbon volume and recoveries therefrom can be estimated by analyzing changes in pressure with respect to production relationships.
This method requires reliable pressure and temperature data, production data, fluid analyses and knowledge of the nature of the reservoir.
The material balance method is applicable to all reservoirs, but the time and expense required for its use is dependent on the nature
of the reservoir and its fluids. Reserves for depletion type reservoirs can be estimated from graphs of pressures corrected for compressibility
versus cumulative production, requiring only data that are usually available. Estimates for other reservoir types require extensive data
and involve complex calculations most suited to computer models which makes this method generally applicable only to reservoirs where
there is economic justification for its use. Reserve estimates obtained by this method are generally considered to have a degree of accuracy
that is directly related to the complexity of the reservoir and the quality and quantity of data available.



Volumetric.This
method employs analyses of physical measurements of rock and fluid properties to calculate the volume of hydrocarbons in-place. The data
required are well information sufficient to determine reservoir subsurface datum, thickness, storage volume, fluid content and location.
The volumetric method is most applicable to reservoirs which are not susceptible to analysis by production performance or material balance
methods. These are most commonly newly developed and/or no-pressure depleting reservoirs. The amount of hydrocarbons in-place that can
be recovered is not an integral part of the volumetric calculations but is an estimate inferred by other methods and a knowledge of the
nature of the reservoir. Reserve estimates obtained by this method are generally considered to have a low degree of accuracy; but the
degree of accuracy can be relatively high where rock quality and subsurface control is good and the nature of the reservoir is uncomplicated.



Analogy.This
method, which employs experience and judgment to estimate reserves, is based on observations of similar situations and includes consideration
of theoretical performance. The analogy method is a common approach used for “resource plays,” where an abundance of wells
with similar production profiles facilitates the reliable estimation of future reserves with a relatively high degree of accuracy. The
analogy method may also be applicable where the data are insufficient or so inconclusive that reliable reserve estimates cannot be made
by other methods. Reserve estimates obtained in this manner are generally considered to have a relatively low degree of accuracy.



Much of the information
used in the estimation of reserves is itself arrived at by the use of estimates. These estimates are subject to continuing change as
additional information becomes available. Reserve estimates which presently appear to be correct may be found to contain substantial
errors as time passes and new information is obtained about well and reservoir performance.





1







APPENDIX



Reserve Definitions
and Classifications



The Securities and
Exchange Commission, in SX Reg. 210.4-10 dated November 18, 1981, as amended on September 19, 1989 and January 1, 2010,
requires adherence to the following definitions of oil and gas reserves:



“(22)Proved
oil and gas reserves.   Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of
geoscience and engineering data, can be estimated with reasonable certainty to be economically producible — from
a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations — prior
to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless
of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced
or the operator must be reasonably certain that it will commence the project within a reasonable time.



| | “(i) | The
                                            area of a reservoir considered as proved includes: (A) The area identified by drilling
                                            and limited by fluid contacts, if any, and (B) Adjacent undrilled portions of the reservoir
                                            that can, with reasonable certainty, be judged to be continuous with it and to contain economically
                                            producible oil or gas on the basis of available geoscience and engineering data.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(ii) | In
                                            the absence of data on fluid contacts, proved quantities in a reservoir are limited by the
                                            lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering,
                                            or performance data and reliable technology establishes a lower contact with reasonable certainty.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(iii) | Where
                                            direct observation from well penetrations has defined a highest known oil (HKO) elevation
                                            and the potential exists for an associated gas cap, proved oil reserves may be assigned in
                                            the structurally higher portions of the reservoir only if geoscience, engineering, or performance
                                            data and reliable technology establish the higher contact with reasonable certainty.
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(iv) | Reserves
                                            which can be produced economically through application of improved recovery techniques (including,
                                            but not limited to, fluid injection) are included in the proved classification when: (A) Successful
                                            testing by a pilot project in an area of the reservoir with properties no more favorable
                                            than in the reservoir as a whole, the operation of an installed program in the reservoir
                                            or an analogous reservoir, or other evidence using reliable technology establishes the reasonable
                                            certainty of the engineering analysis on which the project or program was based; and (B) The
                                            project has been approved for development by all necessary parties and entities, including
                                            governmental entities.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(v) | Existing
                                            economic conditions include prices and costs at which economic producibility from a reservoir
                                            is to be determined. The price shall be the average price during the 12-month period prior
                                            to the ending date of the period covered by the report, determined as an unweighted arithmetic
                                            average of the first-day-of-the-month price for each month within such period, unless prices
                                            are defined by contractual arrangements, excluding escalations based upon future conditions.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(6) | Developed
                                            oil and gas reserves.   Developed oil and gas reserves are reserves
                                            of any category that can be expected to be recovered:
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(i) | Through
                                            existing wells with existing equipment and operating methods or in which the cost of the
                                            required equipment is relatively minor compared to the cost of a new well; and
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(ii) | Through
                                            installed extraction equipment and infrastructure operational at the time of the reserves
                                            estimate if the extraction is by means not involving a well.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





2







“(31)Undeveloped
oil and gas reserves.   Undeveloped oil and gas reserves are reserves of any category that are expected to be
recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.



