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PERFORMANCE WELLHEAD & FRAC COMPONENTS, INC.

PORTFOLIO | SALE / LEASE BACK KILGORE & PLEASANTON, TEXAS

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PERFORMANCE WELLHEAD & FRAC COMPONENTS It is Jackson Cooksey’s pleasure to present the following investment opportunity to purchase a two-building portfolio consisting of recently constructed, state of the art industrial facilities currently owned by Performance Wellhead. Founded in 2006, Performance Wellhead & Frac Components, Inc. is a leading oil and gas service company specializing in surface well-control equipment and related field services utilized in all phases of drilling, well-stimulation, production, and intervention operations. We have earned a stellar reputation for providing quality, dependable, safe equipment, as well as exceptional field service and support functions. Performance Wellhead & Frac Components, Inc. is well represented by an exceptional, experienced management team of oil and gas professionals who together bring a combined total of 200+ years of industry experience. Performance Wellhead and Frac Components, Inc. is totally committed to preventing the accidental loss of any of its resources, including employees and physical assets. In fulfilling this commitment to protect both people and property, management will provide and maintain a safe and healthy work environment, in accordance with industry standards and in compliance with legislative requirements, and will strive to eliminate any foreseeable hazards which may result in property damage, accidents, or personal injury/illness. Performance Wellhead & Frac Components, Inc. supports our safety initiatives through active participation with IS Networld, PEC and Disa.

SLINGSHOT SUPPLY MERGER

In February 2017, Pelican Energy Partners announced the recapitalization and combination of Performance Wellhead & Frac Components, Inc. (“Performance”) and Slingshot Supply, Inc. (“Slingshot”).

Performance and Slingshot have combined to provide a larger asset base and broader geographic reach to support their customers across the oilfield. Since the two companies have minimal geographic overlap, they will both continue to operate under their legacy names in their respective markets. Slingshot, based in Odessa, was founded by Jeff Helmcamp in 2011. Slingshot is focused on the Permian market and has become a provider of choice for major operators in the basin. In addition to the services and equipment that Performance provides, Slingshot provides BOP rental and repair, and is the exclusive licensed provider of the Power Feed-Thru Systems & Connectors product line (“PFT”) for use in artificial lift systems in the Permian. The PFT product line consists of patented wellhead products used to facilitate a seamless power connection with electric submersible pumps.

Jeff Helmcamp, who will continue as COO of the combined business, said, “This partnership takes us to the next level — extending our product lines and services to exceed our customers’ expectations as their needs continue to grow.”

Gerry Ferguson, CEO of the combined entity, commented, “By putting safety first and going above and beyond their customers’ expectations, Jeff and the team at Slingshot have built an excellent company that is well regarded across the Permian. We are excited to bring these like-minded organizations together so that we can better serve our customers in more basins with a set of products and services that span drilling, completion and production.”

INVESTMENT OVERVIEW

KILGORE, TEXAS KILGORE | PLEASANTON, TEXAS

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MARKET REPORT

PREMIER MANUFACTURING & DISTRIBUTION SECTOR With the cost of living continuing to rise in most major markets around the country, companies are taking a much closer look at the quality and quantity of a workforce in deciding where to do business. A corner of Texas east of Dallas is quietly outperforming the state in a number of important ways. The second largest employment sectors by industry in Kilgore are mining manufacturing. More than 20% of the workforce is employed in the goods producing sector, and employment is concentrated in four industries: fabricated metal products, primary metals, machinery, and chemicals. A look at occupational strengths shows an advantageous numbers of skilled welders, machinists and production workers as well as machine operators. Those same goods producing sectors account for only 9% of the workforce in Texas as a whole.

