Permit to Drill---08/01/2012 SWD(Salt Water Disposal)Well

OKLAHOMA CORPORATION COMMISSION

OIL & GAS CONSERVATION DIVISION

P.O. BOX 52000 OKLAHOMA CITY, OK 73152-2000

(Rule 165:10-3-1)

API NUMBER: 083 24011

WELL LOCATION: Approval Date: 08/01/2012 Expiration Date: 02/01/2013 Sec: 23 Twp: 17N Rge: 4W County: LOGAN SPOT LOCATION: SW SE SW SW FEET FROM QUARTER: FROM SOUTH FROM SECTION LINES: 165 710 WEST

Lease Name: BRANSON 17-4-23 Well No: 1 SWD

Operator Name: SUNDANCE ENERGY OKLAHOMA LLC dba SEO LLC

Telephone: 4057521800

OTC/OCC Number: 22918

13524 RAILWAY DR STE G

OKLAHOMA CITY, OK 73114-2258

Emmit Branson

13520 W Co Rd 75

Crescent, Okla 73028

(Permit Valid for Listed Formations Only): ARBUCKLE 6570

PERMIT TO DRILL Spacing Orders: Special Orders: Total Depth: 8000 Ground Elevation: 1101 Surface Casing: 550 Location Exception Orders: Pending CD Numbers: Depth to base of Treatable Water-Bearing FM: 500 PIT 1 INFORMATION Type of Pit System: Type of Mud System: Pit is located in a Hydrologically Sensitive Area. Category of Pit: Liner not required for Category: C Pit Location is AP/TE DEPOSIT Pit Location Formation: TERRACE C CLOSED Closed System Means Steel Pits WATER BASED Chlorides Max: 5000 Average: 3000 Is depth to top of ground water greater than 10ft below base of pit? Within 1 mile of municipal water well? Wellhead Protection Area? N N Y Approved Method for disposal of Drilling Fluids: Under Federal Jurisdiction: No Fresh Water Supply Well Drilled: No Surface Water used to Drill: Yes Notes: No Spacing D. One time land application -- (REQUIRES PERMIT) PERMIT NO: 12-20907 H. CLOSED SYSTEM=STEEL PITS PER OPERATOR OPTION Straight Hole Disposal Increased Density Orders: Well will be 165 feet from nearest unit or lease boundary. This permit does not address the right of entry or settlement of surface damages. The duration of this permit is SIX MONTHS, except as otherwise provided by Rule 165: 10-3-1. Rule 165: 10-3-4 (c) (7) (e) - The Operator shall give 24 Hours notice by telephone to the appropriate District Office of the Conservation Division as to when Surface Casing will be run. Page 2 of 2 083 24011

BRANSON 17-4-23 1 SWD