2016 Armadillo Field

CONFIDENTIAL INFORMATION – DISTRIBUTION IS PROHIBITED WITHOUT SDT WRITTEN PERMISSION

SDT EXECUTIVE SUMMARY ARMAD ARMADILL ILLO O FIELD FIELD - EASTER EASTERN N ECU ECUAD ADOR  OR  April, 2016 PROJECT OBJECTIVES:

– SD SDT T to ma maxi ximi mize ze asse assett val value ue by provi providi ding ng speci specifi fic c serv servic ices: es: buil build d access road, drilling platform, drill 12 wells, early production facilities, pipeline and surface facilities in a 3 year investment program for the Armadillo Armadillo Field, operated operated by Petroamazonas Petroamazonas EP. – To create create value value by by applyi applying ng state state of of the the art, art, proven proven product production ion and reservoir engineering principals along with new operating technologies. –To devel velop the Arma rmadil dillo Field eld join ointly with ECUASERVOIL OIL by product production ion optimiz optimizati ation, on, stimul stimulati ation, on, re-complet re-completion ion,, seconda secondary ry recovery, EOR, infield infield drilling drilling while yielding yielding superior superior financial financial results. results. Raise Raise USD 50 MM MM capital capital,, which which represen represents ts about about 39% of the the USD 123 MM total planned and approved investment in the field.

BACKGROUND:

CONFIDENTIAL INFORMATION – DISTRIBUTION IS PROHIBITED WITHOUT SDT WRITTEN PERMISSION

MAIN AIN SERVI RVICES TO TO BE BE PR PROVID VIDED BY ECUASE ASERVO RVOIL: Production Production Optimiz Optimization ation,, Well intervent intervention, ion, Construction Construction of of road, pipelines and Production Facilities. PAYMENT FEE: FEE: A variable rate per increment incremental al barrel of oil, indexed indexed to the the WTI WTI price. price. A minim minimum um of of USD 15 15 and and a maxi maximum mum of USD USD 33.2 33.20 0 per per barr barrel el:: WTI

30,00

40,00

50,00

55,00

60,00

65,00

70,00

RATE

15,00

19,6

24,1

26,4

28,7

30,9

33 33,20

DEVELOPMENT AND AND INV INVE ESTMENT PLAN: AN: USD 123MM for Geoscience Geoscience Studies (3D seismic seismic interpretati interpretation) on) Drilling: Drilling: 12 wells: 9 development, 2 appraisal, 1 water injection. Surface Facilities, access road, drilling platform Armadillo B, early production facilities, pipeline & Engineering. SDT & ECUASERVOIL ECUASERVOIL AGREEMENT: AGREEMENT: SD SDT T has has been been offe offere red d 39% of  ECUA ECUASE SERV RVOIL OIL in exch exchan ange ge for for obtai obtaini ning ng fina financ ncin ing g (USD (USD 50 50 MM – payment payment of this financing financing will be split split between ECUASERVOIL ECUASERVOIL and and SDT) and providin providing g Integrated Integrated Services Services for for the above above described described inves investm tmen entt plan plan.. ED EDIN INPE PETR TROL OL will will prov provid ide e the the remai remaini ning ng 10% 10% financing financing (about USD USD 12.3MM). ECUASERV ECUASERVOIL OIL will pay SDT for the provide provided d servi services ces at marke markett price prices s and will will share share with with SDT SDT 39% of  the incomes.

