SO YOU THINK YOU WANT TO START AN OIL AND GAS COMPANY?

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“SO YOU THINK YOU WANT TO START AN OIL AND GAS COMPANY?”

Petroleum Engineers Club of Dallas. April 11, 2014

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D

ISCLAIMER

THE INFORMATION CONTAINED IN THIS PRESENTATION IS HIGHLY CONFIDENTIAL. EXCEPT AS REQUIRED BY LAW OR REGULATORY REQUIREMENTS, BY PARTICIPATING IN THIS PRESENTATION, YOU AGREE TO MAINTAIN THE CONFIDENTIALITY OF THE INFORMATION CONTAINED HEREIN AND AGREE THAT YOU WILL NOT REPRODUCE OR DISTRIBUTE SUCH INFORMATION TO ANY OTHER PERSON OR USE SUCH INFORMATION FOR ANY PURPOSE OTHER THAN TO EVALUATE YOUR POTENTIAL PARTICIPATION IN AN OFFERING OF THE INTERESTS OF THE FUND.

ACTUAL RETURNS ON INVESTMENTS WILL DEPEND ON, AMONG OTHER FACTORS, FUTURE OPERATING RESULTS, THE VALUE OF THE ASSETS AND MARKET CONDITIONS AT THE TIME OF DISPOSITION, LEGAL AND CONTRACTUAL RESTRICTIONS ON TRANSFER THAT MAY LIMIT LIQUIDITY, FEES AND ANY RELATED TRANSACTION COSTS AND THE TIMING AND MANNER OF SALE ALL OF WHICH MAY DIFFER FROM THE ASSUMPTIONS AND CIRCUMSTANCES ON WHICH THE TARGET RETURNS CONTAINED IN THIS PRESENTATION ARE BASED. ACCORDINGLY, THE ACTUAL RETURNS ON INVESTMENT MAY DIFFER MATERIALLY FROM THE TARGET RETURNS INDICATED IN THIS PRESENTATION. IT IS ANTICIPATED THAT THERE WILL BE NO SECONDARY MARKET FOR THE INTERESTS IN THE FUND AND CERTAIN STATEMENTS CONTAINED IN THIS PRESENTATION ARE BASED ON CURRENT EXPECTATIONS, ESTIMATES, PROJECTIONS, OPINIONS AND BELIEFS OF THE SPONSORS OF THE FUND. SUCH STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS, AND UNDUE RELIANCE SHOULD NOT BE PLACED THEREON. ADDITIONALLY, THIS PRESENTATION CONTAINS “FORWARD‐LOOKING STATEMENTS.” ACTUAL EVENTS OR RESULTS OR THE ACTUAL PERFORMANCE OF THE FUND MAY DIFFER MATERIALLY FROM THOSE REFLECTED OR CONTEMPLATED IN SUCH FORWARD‐LOOKING STATEMENTS. CERTAIN ECONOMIC AND MARKET INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM PUBLISHED SOURCES PREPARED BY THIRD PARTIES AND IN CERTAIN CASES HAS NOT BEEN UPDATED THROUGH THE DATE HEREOF. WHILE SUCH SOURCES ARE BELIEVED TO BE RELIABLE, NEITHER THE FUND, ITS SPONSORS, ADVISORS, NOR THEIR RESPECTIVE AFFILIATES, AGENTS OR EMPLOYEES ASSUME ANY LIABILITY OR RESPONSIBILITY FOR THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION AND TAKE NO RESPONSIBILITY FOR ANY LOSS OR DAMAGE SUFFERED AS A RESULT OF ANY OMISSION, INADEQUACY OR INACCURACY THEREIN. RECIPIENTS ACKNOWLEDGE THAT NO REPRESENTATION OR WARRANTY IS GIVEN AS TO THE ACCURACY OF ANY OF THE INFORMATION CONTAINED IN THIS PRESENTATION.

INTERESTS IN THE FUND HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT, OR ANY STATE OR OTHER SECURITIES LAWS OR THE LAWS OF ANY NON US JURISDICTION THE INTERESTS WILL BE OFFERED AND SOLD FOR INVESTMENT ONLY TO QUALIFYING INVESTORS PURSUANT TO THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED BY SECTION 4(2) THEREOF AND REGULATION D OR REGULATION S PROMULGATED THEREUNDER AND IN COMPLIANCE WITH THE APPLICABLE SECURITIES LAWS OF THE STATES AND OTHER JURISDICTIONS (INCLUDING NON‐U.S. JURISDICTIONS) WHERE THE OFFERING WILL BE MADE.

THERE WILL BE NO PUBLIC MARKET FOR INTERESTS IN THE FUND, AND THERE IS NO OBLIGATION ON THE PART OF ANY PERSON TO REGISTER THE INTERESTS UNDER THE SECURITIES ACT. INTERESTS IN THE FUND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND ANY APPLICABLE NON‐U.S. SECURITIES LAWS, PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFROM. THE TRANSFERABILITY OF THE INTERESTS WILL BE FURTHER RESTRICTED BY THE TERMS OF THE FUND’S GOVERNING DOCUMENTS. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF AN INVESTMENT IN THE FUND FOR AN INDEFINITE PERIOD OF TIME.

