Vitesse Energy, LLC
October 3, 2022
Page
4
depends mainly on the amount of the reliable geologic and engineering data available at the time of the
estimate and the interpretation of such data, as well as the inherent uncertainties attributable to variations in reservoir and rock quality, offset drainage, mechanical wellbore integrity among others. The relative degree of uncertainty may be
conveyed by placing reserves into one of two principal classifications, either proved or unproved. Unproved reserves are less certain to be recovered than proved reserves, and may be further sub-classified as
probable and possible reserves to denote progressively increasing uncertainty in their recoverability. This report addresses only the proved reserves attributable to the properties evaluated herein.
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 proved developed non-producing and undeveloped reserves for Vitesse
Energy’s 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.
Wells with no production for at least the past 12 months were assigned a reserve category of PDSI. Wells with no production for
less than the past 12 months were also assigned as PDSI with a delayed start date of 12 months since the last date of production. New development on Vitesse Energy’s acreage includes planned (AFE’d) wells, wells currently drilling, and/or
wells expected to be drilled based on operator information or regional activity. A reserve category of PDNP was applied to certain drilled horizontal wells and PUD was assigned based on the proximity to commercial production and geologic control.
Reserves for each location were assigned based on offset analogy to production and account for recent nearby wells that have demonstrated improved performance due to more modern completions. The development schedule for all drilling locations was
applied as received from Vitesse Energy.
SEC Conformance and Regulations
The reserve classifications and the economic considerations used herein conform to the criteria of the SEC. The reserves and economics are
predicated on regulatory agency classifications, rules, policies, laws, taxes and royalties currently in effect except as noted herein. Government policies and market conditions different from those employed in this report may cause (1) the
total quantity of oil or gas to be recovered, (2) actual production rates, (3) prices received, or (4) operating and capital costs to vary from those presented in this report. 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 914 commercial
proved undeveloped locations. Each of these drilling locations proposed as part of Vitesse Energy’s development plans conforms to the proved undeveloped standards as set forth by the SEC. In our opinion, the operators of these drills have
indicated they have reasonably certain intent to complete this development plan within the next five (5) years. Furthermore, Vitesse Energy and the other operators have demonstrated through their actions that they have the proper company
staffing, financial backing and prior development success to ensure this 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.