| | “(i) | Reserves
                                            on undrilled acreage shall be limited to those directly offsetting development spacing areas
                                            that are reasonably certain of production when drilled, unless evidence using reliable technology
                                            exists that establishes reasonable certainty of economic producibility at greater distances.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(ii) | Undrilled
                                            locations can be classified as having undeveloped reserves only if a development plan has
                                            been adopted indicating that they are scheduled to be drilled within five years, unless
                                            the specific circumstances, justify a longer time.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(iii) | Under
                                            no circumstances shall estimates for undeveloped reserves be attributable to any acreage
                                            for which an application of fluid injection or other improved recovery technique is contemplated,
                                            unless such techniques have been proved effective by actual projects in the same reservoir
                                            or an analogous reservoir, as defined in paragraph (a)(2) of this section, or by other evidence
                                            using reliable technology establishing reasonable certainty.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



“(18)Probable
reserves.   Probable reserves are those additional reserves that are less certain to be recovered than proved
reserves but which, together with proved reserves, are as likely as not to be recovered.



| | “(i) | When
                                            deterministic methods are used, it is as likely as not that actual remaining quantities recovered
                                            will exceed the sum of estimated proved plus probable reserves. When probabilistic methods
                                            are used, there should be at least a 50% probability that the actual quantities recovered
                                            will equal or exceed the proved plus probable reserves estimates.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(ii) | Probable
                                            reserves may be assigned to areas of a reservoir adjacent to proved reserves where data control
                                            or interpretations of available data are less certain, even if the interpreted reservoir
                                            continuity of structure or productivity does not meet the reasonable certainty criterion.
                                            Probable reserves may be assigned to areas that are structurally higher than the proved area
                                            if these areas are in communication with the proved reservoir.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(iii) | Probable
                                            reserves estimates also include potential incremental quantities associated with a greater percentage
                                            recovery of the hydrocarbons in place than assumed for proved reserves.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(iv) | See
                                            also guidelines in paragraphs (17)(iv) and (17)(vi) of this section (below).
| | ----- | ----------------------------------------------------------------------------------------------------------------------------



“(17)Possible
reserves.   Possible reserves are those additional reserves that are less certain to be recovered than probable
reserves.



| | “(i) | When
                                            deterministic methods are used, the total quantities ultimately recovered from a project
                                            have a low probability of exceeding proved plus probable plus possible reserves. When probabilistic
                                            methods are used, there should be at least a 10% probability that the total quantities ultimately
                                            recovered will equal or exceed the proved plus probable plus possible reserves estimates.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(ii) | Possible
                                            reserves may be assigned to areas of a reservoir adjacent to probable reserves where data
                                            control and interpretations of available data are progressively less certain. Frequently,
                                            this will be in areas where geoscience and engineering data are unable to define clearly
                                            the area and vertical limits of commercial production from the reservoir by a defined project.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(iii) | Possible
                                            reserves also include incremental quantities associated with a greater percentage recovery
                                            of the hydrocarbons in place than the recovery quantities assumed for probable reserves.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(iv) | The
                                            proved plus probable and proved plus probable plus possible reserves estimates must be based
                                            on reasonable alternative technical and commercial interpretations within the reservoir or
                                            subject project that are clearly documented, including comparisons to results in successful
                                            similar projects.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





3







| | “(v) | Possible
                                            reserves may be assigned where geoscience and engineering data identify directly adjacent
                                            portions of a reservoir within the same accumulation that may be separated from proved areas
                                            by faults with displacement less than formation thickness or other geological discontinuities
                                            and that have not been penetrated by a wellbore, and the registrant believes that such adjacent
                                            portions are in communication with the known (proved) reservoir. Possible reserves may be
                                            assigned to areas that are structurally higher or lower than the proved area if these areas
                                            are in communication with the proved reservoir.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | “(vi) | Pursuant
                                            to paragraph (22)(iii) of this section (above), where direct observation has defined a highest
                                            known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil
                                            reserves should be assigned in the structurally higher portions of the reservoir above the
                                            HKO only if the higher contact can be established with reasonable certainty through reliable
                                            technology. Portions of the reservoir that do not meet this reasonable certainty criterion
                                            may be assigned as probable and possible oil or gas based on reservoir fluid properties and
                                            pressure gradient interpretations.”
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Instruction 4 of
Item 2(b) of Securities and Exchange Commission Regulation S-K was revised January 1, 2010 to state that “a registrant
engaged in oil and gas producing activities shall provide the information required by Subpart 1200 of Regulation S-K.” This
is relevant in that Instruction 2 to paragraph (a)(2) states: “The registrant is permitted, but not required, to disclose
probable or possible reserves pursuant to paragraphs (a)(2)(iv) through (a)(2)(vii) of this Item.”



“(26)Reserves.   Reserves
are estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date,
by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation
that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and gas
or related substances to market, and all permits and financing required to implement the project.



“Note
to paragraph (26):Reserves should not be assigned to adjacent reservoirs isolated
by major, potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should
not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (i.e., absence of reservoir,
structurally low reservoir, or negative test results). Such areas may contain prospective resources (i.e., potentially recoverable
resources from undiscovered accumulations).”







4