BUSINESS FRIENDLY REGULATIONS The low cost of utilities specially, water and electricity, are also positive aspects of the area. American Electric Power serves Kilgore with regulated industrial electric rates that are 60.5% less than the national average and 16% less than the average in Texas. Kilgore leaders have adopted several beneficial tax policies such as property tax abatements and a triple Freeport tax exemption on inventory along with sales and use tax refunds and exemptions on personal property, electricity and natural gas. Kilgore was also the first foreign-trade zone in the United States to earn an Alternate Site Framework designation. It is easy to see why Orgill, Neiman-Marcus, Sysco and Target are all examples of companies distributing product from the right corner of Texas. The Global Supply Chain Laboratory of Texas A&M University conducted a value proposition for Gregg County, Texas, using a case study survey. The survey compared the ROI of the top ten companies in certain industries to the ROI of Kilgore companies in those same industries. The results show that Kilgore warehouse/distribution centers are more profitable.

Industry Sector

Percent of Employment

Description US Texas 12-County Labor Shed Kilgore

Healthcare 11 9.7 11.7 11.6

Mining .8 3.2 8.0 10.1

Manufacturing 7.0 6.0 7.9 10.1

Retail Trade 9.9 9.6 9.8 10.0

Construction 4.9 6.4 7.0 9.2

Local Government 7.8 8.2 8.2 6.6

Industry NAICS Codes Top 10 ROI Nationally

ROI in Kilgore

Warehouse/Distribution Durable 13.18 25.89

Warehouse/Distribution Nondurable 15.37 20.97

MARKET REPORT KILGORE, TEXAS

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LOCAL ECONOMY & ENERGY SECTOR The economic base in Gregg County consists of industries related to oilfield support activities, industrial machining, distribution/warehousing, and natural gas distribution. These industries generate a substantial portion of the region’s revenue and require the most labor, both skilled and unskilled. For example, Support Activities for Oilfields are concentrated because of the large amount of oil and natural gas in the region. These companies will gravitate toward the wellheads in order to cut down on transportation and communication costs.

Gregg County’s Petroleum Product Merchant Wholesale industry is more concentrated than in Houston; implying the industry is adequate to sustain a petroleum cluster. Whereas, Crude Petroleum and Natural Gas Extraction is significantly more

concentrated in Houston than Gregg County. However, this is not an industry that is attracted, but rather located based on resource and geography. Additionally, Support Activities for Oil and Gas Operations is lower, but that is due to the higher concentration of Petroleum and Natural Gas Extraction in Houston. Natural Gas Distribution is three times more concentrated in Houston than Gregg County; this is a large industry for Gregg County and could potentially be expanded further. Petroleum Refineries is almost non-existent in Gregg County; there are refineries nearby in Tyler. In addition, the market generated by the oil and gas industry is important for other industry sectors. Recent research indicates companies in other industry sectors (e.g. chemical and machinery manufacturing) are supporting the oil and gas industry. Findings show that chemical manufacturing companies prefer to locate near to the customers rather than the suppliers, and in the same way, industries such as plastic manufacturing receive raw material from the oil, gas and petroleum industry. The Global Supply Chain Laboratory of Texas A&M University conducted a value proposition for Gregg County, Texas, using a case study survey. The survey compared the ROI of the top ten companies in certain industries to the ROI of Kilgore companies in those same industries. The results show that Kilgore warehouse/distribution centers are more profitable.

OIL & GAS SERVICES & EQUIPMENT’S DISTRIBUTION Support Activities for Oil & Gas Operations

City 2011 Market Value

Dallas/Fort Worth, TX $1.11 Billion

Beaumont/Port Arthur, TX $231 Million

Longview/Marshall, TX $1.08 Billion

Austin, TX $76 Million

Houston, TX $7.42 Billion

Fort Smith, AR $148 Million

Shreveport, LA $538 Million

Markets served from Gregg County $10.6 Billion

*Economic Census, US Census of Bureau, 2012

Industry Rank ( Gregg County)

