Medium Sour Blendstock Crude for Term

*```*MEDIUM MEXICAN CRUDE OIL BLEND LOADING IN PHARR TX*

*PRODUCT:* Medium Crude Oil Blendstock

*QUALITY (RANGE):* 27.5° to 29.5°API Gravity ||| 2.6 to 3%- Sulfur
*MAX MONTHLY VOLUME:* up to 240,000 BBLS (MOL 15%) per month
*SHIPMENT VOLUME:* up to 300 BBLS per truck ||| 35 loads per day available (loaded in 6 day week) ||| 60,000 BBLS loaded in 6 days
*DELIVERY POINT:* PHARR TX, or Surrounding tanks.
*TERM:* 3 to 6 months or longer
*PRICE:* NYMEX Daily
Yesterday's Close (WTI):

3000 bbls a day = -$18.5
4500 bbls a day = -$18.75
6000+ bbls a day = -$19

*INCOTERM:* Freight On Board ('FOB')
*PAYMENT TERMS:* Daily settlement or Weekly Escrow payment for bbls received and loaded.
-Can do 48 hours credit with LC from bank or assigned secondary payee from Refinery.
*INITIAL DELIVERY* prompt 1st week to 2nd week of September

*NOTES:*

-Can deliver at a rate of up to 10,000 barrels per day
-Can deliver to buyers tanks within 40km of border, almost anywhere in Rio Valley area
-Quantity and quality surveyor can be onsite for daily inspections.
-Buyer's nominated personnel onsite and supervises delivery
-Can Load out of temporary transfer yard in Pharr TX
-Low metals but some organic chlorides between 2 and 3.
- This outline serves as term sheet
- LOI, Proof of Funds, Purchaser details disclosed at the outset of conversation, prior to offer or contract.