THIS PRESENTATION IS NOT AN OFFER OR INVITATION FOR SUBSCRIPTION OR PURCHASE OF OR A RECOMMENDATION OF SECURITIES IN ANY JURISDICTION. IT DOES NOT TAKE INTO ACCOUNT THE INVESTMENT OBJECTIVES, FINANCIAL SITUATION AND PARTICULAR NEEDS OF ANY PROSPECTIVE INVESTOR. THIS REPRESENTATION IS NOT INTENDED TO CONSTITUTE, AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE. EACH PROSPECTIVE INVESTOR SHOULD CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND ASSESSMENT OF THE CONTENTS OF THIS PRESENTATION AND THE MERITS AND RISKS OF AN INVESTMENT IN THE FUND, AND MAKE SUCH ADDITIONAL ENQUIRIES AS IT DEEMS NECESSARY OR APPROPRIATE.

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GMF

 E

NERGY

O

BJECTIVES

GMF Energy strategically acquires and manages non-operated oil and natural

gas working interest that has:

1) Current

income

based on the purchase of predominantly producing

Interests with the opportunity for

growth

through additional

future development;

2)

Superior returns

due to strategic asset access and selection; and

3)

Long-term value

based on

reserve replacement

through new drilling

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M

ANAGEMENT

T

EAM

Garrett S. Mayer

Garrett S. Mayer – Co‐Founder and Managing Director. Garrett Mayer is 

Co‐Founder and Managing Director of the Manager, heading business 

development and acquisition strategy. Prior to founding the Manager, 

Garrett joined Five States Energy, LLC in July 2012 as Director of Business 

Development. With a knack for networking, he’s well‐connected and is 

typically introduced as one of those people who “knows everybody.” His 

primary responsibilities at Five States involved planning, implementing 

and leading business development, sales and marketing efforts for the 

firm. He provided sales leadership and strategic direction for the 

business development team, and he also kept current on market trends 

and competitive activity.

Prior to joining Five States, Garrett was President of GSM Interests, Inc. 

where he managed oil and gas properties and evaluated and identified 

new investment opportunities. There he managed minerals underlying 

80,000 gross acres and more than 1,000 producing wells, and monitored 

Martin V. Fleming

Martin V. Fleming – Co‐Founder and Managing Director. Martin Fleming 

is a Co‐Founder and Managing Director of the Manager, with principal 

responsibilities for Partnership development, partner relations and 

corporate administration. Previously, Martin served as a Senior Vice 

President at Noble Royalties, Inc., with roles in investor relations, 

acquisitions, communications, government affairs and fund 

management. At Noble, Martin served on the Investment Committee 

and over seven years was affiliated with more than $1 billion in fund 

placements. Prior to joining Noble, Martin served as Executive Vice 

President of the Texas Independent Producers and Royalty Owners 

Association, the country’s largest state trade organization representing 

independent oil and gas operators. He began his career in the oil and gas 

industry serving as a Special Assistant to U.S. Secretary of Energy Bill 

Richardson. He also serves as a partner with Sophis Energy, LLC.

Martin holds a BA in Latin American Studies from the University of Texas 

at Austin and a MA in Latin American Studies from Tulane University. He 

is a past fellow of the National Endowment for the

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GMF

 E

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GMF

 E

NERGY

B

ENEFITS

UNIQUE RELATIONSHIPS AND ACCESS TO DEAL FLOW

GMF’s unique, deep relationships mean superior access to deals

that are not available on the market. 

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GMF

 E

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GMF

 E

NERGY

B

ENEFITS

TAX ADVANTAGED

Please consult your own tax professional for a complete discussion of the tax

Implications for you.

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GMF

 E

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GMF

 E

NERGY

B

ENEFITS

CRITICAL POINT OF DIFFERENCE

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Which comes first, money or property?

A few observations regarding raising

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You are going to have to

Start here.

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M

ONEY

L

IKES

T

EAMS

The reality . . .

Equity providers love names they already know.

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M

ONEY

L

IKES

N

AMES

T

HEY

K

NOW

The reality . . .

Equity providers will prefer less return with companies they know

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Your first couple of raises will have to be friends and family

Your partners will make money, but you probably won’t on your first 

couple of deals

Institutional investors rarely invest in new teams, no matter how good the 

asset

Family offices are conservative and take patience

A good partnership brings strengths to the table that you don’t have on 

your team

You will have to teach your partners oil and gas

They might know spreadsheets and public equities, but no matter what 

they say they don’t understand decline curve math

A few more realities

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Stay focused on the things the drive value

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“SO YOU THINK YOU WANT TO START AN OIL AND GAS COMPANY?”

Petroleum Engineers Club of Dallas. April 11, 2014

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