Industry Sales (000s) Employees HQ % Revenue

Support for Oil & Gas $1,231,498 7,524 4 5.25%

Physician Offices $780,063 4,063 3 3.32%

Department Stores $211,446 2,943 0 0.90%

Pipeline Transportation $25,200 2,616 0 0.11%

Metal Manufacturing $ 0 2,285 0 0.00%

Freight & Trucking $156,571 1,990 12 0.67%

Natural Gas Dist. $159,409 1,697 1 6,79%

KILGORE, TEXAS

MARKET REPORT KILGORE, TEXAS

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TRANSPORTATION & DISTRIBUTION

Kilgore is located on Interstate 20 and Highways 259/59 and has access to over 24 million people within a five hours drive or less. Transportation corridors offer easy access across Texas, the United States, and from Canada to Mexico. The accessibility to major traffic arteries is a great advantage for the companies located in Gregg County. I-20 is a major east–west Interstate Highway in the Southern United States. It intersects seven of the 10 primary north–south Interstates and also the east-west Interstates 10 and 30. U.S. route 259 is a north–south spur of U.S. Route 59, a north–south United States highway that is a border-to-border route, part of NAFTA Corridor Highway System. Gregg County possesses a high concentration of the oil and gas extraction industry. From Gregg County companies can serve important local and regional markets based on the access to important highway arteries. Also, companies can reach important markets for oil and gas related industries such as the Petroleum market in Houston, which is strongly established. Kilgore Rail services are provided by Union Pacific (UP), and Burlington Northern Santa Fe (BNSF).

Distance From Major Cities

City Distance (Miles)

Dallas 120

Shreveport 55

Houston 199

Austin 276

New Orleans 404

Tulsa 292

KILGORE, TEXAS STRATEGIC ACCESS

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BUILDING

► 43,000 SF Building ► 34,000 SF Warehouse 100’ x 340’ x 27’ ► 4,000 SF Office

Break Room Locker Room Conference Room 8 Offices Men’s And Women’s Restrooms

► 125,200 SF Yard With 2-3” Commercial SB2 Rock ► 3,600 SF Covered Apron ► 24,900 SF Paved Parking Lot

HVAC

► (2) 5-Ton Cooling System(s) With Gas Heat ► (1) 3-Ton Cooling System(s) With Gas Heat ► 2.5-Ton Cooling System(s) With Gas Heat ► (1) 2-Ton Cooling System(s) With Gas Heat ► 2.5-Ton Mini-Split Cooling System ► PTAC Wall Unit HVAC System(s) ► (8) Restroom Exhaust Fans ► (6) 150,000 Btu Shop Heaters

SHOP AREA

► (2) 3-Phase 15-Ton Overhead Cranes ► 5) 3-Phase 5-Ton Jib Cranes ► (5) 3-Phase 30 Amp Crane Work Stations With 2-Ton

Hoists ► (8) 60” 3-Phase Exhaust Fans ► (2) Big Ass Fans ► 25’W x 12’T x 15’L Paint Booth With Fire Suppression,

10 HP Fan Motor And (9) 277v T-8 Lights ► Roto-Blast (3-Phase/50 Amp) ► Compressor (3-Phase/100 Amp) ► (1) Steam Unit (3-Phase/30 Amp) ► (2) 14’ x 16’ Sectional Overhead Doors Hi-Lifted To

27’ ► (1) 14’ x 14’ Sectional Overhead Door Hi-Lifted To 27’ ► (1) 10’ x 12’ Sectional Overhead Door ► (5) 10’W x 8’T x 10’L Wash Bay Areas ► (3) 25’W x 8’T x 15’L Test Bays ► (1) Screw Compressor / Dryer ► (3) 2’ x 25’ Trench Drains With (3) 3’ x 3’ x 3’

Collection Boxes

ELECTRICAL ► 480 Volt (3) Phase 1200 Amp Underground Service ► Step-Down Transformer

CRANE WORK STATIONS

► (5) Work Stations ► (5) 2-Ton Hoists ► 10’ Crane Span ► 12’ Hook Height ► (5) 2-Ton Jib Cranes ► Electric Hoist With Manual Trolley ► 10’ Boom ► 13’ Hook

INSULATION

► R-13 Fiberglass Batt Insulation In Exterior

Finished Walls ► R-11 Fiberglass Batt Insulation In Interior

Finished Walls

FENCING

► 1725’ (Linear Feet) 6’ Tall Barb Wire Chain Link

Fence ► (2) 25’ Gates ► (2) 4’ Personnel Gates With Keypad Locks

KILGORE, TEXAS BUILDING OVERVIEW555 Marvin A. Smith Dr.

