Texas South Energy Inc. (fka TXSO)

[canestsal]

Current State of Operations (Feb 12 2020)
***Please conduct your own due diligence, this information is as factual and up-to-date as I was able to ascertain***THIS POST IS NOT MEANT TO ASSIGN A VALUE OR PRICE TARGET FOR THE COMPANY, AND DOES NOT TAKE INTO ACCOUNT LIABILITIES OR THE CURRENT SHARE STRUCTURE***

Texas South Energy (OTCBB: TXSO) Assets and Allocations:


The Tau Well Offshore Gulf of Mexico (GOM) Asset

TXSO Currently Has A 5% Working Interest in the Lease
Indicated Reserves = 300 MMBOE, $18bn (TXSO = $900,000,000)
Location is at Ship Shoal Blocks 336, 351 GOM
GulfSlope Energy Inc originally hired the EnscoRowan drillrig to drill the well into
Subsalt Miocene Sand Level, however equipment limitations prevented full-depth and
multiple location drilling in the area. The lease on the rig expired, and the rig had
contractual obligations with other companies for other targets. This led to an insurance
claim and subsequent lawsuit with the insurance company, which was settled in GulfStream's
favor. GulfStream has a clean balance sheet and intends to drill the prospect again in 2021
to penetrate deeper into the Upper and Middle Miocene Sand Layer. An adjacent well, the Mahogany
offshore well, is in production with 4,200 BOE/d and operated by W&T Offshore (NYSE: WTI)
(https://www.offshore-mag.com/drilling-completion/article/14033666/gulfslope-abandons-tau-well-for-now)

Louisiana Bayou Bouillon OnShore Lease Assets

TXSO Currently Has A 45% Working Interest in these Leases
Inidicated Reserves = 20 MMBO, $1.2bn (TXSO = $450,000,000)
- 4 Actively Producing Wells (800 BOPD) (TXSO = $18,000 / day)
- 1 Shut-In Well Awaiting Pipeline Completion
- 1 Injected Well
- 7 Well-Drilling Permits
TXSO has partnered with Sugarberry Drilling, Thyssen Petroleum USA and Sydson Energy to develop the
Louisiana Prospects. Drilling efforts cannot be ramped up until due to pipeline and production facility
restrictions (http://www.drillingedge.com/louisiana/operators/bayou-bouillon-operating-llc/b2040)

The Wilinda Poject, Wilson County, Texas

TXSO Currently Has A 25% Working Interest in the Lease
Indicated Reserves = 300,000 BOE, $18mn (TXSO = $4,500,000)
The Richter 1H Well was discontiued as the well intersected a previously unknown fault line, which
allowed high pressure water into the frac layer. The well will be redrilled in 2021, 500ft away from
it's current location to avoid the fault line. Flowback operations on the well were discontinued in
2019, but will resume in 2021 in the new location.
(http://www.texasouth.com/wp-content/uploads/2019/06/20190613_texas_south_press_release_1.pdf)
King Hall Estate Well and King Hall Estate Well-A are both operational, but BOE/day are unknown

Vermilion Block 378, GOM Canoe Off-Shore Project

TXSO Currently Has A 45% Working Interest in the Lease
Oil Sands were encountered during drilling, but reserves are unknown at this time. Holes were plugged,
for further drilling at a later date.
***IN MY OPINION, THIS LEASE WILL BE SOLD OR ABANDONED AT THIS TIME***
(http://www.texasouth.com/wp-content/uploads/2018/08/20180828_texas_south_press_release.pdf)

High Value Off-Shore GOM Targets

TXSO has working interests in 6 other high value off-shore targets (Selectron, Photon, Tanker,
Graviton, Pomeron, and Tachyon) Current oil reserves are unknown as these are still in the exploration
stage. ***IT APPEARS AS THOUGH THE CURRENT INCREASED VOLUME IN SHARE PRICE COINCIDES WITH THE BIDEN
ADMINISTRATION'S DECISION TO SWIFTLY APPROVE DOZENS OF OIL DRILLING PERMITS IN THE GOM IN HIS FIRST
FEW DAYS IN OFFICE*** JAN 27 2021
(https://www.bloomberg.com/news/articles/2021-01-27/biden-issues-dozens-of-oil-drilling-permits-in-first-few-days)

Bee County Texas Wells and Prospects

TXSO has working interests several injected and operating wells in Bee County, Texas but the BOE/day
production and estimated oil reserves are not known (by me) at this time. These appear to be shallow
wells and easily accessible with smaller size drilling rigs.