Overview of Assets

Assets

Net Acreage

NRI

Location

1P

(Mboe)

3P

(Mboe)

PV

(M$)

Production

Squaw Canyon

160

82.50%

Utah

49

249

5,400

10 bopd

Tin Cup Mesa

1080

85.50%

Utah

1,791

6,110

46,500

Waiting on Workover

Salt Valley

640

85.00%

Utah

20

20

_

5-10 bop monthly

Total

1,880

84.90%

1,860

6,379

51,900

15-25 bopd

 

Tin Cup


Squaw Canyon


Wells and Production Numbers  

Virtus Lone Pine 34-11-5-5 and Parawon Prospect (EXPIRED)

In December 2013, VOIL aquired 55,477+/- Acre Parawon Prospect in Iron County out of Tidewater Oil & Gas LLC's Bankrupcty. The prospect was subject to the approval of the U.S. District Court for the District of Colorado which was presiding over Tidewater's Chapter 11 bankrupcty proceedings. The Bankrupcty Court approved the sale of the leases on December 11, 2013. The final payment for the closing was paid to Tidewater and company C.E.O.  James Jones on August 1, 2014

The prospect play consists of a structural closure, known as the Parowan Prospect, formed by a series of splay thrust faults associated with the southern Thrust Belt of Utah or “Hingeline” in a similar tectonic setting as the Covenant oil field in Sevier County, Utah, which is north of the subject acreage. The primary exploration targets are anticipated to be the Jurassic-age Navajo sandstone and the Permian-age Kaibab fractured carbonate. Several other horizons both shallower and deeper are also prospective in this area. The hydrocarbon type that would most likely occur in these reservoirs is oil with some associated gas. It is expected that the oil will have an API gravity ranging from 26 to 40 degrees.

                RPM Geology

Resource Evalution Report-Parawan Prospect as submitted by: Gustavson Associates

In May 2015, the Company entered into a drilling agreement with Energy Drilling, LLC ("Energy Drilling") to drill a 7,000-foot vertical well on the Company's oil and gas leases in Iron County, Utah. The Company paid Energy Drilling a mobilization fee of $100,000, plus a mobilization rate of $11,900 per day, plus the actual cost of all required equipment, labor, services and permits to drill the well. Drilling on the well was completed in September 2015. The company encountered Oil shows but various variables prevented the company from completing the well as a producing well.

Energy Drilling LLC

On and around February 2016, Energy Drilling LLC filed suit in Utah against Virtus for claim which included drilling charges.  Virtus disputed these claims because Energy Drilling had fabricated invoices and left the rig on the well to extort additional charges.  On March 7th, 2016 the Bureau of Land Management (BLM) informed Energy Drilling to move its rig or the BLM would move it and charge Energy Drilling potential criminal charges.  Energy Drilling removed the rig, but increased the charges to include “Standby” charges resulting from its extortion attempt.  Virtus responded to the claim.  On April 29th, 2016 Energy Drilling filed for Chapter 11 bankruptcy protection in the state of Utah. Energy Drilling filed multiple filings that conflicted the amount they represented owed by Virtus.  Virtus filed claims against Energy Drilling in Bankruptcy Court in St. George, Utah, totaling $211,000 owed to Virtus.

In July 2016 the Bankruptcy Court converted Energy Drilling’s bankruptcy filing from Chapter 11 to Chapter 7, Liquidation.  Currently Virtus is negotiating a settlement with the Trustee managing the Estate of Energy Drilling.

On or about August 2016, the Company surrendered its bond to the BLM for the Plugging and Abandoning of the Virtus Lone Pine 34-11-5 #5 well.  The associated leases in Iron County Utah thus expired.


Press Releases related to Lone Pine Well

Virtus Oil and Gas Encounters Oil Shows at Lone Pine 34-11-5 Test Well

Virtus Oil and Gas Announces Spud of Lone Pine 34-11-5 Well

Virtus Preps to Drill Lone Pine Test Well in the Uinta Basin

Virtus Oil and Gas Announces Signing of Drilling Contract and Updates Timing for the First Well