E CUASERVOI L

2016

Yearly Oil Production,barrels

2017

4 1. 1. 29 29 8, 8, 89 89

Rate per bopd

2023

2024

2025

2026

2027

2028

2029

2030

7 42 42 .1 .1 20 20 ,8 ,8 2

6 31 31 .7 .7 13 13 ,4 ,4 0

5 37 37 .7 .7 31 31 ,6 ,6 1

5 48 48 .7 .7 61 61 ,8 ,8 6

5 65 65 .6 .6 48 48 ,7 ,7 3

4 82 82 .1 .1 90 90 ,0 ,0 2

3 77 77 .8 .8 19 19 ,5 ,5 1

2 97 97 .5 .5 26 26 ,5 ,5 8

30,93

33,20

33,20

33,20

33,20

33,20

33,20

43.712.175,3 43.712.175,35 5

39.946.273,5 39.946.273,51 1

34.003.353,2 34.003.353,26 6

28.944.578,0 28.944.578,09 9

24.638.411,2 24.638.411,22 2

20.972.885,0 20.972.885,00 0

17.852.689,5 17.852.689,50 0

1.139.021 1.139.021,65 ,65

1.218.753,16 1.218.753,16

1.304.065 1.304.065,88

1.395.350, 1.395.350,49 49

1.493.025,0 1.493.025,03 3

1.597.536,78 1.597.536,78

1.709.36 1.709.364,35 4,35

1.829.019 1.829.019,86 ,86

1.957.051, 1.957.051,25 25

2.094.044,8 2.094.044,84 4

2.240.627,98 2.240.627,98

2.397.47 2.397.471,93 1,93

2.565.294,9 2.565.294,97 7

25.000.000,00 .000,00

1.750. 1.750.000 000,00 ,00

1.680.35 1.680.359,4 9,41 1

1.605.84 1.605.843,9 3,97 7

1.526. 1.526.112 112,46 ,46

1.440. 1.440.799 799,74 ,74

1.349. 1.349.515 515,12 ,12

1.251. 1.251.840 840,59 ,59

1.147. 1.147.328 328,84 ,84

1.035. 1.035.501 501,26 ,26

915.84 915.845,7 5,76 6

787.81 787.814,3 4,37 7

650.82 650.820,7 0,78 8

504.23 504.237,6 7,64 4

347.39 347.393,6 3,68 8

179.57 179.570,6 0,65 5

16.172 16.172.98 .984,2 4,26 6

2.000. 2.000.000 000,00 ,00

2.000.0 2.000.000, 00,00 00

2.000. 2.000.000 000,00 ,00

2.000. 2.000.000 000,00 ,00

1.000 1.000.00 .000,0 0,00 0

1.000.0 1.000.000, 00,00 00

750.00 750.000,0 0,00 0

750.00 750.000,0 0,00 0

750.00 750.000,0 0,00 0

750.00 750.000,0 0,00 0

500.00 500.000,0 0,00 0

500.00 500.000,0 0,00 0

500.00 500.000,0 0,00 0

500.00 500.000,0 0,00 0

500.00 500.000,0 0,00 0

17.500 17.500.00 .000,0 0,00 0

801.139,02

3.420.612,01

1.778.248,97

35.201.407,8 35.201.407,89 9 30.258.487,64 30.258.487,64 25.199.712,47 25.199.712,47 21.143.545,61 21.143.545,61 17.478.019,38 17.478.019,38 14.357.823,88 14.357.823,88 14.724.028,12 14.724.028,12 15.534.672,1 15.534.672,16 6 12.763.843,03 12.763.843,03