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SITE PLAN KILGORE, TEXAS

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FLOOR PLAN & ELEVATION

KILGORE, TEXAS

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RIVERBEND BUSINESS PARK KILGORE

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EAGLE FORD SHALE AREA

Located 35 miles south of San Antonio, the city of Pleasanton was originally known as "Birthplace of the Cowboy" but is now being called "Gateway to the Eagle Ford Shale." Dozens of companies have set up field or regional offices in the growing South Texas town. A number of energy and logistics companies have set up regional or field offices in Pleasanton, including Halliburton, Baker Hughes, Weatherford, National Oilwell Varco, Pinnergy, Flint URS and Lufkin Industries have opened offices or facilities in the area, according to market data from commercial Realtors with the Houston office of the Stan Johnson Co. Pleasanton has been a bedroom community to a large, educated workforce in San Antonio, and it is becoming the same to Eagle Ford Shale oil producing areas. It sits on some major crossroads in the Eagle Ford Shale zone: Interstate 37, U.S. Highway 281 and State Highway 97, while also being near State Highway 16. Those routes enable easy drives to transport equipment to sites in all directions and to bring back oil, condensate and natural gas to refineries in Three Rivers, Corpus Christi and Houston. As of March 31, 2017 The Eagle Ford Shale rig count is still on the rise, with our data showing 86 rigs running across our coverage area, up 3 rigs from the prior week’s total. In recent Eagle Ford News, the Texas Railroad Commission confirmed that Webb County produces more natural gas in Texas than any other county. A total of 824 oil and gas rigs were running across the United States this week, an increase of 15 over than last week. 160 rigs targeted natural gas (five more than the previous week) and 662 were targeting oil in the U.S. (10 more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 411 of the rigs active in the U.S. were running in Texas.

MARKET REPORT PLEASANTON, TEXAS

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INDUSTRIAL DEVELOPMENT The three industrial parks in the area are almost 100 percent occupied, while construction continues at the Flint URS and Lufkin Industries facilities on Eagle Ford Drive. The Texas Department of Transportation is expanding State Highway 97 between Pleasanton and Jourdanton, which is the county seat of Atascosa County. Shopping centers are springing up along the corridor with H-E-B, Walmart, Whataburger, Taco Bell, and Sonic Drive In among the familiar chains. Pleasanton's population grew from 8,200 during the 2010 Census to an estimated 14,600 in December 2014, according to city figures. And while the Eagle Heights Apartment Complex off nearby Airport Road will add about 150 apartments to the city's tight rental housing market, demand for transient lodging from oil field workers has spurred hotel development. Pleasanton's inventory of overnight lodging has gone from seven hotels with 185 rooms in 2010 to 16 hotels with over 700 rooms today. A Fairfield Inn with 92 rooms and a Savannah Suites with 65 rooms were just completed to further accommodate the increased demand by visitors travelling to Pleasanton. "A hotel room here in Pleasanton is almost as expensive as one on the River Walk in San Antonio." – Bruce Pearson, Pleasanton City Manager

Whether oil prices go up or down, city leaders are confident that they have created a diversified economy to weather the storm. Powell and Pearson said the city has created "sustained development" that will buffer any fluctuations in the oil market. Powell said that even if energy and logistics companies that have come to Pleasanton reduce production, they won't be going anywhere as they must maintain their leases and facilities. The mayor said it's not as if oil companies can pack their equipment and employees and move somewhere else where the price of oil is higher. "The price of oil is the same everywhere you go. We're trying to hang on to our identity." – Powell, Mayor City leaders and longtime residents are making room for their new neighbors and trying to keep their traditions and festivals such as the Cowboy Homecoming and the Turn-N-Burn BBQ cook-off.

