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COMPANY OVERVIEW

• Founded in 1987
• Began with 3 people today we have over 56
  employees 30 percent are degreed professionals
• Seasoned technical staff w/ 26 years average
  industry experience
• Legal Baker McKenzie
• Certified Public Accountants BDO Seidman

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COMPANY OVERVIEW

• Sponsor of Reefs Public Private Programs
• Reef Public Drilling Partnerships
• Reef Private Income and Development Funds
• Reef and its partnerships own interests in
  approximately 700 wells in the United States

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PROGRAM HIGHLIGHTS

• 75,000,000 offering of 750 units at an offering
  price of 100,000 per unit
• 25,000 minimum investment
• Accredited investors only
• Fund intends to focus entire effort on Slaughter
  Dean Project
• Invest as Limited Partner (passive loss) or
  General Partner (active loss)
• If 75 million subscribed, 2008 deductions
  expected at approx. 34
• Project expected to be sold between 2nd and 3rd
  year
• 90 of revenue (less expenses generated from the
  sale of oil and gas) will be paid to the unit
  holders, and 10 to the general managing partner
• 30 of Reefs carried interest allocated to
  selling broker dealers
• 80,000,000 insurance policy to protect from
  unforeseen liability

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PRIOR INCOME FUND PERFORMANCE
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Waterflood Development Project COCHRAN COUNTY,
TX
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SUMMARY OVERVIEW

• For inclusion in Income and Development Fund III
• The Partnership has acquired a working interest
  in a producing oil property
• The Enhanced Oil Recovery (EOR) program includes
• Infill drilling to convert current 40 acre
  spacing to 20 acre spacing
• Re-establishing unit-wide injection
• Performing remedial work

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SUMMARY OVERVIEW
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SUMMARY OVERVIEW CONTINUED

• Located in SW quadrant of Slaughter /Levelland
  Field within the Permian Basin
• Produces from San Andres dolomite (5,000 to 5,500
  feet)
• Comprises 6,700 acres
• Dean Unit
• Dean B Unit
• Dean K Lease
• Slaughter Field cumulative production 1.2
  billion barrels of oil to date
  

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FIELD HISTORY

• Amoco initially unitized the field for waterflood
  secondary recovery operations in 1966
• They utilized a 40 acre 5 spot pattern

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FIELD HISTORY

• Amoco initially unitized for waterflood in 1966
• 40 acre 5 spot pattern
• Production peaked around 1700 BOPD and then
  declined due to poor areal sweep efficiency
• Their solution? Infill drill to convert to 20
  acre spacing
  

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FIELD HISTORY

• But Amoco sold Slaughter properties in mid 1990s
  before 20 acre drilling was applied to Dean units

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UPSIDE POTENTIAL

• Converting to 20 acre waterflooding as other
  operators like ConocoPhillips, ExxonMobil and
  Occidental have already done

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UPSIDE POTENTIAL CONTINUED

• Amoco limited completions to zone 5, leaving zone
  4 and zone 6 undeveloped

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DEVELOPMENT PLAN

• Drilling and completing new production wells
• Drilling and completing new water injection wells
• Restoring inactive water injection wells
• Converting marginal producing wells to water
  injection

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DEVELOPMENT PLAN CONTINUED
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DEVELOPMENT PLAN CONTINUED
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DEVELOPMENT PLAN CONTINUED
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ANTICIPATED RESULTS

• If fully funded the Partnership will have up to
  68 percent of the working interest related to
  these reserves
• 11 million barrels of oil (MMBO)
• 7 billion cubic feet of gas (BCFG)
• 12 million barrels of oil equivalent (MMBOE)
• The Partnership may access these reserves through
  additional development activities or sell its
  rights to 3rd parties.
  

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FOR MORE INFORMATION
For sales material and information contact your
Reef Regional Manager listed below, or call Reef
Investor Services at 877-915-7333.
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