9.298.742,00 9.298.742,00

6.633.016,97 6.633.016,97

2016

33,20

12.543.607,6 12.543.607,62 2

33,20

9.877.882,59 9.877.882,59

3.479. 3.479.561 561,80 ,80

2.691. 2.691.860 860,22 ,22

2.100. 2.100.730 730,02 ,02

9.284.281,22 9.284.281,22

6.606.881,78 6.606.881,78

4.532.286,94 4.532.286,94

2019

8.461. 8.461.932 932,26 ,26

2020

7.391. 7.391.990 990,28 ,28

2021

6.200. 6.200.652 652,84 ,84

2022

5.277. 5.277.534 534,14 ,14

2023

4.427. 4.427.235 235,73 ,73

2024

3.711. 3.711.143 143,90 ,90

2025

3.839. 3.839.935 935,53 ,53

2026

2027

2028

2029

2030

5.061. 5.061.576 576,67 ,67

22.382 22.382.78 .785,0 5,00 0

28.151 28.151.07 .070,5 0,55 5

24.931 24.931.41 .417,2 7,26 6

8.917 8.917.93 .933,9 3,97 7

7.409 7.409.63 .633,2 3,25 5

6.187 6.187.74 .744,4 4,47 7

5.089 5.089.80 .805,6 5,63 3

4.152 4.152.20 .205,1 5,19 9

4.244 4.244.79 .796,1 6,11 1

4.458 4.458.44 .440,8 0,81 1

3.620 3.620.86 .869,6 9,68 8

2.576 2.576.68 .683,8 3,89 9

1.767 1.767.59 .591,9 1,91 1

1 80 80 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

2 50 50 .0 .0 00 00 ,0 ,0 0

19.447.040,22

30.330.823,92

29.593.013,59

USD 25MM Capital payments Interest over 25MM loan @ 7% -19.627.040 -19.627.040,22 ,22

33,20

2.809.567,34 2.809.567,34 338.763.826, 338.763.826,59 59

6.000.000,00

4.102. 4.102.772 772,65 ,65

2018

9.037. 9.037.990 990,20 ,20

18.218.893,74 18.779.537,77 18.779.537,77 16.008.708,64 16.008.708,64

5.061.576,67 5.061.576,67 22.382.785,00 22.382.785,00 28.151.070,55 28.151.070,55 26.739.475,63 26.739.475,63 22.866.497,36 22.866.497,36 18.999.059,6 18.999.059,63 3 15.866.011,47 15.866.011,47 13.050.783,66 13.050.783,66 10.646.679,9 10.646.679,98 8 10.884.092,59 10.884.092,59 11.431.899,50 11.431.899,50

2017

Total Revenue

7.338. 7.338.216 216,88 ,88

33,20

10 10 .6 .6 32 32 .5 .5 64 64 ,5 ,5 9

28,65

1.153. 1.153.808 808,86 ,86

33,20

TOTAL

8 4. 4. 62 62 5, 5, 52 52

1.064.506,21 1.064.506,21

6.215.385,53 6.215.385,53 29.721.001,88 29.721.001,88 37.189.060,75 37.189.060,75