MARKET REPORT PLEASANTON, TEXAS

STATE OF TAXES

City of Pleasanton – Property Tax Values Pleasanton ISD – Property Tax Values Sales Tax

Year Market Value Taxable Value Market Value Taxable Value Gross Sales Outlets

2014 - - - - $302,304,565 367

2013 $562,772,753 $517,701,297 $2,232,823,565 $1,108,876,532 $567,378,708 495

2012 $506,916,023 $464,914,824 $1,547,835,265 $1,128,633,412 $484,013,576 489

2011 $473,454,917 $429,030,274 $1,264,767,876 $826,852,306 $380,631,613 466

2010 $433,467,511 $393,110,893 $1,148,704,075 $716,049,558 $320,961,674 436

2009 $419,628,903 $383,066,498 $1,123,664,202 $67,958,066 $344,170,458 434

* Atascosa Tax Assesor-Collector * Texas Comptroller's Office

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AVERAGE LEASE RATES

Research indicates average rental rates and sales prices for industrial properties in Pleasanton, Texas exceed the statewide average and have experienced continued growth over the past two years.

ACTIVE COMPANIES IN THE EAGLE FORD

Abraxas Petroleum Cabot Oil & Gas Earthsone Energy, Inc. Kinder Morgan (formerly El Paso) PetroHawk (now BHP) SM Energy (St. Mary Land & Exploration) Alta Mesa Holdings Carrizo Oil & Gas EF Energy KNOC

(Korea National Oil Corporation) PetroQuest

Ambassador Petroleum Chaparral Energy Encana Corp. Pioneer Natural Resources Southern Bay Operating

Anadarko Clayton Williams Energy, Inc. Enduring Resources Lewis Energy Group (BP Partner)

Primera Energy Statoil

Apache Corp Chesapeake Energy Enerjex Resources Redemption Oil & Gas Stonegate Production

Argent Energy Trust Cheyenne Petroleum EOG Resources Lonestar Resources Repsol (formerly Talisman) Strand Energy

Aruba Petroleum ConocoPhillips (Burlington Resources)

Escondido Resources Marathon Oil Ricochet Energy Strike Energy

Aterra Exploration EXCO Resources Marubeni Corporation (Hunt Oil Partner)

Riley Exploration Sundance Energy

Austin Exploration (Aus-Tex Expl.)

Contanga Oil & Gas Exxon-XTO Rock Oil Company Swift Energy

CNOOC (China Nat. Offshore Oil Corp.)

GAIL (Gas Authority of India Limited)

Mitsui Sabine Oil & Gas (formerly Forest)

Tidal Petroleum

AWP Operating Murphy Oil TXCO Resources (Now, Newfield & Anadarko) Baytex Energy Crimson Exploration

(Contango Oil) Goodrich Petroleum Newfield Exploration San Isidro Development

(Acquired by Chesapeake) BHP Billiton Halcon Resources Noble Energy (formerly Rosetta) Unit Corporation

Blackbrush Oil & Gas Denali Oil & Gas Hess Corporation NFR Energy Sanchez Energy U.S. Energy Corp.

BP Devon Energy Corp. Hilcorp Resources (Acquired by Marathon)

Penn Virginia Corp Sandstone Energy, LLC Weber Energy

BRC Operating Diamond Sabal Operating Peregrine Petroleum Saxon Oil Company WEJCO E&P

Burnett Oil Eagle Ford Oil & Gas Corp. Japan Petroleum Exploration PetroEdge Shell ZaZa Energy

MARKET REPORT PLEASANTON, TEXAS

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WATER RESOURCES

There is one other key ingredient to success, Pleasanton City Manager Bruce Pearson said: water. Pleasanton was founded as a ranching town and was a popular place for peanut farming — making water a crucial ingredient for economic development there. Over past decades, city leaders kept ahead of demand by periodically expanding their water and wastewater capacity.

