LPR, Inc.

DUE DILIGENCE FOR ACQUISITION AND DIVESTITURE

LandSmith Petroleum Resources, Inc. has the human resources available to provide comprehensive and detailed due diligence land work for a property acquisition or divestiture. We have many years of experience in assisting in the divestiture of core and non-core assets. Since 1988 our staff has worked on numerous projects providing due diligence for producing property acquisition and divestiture for companies ranging from major oil companies to independents.

In our due diligence process, LandSmith Petroleum Resources, Inc. will verify the seller's interest at the County, State or Federal levels and perform a thorough examination and analysis of the seller's records to reflect any defects or encumbrances. Our research provides information relating to all contracts affecting the sale properties, including: Joint Operating Agreements, Letter Agreements, Exploration Agreements, Farm-out/Farm-in Contracts, Analysis of Oil & Gas Leases, Assignments, Salt Water Disposal Agreements, Rental Contracts, Joint Interest Billings, Gas Purchase or Casinghead Gas Contracts, or other Hydrocarbon Marketing Agreements, and Division or Transfer Orders. We examine Drilling and Division Order Title Opinions and advise if there are any requirements not satisfied. Our report will verify the seller's Leasehold, Working, and Net Revenue Interests. We also review all Governmental or Regulatory Agency forms and reports and look at production information to determine if a well listed on a sales list is still producing.

For the buyer, our goal is to provide a complete and exhaustive report, leaving no stone unturned in our review, in order for our clients to make an informed decision on a prospective purchase. For the seller, our company will provide the client with a professional and accurate package for your sale and satisfy necessary curative defects.

LandSmith Petroleum Resources, Inc. maintains a close affiliation with various Title Attorneys, Geologists, and Engineers to provide full service packages for your acquisition or divestiture needs.


OIL & GAS LEASING

LandSmith Petroleum Resources, Inc. has the capacity to lease a frontier area, a regional play, or a one section prospect. We have the staff and expertise to get the job done quickly and for the best possible terms. Confidentiality is strictly maintained. We work for a variety of clients and assure the anonymity of the client. LandSmith Petroleum Resources, Inc. has developed a rapport with lessors over the years, and we have an excellent reputation. Honesty and integrity go a long way with Mineral Owners in the Permian Basin.

LandSmith Petroleum Resources, Inc. can represent you at the State of New Mexico Land Sales held monthly and the Federal BLM Lease Sales held quarterly. Convenience, cost effectiveness, and confidentiality are some of the reasons clients use LandSmith Petroleum Resources, Inc. to buy leases at these auctions.


SEISMIC OPTIONS

Although it has been around for years, 3-D Seismic has recently exploded into the Petroleum Industry and, in a sense, has become a litmus test in exploration projects. A great deal of work is involved in purchasing Seismic Option Agreements. Let LandSmith Petroleum Resources, Inc. put together your Seismic Shoot. Our company has optioned thousands of acres in Texas and New Mexico and we have had favorable dealings with large ranches and prominent land owners. LandSmith Petroleum Resources, Inc. can get the job done quickly and effectively. We take pride in providing the best service in the most economical manner.


CONTRACT NEGOTIATIONS & WELL TRADE

Knowledge and experience are important assets in negotiating a well trade, such as a Term Assignment or Farmout Agreement. There are more factors involved in making a trade than just settling on the length of time and the amount of consideration; a Landman must be able to discern and recognize prohibitive or unfavorable terms in the contract being negotiated. We have put together deals for major oil companies. For smaller companies, LandSmith Petroleum Resources, Inc. is the Land Department handling everything. Whether it is acquiring a farmout or buying a producing field, LandSmith Petroleum Resources, Inc. can help your company put your prospect together.


OIL & GAS TRUST/ASSET MANAGEMENT

Our experience and resources enable us to provide a full service management team to maintain and strengthen your oil & gas asset investments or trust holdings. LandSmith Petroleum Resources, Inc. has a close affiliation with various local Geologists, Engineers and Attorneys to provide a comprehensive management package.


RIGHT-OF-WAY AND SURFACE ACQUISITION

LandSmith Petroleum Resources, Inc. also has Landmen with extensive real estate experience, who negotiate R-O-W acquisition, surface acquisition, and surface damage settlement. LandSmith Petroleum Resources, Inc. has resources and affiliants who are currently registered with the Texas Real Estate Commission as Easement or R-O-W Agents. Their combined strengths include a broad knowledge of the real estate industry, commercial appraisal, and commercial transaction brokerage.


RECORD CHECKING & TITLE CURATIVE

LandSmith Petroleum Resources, Inc. has a staff of salaried and contract Landmen with more than 200 years of combined experience. We are able to provide manpower for large sweeping jobs or an expert title examiner for tough producing units. Our office is centrally located in the Permian Basin in Midland, Texas, assuring that your job order will be completed in a timely manner. Our goal is to respond to your needs within forty-eight hours. We have a large database consisting of thousands of Mineral, Leasehold, Royalty, Surface, State, and Federal Title Information Reports (Takeoffs) that may reduce the amount of time it takes to complete the job. Our Takeoff format provides concise and complete information that is easy to understand, and we can also tailor a database, spreadsheet or report for your special requirements.


LIEN SEARCHES & ASSET SEARCHES

LandSmith Petroleum Resources, Inc. provides a complete search of the County, State and Federal records verifying unreleased Deeds of Trust, Financing Statements, Lien Affidavits, Mechanics & Materialmen's Liens, Federal Tax Liens, State Tax Liens, Notice of Lis Pendens, Abstracts of Judgement or Uniform Commercial Code Filings affecting the property. Our research includes an examination of the records at the County and City Tax Offices to verify unpaid Ad Valorem taxes affecting a property. We also check the County and/or District Court Clerk's Office for pending District Court suits, bankruptcy proceedings or County Court suits filed. Additionally, if the owner is not the operator, we research the lien status of the operator. Our Company has a working relationship with several banks and attorneys who rely on this service for loan closings or in the preparation of Title Opinions. We provide this service in conjunction with our due diligence efforts and as a separate service to clients who want to know if a seller's interest is encumbered. Additionally, we verify the seller's interest at the County, State, or Federal level by providing the Leasehold Working and Net Revenue Interests. We will locate and verify real property assets and interest owned by individuals, entities, and any assumed names for same. Our experience in the Courthouse enables us to conduct thorough research for hidden interests or provide asset/interest verification.

PAST HISTORY

Perry & Perry, Inc. was started in January 1980 by W. Wesley Perry. It was formerly a partnership comprised of Wes and Charlie Perry. In 1993 the company was incorporated. In 2006, Perry & Perry, Inc. changed it's name to LandSmith Petroleum Resources, Inc. In addition to professional contract personnel, our firm currently offices a permanent staff of land professionals to better serve the needs of our clients.


FUTURE PLANS

We are currently developing procedures to provide full outsource resources for our clients. Our goal is to provide full service land administration department capabilities, including title and lease administration, calendars, revenue accounting and billing, and division order analysis. We have been building a resume database of experienced land support professionals and have developed associations with area landmen, geologists, engineers, accountants, attorneys and other professionals.


SPECIAL COURTESIES

We will arrange for pick up and return to the airport. Additionally, clients have access to office space, conference room, facsimile, telephone, PC and internet, plus any secretarial assistance that may be needed when transacting business in Midland.