33,20

2031

37.886.479,5 37.886.479,51 1

-1.192.606,6 -1.192.606,69 9

-435.298,28 -435.298,28 274090842,3 274090842,3 449.72 449.720,7 0,77 7

69.665 69.665.08 .086,0 6,09 9

-885.019,05 -885.019,05 204425756,2

2031

TOTAL 128.95 128.952.5 2.554, 54,40 40

2 50 50 .0 .0 00 00 ,0 ,0 0

3. 3. 93 93 0. 0. 00 00 0, 0, 00 00 79.370.877,74

994.865,62 994.865,62

1.064.506,21 1.064.506,21

2.565.294,9 2.565.294,97 7

25.000.000,00 .000,00

1.750. 1.750.000 000,00 ,00

1.680.35 1.680.359,4 9,41 1

1.605.84 1.605.843,9 3,97 7

1.526. 1.526.112 112,46 ,46

1.440. 1.440.799 799,74 ,74

1.349. 1.349.515 515,12 ,12

1.251. 1.251.840 840,59 ,59

1.147. 1.147.328 328,84 ,84

1.035. 1.035.501 501,26 ,26

915.84 915.845,7 5,76 6

787.81 787.814,3 4,37 7

650.82 650.820,7 0,78 8

504.23 504.237,6 7,64 4

347.39 347.393,6 3,68 8

179.57 179.570,6 0,65 5

16.172 16.172.98 .984,2 4,26 6

-28.264.112, -28.264.112,87 87 -10.205.094, -10.205.094,20 20

25.156.20 25.156.204,93 4,93

21.936.551, 21.936.551,65 65

5.923.068,35 5.923.068,35

4.414.767,64 4.414.767,64

3.192.878,85 3.192.878,85

2.094.940,01 2.094.940,01

1.157.339,58

1.249.930,49 1.249.930,49

1.463.575,19 1.463.575,19

626.004,06

-418.181,72 -418.181,72

-1.227.273,7 -1.227.273,71 1

-2.994.865, -2.994.865,62 62

-1.227.273 -1.227.273,71 ,71

-2.994.865,62 -2.994.865,62

45.046.463, 45.046.463,95 95

43.819.190, 43.819.190,25 25

3.567.951,99

NPV

2022 8 71 71 .8 .8 24 24 ,6 ,6 4

24,10

-1.192.606,6 -1.192.606,69 9

IRR

2021 1 . 0 24 24 .1 .1 97 97 ,3 ,3 9

994.865,62 994.865,62

Initial investment repayment USD 6 MM

Cummulati Cummulative ve Cash Flow

2020 1 .2 .2 03 03 .2 .2 01 01 ,0 ,0 1

11.761.390,1 11.761.390,16 6

2.000. 2.000.000 000,00 ,00

CAPEX

2019 1 . 4 13 13 .4 .4 89 89 ,9 ,9 1

19,55

Interest over 25MM loan @ 7%

SDT OPEX

1 .3 .3 22 22 .3 .3 90 90 ,2 ,2 1

807.393,31 807.393,31

USD 25MM Capital payments ECUASERVOIL OPEX

2018

4 88 88 .0 .0 24 24 ,4 ,4 9

1.139.021 1.139.021,65 ,65

1.218.753,16 1.218.753,16

1.304.065 1.304.065,88

1.395.350, 1.395.350,49 49

1.493.025,0 1.493.025,03 3

1.597.536,78 1.597.536,78

1.709.36 1.709.364,35 4,35

1.829.019 1.829.019,86 ,86

1.957.051, 1.957.051,25 25

2.094.044,8 2.094.044,84 4

2.240.627,98 2.240.627,98

5.307.949,46

4.778.466,32

15.000.000,00 .000,00

25.000.000, 25.000.000,00 00

10.000.000,00 10.000.000,00

-4.627.040,2 -4.627.040,22 2

-3.264.112,8 -3.264.112,87 7

-3.773.046,1 -3.773.046,19 9

19.848.2 19.848.255,47 55,47

17.158.085,33 .158.085,33

5.923.068,35 5.923.068,35

4.414.767,64 4.414.767,64

3.192.878,85 3.192.878,85

2.094.940,01 2.094.940,01

1.157.339,58

1.249.930,49 1.249.930,49

1.463.575,19 1.463.575,19

626.004,06

-418.181,72 -418.181,72

0,00

-4.627.040, -4.627.040,22 22

-7.891.153, -7.891.153,10 1 0 -11.664.199,29 64.199,29

8.184.056,1 8.184.056,18 8

25.342.141, 25.342.141,51 51

31.265.209, 31.265.209,86 86

35.679.977, 35.679.977,50 50

38.872.856, 38.872.856,36 36

40.967.796, 40.967.796,36 36

42.125.135, 42.125.135,94 94

43.375.066, 43.375.066,43 43

44.838.641, 44.838.641,62 62

45.464.645, 45.464.645,68 68

-4.627.040,2 -4.627.040,22 2

-7.891.153,1 -7.891.153,10 0

25.342.141,5 25.342.141,51 1

31.265.209,86 31.265.209,86

35.679.9 35.679.977,50 77,50

38.872.85 38.872.856,36 6,36

40.967.796 40.967.796,36 ,36

42.125.135,9 42.125.135,94

43.375.066,43 43.375.066,43

44.838.64 44.838.641,62 1,62

45.464.645 45.464.645,68 ,68

62% 22.934.817,99

-11.664. -11.664.199,29 199,29

8.184.056,18 8.184.056,18

2.397.47 2.397.471,93 1,93

13.654.367,77

45.046.463, 45.046.463,95 95

43.819.190,2 43.819.190,25 5

40.824.324,63

40.824.324,63 24.324,63