Marion and Walthall Co.'s, MS

• Discovered in 1944 by Gulf Oil
• Tellus made production acquisitions in 1995 & 2003
• Current Production: 5,400 MCFD & 455 BOPD; 196 Producing Wells
• Cumulative Production: 250 MMBO+ and 500 BCF+
• 7,200 acres held by production (“HBP”)
• Main Producing Formations:
  • Wilcox
  • Selma Chalk
  • Tuscaloosa
• Significant Tertiary EOR Potential Exists
• CO2 EOR scoping studies on Lower Tuscaloosa Oil Pool
• 500 BCF of future CO2 sequestration potential in the depleted shallower wells
• Selma Chalk Horizontal Development: 38 Proved Undeveloped Locations