"When they didn't have money for anything else, they spent their money on water and wastewater. We have all the water and wastewater you would need.” – Bruce Pearson, Pleasanton City Manager

Those decisions paid off when the first oil exploration companies showed up on the city's doorstep. And Pleasanton is not resting on its water laurels. City leaders recently approved a $6.4 million dollar project to add 1.25 million gallons in water storage to accommodate another round of growth.

MARKET REPORT PLEASANTON, TEXAS

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BUILDING

► 21,300 SF Building ► 17,075 SF Shop ► 4,225 SF Office

Break Room Locker Room Conference Room 7 Offices Men’s And Women’s Restrooms

► 125,200 SF Yard Topped With 2-3” Of Commercial SB2 Rock

► 3,000 SF Covered Apron ► 8,000 SF Parking Lot

HVAC

► (1) 5-Ton Cooling System(s) With Gas Heat ► (2) 3-Ton Cooling System(s) With Gas Heat ► (1) 4-Ton Cooling System(s) With Gas Heat ► PTAC Wall Unit HVAC System(s)

ELECTRICAL

► 480 Volt (3) Phase 1200 Amp Underground

Service ► Step-Down Transformer

SHOP AREA ► (1) 3-Phase 15-Ton Overhead Cranes ► (3) 3-Phase 5-Ton Jib Cranes ► (5) 3-Phase 30 Amp Crane Work Stations W/2-

Ton Hoists ► (3) 60” 3- Phase Exhaust Fans ► (2) Big Ass Fans ► 25’W x 12’T x 15’L Paint Booth With Fire

Suppression, 3-Phase 10 HP Fan Motor And (9) 277v T-8 Lights

► Roto-Blast (3-Phase/50 Amp) ► Compressor (3-Phase/100 Amp) ► Steam Unit (3-Phase/30 Amp) ► (4) 14’ x 16’ Sectional Overhead Doors Hi-Lifted

To 27’ ► 12’ x 12’ Sectional Overhead Door ► 15’W x 8’T x 25’L Wash Bay Areas ► 25’W x 8’T x 15’L Test Bays ► Screw Compressor / Dryer ► 2’ x 25’ Trench Trains With (3) 3’x 3’ x 3’

Collection Boxes

FENCING

► 1620’ (Linear Feet) Of 6’ Tall Chain Link With 3

Strands Of Barbed Wire ► (2) 25’ Gates ► (2) 4’ Personnel Gates With Keypad Locks

CRANE WORK STATIONS ► (3) Work Stations ► (3) 2-Ton Hoists ► 10’ Crane Span ► 12’ Hook Height ► (3) 2-Ton Jib Cranes ► Electric Hoist With Manual Trolley ► 10’ Boom Length ► 13’ Hook Height

PLEASANTON, TEXAS BUILDING OVERVIEW 838 Humble Camp Road

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SITE PLAN PLEASANTON, TEXAS

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FLOOR PLAN

PLEASANTON, TEXAS

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ELEVATION

PLEASANTON, TEXAS

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PLEASANTON INDUSTRIAL PARK

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Garrett Gibbons | Vice President Andy Iversen | Senior Vice President

ggibbons@jacksoncooksey.com aiversen@jacksoncooksey.com

+1 (972) 934-9757 +1 (713) 499-4100

12770 Merit Drive | Suite 760 | Dallas, Texas 75251 3040 Post Oak Blvd | Suite 1050 | Houston, Texas 77056 NO WARRANTY OR REPRESENTATION, EXPRESSED OR IMPLIED, IS MADE AS TO THE ACCURACY OF THE INFORMATION CONTAINED HEREIN AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICES, RENTAL OR OTHER CONDITIONS.

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